Gooossshhh!

OFFICIALY my demonstration account is already wiped out..

My Risk Parameters were crushed some 450 Pips ago on EUR/USD positions and around 80$ @ Gold.

I had a plan to hedge but changed my plans in-between after opening the hedges and got hooked to my belief that the fundamental factors of the US economy never ever could allow the dollar to rally that much in the last few weeks.

Adding to these immense faults ,I had Price action screaming at me to short the Euro at around 1.5800. I even had a short open but closed it for a lousy 70pips because of the foregoing argument.

In retrospect I could have handled everything in a logic manner as my plans were prepared and sound.But overwhelmingly I feel that one reason stood out the most and that was that pleasure and pain of just being in the market.Like a Pavlovian dog or like a mouse trapped in an lab,I had to get my daily dose and ignored clear signs which were against my “belief”!

To this subject let me quote Jesse Livermore once again from Chapter V of his “Reminiscences of a Stock Operator”

“And right here let me say one thing:  After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this:  It never was my thinking that made the big money for me.  It always was my sitting.  Got that?  My sitting tight!  It is no trick at all to be right on the market.  You always find lots of early bulls in bull markets and early bears in bear markets.  I’ve known many men who were right at exactly the right time, and began buying and selling stocks when prices were at the very level which should show the greatest profit.  And their experience invariably matched mine – that is, they made no real money out of it.  Men who can both be right and sit tight are uncommon.  I found it one of the hardest things to learn.  But it is only after a stock operator has firmly grasped this that he can make big money.  It is literally true that millions come easier to a trader after he knows how to trade than hundreds did in the days of his ignorance.”

I think that I can say without much ego-polishing that I can identify the nature of fundamental trends quite early and my study of price action allows me to see good entry points to make use of them and should be able to make some good money with my forecasts. But being right and then trading right is an entirely different game.Patience is the key..and I have to learn it ..the best way is pain isn`t it ?

For example through my study of monetary history of hundreds of years of mankind marketplaces, I “knew” (very determined) that gold would go to 1k/oz and still “know” that gold will go to new highs a short few years from here.(Preserving wealth and/or enriching it..depending on your leverage)

But life is patient with me it seems and did not allow me to invest money “one cannot afford to loose”.Because now I know I would have lost it..and being right and loosing money is ,in my humble opinion, the worst pain a trader/investor can feel in his breast.

okay lot’s of I’s here :D Please wish me patience for the next try..I need 6 positive month before going live..

I will wait some time for my margin call (which will eventually occur) and then plan for the second public try.

Have a great weekend! I will ;)

Here some statistics for anyone interested..around 50% win/loss ratio in the middle of my second year is not that bad ,isn’t it?

…(of course there are still positions open..maybe they come back ;)

nearly 6 Month of Trading here->

Click Pic to enlarge

“Nobody should be puzzled as to whether a market is a bull or bear market after it fairly starts. The trend is evident to a man who has an open mind and reasonably clear sight, for it is never wise for a speculator to fit his facts to his theories.”

Jesse Livermore