DislikedInteresting spreadsheet RJ.
It's easy to get carried away with the compounding factors based on the analysis of making the 50 pips a day, everyday. Even when we make the adjustments and say we go for 20 pips a day we can end up with sizeable accounts in theory.
However, just like you were saying about "Greed and Fear", he doesn't respond to the theory of the spreadsheet. Sticks his head up at in-opportune times and creates havoc for the in-experienced and experienced for that matter.
There is a big difference in the mindset from trading a .1/.2...Ignored
The size of the account doesn't matter.....as per the spreadsheet, we are aiming for 50 pips/day and the risk is (more or less) *always* the same %age (apart from the week 1 and week 2 ). I will always let the trade run to S1 (for example) because once my SL is at BE....there simply is no losing from here on in.....the risk is removed. 8 times out of 10 it will get to S1 or beyond......on the other 2 occasions it will come back and knock me out for +1. Yes.....I could cry about "oh shit....I wish I had have taken the profit at +25 instead of +1 that I have now"......but that is greed. If we give in to that....soon, we will be aiming for +25. What happens when it turns around at +20 and knocks us out for +1? Will we then adjust our target to aim for +20?? What happens when it turns around at +15.....+10....+5???? Now we are solidly in the grip of fear and greed.
My personal way is to aim for the pivots or other s/r lines as we all know. If I get knocked out for +1....so be it. I go and make some coffee and look for the next opportunity and I don't give the past trade a second thought.....because....many time when I am aiming for (say) S1.....the PA might go to S2 or S3. Those wonderful trades more than offset the times where I get knocked out for +1.
So it's all 'swings and roundabouts' for me.....the point is, I have a plan.....and I stick to the plan.
The minute you start changing your plan out of fear and greed, is the day you are looking down the barrel of the 95% who lose!!
Discipline and patience are the keys.....along with a good system and a good plan. You must stick to each of the above.
Of course the spreadsheet doesn't allow for losses and it doesn't allow for +20 days or withdrawals. The point of the spreadsheet is to show what is possible with modest pippage, discipline, patience and a good system.
Doing what you like is Freedom. Liking what you do is Happiness.
