Real trading history: 1 month! Publishing beginner results & introduction to trades that earned 50 pips in 20 minutes
Hello! The Christmas and year-end trading season has finally begun, hasn’t it?
Will price movement be small, or will it be volatile? With COVID-19, Brexit, and various other factors, there is a possibility of movements that differ from usual years, so it’s worth considering.
It has been about a month since I started trading on a real account from November 25th.
This time, as I look back over the past month of trading, I hope to share experiences that may be of some reference to everyone who reads this article (o^―^o)
—Contents—
1. One month performance since starting trading
2. Reflections on losing trades
3. Introduction of an entry that earned 50 pips in 20 minutes
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1. One month performance since starting trading
Even among beginners, there are individual differences depending on how well the market suits you at the time and how much knowledge you have beforehand. Here, as an example, I will share reflections and insights on losing and winning trades based on my one-month performance.
Here are the results. Starting with 10,000 yen, I was able to increase it to ¥29,242 by 12/21. I think this was helped by GBP/USD trading near its high in recent years.
Regarding lot size, I started trading from 0.01 lots.
(The basic unit of the FX company I use is 100,000 currency units per lot.)
For beginners, I recommend starting with the minimum currency amount. Profits aren’t large, but losses are also small.
As I began to win, I increased the lot sizes to 0.02, then 0.05, and that helped me gain confidence and steadily grow my funds!
However, one must not become complacent. Even as funds grow, the choice of lot size must reflect risk-reward and the strength of the justification behind the trade.
Next is the mindset.
I have consistently traded with the mindset of “even if I lose, I have nothing to lose, but I don’t want to deplete my account.” Therefore, when I lose, I don’t chase after it; I quietly close the chart and prepare for the next opportunity.
(Sometimes I inevitably fail to cut losses and lose a lot, though... (´；ω；`) Woah)
Often people say, “If you want to increase and win, almost there,” or “If you don’t want to lose and protect your account, you’ll naturally win.” I’ve heard it too, and it’s true for me as well.
Being discouraged isn’t good, butthe person who can accept that they missed the crowd and calmly cut lossesis the one who will keep winning.
Finally, about what triggered the profits to start rising.
For about two weeks, my results didn’t improve at all, and I kept telling myself, “It’s just bad compatibility with the current market,” though I occasionally fell into position-possession (the urge to overtrade).
But on 12/17, GBP/USD hit a recent high and, riding the downtrend, I was able to profit from a short trade.
The basics of trading are “buy low, sell high; sell high, buy back low.” I realized at that moment that even though I knew this, I hadn’t been putting it into practice at first.
I’m sure some of you also know the knowledge but haven’t put it into practice. Rather than keeping knowledge as merely knowledge, let’s put it into practice in both demo and real trading until it becomes a habit. Let’s work on it together!
2. Reflections on losing trades
Here, I’ll review the EUR/USD on 12/20, the trade I lost the most so far, reflecting on it.
Yes. There was no basis or scenario to analyze, and the trade had no justification—just a gamble, haha.
A trade without basis or scenario becomes mere gambling, so I want to ensure I never do it again.
Even though it was clearly trending upward, I went short. Likely I judged with a subjective view that after a big move down, a retracement would come and prices would drop again.
The market is the consensus of traders around the world. Unfortunately, my emotions do not reflect that.So, rather than imagining, I want to be mindful of “buy low, sell high; sell high, buy back low,” and properly assess whether the current price is high or low within the market before entering.
The second short was probably aiming for a pullback. This turned out to be fine, but the next trade was the problem.
If you look closely at the timing of the entry, you find that I spontaneously went long in the middle of a downtrend. The market doesn’t move as you think, so entering after a rebound is more reliable.
Especially for beginners, since you want to protect your account safely while increasing it, observe the market and aim for only those with high certainty.
3. Introduction of an entry method that earned 50 pips in 20 minutes