OMG... it's my third anniversary of forex trading! And I'm still acting like a forex trading virgin / bimbo and being absolutely naive! I know they say that angry sex is supposed to be really hot, but I wouldn't know. All I know is that angry trading is not.
So, I'm going to try to put this recent blow by blow blown up account incident behind me once and for all by first resenting with all my heart and then repenting. I'll take my fellow HSFT through a new trading fantasy towards the end of this post and hopefully, we'll all be having oysters very soon.
There's nothing we can do to change the past, but there's a technique we can use to trick ourselves into doing better on the next trade. The principle is that we go over everything that went wrong on this trade and then ask ourselves: if this were the perfect trade, what would I have done? This then focuses your mind on taking responsibility for the trade and then hopefully winning the next time round. It opens your mind to new possibilities as well. Expand your perspective, expand your bottom line - that sort of thing.
First, the resenting! I was recently doing some research for something totally unrelated and found some woman named Mrs Forex advertising the fact that she didn't know anything about forex trading, but was making six figures a year just by using a forex trading robot that does all the trading for her. It got me so ticked off that I was spending all this time and QU tuition on learning about forex trading, attending every webinar / event that I could, looking at charts almost every day and all I have to prove it are a total five figure loss and 554 pages of a forex trading journal where my BFF forex broker will always have a special place in my charts.
I further resent the fact that I spend all this time holding other people to a supposedly higher standard by criticising the FWFOCH for going all pork-wire and my Dad for taking miscalculated risks and abusing me. With my recent trades, I have become a FWF to myself and my financial future. I have succumbed to pork chops myself via my TETSOB. Moreover, I have become a bona fide financial hypocrite for running other people's stops for a month complete with the Bwahaha HTEL and the moment my pain threshold got hit, I became a raving two-year old Naomi Campbell with an anger management issue. I forgot what made me successful: a clear head and objective, rational thinking. I am highly disappointed in myself because this moment in my financial history is Total Second Runner-Up Material. I was emotional and I walked away from objectivity when the writing was clearly right there on the wall.
After my loss, I became like that Harvard imposter. I wasn't true to myself and I wasn't true to my principles, which should have been the true embarrassment. The loss itself didn't need to be embarrassing, but stepping away from what I believed in and not trading it was. The truth always come out - especially in trading.
So there! I think I've had enough of my resenting and should like to do some repenting for all my trading sins. If this were the perfect trade, it would go like this:
It would be about the time I'm in Switzerland checking out the Rolex (and the Tall European Men) instead of the forex. I am in a GBP/USD long from around the 1.51426 area. I average in at 1.4828 and get a very nice retracement back up. This time, instead of shooting myself in the foot by getting out of one mini lot prior to the Scream It From the Rooftops UK GDP announcement on 30 March and taking profit for only +97.4 pips, I allow the Guys of London to brush their pips against mine some more and get out on any of the bearish divergences happening on MACD at the 1.53 area, leaving me with over +300 pips.
I would then slip into my little red dress bullish divergence at 1.515 again and start brushing my pips against the Men of New York with my little black dress bearish divergence at 1.55, banking another +350 pips. Since people started talking about the GOL's Hung Parliament around the time of mid April and we had the European Debt Crisis mounting at that point, so I could probably have done a S&R with the Men of New York at 1.55 and used all that downwards momentum in favour of my account instead of against my account. We would be doing something totally daring and innovative, but the potential trading plaisir would be too tempting to resist.
This would have been especially relevant when I first noticed Bernanke floating the USD bull boat on 27 April. The more alpha me could have sold even then at 1.53 something, riding the Men of New York instead of the Guys of London for a very tantalising spin that gives us a minimum +1100 pip win.
By this time, I'd be up +1750 pips with a bike sized account, which is my version of Financial Heaven. I'd be my BFF forex broker's biggest client. Well, maybe not quite.
My toes would be curling, I'd probably be noisier than usual, and I would be the bona fide Queen of Pips + JBQ + Miss Equities 2010. All of the GOL would be buying me drinks and all of the Muscular Men of New York would be giving me winks. I'd reject them all except, possibly, for the most special one.
So back to forex trading reality... this proves to me that I could have been a lot more disciplined with this trade. I could have been a lot more imaginative too. It also shows me that there's still money to be made by just doing what I've been doing all along- only with more variation. Who cares if that Mrs Forex is really making six figures with her trading robots? My positions could still be very hot if I just once in a while put the TETSOB aside.
Tomorrow, I've got a day off and I'm going to spend an hour of it attending Professor Brian Dolan's webinar. I am looking forward to growing up now and becoming an adult in the trading world. I may still be chaste, but all of my hard work won't go to waste.
Last Friday's report card:
+3.41% on the SBA
+2.70% on the Roth IRA
This week, I have to make my way back from Fool to Cool.
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