DislikedFolks,
today I rode the wrong bus...and I learned several lessons that I want to share with you about my learning on risk managment.
1-Define clearly how much you want to lose for peace of mind. This will help at the time that we need to bail out and not have much regret. Losing more than 1000 pips is not worthy. 1000 pips? Yes, 1000 pips. When yo reach your limits....PULL THE TRIGER!
2-Keep your sizing small and do not have too many troops outs. More than 3 waves out is probably too much.
3- Fti seems to be correct. It would take quite a few months of practice before we could understand -somewhat- this MO.
fti' strategy works but oh lord...it is really really dangerous...if you do not have the gut and a large bank account, you could easily go for broke.
Me? I am reducing again my sizing not because I was emotional but because I am still developing the best way of take profit as well as managing the news.
My loss today was too high for my style....I either go full size to deal with win/loss ratio -which is fine with me- or keep evaluting different approach to manager risk. I prefer the later.
Note: I stopped placing my trades in my forex factory journal for my own peace of mind. People should practice they own way and find their path.
In my short learning, I came to the realization that naked trading is tough and for the tough one. Why? There are not regulalities and we must be totally aware of the market unless she will destroy us. What I mean?...you are on your own...It is she and you. Peace.Ignored
I have noticed that with a 10k acc its still hard to go past level 5 there's just not enough muscle to sustain the possible losses wo hurting your account proportionally. Then there is a case where if you go small , your profits are just too litle to get by (the effects of being a small player not taking advantage of leverage), for this to work for a retailer like me, i need to have some sort of proegrammed skew and sizing. And im keeping it that way. Consider it my MM and MO. Maybe when im trading 100k, i'll consider going deeper. For now, the max for me will be up to $12 per pip. No matter what my skew or sizing is. (1,2,3,6) at 0.5per troop returns me abt 10-30 bucks daily, i guess thats fairly okay for a start.
If I am BS-ing right here, someone please spank me, but yesterday (EU) was a classic example of a black swan to me, whats worse was some may have been actively averaging and were almost maxed out in sizing(esp for small acc) when the spike happened. Go small, well, it'll take forever to be make your account look cool, go medium the risk increases proportionally. The anaswer for me i to this is to go medium, small skew and if level 5 fails, bite the bloody bulllet.
regards
jest