Lately I have begun to suspect that deep down I have been operating out of pure greed. I just want (or need)
Lately I have begun to suspect that deep down I have been operating out of pure greed. I just want (or need)
You have done a good analysis of the pros and cons of a trading plan based on small and large TPs and SL. In favor: it is easier to achieve the profit goal. Against: a single mistake and you can charge the benefits of days. I do not have an 80-foot yacht or a Ferrari paid with forex profits, but I have had much more success using just the opposite: tight stops and wider profits. As soon as I open an operation, the first thing I seek is a sign that I am wrong in the direction of the market. My number one priority is to keep small losses and protect the capital. That allows you to stay in the game longer and wait for the big operations that really make your account grow. With a narrow and broad SL, you need a ridiculously high success rate. It’s like playing Russian roulette with five empty cameras: you can win several times, but the day you lose... bye.
Maybe you could try this: use a wide TP, but leave room with the SL for the price to breathe. And then, follow the operation with a trailing stop to ensure benefits. Get to break even as soon as possible and whatever comes next, make it a profit. Just an idea. Same vice... but in different disguise.
Dave explained it perfectly: you're stacking the cards against you. If you chain multiple bad operations with big stoppers, you can lower your bill by 20%. And then, with small TPs, you need a 25% raise just to recover. Try to check your past operations and pretend to use a little higher TPs and tighter SLs. Then adjust from there. Maybe scalping with short TPs is your style, but experienced scalpers are the first to come out when the price is put against them.
The funny thing is that it’s the first time in weeks that I’ve been profitable. Deep down it’s like betting with an intuition: “this will go up at least 13 pips.” I guess I could use the ATR or support/resistance in smaller time frames to fix more conservative SLs. But those low frames require patience that I sometimes find it hard to have. The only silly question is the one that’s not asked.
I can’t deny that this has given me results these days, but every time I let an operation run without a solid exit plan, I feel like I’m walking on thin ice. I know it sounds crazy, but sometimes I’d rather win a little too many times than aim high and not see a TP in days. Does that make me a cowardly trader?
Thank you for the tips. It’s clear to me that I need to improve my risk management. I’m going to try the trailing stop, although I find it hard to let go of control when the price starts to go in favor.
Many here sound very confident of themselves, but if everyone were so expert, this forum would be full of millionaires. I would rather make mistakes and learn from them than follow magic recipes from strangers.
I have started recording every operation in a diary and that has made me see how unbalanced my stops are. To put the TP randomly and the SL out of fear is what has had me trapped in this loop.
Hey, if it works out and you're seeing benefits, don't discard it so fast. Just keep a critical eye and go adapt your method before it explodes in your face.
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