Managed to decrease losses, but also profits, confused now | Forex Factory

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Managed to decrease losses, but also profits, confused now

  • #1
  • First Post: Feb 23, 2009 11:47pm Feb 23, 2009 11:47pm
I have managed to eliminate 234 pips in losses in 735 pips, but also eliminated 262 pips in profit on 1143 pips, The total loss on profit is just 28 pips, but I think it did a great job because 234 pips in losses where eliminated and I never had to face them, i just came to thought that I could achieve the same results juts by decreasing lots, because some profits where also eliminated, right now I'm a bit confuse, which one is correct?

Btw, my target is to eliminate losses, not to make more profits, but I'm still confused about that thing of decreasing lots.
Logic will get you from A to B. Imagination will take you everywhere.
  • #2
  • Feb 24, 2009 12:23am Feb 24, 2009 12:23am
Quoting Masmp_FX
I have managed to eliminate 234 pips in losses in 735 pips, but also eliminated 262 pips in profit on 1143 pips, The total loss on profit is just 28 pips, but I think it did a great job because 234 pips in losses where eliminated and I never had to face them, i just came to thought that I could achieve the same results juts by decreasing lots, because some profits where also eliminated, right now I'm a bit confuse, which one is correct?

Btw, my target is to eliminate losses, not to make more profits, but I'm still confused about that thing of decreasing...
Let me think and express better, lets say that every pip is worth 2 Dollars
I eliminate 468$ in losses of 1470$, and also eliminated 524$ in profits of 2286$ ,

1470$-468$=1002$ of losses, and 2286$-524$=1762$ of profits , which makes 1762$ profits - 1002 losses = 760$ total profit.

in order to do the same by decreasing lots, lets say each pip is worth 1,5$
by having a total of +1714$ in profits and -1102$ in losses, my profit is 612$,

Conclusion of my thoughts, by decreasing my lots, I ended up wining less $, and losing more $ than, the method I posted here, but it seemed possible on my thought, I think I'm not confused anymore.
Logic will get you from A to B. Imagination will take you everywhere.
  • #3
  • Feb 24, 2009 8:30am Feb 24, 2009 8:30am
Your post has a great deal of "hidden" psychology in it and while I don't know your method of trading I'd like to just put forth some ideas for you to chew on.

The losses you mention, are they the result of an exit strategy or a stop loss? If you don't have an exit signal, find one and use it. Then use a stop loss that is positioned OUTSIDE your exit signal range, so you have a "double layer" of protection in the event of a bad trade.

From your stop loss calculate your position size to be no more than 1-2% of your total account size.

From there start concentrating on finding the winning trades. This is more a mental exercise than anything else. From your numbers it appears you have a statistical edge on the market as you are winning more than you lose. You must now exploit that edge, but from a psychological stand point it is very different.

You have the risk management idea above...use that robotically. Exit when the exit signal comes...don't hold the trade to see if it stops out...then CONCENTRATE on finding winers. Look for wining trades when you check the charts. Stop concentrating on eliminating losers...instead concentrate on finding more winers.

I know this may seem like a difference of only symantics, but it make a huge difference in your psychological edge. You must learn to accept the losers as part of the game, but keep your focus on finding sucessful trades. Even it they are only 1 pip successful. You will be amazed at the difference.

What happens is that your eye begins to find what its looking for. If you look for losers that's what you will find and it will become unconscious...bad state to be in. Instead, look for winners. Find that little subtle difference between the wining entry signal and the losing entry signal. Soon your eye will unconsciously find the winers and reject the losers....GREAT state to be in. Finally accept that some signals just turn out bad...life is like that. Don't try to "eliminate" thos signals, accept them...embrace them and understand its the market NOT YOU that is making these signals possible.
  • #4
  • Feb 24, 2009 9:32am Feb 24, 2009 9:32am
Quoting Masmp_FX
I have managed to eliminate 234 pips in losses in 735 pips, but also eliminated 262 pips in profit on 1143 pips, The total loss on profit is just 28 pips, but I think it did a great job because 234 pips in losses where eliminated and I never had to face them, i just came to thought that I could achieve the same results juts by decreasing lots, because some profits where also eliminated, right now I'm a bit confuse, which one is correct?

Btw, my target is to eliminate losses, not to make more profits, but I'm still confused about that thing of decreasing...

I'm not sure if you have reduced also the number of trades: if so you might like to think about that: What would you prefer - many or few trades !!!http://www.forexfactory.com/showthread.php?t=149816



 234 pips in losses
262 pips in profit

well if each Pip is the same worth than you got read of more profit than losses ???
__Thanks__ MJ
  • #5
  • Feb 24, 2009 11:57am Feb 24, 2009 11:57am
thanks gspajon, that was profound! ... relates heavily to where I am at the moment also - thanks for your time ...
  • #6
  • Feb 25, 2009 9:44am Feb 25, 2009 9:44am
Quoting M_j
I'm not sure if you have reduced also the number of trades: if so you might like to think about that: What would you prefer - many or few trades !!!http://www.forexfactory.com/showthread.php?t=149816



 234 pips in losses
262 pips in profit

well if each Pip is the same worth than you got read of more profit than losses ???
yes, it means less trades, Yes I got rid of more profits than losses, but eliminated 234 pips, on my draw down, and lost only 28 on Total profit
Logic will get you from A to B. Imagination will take you everywhere.
  • #7
  • Feb 25, 2009 9:48am Feb 25, 2009 9:48am
Quoting gspajon
Your post has a great deal of "hidden" psychology in it and while I don't know your method of trading I'd like to just put forth some ideas for you to chew on.

The losses you mention, are they the result of an exit strategy or a stop loss? If you don't have an exit signal, find one and use it. Then use a stop loss that is positioned OUTSIDE your exit signal range, so you have a "double layer" of protection in the event of a bad trade.

From your stop loss calculate your position size to be no more than 1-2% of your total account size.

From...
Well, I already have more winers than loser, my goal is to reduce my DD, the lower the DD, the better, If it wins a bit less, and DD decreases a lot, I may put more lots to compensate.
Logic will get you from A to B. Imagination will take you everywhere.
  • #8
  • Last Post: Feb 25, 2009 10:50am Feb 25, 2009 10:50am
Quoting Masmp_FX
Well, I already have more winers than loser, my goal is to reduce my DD, the lower the DD, the better, If it wins a bit less, and DD decreases a lot, I may put more lots to compensate.
Personally - if the main aim is to reduce DD I would go for smaller lots as you have removed more profit than loss.

And 28 PIPs is about 3 % of your profit pips



in the light of http://www.forexfactory.com/showthread.php?t=149816
__Thanks__ MJ
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