10 winning months out of 11 trading months

April 2017 is another winning month in The Alien Room, with nett win of 969 pips. Our biggest loser was AUDJPY and DJ30, where the former was due to gap from France presidential election (first round) and latter is where I became a little aggressive to take on a counter trend trade. Otherwise we really had a nice row of winning trades. See other months of trade performance here.

The Alien Room Forex Trade Performance

The awesome trade performance?

Give myself a pat on back. Here’s the awesome trade performance for 9 months with a nett win of 8072 pips. I apologised that I didn’t have Jan 2017 (losing month) and Feb 2017 (winning month) data available due to data loss. 

The Alien Room Trade Performance for April 2017 +969 pips win

This is what I’ve learned from so many trades

I like to share 3 things which I’ve learned from executing so many winning/losing trades. With my sharing, I hope that you can gain another level up to your forex trading.

Here’s a quick summary of the 3 things which I like to share:

  1. Like a pot of nice soup, a winning trade takes time to brew
  2. It’s your own psychology at work – recognise there will be losing trades
  3. Don’t discriminate any trade. Be cool about trade selection.

Let’s get down to these 3 important factors that will affect trading!

1. Like a pot of nice soup, a winning trade takes time to brew

Shorted Nikkei 225 at top before break of a 14 week s consolidation
Shorted Nikkei 225 at top before break of a 14 week s consolidation

Sell in Nikkei 225 profited 460 pips. The added leg could have gotten more pips, but I had it set to break even too early.

Why was I so confident of the Nikkei225 trade that I decided to ride this trade?

Simple. See that 14 weeks of consolidation. Such a lengthy consolidation. If there’s any movement, it will be a big one isn’t it?

And here’s a student who enjoyed this trade too!

Nikkei monster trade

2. Psychology of trading – Recognise there will be losing trades

Nobody likes losing trades.

Everybody loves winners.

However, it is important from psychology standpoint to recognise that there will be losing trades.

If you look at two consecutive losses on AUDJPY and DJ30 and decided to give up trading, then you miss out those winners subsequently. What’s most important will be your portfolio performance.

Did you make a net win this month? Is your current performance contributing in any way to your final objective of financial freedom?

Recognise losses as a way to gain experience. Most important, reinforce your winners – understand what makes a particular trade a MONSTER win.

EURNZD and NZDCHF winning trades

3. Don’t discriminate any trades. Be cool about trade selection.

Right after some losses, I went on to choose 2 trades which met Monster Pips rules. The only thing which I can’t predict will be the speed of price movement – how fast or slow price reaches target profit.

The first trade chosen was NZDCHF. Second was EURNZD. These two trades are similar in such that they are both bearish on NZD. However, CHF crosses are known to move slower than EUR pairs. But I like CHF due to a possible lower risk element as France will be having presidential election soon (major event).

Both trades were activated, but I have a feeling that EURNZD was much preferred. EURNZD result was a win of 110 pips, while NZDCHF was filled one batch but sizing was much bigger due to lower stop loss. In fact, even I had only one batch filled on NZDCHF, this trade didn’t perform much worse than EURNZD.

End of day, I had 2 profitable trades and with these 2 trades, my previous losses were netted off.

What have I learned? 

Once trade setups met, follow rules and let your trades rock and roll!

NZDCHF and EURNZD saved the day
NZDCHF and EURNZD saved the day

Follow what I’ve learned. This is currently 1st week May 2017 trade performance

The Alien Room Trade Performance 1st week of May
The Alien Room Trade Performance 1st week of May

Results speak louder than words.

Find a method that works for you. Not any method, but one that is able to let you carry out other roles – work and family roles for example.

Important role of The Alien Room – it provides case studies to reinforce what you’ve learned. You are never left alone. More about The Alien Room.

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