This has been the longest I have gone for a blog update since I started this venture. As I am so new to this FOREX world (only 2 years) and relativly new to this Life thing (only 26 years), I am constantly learning. As a result, I change my strategies, I adapt and innovate as I go – always looking for the more productive, profitable or effecient way of doing the things I do in Life and FOREX.
The most significant change in my FOREX trading has to be the doing away with Stop Losses…I know pick your jaw up off the floor, “You can lose your whole account!” your saying. Not true – I have a mental stop loss, a gut feeling of how much pain I can take in one trade…but I do not have a platform based stop loss. I noticed a pattern in my trading (this is was trading is, pattern recognition) – I would enter a trade, then price would move to my stop, hit it and then follow through in the direction I had hoped. I was so scared of losing more than 2% of my account that I would almost always lose 2% and then watch what would have been a 10% gain if I had only let my drawdown go into 3% of my account. This is my basis for not closing losing trades until a CLEAR change of direction has been noticed. What I have come to realize (not just know, but understand) is that the markets are cyclical, they are always moving up or down – there is no “bottom” and there is no “top.” A high price can still go higher and yes, a price can still go lower – there are no rules to this game, only one goal…to make a profit. Because of this, I only pay attention to Support and Resistance lines and the Price Action at those spots. If a trade does move against me, then instead of closing out a losing trade I add to it at the next Support or Resistance and then move that trades Take Profit order to the break even line. This ensures that I can get back to B/E by price only moving halfway back to my original entry and then at that point I can evaluate wether of not I want to stay in the original trade. If the goal is to make a profit, why close an unprofitable one? Just have the patience to wait for it to move back in your direction – another lesson in patience.
As for my change in strategy for Life, this is more a spiritual journery than a technical change. My wife and I, as well as my family, have gone through a very hard 9 months. We have had deaths, multiple moves, a cancer diagnosis and family feuds…and through all of it has been this ebb and flow of my faith and trust in God. I have experienced the highest of highs and the lowest of lows with regard to my relationship with Christ and I have learned a great deal about myself and how I am put together as a spiritual person. I am still working on it, and I will be until I drop dead, BUT I have a new found knowledge of the fragleness of life and how quickly someone can be gone from this earth. It is to this that I have become dead to myself and alive in Christ, knowing that nothing will surprise God has instilled an indescribable s