Diary of a Trader 6.6 — Losers Become Winners
Today was a solid day of trading featuring 3 new trades taken on the $USDCAD, $USDJPY & the $EURJPY with the formers ending in profit & the latter in a loss. At the time of writing this I’m still holding a half position on my $USDCAD long but stops have been rolled solidifying a profitable day in the market.
If you’re new, my approach to trading is simple. I’m not all to concerned about having a great win percentage, rather the 2 goals that I want to achieve are 1) keeping my losses small, yet safe and 2) maximizing my wins without becoming greedy.
We saw a great example of that on the $EURJPY losing trade today where I played an aggressive breakout on a head and shoulders top pattern. On this type of trade there are typically only 2 places where I would consider placing stops and today (because of the entry) I placed them in the more aggressive & risky location vs. the safer yet more expensive one. When it was all said and done, both potential stop locations were hit, and it made for a great lesson on how by taking a smaller loss on my loser, I added a winner.
It’s Wednesday so it’s TRADING COACH PODCAST DAY!!! In today’s episode I addressed 3 questions about money including a good discussion on what type of position sizing strategy is best for traders starting with smaller accounts.
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