My Fund Trading Adventure by Ben Bakhsh – w/c 28/11/2011- Blog 7

December 5, 2011

 

Follow my trading here:

http://www.myfxbook.com/members/benbakhsh/intellitrade/173778

Well, it was a quiet week this week BUT I managed to secure my 10% profit for the month which I really am pleased about. It was the ultimate goal for me this month.

Monday gave me a small 9 pip loss on the GBP, but I took 20 pips back from it on Tuesday and Wednesday I took a small trade on the EUR which paid out almost 10 pips – just enough to take me over that aspirational 10% profit target for the month.

So, although this week was quiet in terms of trades taken, it was pretty exciting all the same and very satisfying.

I took 1 trade on Friday (CHF Long) but unfortunately it was still going when the NFP was announced and the price crashed and stopped me out (only 25 pips though – my first actual loss in a while). Nothing of a concern though as my max risk is always 1% so December is not a concern.

This week I learned the true benefit of logging trades… on Friday I spent about 5 hours analysing all the trades taken since October (48 in total) – I wanted to see if I could half my stop loss and double my lots to ultimately bring more profit to the table without taking considerably more losses as a result. I went back and traced each trade on the m5 chart to see exactly what happened and took note of the maximum draw down before reaching my T/P levels. The results were better than expected, in fact with the halved S/L and doubled lot size, risk reward ratio is better and if the trades I have already taken were executed with these new rules, not only would my losses be smaller, my profits would be multiplied 400%!!!!!

This really highlights how tracking your trades and analysing them in a non-emotional, constructive way can help with your trading…

So December here we are… I don’t expect profits as big as October and November due to the upcoming holiday season, but I’m still feeling positive about the month.

That’s it for now but I’ll be back next week.

Happy Trading.

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My Fund Trading Adventure by Ben Bakhsh – w/c 21/11/2011- Blog 6

November 25, 2011

 

Follow my trading here:

http://www.myfxbook.com/members/benbakhsh/intellitrade/173778

 

For those of you following me on myfxbook, you will now see that following Septembers disaster and learning curve that left me at 79% drawdown, and the 2 very successful months that have followed, I now have no drawdown in terms of pips (I’m now 44 up overall)…. BUT… I’m still at 69.2% draw down in terms of cash! So why is this?

A classic example illustrating how trading with too much risk and not enough consistency can potentially destroy a new trader!!!!!

So now I guess is a good time to tell you about my personal goal… in September when I sat back and re-evaluated my risk after taking such heavy losses, the easiest thing to do at the time would be to a) just take some more silly risks and hope for the best as my account was so far gone or b) just start again on a new account or c) just give up.

But I didn’t do this.

Why? Because I wanted to show the community of new traders that as dire as things get it isn’t too late to rescue a system in draw down… the fact that I’ve gone from nearly 80% drawdown to less than 70% in 2 months shows that it is always possible to rescue an account. My goal now is to continue to make consistent profits and slowly reduce the drawdown figure and bring the account to overall profit.  The important thing to note here is that the key factors enabling me to start healing this account have been addressing my risk, adding more specific exit rules and more importantly, staying consistent with all of this.

The fundamental rules of my system i.e. what to trade have barely changed since day 1. This really goes to show the difference between Consistency vs. Non-Consistency.

In terms of trading this week – well I bagged 90 pips on Friday shortly after posting last week’s  blog, giving me 8.47% profit for the month. This week has been slow – maybe down to the American holidays however I was pleased with the 4 trades that I took and won, giving me 55 pips. The thing I’m most pleased about, reflecting on the past 2 months is that I’m proving with real money (not demo) that good profit margins for the month are achievable WITHOUT having to take big risks.. As stated previously I am only risking 1% on any given trade and I am staying totally consistent in the way that I trade with no hesitation. As of now I am 9.61% up for the month. (I’m hoping to hit the 10% mark next week, but we never know what the market will throw at us – something I vowed never to take for granted).

That’s it for now but I’ll be back next week, until then, happy trading.


My Fund Trading Adventure by Ben Bakhsh – w/c 14/11/2011

November 18, 2011

Follow My trading here:

http://www.myfxbook.com/members/benbakhsh/intellitrade/173778

 

Well, this week has been ok, albeit a little slow. I’ve had a nice little winning streak (12 in a row) and am currently 6.5% up for the month in terms of profit and I am investing small amounts each month to steadily grow the size of my account.

I had to really fight off the emotion on Monday though – I had two trades open that had started reversing against me (I was Short on the NZD and GBP). When you are in profit for the month it can be very difficult to keep that emotion off.

The ‘Walk Away Approach’ works a gem for me… that is as long as my S/L and T/P is in place I just shut MT4 down all together as I feel emotion creeping up and reflect on the fact that if the trade does not succeed than it is not a loss; it is a business expense… A small cost incurred while heading to the ultimate goal – trading a fund.

I have to say I was relieved to log back on and see that the trades had actually succeeded.

Here’s what a learned this week upon reflecting on my experience and some of the books I’ve read and recommended in previous posts… system chasing is the main killer of noob traders.

So, what if we get rid of the words ‘system’ and ‘strategy’ all together, just for now? After all, most novice traders think that the system is the most important thing to be a successful trader, yet most fail!

So this approach MUST be wrong.

I’ve been helping a new trader as he had been “developing his system” this week and while my advice was something he had not heard before it really did help him. Here it is:

FORGET about finding a ‘system’ (for now)… instead concentrate on RULES… we are operating in an environment with no rules and no boundaries…  something we are not humanly raised to comprehend… no wonder so many fail. The first thing I recommend from experience and various trading materials – establish your RISK before ANYTHING else… on ANY trade I have a maximum of 1% equity risk – I never break it. I know then that no matter what the market throws at me I’m not going to be one of those 95% who sit back in 3 month’s time and realise that they’ve blown an account!

Next, establish some basic rules for entry and exit. Market Flow is an important one for me… but of course there are other factors to consider such as support and resistance, market volatility, trends etc.

CONSISTENCY is the next important factor – never EVER break these rules… of course when starting out there will be some tweaking – on demo of course… but you will establish a defined set of trading rules…

Now, just by following some simple processes which I believe are fundamental to anybody wishing to trade, a system has created itself… I’m finding more and more as I go along that a consistent, low risk approach to trading is far more important than ANY ‘system’…. Its basic stuff yet we can all easily fall prey to the implications of not trading in this way.

That’s it for now, but I’ll be back next week!


My Fund Trading Adventure by Ben Bakhsh Part 4 w/c 07/11/2011

November 12, 2011

 

Follow my trading here:

https://www.myfxbook.com/portfolio/bakhsh-benjamin/173778

 

OK so to start this week’s blog I just wanted to share something I read this week that will more than likely stick with me forever and that has given me an extra edge in my trading attitude:

 

“Losses are not losses they are expenses”. Just as a business needs money to start up which is not always recoverable your “losses” are to be looked at as expenses. Never use the words LOSS or PROFITS ever again, only Expenses and income. This is one of the best pieces of advice I have read and I believe it will help me in my personal development.  I’ve had to invest money into my system to fine tune it and lost 100’s of pips getting it right in September as you previously read in my first blog. But it was an investment… and expense to lay out to generate that all important income.

 

So, onto this week’s trades… well it’s been a good week and the turning point for Novembers trading which is set to be another profitable month. I’m currently 5.26% up.

 

There have been 10 trades, 9 of which were winners. I’ve traded CAD, NZD, AUD, EUR and CHF, a mixture of both buys and sells, with my set SL and TP parameters of course. As always due to Market Volatility, Tuesday and Wednesday were the busiest days with 6 of the trades being taken on these days.

 

That big drawdown from September is finally slowly reducing… hard work isn’t it sticking to an account that is in drawdown despite the fact I’ve made very good profits for 2 months… I like the story though it shows a confident new trader coming to the harsh realisation of the pitfalls trading presents and picking oneself up from it having learned valuable lessons.

However added to this is the recent realisation is that I could actually be trading a $10 million dollar account in the next 2 – 5 years, making over $50,000 a month, $600,000 a year!!!!!!!

 

Even now I am on the path and heading in the right direction, it can be difficult to comprehend what life will be like when I reach this stage…  but with my continued consistent approach, winning attitude, and advice given to me by Jarratt Davis (such as the low risk approach to trading), along with knowledge I’ve been sucking in from his book “How to trade a currency fund” and Mark Douglas “Trading in the Zone”, and blogging while growing credibility and gaining Forex contacts, I know for a fact I can and will get there… it’s all down to me now!

 

I’m learning that ANYONE can have the potential to do this, but only with the right mind set and the right influences…


My Fund Trading Adventure by Ben Bakhsh – Part 3 w/c 31/10/2011

November 10, 2011

Follow my trading here!

https://www.myfxbook.com/portfolio/bakhsh-benjamin/173778

Firstly – I’d be intrigued to see if anybody tried my walk away approach, or set and forget as some call it. Myself, I managed it and unsurprisingly I found it easier trading with this attitude and managed to take that step back. It really did help with the emotional aspects of trading.

This got me on to thinking about the ‘Holy Grail’ of systems… of course there is no such thing… or is there?…

Maybe the biggest misconception about the ‘Holy Grail’ isn’t how to find it, but actually what it is…

My thoughts – the holy grail of trading isn’t a system, its within ourselves… maybe being able to trade like a total robot with total consistency no matter what happens, while keeping everything low risk… maybe that’s the holy grail…

So in effect we all know what it is deep down… the question is, can we access it? Well that’s down to each of us individually, but one thing I know is THIS is the Holy Grail I seek, not some mythological ‘system’ that will and can never exist.

Trade wise nothing to report this week apart from a small loss (15 pips) on an AUD sell! Thanks to my internet going down I missed trading the last few days. It doesn’t appear I’ve missed anything though.

 

 

 

 

 

 

 

 

 

 

 

 

 

 


My Fund Trading Adventure by Ben Bakhsh – Part 2 w/c 24/10/2011

October 28, 2011

Follow My Trading Live:  https://www.myfxbook.com/portfolio/bakhsh-benjamin/173778


This week wasn’t the best, but seeing how other traders have struggled it certainly wasn’t the worst.

It was fairly quiet in terms of trades taken – in fact I took only 3 as per my system  indications… 1 of which I shouldn’t have  – it was triggered from the H1 when really my system says only take from the H4 – BANG there went 41 pips – SEE YA… Good job I ALWAYS have a specific S/L in place I say…

Anyway I took 2 more trades, one which lost me 31 pips and one which made me 42… see, again I wasn’t dead on with following my system to the T in terms of entry triggers using only the H4… and that cost me 41 pips…. If I hadn’t swayed I would have been in profit this week…. Another lesson learned, and I’m thankful I was only down by 30 pips this week – I know others took a far worse beating.

I’m currently over 17% up for October –a figure that will no doubt stay the same as I tend to avoid Monday trading! Why? Because I don’t like Mondays 😉

I CHALLENGE YOU:

Wouldn’t you agree that there is nothing more straining than taking a trade and watching it… +5 pips… +17 pips… -10 pips… +1pip…. WHY do we do this? Let’s face it, our systems should always have a stop loss, and a take profit isn’t a bad thing…. So why watch it and end up taking a 20pip profit when you could have left it and gained 100 pips?… so this upcoming week here’s my experiment, and I challenge you to join me. I’m going to close down MT4 after each hourly check…even if I’ve opened a trade… of course there will be a SL and TP on every trade according to my system, but I just won’t be watching it… I don’t want to see it go up and down, I want to see the finished result, be it a win, or a loss…  now let’s see how differently my trading goes and how differently I act in terms of closing trades early and opening them without having the 3 indications according to my system, giving me ‘the edge’.

Let’s call it THE WALK AWAY APPROACH… I think I can do it, can you?

I guesstimate that 90% of people who try this will fail and check after the first 20mins to see how their trade is looking. SPRING! There goes the trap – emotional involvement! Maybe the walk away approach could just help all of us to be the trading robots we want to be.

Feel free to comment this post if you are happy to join in… and I’d love to hear about your results.

Results coming in next week’s blog. Happy trading!


My Fund Trading Adventure by Ben Bakhsh

October 21, 2011

 

Track my performance here:  https://www.myfxbook.com/portfolio/bakhsh-benjamin/173778

Part 1

Well, I’ve been trading demo accounts sporadically for 2 years, and then 2 months ago I finally felt like I had cracked the code of ‘how to trade a currency’ and decided to invest in a micro account, and what a rollercoaster it has been… interestingly the word ‘pip’ now has more value to me than the word ‘money’ and I would really like to share my Forex adventure with you all…

So, on the final day of August 2011, I invested my first $200, and boy was I in for a shock. In theory live/demo what’s the difference? Well I can tell you right now EVERYTHING feels different, and after my first month I am now treasuring previous advice from Jarratt Davis and books such as “Trading in the Zone”.

So, month 1, September 2011 – well I’d like to say how well it went, but the reality – it didn’t.

I lost over 75% of my funds and the reason for such an absurd drawdown –  I played around with the ‘system’ I had developed too much and was in a rush, hunting for all the action and foolishly risked more than I should have, and in one foul swoop there went 75% of my Equity. But this isn’t a bad thing, I learned my lessons, and actually realised the patient and consistent approach would pay off and it is.. so far I’m 32% up this month, and granted this may be on a small account but it’s profit, and I know what trades I should and shouldn’t take and my patience of monitoring the H1 and H4 slots (as opposed to the 5M) is paying off. Essentially I paid $125 for a swift lesson in Forex phycology and will never forget it.  A lesson which may well set me up for life! Now I see why 99% of budding traders fail – phycology!

The market this month (in my eyes) has felt very turbulent and challenging but waiting for the right trade that is within my system (which uses a powerful indicator, moving averages, market flow and trend) seems to be working.  So far I’ve entered 12 trades, 7 of which were winners leaving me 63 pips up (so far).

I promise future blogs will be shorter and more ‘to the point’ and as always will be an honest and real look at my adventure, so please subscribe and join me on my journey – I’ll see you next week.