Sleepless nights; volatile mood swings; over 5 indicators on my charts; listening to every analysts on T.V and getting more from their social Media feeds; 2 books on trading already read and every page digested; Trading course on babypips finished at record speed and finally, thousands of hours worth of trading videos watched, what would prevent me from making my monster profits and daydreaming of Cruise Ship vacations?
It was towards the end of 2016, remember the $50 joke of an account I had opened? well, with insane Leverage and position size, I managed to make a quick clean $100! on a single trade! This inspired me and I pumped an extra $500 in my account looking forward to trade the American Election, which I did trade and made an extra $1000 during the Asian session when election results in favour of Donald Trump were streaming in. That day folks, I spent the night at my workplace, it was the only place I could get a reliable internet connection and it was worth it!
With all the Monies I had made in Two weeks’ time, I figured if I can do that with one single trade, I should open at least 5 more positions larger than the first one! Mmh the most I can make is $500 in a week and the least is $100, I thought. Wow! why didn’t I learn this in school? and most importantly, why didn’t they teach this in school? I felt cheated by our Education System.
Just in case you are wondering if I ever came across Money Management, Leverage and position sizing in my studies, of course I did but who cares? I made over 100% profits so I definitely “understood” those concepts besides, they were usually the last Topics in the books I read and therefore not really important. Anyway, after a detailed and exhaustive analysis of my over 5 indicators (not price but indicators) coupled with my cockiness I placed my five trades on 15 minutes Time frames, having already calculated my expected reward and no stop loss at all. Stop losses are for suckers. The Market moved 20pips against 2 of my positions, 1 minute later, my phone rang….