One change that I have made to my trading strategy is that I will not open an additional trade to cover a move that goes against me. This would leave me with 2 open positions, so instead I simply close the current trade I have if it is no longer working for me and open a new one. This makes it impossible for me to ever overleverage a position and risk a losing trade causing a huge spike and resulting in a margin call on my account. In the past 4 months I have had 2 margin calls on my account due to this problem and I believe I have finally figured out the simple solution. Plus it's also understanding the mental position that I have to take that it's OK to have a losing trade ;) Control over greed and fear, right? I am also currently paper trading the 15 min time frame vs. 1 hr with a little tweak to my entry/exit parameters... I'll have more news on this after a few more weeks of working on that one.
My goal is to consistently average +25 to +50 pips/day.
Here's my current trade that I closed this morning:
My entry was spot on at the high point on some resistance pullback on the Swiss. I could have waited a little longer and still picked up a great entry and better confirmed the resistance. It may look like I exited early, however this move took place while I was sleeping and set off an alarm, so I decided to just close it and take the pips. I've missed a couple of similar opportunities this week in taking profits, so I felt justified in grabbing this one. In turn, I could have let it run until it the resistance area you see at the current left of the chart too and I would have closed it there for a 150 pip gain vs. 65 pips.
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