How to stick to 1% risk per trade?
Hi,
I've been doing manual trading in the past 3-4 years.
I know I should risk 1% per trade but occasionally I rick 50% per trade thus blowing up my account.
Why?
I see a great set up then risk big for bigger win.
The set up is reversed and I can't dare to close my position with big loss and the loss keeps growing and blows up my account.
This has happened over 20 times in the past!
I think this is more like a mental issue, greed (not closing when in profit), revenge (huge lot size after a loss to compensate) and fear (not cutting loss sooner).
One voice says I should stop trading as I've been unable to stick to my lot sizing rules in the past 3 years.
One voice says I should keep trying and maybe one day I stick to my lot sizing rules (but by that time I've lost all the money that I could ever borrow).
Any help?
It doesn't matter how many skills you have earned, if you don't master your emotions, you will not succeed.
1. Identify your emotions and state of mind.
2. Freeze for a moment, think and decide how you wanna react to it.
This is not limited to just trading. It should be practiced in your day to day life.
It is as simple as it gets! It is simple and will get easy over time.
Just pick a good trading system and stick to it. :)
You do not need to make things complex. That's how I made it!
Is your strategy (setups) one that could relatively easily be automated with an EA
This can take the emotion side out of it when the lots/risk/SL and TPs are all automatically set
It doesn't matter how many skills you have earned, if you don't master your emotions, you will not succeed.
1. Identify your emotions and state of mind.
2. Freeze for a moment, think and decide how you wanna react to it.
This is not limited to just trading. It should be practiced in your day to day life.
It is as simple as it gets! It is simple and will get easy over time.
Just pick a good trading system and stick to it. :)
You do not need to make things complex. That's how I made it!
100% I agree with you.
-- You have best answer for William :)
-- I am sure it will help other people also.
have a good day.
It doesn't matter how many skills you have earned, if you don't master your emotions, you will not succeed.
1. Identify your emotions and state of mind.
2. Freeze for a moment, think and decide how you wanna react to it.
This is not limited to just trading. It should be practiced in your day to day life.
It is as simple as it gets! It is simple and will get easy over time.
Just pick a good trading system and stick to it. :)
You do not need to make things complex. That's how I made it!
Hi,
I've been doing manual trading in the past 3-4 years.
I know I should risk 1% per trade but occasionally I rick 50% per trade thus blowing up my account.
Why?
I see a great set up then risk big for bigger win.
The set up is reversed and I can't dare to close my position with big loss and the loss keeps growing and blows up my account.
This has happened over 20 times in the past!
I think this is more like a mental issue, greed (not closing when in profit), revenge (huge lot size after a loss to compensate) and fear (not cutting loss sooner).
One voice says I should stop trading as I've been unable to stick to my lot sizing rules in the past 3 years.
One voice says I should keep trying and maybe one day I stick to my lot sizing rules (but by that time I've lost all the money that I could ever borrow).
Any help?
This is the root of the false thinking. As long as you compare one acceptable set up to another, and say things like this is a great set up, you fall from the statistical correctness to your belief, or wishful thinking. You should not trade until you really realize all set ups have the same odds, no matter how good they look.
Not because I said so, or because you say to yourself you have to think like this, but because you understand the inner aliveness and changeable property of the market, that what seems in a particular time a great set up, can change soon after and evolve to the opposite.
This is exactly why you have the 1 % risk rule, it is based on this understanding. But, if you don't yet feel that understanding, within, then you will not follow the 1 % rule that is based upon this understanding, of course.
Guys, here are my very practical solutions:
1.
Meditate regularly on the move from Over-excitement to Calm & Discipline during storms and your long term success is guaranteed.
I call Over-excitement any status of mind where you have an intense emotion (good or bad) e.g. when you're full of hope, faith, greed, fear, revenge, etc.
2.
Put only 10% of your account balance in your trading account so that even if you get over-excited again, it won't blow up the whole account.
So if you have £10k to trade, put only £1k in your trading account and regularly (daily or weekly) keep withdrawing profits when it grows and topping it up to £1k again when it reduces.
Hope it helps.
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Hi,
I've been doing manual trading in the past 3-4 years.
I know I should risk 1% per trade but occasionally I rick 50% per trade thus blowing up my account.
Why?
I see a great set up then risk big for bigger win.
The set up is reversed and I can't dare to close my position with big loss and the loss keeps growing and blows up my account.
This has happened over 20 times in the past!
I think this is more like a mental issue, greed (not closing when in profit), revenge (huge lot size after a loss to compensate) and fear (not cutting loss sooner).
One voice says I should stop trading as I've been unable to stick to my lot sizing rules in the past 3 years.
One voice says I should keep trying and maybe one day I stick to my lot sizing rules (but by that time I've lost all the money that I could ever borrow).
Any help?