Today I will write very personal article for me. I think that we need to share our experience on market, if we are real traders.
I am sure that most of those who will read it, will do not understand me, and my action, and will say - "You're an idiot!". Anyway, I honestly will tell you about it.

August 20, 2012, had very little time to 13 September 2012, when QE3 was launched in the United States, and Eurozone debt crisis would be finished. Two events, after which the dollar began its non-stop fall down. At that time, I had some problems in my life about which I will not talk in this article. Let me just say that I was very angry at the whole world, and even on the market, although it is very silly.

The market does not know anything about our existence, it does nothing to spite us. In all our losses we must blame only ourselves. I understand it now, and I knew it at the time. However, I went on principle. I decided that I could beat the market. I decided that I could be more stubborn than the market. And August 20, 2012 I made short EUR/USD trade, at the 1.2459 level. As I recall, take-profit was only 1.2409, just 50 pips. And I did not use stop-loss. I decided that I was going to close this trade by take-profit, no matter what would be happened.
Oh yeah...I'm an idiot, I know, do not remind me. Then QE3 was launched and it became clear that the EU does not fall apart, the sad fate of the dollar in the next year and a half - also became clear. But despite this I had not close this trade. Exchange rate of the EUR/USD rise to 1.3167 in October 2012, then corrected to 1.2661 in mid-November 2012. I remember Jesse Livermore, one of him rules of trading "Never average losses by, for example, buying more of a stock that has fallen" - did not use the averaging, and therefore was not able to close the trade at 1.2661.

I was able to close the trade at the level of ~1.28, if spat on safe trading rules, and would double short at 1.3167. But I missed this chance. After this euro-dollar began non-stop growth. At the end of January 2013 exchange rate was 1.3710 already. It has been five months already since that day, when I opened this trade. I began to lose patience, and I sold a little more, from, as far as I remember (I would not look now at the statistics of my trades) - 1.3500. But, I was too cautious, I not doubled the trade, I just sold a little bit more.

Thereafter, the EUR/USD began to fall and reached the level of 1.2753. My take profit was only a few pips below that level. Of course, price has not reached my take-profit. I remember that day, Mario Draghi held a press conference, during which the euro-dollar falling like a stone, and as quickly retreat for two hundred pips, during the question and answer session.
I still was principled. “I'll take 50 pips profit!”. Then EUR/USD again was rise. Then fall again. Then rise again. I started to make small additions in a losing position, but I made ​​them to unsuccessful levels. Price not reached to take profit. This was repeated three or four times. I began to suffer from paranoia, it seemed to me that the market is laughing at me. The market has become my personal enemy, a living being, which, unfortunately, ethereal, with which it is impossible to fight. But that can be overcome by other means - his stubbornness.

I had great hopes for 2014, all the FX news sources had headlines "This year - will be the year of the dollar! Buy a dollar! LONG!". I continued to make small shorts of euro-dollar, and the total size of my short EUR/USD position had reached a very high volume for my deposit. Margin was used by 20 percent (my leverage is 1 to 200). Expectations were not met, and in March 2014 the EUR/USD stood at 1.3966, and in May, EUR/USD reached the peak - 1.3993. I was in shock and panic. The loss was very huge (for me, of course). From my account had just over a quarter. All news sources shouted "Euro-dollar going to 1.42, 1.43, 1.44!!! This is the end for the USD! Dollars - it's just toilet paper!".

However, this did not happen. 1.3993 was the peak level after which began a steady downward trend that we have still seen at this days. A few more month have passed.

About one week ago, I closed this trade, in part at the level of 1.3250, and partly at the level of 1.3180 little later. It took me two years to close this trade. The worst trade in my life. I cannot say that I have earned a lot of money, because I have always been very cautious in adding to a losing position. But I did what I wanted - I was more stubborn, than market. I understand that it was a stupid obstinacy, that I can be compared to sheep, but I feel good.



What lesson have I got? Can I say, after this: "Always use stop-loss" - no, I cannot say so.
The market may fool you in two ways: it will reach your stop-loss, stop-loss work, then the market will turn and go to the direction you want, but without you. Anyone who trades in FX know that it happens very often. However, if you do not use stop loss you can get into the trend, which happens once a year, or even once every two years. Exactly as I had no luck with the euro-dollar. And you can lose everything. I prefer a middle way between the two - it is better to close a losing position, not entirely, but only halfway. In this case, you will not be offended when the price still will unfold in the direction you want, because you are still in the market, albeit at a smaller size. And if the price movement in the opposite direction will continue your losses are not as great as with the position of the original size. And you will be able to average trade at a good price.

Whether I agree with the words of Jesse Livermore "Never average losses..." - no, I can not.
You can add to losing position, but very sparingly. You must not double the size of your trades every 30-50 pips. And never, under any circumstances do not use your margin by more than 25-30 percent (I mean leverage of 1 to 100). I was very careful, I stopped to add to a losing position, where the use of the margin reached 20 percent (which would be equal to 40 percent with leverage 1 to 100). And the use of the margin of 40 percent, with no stop-loss has led to the fact that the EUR/USD reached 1.3993 - up to a total loss of all funds in the account had only 120-130 pips. Fortunately, for me, it did not happen.

And, finally, never, never, and again never read of market analysts. Even analysts working in the largest banks, the level of Goldman Sachs, UBS, Commerzbank - do not know anything about where price go - up or down, and do not know how to trade. They only know what chart will go to the right side of the screen. Well-known website Efxnews (http://www.efxnews.com/) - recently introduced a service where you can get to your email real-time trades all the major banks. As soon as any of the banks makes a new trade, as soon as this bank have stop-loss or take-profit - in a second you know about it. I signed up for the first free month (by the way, this is not advertising, you do not need this service) and was amazed at how often all major banks close their trades by stop-loss. Probably, monkey will trade much better. So, you must analyze market only by yourselves, and never enter in trades based on someone else's intelligence and opinion. Thank you very much for reading.
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