Making $3600 on GBPAUD
I have done it again this month and it’s only 1st of November and I’m up 4%. This is not normal for me as I usually meet this kind of target at least halfway through the month.
One of the hardest things I have come across in forex is managing your emotions. It takes time to be numb from small to big losses. But then slowly you get used to and then it does not affect you that much as long as you stay within your risk limit.
Of course, if you all of a sudden risk from 0.5% to 3% on one trade as you have had a winning streak and then lose the trade, it will hurt like hell and bring your confidence down. First of all, you will lose everything you made and secondly, you will think the markets are against you. In reality, the market doesn’t care about you. The markets will humble you and put you back in your place. This is why risk management is important.
Now as your account size increases your lot size increases too. Your losses look bigger and profits too, but again risking 0.5-1% is good enough on a big account. Once you pass the challenge there is no pressure to make money, you just want to be consistent and losses are part of it.
Anyway, if you have been following me you must have seen my entries have improved a lot in the past year. This is because I have been backtesting and forward-testing the big areas on the shorter timeframes to get better entries. Hardly you will see me with a 70-80 pips stop. On the Demo, I had taken a 70 pip stop as it was more of a swing trade. On the live, I went aggressive with my stop which was around 23 pips. I risked 1% on the trade, and because my stop loss was small I was able to open 4 lots. I was only losing around $500, but the potential was $4000.
I explained the whole trade in the video so don’t want to go over it again. But the FED rate announcement is later. It already did 165 pips which was more than the average of 135 pips. It was going to eventually lose steam and coming to a psychological level of 1.90 which is huge on this pair. I will delete the forward order for a long there as I don’t want the trade to fire during the FED meeting.
You can watch the video below: