I used the 50% trail rule mentioned last week on the short Gbp/Jpy. It seemed appropriate as the maximum profit on the trade was 569 pips at one point. It is just as well because the market volatility today was extreme again and caused fits for most traders still operating.
It is good to have a little pause in the week to reflect on what we're doing here.
For those of us who will admit it; a very helpless feeling comes over you when you make a trade. The size of that helpless feeling may decrease over time and after many trades may seem to meld into the other feelings in your day. It will always be there.
The reason is because we do not know for sure whether or not the trade will work out. Every trade is a little leap of faith. I'm reminded of a scene in the movie, Indiana Jones and the Last Crusade, where Harrison Ford (corrected) has to cross a bottomless void to get to the final room where the old Knight and Grail are to be found. He steps out without seeing a path, not knowing if this action is his last; obviously believing the information which showed him the way that far. He lived to get treasures another day.
You only have control over your risk. Good trades take care of themselves, most of the time. It is when circumstances materially change after the trade begins-- where the opportunities are rich.
Yes, you get to choose when to put on a trade, and if you are trading some statistical method such as the ones highlighted here-- you will take entries that are relatively mechanical in nature. If you trade the method completely mechanically you will only make the return that is dictated by one set of parameters with no variance for changing conditions.
Take note of the following truths about trading and you will find the secret to excess returns.
- Your entries are not what can break your account – but the way you exit can.
- Your entry does not make the profits or losses – the way you exit does.
- It is not your entry which is first in importance – it is always your exit.
__________________
- Eur/Usd: Long @ 1.4439, stopped out at 1.4379 for a 60 pip loss.
- Gbp/Jpy: Short @ 190.21, stopped out at 187.36 for a 285 pip profit. (50% Trail option)
- Gbp/Usd: Long @ 1.8086, stopped out at 1.8026 for a 60 pip loss.
- Usd/Chf: Short @ 1.1090, stopped out at 1.1150 for a 60 pip loss.
- Usd/Jpy: Short @ 105.38, stopped out at 105.98 for a 60 pip loss.
Have a good morning.
Current equity is $1,162.49. Not bad for a week with 4 losses!
Joel Rensink
www.infiniteyield.com
PS: To receive the FREE! trading rules for the Infiniteyield Forex Challenge ($499 value) and the semi-monthly newsletter about this challenge, send an email to: newsletter@infiniteyield.com and tell me to which address you would like it sent. Please do not use AOL, Hotmail or Yahoo addresses. They've been known to filter out more good mail than actual spam. Try a Gmail address. It's free, simple and perfect for traders!
3 comments:
Sorry to be pedantic, but Sean Connery (Henry Jones) was shot, and Harrison Ford (Indiana Jones) was forced to retrieve the grail to heal him. It was Indiana who took the leap of faith.
Sorry to be fussy, but it was Harrison Ford that stepped out across the void in Indiana Jones!
Thank you both.
My mistake. I like both actors equally and was glad they got to work together.
Late hours must have had something to do with the transposition.
Thanks again, I corrected the post.
Joel
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