Trade Management vs Entry level
Why profitable trade not always equal to good trade, and when losing trade still belongs to realm of good trading:
This week I made 12 trades: 7 profitable, 5 losing jet only 2 hit our final TP level. overall outcome 4.09% gain.
Worst trade this week was EURNZD, as I managed to fail on all possible levels:
1 - wrongly calculated risk - instead of our overall 2% risk in relation to ATR I somehow ended up with 4 - 5% of risk. I should close the trade same moment I noticed it, or I should reduce the size of position to match our Risk Management
2- Very bad entry: from the start I knew I am going against the buyer, but I didn't wait for them to die fully as in this case it should be mandatory. Ended up with spike that cut me out before going my way.
3.-Even when I realized all my mistakes I was still holding the position - this was the biggest mistake of the week, there is no place for hope or coin flipping in trading
Overall I had 2 very good trades that hit our TP level this week.
- AUDCAD & EURAUD. Which had good overall Pair correlation, good entry, well placed partial profits and final TP.
Other 9 trades:
Most of my other trades were full of bad entries, some even wrong direction , jet most of them brought me some profit.
The crucial thing was close monitoring them and taking parts of position, moving SL to 0 and taking profit when realizing the trade will not work 100%. This way I cut my self out of few bigger wins but overall I also cut myself out of
some possible bigger loses. And reducing the loss is one of the key factors in trading.
If I would simply relay on 2:1 or 3:1 ratio this week would end up negative. Key component is your trade involvement , locking in pips along the way and very strict risk Management. My goal is alway 1:1 before I lock half position
and move SL to 0, but I don't move the market so I adjust it every single trade a long the way.
Conclusion:
You don't need to be correct or prefect to profit but you can't and should NOT exclude trade-ing from a trade.
This week I made 12 trades: 7 profitable, 5 losing jet only 2 hit our final TP level. overall outcome 4.09% gain.
Worst trade this week was EURNZD, as I managed to fail on all possible levels:
1 - wrongly calculated risk - instead of our overall 2% risk in relation to ATR I somehow ended up with 4 - 5% of risk. I should close the trade same moment I noticed it, or I should reduce the size of position to match our Risk Management
2- Very bad entry: from the start I knew I am going against the buyer, but I didn't wait for them to die fully as in this case it should be mandatory. Ended up with spike that cut me out before going my way.
3.-Even when I realized all my mistakes I was still holding the position - this was the biggest mistake of the week, there is no place for hope or coin flipping in trading
Overall I had 2 very good trades that hit our TP level this week.
- AUDCAD & EURAUD. Which had good overall Pair correlation, good entry, well placed partial profits and final TP.
Other 9 trades:
Most of my other trades were full of bad entries, some even wrong direction , jet most of them brought me some profit.
The crucial thing was close monitoring them and taking parts of position, moving SL to 0 and taking profit when realizing the trade will not work 100%. This way I cut my self out of few bigger wins but overall I also cut myself out of
some possible bigger loses. And reducing the loss is one of the key factors in trading.
If I would simply relay on 2:1 or 3:1 ratio this week would end up negative. Key component is your trade involvement , locking in pips along the way and very strict risk Management. My goal is alway 1:1 before I lock half position
and move SL to 0, but I don't move the market so I adjust it every single trade a long the way.
Conclusion:
You don't need to be correct or prefect to profit but you can't and should NOT exclude trade-ing from a trade.