ForexSpirit

My trading results for February are pretty damn good. I stuck to my trading plan rigidly; I cut my losses when it was required and I was not afraid to put on trades or hold them for an extended period of time to let the market play its hand.

I placed 35 trades during this leap year February, only 5 of which were losers. The majority of my trades were in EUR-USD, closely followed by USD-JPY. I also had several trades in GBP-USD and AUD-USD.

The two trades I had on USD-JPY mentioned in my last post both hit their profit targets, the first of which was at 105.86, just below the 106 level I was waiting for it to break through. The second profit target was at 104.70 which I was pleasantly surprised to see hit so quickly.

All eyes were seemingly on EUR-USD for the first half of the week as it made its charge past 1.50 to the lofty heights of 1.52. During that period USD-JPY only fell slightly. It wasn’t until all the excitement in EUR-USD had calmed down that the yen rally began in earnest.

My equity return for the month was a very nice 19.91%.

There doesn’t seem to be any lingering negativity from what happened in December impacting on my trading at all.

In fact, in a sort of bizarre way, I think that blow up was incredibly important and useful in my development as a trader. I’ve had to go through some very tough times but I have survived. My will to trade and my determination have both been severely tested and here I am only two months later showing a very decent return that I think any trader would be proud of.

In the long run what happened might actually be a small price to pay for the experience and knowledge gained and how that will impact on my trading in the years ahead. While I did lose a substantial amount of money, if the same situation had instead lain in wait for me at an unknown future date then the financial damage could have been much worse.

My current trading plan has now been forged in the crucible of failure. I am infinitely more aware of my open losses and better tasked to manage them so I don’t revert to bad old habits. At the same time I haven’t let the fear of losing money deter me from exploiting my edge. I am back to the calm mentality of never hesitating when placing a new trade the moment I see an opportunity. If I don’t take those trades then I’ll never be able to profit when the hand of fate tips my way.