In Search of Lost Profit ...

until Thursday last week, I've been consistently profitable for the last 2 weeks and 3 days.

I trade with micro lots, each day I make a small profit, by Thursday last week I've accumulated about $30 profit.

on Thursday I suffered a small loss of $3. I decided it was not acceptable, because I hadn't had a single losing day for more than 2 weeks, how could I let this blip darken my record?

on Friday I began to trade with 3 times my usual size. the 1st trade was a small loss. I doubled my size and suffered another loss, so I doubled again... to make a long story short, by the end of the day, my account was down $169.

the good thing was that I didn't blame the market for my loss. I knew it was entirely my own fault. and if I'd stuck with my system, I could have made it all back. but the fact was that I chickened out.

luck also played a part. after-the-fact review told me that I picked the worst pair (EURJPY) to trade for that day. if I've traded multiple pairs as usual, I could have made a handsome profit.

or maybe this was just wishful thinking. there might be sth fundmentally wrong with my system, or my ability to implement it.

tomorrow is another day, I've been preparing for the new day's trading. it'll be hard to recoup my losses. maybe I should just pretend I never had that money.

How mnay trades did you take to accumulate the $30 profit?

I once had a 22 day streak of making money every day. Then on the 23rd day I got into a Cable trade that went bad immediately and I reversed and came back to about 5 pips from even. I knew the first trade was a bad trade and the second was pure revenge, but I didn't get out. When I finally stopped 5 hours later, I had lost everything I had made and then 26% of my starting capital.

When I did my records a couple of days later I also found lots of shoulda's and coulda's, but the bottom line was I had lost control and it snowballed.

At least once every three months I look at my records of that day. When I do, my stomach goes into knots and I can viscerally recall that day, minute by minute. It's one of the best lessons I've ever learned. Btw, I took two months after that. It was needed.

I once lost 75% of my account value in 2-4hrs of trading. It was last November if im not mistaken. I also took 2 months off after that. I agree with you, it was needed.

hello Dopey, hello --TNT--, thanks for sharing your experiences. I did what I did while completely aware of the danger of revenge trading. I felt like I was doing an experiment, my curiosity got the better of me and I just had to find out what could happen. I think I know now. and the best thing was that I didn't blow my account.

for the time being, my curiosity was satisfied, but my confidence has taken a toll. I'm eager to restore it. so I won't be taking a break. I think action is the best medicine, and positive results will once again restore my confidence.

hello philmcgrew, it took me about 50 trades to gain $30.

hey bluefox u have to accept losses keep ur style/method and as they answered above dont take revenge by increasing ur gearing, relax and just do the same as usual thats my advice . so if u manage to trade exact that method for month a year what so ever over a bigger period i recommend u to do the simple scholl math and think in probabiltys u will know more precice reckonice ur hit ratio and in that way build ur very own confidence in ur aproach. Regarding in thinking in probabilitys was a thing i first started this year but i calculate it for every 3 month this will also give a cluster if u will manage to increase ur account steady. all best

revoke

OK, I thougth as much. Thats a terrible risk:reward. You are risking $3 to make $0.60. No trader, good or bad, can overcome those odds. You have to get that straightened out. Obviously, increasing size and doing it on NFP friday are big mistakes but that R/R has to get fixed.

Very good thread, notice theres not many people that admit to it, the snowball i figure happens to alot of people i'm sure, if more people explained how they overcome it etc, there wouldnt be so many people blowing live accounts i should think

Thanks for the posts, i'll take something away from this

here is my current trading approach:

1. participation in the market is the best way to capture the big moves.
2. develop a method based on price action to keep me always in the market during my trading session.
3. apply an appropriate money management method to make sure that I'm big when market moves.
4. discretionarily exit my trades. (still working on a better, more consistent exit strategy)

I'm having problem with letting profits run, while at the same time not letting a winning position turn into a losing one. it's really hard to manage both.