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First Do No Harm

 
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mjdcomplaw

First Do No Harm

Some of you might recognize that phrase from the medical field.  It is attributed to the Hypocratic Oath taken by doctors, although the phrase is not in the actual oath.  It is also the first rule of trading.  The very first and most important key to success in trading is avoiding large losses, a point that is driven home to me yet again in my first three days in Gold II.

In my first 2 days, I started out hitting my targets, only to see them eliminated by 8 large losses.  My trade expectancy, profits and avg win vs avg loss are all under water in the first 2 days because in each of those days I took large losses which wiped out my profits and put me in a hole.  On Day 3, I got out when I hit my targets and preserved my gains.  Out of the 34 losses (vs 39 wins), 8 losses account for 2/3's of my total losses.  Eliminate those losses and I am in profit three straight days, I have a positive avg win vs avg loss and I am up on all my goals on a consistent basis.

Fri, 01/11/2019 - 8:06am
 
mjdcomplaw

I am starting to improve. 8 large losses in 3 days last week, and after 3 days this week, I have only large losses, but I still have room to improve. Also to the good is that my large losses are smaller this week than they were last week.

I took a beating yesterday with Brexit and the Pound, and it was completely avoidable. Once again, I let myself get suckered in, when I was ahead. Have to remember to stick to my strategy, which is working if I let it. If I eliminate the large losses, then I am well into profit and hitting my targets!

That said, limiting large losses to 1 or less per day is something I will take and build on. I look forward to limiting them to 1 or 2 per week at best.

 
Rookie

@mjdcomplaw, good luck with that! Best to you MJD.

 
jtworkman

the first thing I try to do is to keep losses down by having a stop loss on every trade
When I get in a rut on trading losses I try to take a break for a day and come back and take another look at the basics
good luck trading
I hope to be in gold soon

 
danielt

mjdcomplaw, are the stats you mentioned calculated on all trades in your Gold prefund account, or are they based on the last 20 trades as is the case in the Silver 3 requirements?

I started out with 8 bad trades in a row in Silver 3, but my last 20 meet the requirements, so I hope to be moving to Gold soon.

Best wishes on your quest for Gold 3!

jtworkman, I follow the same advice about taking a break after several losses in a row. I also take a break after making a lot of pips because I find that I feel like Super Trader and start entering trades where I shouldn't.

 
steph82012

Discipline, is so hard! I get excited and want to jump in when the market starts moving! I do better when I calmly look before I leap!

Good Luck and Happy Trading

 
mjdcomplaw

@danleit. Sorry I took so long to come back to this. First of all, I agree completely about stepping away when things are going bad and you feel the frustration building. At Gold 1, as you can see, you are evaluated on 50 trades instead of 20. At Gold II, your pre-funded account goes down to $1000, from $10,000. Nearly all of my trades are at 1 microlot, although when I am scalping, I will sometimes bump it up to 2 microlots. Also, they evaluate you on 100 trades, instead of 50.

In terms of improvement, I only took 3 large losses this entire week, so I am meeting that goal, and this was a profitable week for me. I need to continue to build on this, because I only need to build back up to a positive expectancy overall (i.e getting back the losses from the first 2 days). If I continue to focus, I could reach Gold III by week's end.

 
boss_hogg

@mjdcomplaw Thanks for the tidbits of info! I'm knocking on Gold I (9 more trades). I just looked at my stats and I think my head is in the right place. I'm already making those goals on my last 100 trades. It wouldn't take much to knock me out of it though!

 
mjdcomplaw

Good luck, boss-hogg. Loved "Dukes of Hazzard" btw.

 
mjdcomplaw

Another piece of advice, FWIW is to keep a journal of all your trades. When you take a big loss (or have a bad day) review the bad trades to understand why you went wrong. With the bad trades I took this week, I was able to recognize why they went wrong on me, so I can avoid them in the future.

 
saturninotorres2003

Thanks for sharing