Interesting day.
As far as win % are concerned I am doing ok but the biggest challenge is the Avg. points lost on losing trades. Much bigger than Avg. points gained on winning trades, infact 1.1 times more. I need to bring the ratio in the favor of winning trades.
yesterday was a non-trading day. a few things happened.
1. Spoke to one of my school friends and he teaches finance and is also dabbles in trading. He plays positional with NF, CE and PE. He, in a way, admonished me for indulging in day trading and was sharing his strategies. I myself am interested in positional so like his idea however I HAVE THE BELIEF that I can be a successful day trader. So as of now will not be meeting him. I don't want my thoughts to be muddled.
2. Played demo version of Van Tharp's game and was able to meet the equity targets on all 3 playable levels. This got me thinking real hard and I worked out my Risk of Ruin, max SL and probable TP with the account size I have. I CANNOT trade more than 1 lot of BNF for the next 3 months at least.
Analysis of my day-trades gave me an insight as to where I stand today.
Even if the Avg. points on winning trades remain same at 47, I need to bring down the Avg. points on losing trades to max. 32 (or less). To achieve this I need to do the following:-
a. Need to control my avg. SL to 40 or less in the next 2 months.
b. Need to adhere to the SL.
c. If possible increase the avg. points won to 60+.
It helped me to plan my trades today.
In the first trade I was trying to extract more points from the market but considering I am trading with just 1 lot I should restrict this for the time being and stick to fixed TP. Modificatin of SL in my favor is allowed for capital preservation.
In the second trade I was not careful enough while placing the bracket order. I need to be more vigilant henceforward.
I BELIEVE I can, hence I WILL.
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