This last week of February I have four trades. Two shorts on EURUSD and two counter trend longs on EURJPY all has been losers which have resulted in giving back a hefty percentage of this month's gain. As you can clearly see circled in blue my losses are way more than half of my total gains to me that is a real issue.
I know that there will be losing trades along the way its unpreventable that. My main issue in this picture is how I can better manage my losses in the future? I have outlined below a few items to help me in my day to day trading regimen.
1. Trade only the best setup and willing not trade at all
2. Strictly enforce a pre-determined "Kill Switch".
3. Revisit my risk management parameters.
These are listed in my trading plan but I was not discipline enough to fully follow like a machine by identifying them again I'm helping myself to inculcate its significance. It also strengthens my beliefs in my trading methodology.
You can see I only have 42% winning percentage this month but its enough to put me in the green inspite of my greater than 50% losses. It only proves that if you have a good trading system and trade very carefully you'll have a high probability of achieving profit. It gets much better if you can execute well managed trades. Let me know what you think.
Follow your rules and you'll trade well.
DeeBee
