Day 2 - first Losses

And the clouds covered my blue sky

Early morning. Panic on board! The alarms are screaming. The crew jumped off the boat and worse: my FxSurf is crashed against the reefs ! You guessed, today is a dark day. I opened 6 orders. Although I allowed a less tight Stop-Loss to about 10 pips… it did not prevent them to all close in less than half an hour. Also, it is with great shame I have to confess one of them was a Silly Click (see my message 2 days ago for a definition of a Silly Click).

The Silly Click: I had already a matured decision in mind and few seconds before creating the order, I changed my mind. My imaginary friend Mr Reason looked at me with sincere tears. It broke his heart.

Because it was a Silly Click. I took my Loss and created a new order, but according to the plan this time. That will become my only win for today. I could have made more of it but since I am in a full time job, I can only trade early mornings, lunch pause and late afternoon.

Losses review

Today I am in a net Loss of £4.56. A third of the Loss occurred in one go, one order. Look at today’s chart for EURGBP, early morning. Close your eyes and imagine someone BUY just before, really closely just before the huge drop. This someone was me. Fortunately my Stop-Loss, for once, stopped the Loss. Alleluia.

But what really happened ? Was I truly all wrong on all my orders? In fact not at all. I would have allowed more flexible Stop-Losses things could be a bit different. I still may not have generated Profits today, but for sure the balance would be less painful to look at.

The Silly click cost me £0.74 and the win behind rewarded me with £1.20. Changing nothing and just sticking to the plan would have given the following: £0.74 never Lost and £1.20 + the Loss difference, Let say around £0.50 added instead. The whole net Loss drop to around £2.50.

Translate these small amounts into standard Lots. Costly, indeed.

Emotions in front of losing money

Drank a coffee and realized all my orders were closed. Apart from spitting out the coffee in shock, instincts of survival took over reason. First question I asked was: what the hell should I do now?

1 – My first reaction was: shall I go back and open some more orders? Hoping to reverse the damage? That would represent a strong violation of one of my Golden rules: take your Loss and walk away proudly, like a Roman Emperor.

2 – Actually, my second action was very much related to the first one: I was still biting my hands to prevent them to click BUYs and SELLs. Dear, how hard it can be to resist. I felt so sure I could “fix it”. So sure? Not so sure.

Freedom, time to go to the office! Resisted to low level instincs.

The positive outcome

Oh boy, yes there is one!

I limited my Losses to less than 1% of my capital. Which means great news: I can fix at low cost my FxSurf! I sponged the sticky blood off my silky blond hair as well. They need to float again in the wind for coming waves.

Before I go

As strange as it may sound, I do not intend really to change anything to the way I operate. Why? Because I am trading for only 2 days and so far had one Win and one Lose. I need to see were I go. Adjustments can be made, but not changing the plan. Not now.

Mr Glick

Forex Surfer - Apprentice