Things can go bad after going good.. October as a fertile month where I made 8% of my equity, but then started November and after a week or so I was down -9%, right now I'm -6%, but it's still negative number, so I'm not happy.
Why did it happen? because I didn't follow my daily stop loss rule, and lost in 1 day more than what I make in a few, which sux, at least it happened to me only once, so I know I can control it from now on, and I will not do it again.
Moving on to today.. +152.5$, finally profitable day after some time.. Monday for example I made 1.5$ after commissions, which is ridiculous but still it beats losing money :)
What I've learned this week? my risk number for now is 40$-50$ per trade, so when I say I'm up 3R today I mean I'm up 150$, so after playing with this technique for a week I saw that it really helps keeping track of your result.
What I came to realize from the experience of trading the NQ, is that I usually can risk 2 points(which is 40$, but 45.5$ after commissions and sometimes 50$ after slippage), and gain 3.5 points many times after a short period of time, so instead of trying to search for the holy-grail which we all know doesn't exist, so instead of trying to pump 5-10 points out of every 2 points risk trade, I'll try to get out after humble 3.5 points profit, and that way I can come faster to my desired daily profit.
Desired daily profit I said? well for my account anything from 120-150$ will be good, weekly desired profit for now will be as low as 300$ since my capital and experience is so low, it will get higher as I grow as a trader.
Today's action..
I'll put three trades, two winning and one losing:
Winner#1 - Speed!
I came and go quickly, as soon as I saw the downtrend channel break up, I went long, putting a sell order on my desired profit(3.5 points) and let the market work for me ;)
Loser of the day, even with slippage :
The call was right, the the uptrend did break and my short would have work should I take enter it again, but I came 4 minutes earlier, and my stop was too tight..
Winner #2 - It will go higher :
This one I took after I saw that the channel broke upward, I initiated long position with sell order 3.5 point higher, but as the market went, and as the other indices got up, I know NQ have to go higher, so I closed the sell order of 3.5 points higher, and put stop loss on the entry, and let the trade go, as it went by and started losing speed, I put sell order 4.5 points higher, and it got hit :)
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3 comments:
Good job!
As we already said, small winners add up. There is nothing wrong with taking smaller gains, on the contrary! First of all the increase your confidence. Secondly, they do add up!!!
I hope that soon enough you'll be able to increase your risk a bit and start to take 2 contracts. I believe it will make life for you much easier.
Neither the week nor the month are over yet, so bring it on! November is a GOOD month (after all I'm a Scorpio ;) )
Thanks!
Yup, I can still make this month profitable, maybe with a little profit, but still profitable.
And about increasing to 2 contracts, only when I have full confidence in my method I will do it..
for now The results are good when I stop losing day, now I only need to control my losing day, Tuesday for example I lost 20 dollars, which is so funny :) because it's close to nothing, better than losing 150$ and ruining my month completely :)
I completly agree that small profits add up. I've also noticed that after a few winning days my confidence is much higher.
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