DislikedWe are dealing with psychology. I keep enough troops in my domain that I believe that I can bring more and more to save the day if I have to. Of course, my constrains are very well define: I trade the 5M for only 1 hour, I do not commit to trading more than 25 % of my potential trading capital.
My number 1 rule: Preservation of capital. I mean: I am a total coward. I want to win a war with the fewer number of battles, so I fight every 5M bar. Illogical? will that limit my profit potential? probably. I just want to win day in and day out, any number larger than zero is delicious. Everyone has to define their own pain level. For some is 1% for other is 2 %.
I play very small because I still do not know what is my threahold for pain...but I tell you that an stop loss set is hell for me..Today I was losing 200 pips and I just followed the teaching and rescue the troops for another win day. Why? I screw up. I did not understand PA...no indicator to blame, no system to blame but my own blindness.
If I am in trouble I might play for another hour then I will take my loses and go to bed and cry. I will stop. So far, in more than 30 wars, the only time I have a loss was when the computer acted on me and I lost my mindset.
Protection against a major disaster? I already have it. I only need to close the trades. I mean, I babysit my trades as if they were my own children. Could that happen? Yes, if you play when US news are coming out. Do I do it? No news trading for me. I already got burned once. It will never happen AGAIM in my whole life... Of course...I am just learning and in training.Ignored
I see from your reply that you have the mental fortitude & MM to overcome all eventualities, I applaud you.
Regards,
BabeFX.
I am wrong until the market proves me tight.