Friday, 28 November 2014

November 1 Profit Trade 6 Losing Trades

Traders who did not start in the early January and did only start in November will definitely face a disastrous trading experience that we had mentioned earlier - Multiple Losing Trades.

No point talking the early profits as readers traders can read in the learning corner on the right column, we are now discussing the multiple losing trades. Without carried forward on the profit from October that only recorded its profit in early November of 117 points, the 6 losing trades in a row in this month amounted to a total of 247 points of $6175 per contract size. 

Using $10,000 to trade one lot will never be enough if trades only started initiated on 5/11/2014. This is because the losses as at today has reached $6175 excluding trading cost and traders will basically have not enough margin to support the trading further unless put in more money!

Let's say the six losing trades 247 points minus out the profit in one trade 117 points, traders will still face a total loss of 130 points or $3250 per contract size which enough to affect the trading psychology of a good trader. 

Therefore, good capital risk ratio and never over trade is a kind of discipline that technical trend traders need in order to see the real performance year after year. 

From now onward, the short 2161 based on the hourly indicator Y trading guides will probably be brought over to December and we shall see how is the performance again at the end of this year with a full summary for Year 2014 using technical indicator Y on hourly short term technical trend trading.