Hi John
I see I missed a few of your calls today. I've not been at my computer.It's been a very busy week with the day job and new clients so couldn't devote the time to trading that I wanted to. I made quite a few trades and they were profitable. I lost a few which annoyed me because I didn't go to break even when I could and ended up in a loss albeit a controlled loss as I got myself out so pips lost were small - 10 or under. Had I taken profit at support or resistance I'd not have had a single loss this week. Hindsight!! But this week I will go back to taking my profits even though they may be small or breaking even and let the trade run.
As you know I've been looking at wider time frames and that's why I stopped out. It all goes back to having large enough stops to accept retracements. So this week I will concentrate on recovering my small losses. I never trade without a stop. This has become second nature to me now and I'm grateful that you drummed that into me. It's a good feeling when losses are small you can get them back a lot easier. I'm still recovering from the NFP (non farm payrolls) January disaster.
Sometimes it's so tempting to move a stop but it's not worth it because it can really keep going the wrong way. With the system I follow,especially on the higher time frames, when you enter them you are seldom stopped and assured of pips IF your stops are big enough to take the timeframe into account. It's up to me to see how long I can stick it out. I'm still too tempted to get out early and time will teach me to stay in as my confidence in trading increases.
I know you don't agree with filling ones head with too much information butI love doing research and reading up about other traders and how they madeit. It's not an over night success story at all. Its hard work. I'm trading with a group on Skype - they're from Moscow, Australia, Singapore and Florida, and we discuss the trades and then enter on our own. Everyone has their own trading style and its fantastic chatting to experienced traders who trade for a living. I feel very small next to them but realise that I will get there if I keep doing what I'm doing and have faith in my system and be patient and wait for trades to come to me. One chap has blown several accounts because he was greedy and impatient. He's back to square one and gone back onto the demo for the next month.
Your courses have had the best grounding to keep me focussed. Listening to others who've jumped in boots and all without any education is scary. I'm becoming more relaxed trading but there are still days when I'm afraid. When I feel like that I'm learning to walk away. On Friday I was busy but still watching the charts. There were a few good runs but I was reluctant to trade as my mind wasn't 100% on what I was doing and the phone kept ringing. Now two days later I'm glad I stayed out because I could be sitting here telling you of my Friday cock ups. It's happened too often that I made good pips throughout the week only to give them back on a Friday.
I have also learned that I cannot put a finger on when I can call myself a trader. But every day I see progress and when I look back I can see how far I've come. Yes it's been frustrating as I should be trading higher lots but on the other hand I could be starting a 2nd account having wiped out what I started with. Ok that's me for now Have a great Sunday. Regards Desiree
Sunday, 22 March 2009
Monday, 16 March 2009
14th March Later
Dear John
It’s been a very exciting trading week for me and the week I took off has really helped me with a lot of issues. I appreciate your call yesterday butI never traded yesterday as I spent the day and most of the night thinking about what you said.
Trading affects people in different ways and each one has to find his groove. I know you disagree with the ‘comfort zone’ but I am not someone who can take pressure and I need to keep my wits about me when trading and added pressure will kill my trading as it so nearly did two months ago.
Having traded now for half a year this is what I have come to realise. Demo trading is fine to learn how to trade but it doesn’t teach you anything about money management and the psychology of trading. Only when you start with real money does reality sink in. I also find that to start trading with larger sums right away can break you before you are comfortable trading. So my thoughts are to get started and learn the basics, then open a small account (maybe a micro account) and trade small amounts so that you are happy to enter and exit trades even if they go against you. Only once you are making consistent profits albeit small ones as your stake is smaller should you consider increasing your lot size.
To me trading will eventuallybe my bread and butter and I have found a system that I’ve mentioned in previous emails. Because I previously traded higher lots I was terrified to enter trades in case I got zapped. Reducing my lot size I can absorb losses and am not afraid to enter more than one trade a day. In the past I made a few pips and got out afraid I’d give it all back, now I am happily making40+ pips a day and feel I’ve achieved something.
I’m getting to the point where I will be happy to increase my lot size. I’m not there yet but I’m close. I discussed our conversation with my son and he agrees with you that if you are under pressure you will be more focussed. To me it’s the opposite. I need to be relaxed entering a trade because fear clouds your judgement and I enter too late missing a good opportunity because I need double confirmation I’m doing the right thing and by doing so cock up my entry.
Every time Iincrease my lot size I lose money and I’ve halved my account by trading beyond what I feel is the right amount for me till I feel more confident even taking money management into account. To me that confirms that I wasn’t ready to trade bigger lots. Building up my account again has been a hard slog and it’s taking longer because I decreased my lot size but my thinking is if you can consistently trade smaller amounts for longer periods by the time you have recovered your losses you will know more, feel more confident with your system and then are ready to trade higher lots.
I can see you reading this and shaking your head. It’s all about being consistent and a week or two of consistency is not enough. I intend to be in this for the long haul. Wiping out my account trying to get there won’t make me a better trader. I’ve spoken to other traders who started trading and beginners luck made one profitable trade after another. One trader did so well he doubled his account within a few weeks and got confident and as quickly lost what he’d made and half of his original account. His mistake cost him $30 000 and he’s gone back to square one and trades £1 a pip and has to work up to what he lost.
I don’t intend going down that road. Despite his small lot size he makes his living trading and when the trade looks good adds a few more lots to it. If I look back over the past few months I can honestly say that only now do I feel I’m becoming a good trader and I understand the trades I enter.Before it was often hit and miss with too little knowledge of what was going on. The indicators cluttered my charts and I didn’t understand what they were telling me. Had I started demo’ing a system from the beginning I’m sure I’d be a lot further today however that is hindsight and I think there are very few traders out there who begin consistently and remain so till they find their trading feet.
On the plus side I’m making good pips. My losses are smaller and when Ienter my trades when the signals don’t fully line up I get bitten. Thankfully the bites are getting less and the wins are overtaking them. Outof 10 trades 7 were winners. I entered a trade on a longer time frame too late and instead of bagging my 30+ pip profit I gave the trade lots of room to move wanting to stay in for longer and it went against me and I lost 30 pips. I closed the trade as I didn’t want to risk more. Of course the trade did eventually continue to make over 200 pips. Its areas like this that Ineed to become more familiar with. Analysing the trade I saw it had reached major support and that would have been a good place to lock in profit as it retraced all way back again. I made those pips back again in subsequent trades. Its ok to stay in a trade for a longer period but I need to lock inprofits. Getting there …..
I look back to when I started and can see the progress. In 3 month’s time I’ll do the same again and see further progress. Most important of all I am extremely grateful for your help and support and pushing to do better. Have a good weekend Regards- Desiree
It’s been a very exciting trading week for me and the week I took off has really helped me with a lot of issues. I appreciate your call yesterday butI never traded yesterday as I spent the day and most of the night thinking about what you said.
Trading affects people in different ways and each one has to find his groove. I know you disagree with the ‘comfort zone’ but I am not someone who can take pressure and I need to keep my wits about me when trading and added pressure will kill my trading as it so nearly did two months ago.
Having traded now for half a year this is what I have come to realise. Demo trading is fine to learn how to trade but it doesn’t teach you anything about money management and the psychology of trading. Only when you start with real money does reality sink in. I also find that to start trading with larger sums right away can break you before you are comfortable trading. So my thoughts are to get started and learn the basics, then open a small account (maybe a micro account) and trade small amounts so that you are happy to enter and exit trades even if they go against you. Only once you are making consistent profits albeit small ones as your stake is smaller should you consider increasing your lot size.
To me trading will eventuallybe my bread and butter and I have found a system that I’ve mentioned in previous emails. Because I previously traded higher lots I was terrified to enter trades in case I got zapped. Reducing my lot size I can absorb losses and am not afraid to enter more than one trade a day. In the past I made a few pips and got out afraid I’d give it all back, now I am happily making40+ pips a day and feel I’ve achieved something.
I’m getting to the point where I will be happy to increase my lot size. I’m not there yet but I’m close. I discussed our conversation with my son and he agrees with you that if you are under pressure you will be more focussed. To me it’s the opposite. I need to be relaxed entering a trade because fear clouds your judgement and I enter too late missing a good opportunity because I need double confirmation I’m doing the right thing and by doing so cock up my entry.
Every time Iincrease my lot size I lose money and I’ve halved my account by trading beyond what I feel is the right amount for me till I feel more confident even taking money management into account. To me that confirms that I wasn’t ready to trade bigger lots. Building up my account again has been a hard slog and it’s taking longer because I decreased my lot size but my thinking is if you can consistently trade smaller amounts for longer periods by the time you have recovered your losses you will know more, feel more confident with your system and then are ready to trade higher lots.
I can see you reading this and shaking your head. It’s all about being consistent and a week or two of consistency is not enough. I intend to be in this for the long haul. Wiping out my account trying to get there won’t make me a better trader. I’ve spoken to other traders who started trading and beginners luck made one profitable trade after another. One trader did so well he doubled his account within a few weeks and got confident and as quickly lost what he’d made and half of his original account. His mistake cost him $30 000 and he’s gone back to square one and trades £1 a pip and has to work up to what he lost.
I don’t intend going down that road. Despite his small lot size he makes his living trading and when the trade looks good adds a few more lots to it. If I look back over the past few months I can honestly say that only now do I feel I’m becoming a good trader and I understand the trades I enter.Before it was often hit and miss with too little knowledge of what was going on. The indicators cluttered my charts and I didn’t understand what they were telling me. Had I started demo’ing a system from the beginning I’m sure I’d be a lot further today however that is hindsight and I think there are very few traders out there who begin consistently and remain so till they find their trading feet.
On the plus side I’m making good pips. My losses are smaller and when Ienter my trades when the signals don’t fully line up I get bitten. Thankfully the bites are getting less and the wins are overtaking them. Outof 10 trades 7 were winners. I entered a trade on a longer time frame too late and instead of bagging my 30+ pip profit I gave the trade lots of room to move wanting to stay in for longer and it went against me and I lost 30 pips. I closed the trade as I didn’t want to risk more. Of course the trade did eventually continue to make over 200 pips. Its areas like this that Ineed to become more familiar with. Analysing the trade I saw it had reached major support and that would have been a good place to lock in profit as it retraced all way back again. I made those pips back again in subsequent trades. Its ok to stay in a trade for a longer period but I need to lock inprofits. Getting there …..
I look back to when I started and can see the progress. In 3 month’s time I’ll do the same again and see further progress. Most important of all I am extremely grateful for your help and support and pushing to do better. Have a good weekend Regards- Desiree
Saturday, 14 March 2009
14th March
Hi John
I am writing an email and will get it to you later on today I didn't trade yesterday. I couldn't get into the zone.
I will follow with a long email later on explaining why Regards Desiree
I am writing an email and will get it to you later on today I didn't trade yesterday. I couldn't get into the zone.
I will follow with a long email later on explaining why Regards Desiree
Saturday, 7 March 2009
6th March
Subject: thank you for a super holiday.
Dear John I have just gone through Leigh's photographs and here are a few of you which are super. I love the one of you at the restaurant on Sunday.
We had the best time and can't thank you enough for your hospitality and kindness to us while we visited you in your lovely home.
It was a much needed break and although we didn't trade or talk much about trading the few times we did touch on it your information was invaluable. I can't believe I didn't open the charts for a full week. Just goes to show how desperately I needed a holiday away from trading and work in general.
Hard to believe but this morning I was awake at 6am with the busses going by. I slept so well in Huelgoat and the only sound was the rain on the windows of the birds on your deck. You have a super home and we felt so honoured to be invited to spend time with you in your French home.
The area is spectacular and we'll definitely put this on our list of places to visit again. Thank you for the loan of the car and taking us to all those lovely restaurants. I think my favourite meal out was the routier (?)
You have an ideal spot for new traders to come and get one on one instruction. A perfect place to focus on trading and absorb your knowledge. I had a long chat to Darren this afternoon. He made over 30 pips on a Euroshort. We are looking forward to trading on Monday. I can't wait to getback to the charts.
Now I'm home all I want to do is trade. The system I sent you will be revised on Monday and I'll send the new pdf to you Thank you so much again and I look forward to chatting to you on Skype soon
Desiree and Leigh
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