Well well well .. I've learnt a lot from my previous week of trade when my post for EUR/JPY have lead me into a deep sea of trouble.
I was feeling like I am unbeatable at that moment when my mind is telling me to post another trade just to get another 20 - 30 pips of highly volatile EJ pair.
And because of that, I was doing the biggest mistake of the week which caused me to loss almost every profit that I've made for the whole week.
I always told to myself not to open more than 7 lot (my lot has been set to be 1 lot size = 1000, every pip movement = 10 cent) for the very 1st trade in order to put me out of trouble when the trade go opposite from my directions.
It is a DISASTER when I hit the sell button, in within a minutes I was -30 pips and the 1st trade that I've entered is on 10 lot !!! . As my strategy that I'm currently using is to double the lot size in order to counter back the position and targeting at a modest profit limit (around 10 - 20 pis) . So I've entered another position with 20 lot size and again, I was now in -35 pips and plus with the 1st trade that I've done earlier, the combination now is .. I'm out 80 pips altogether.
I am still confident with my position, so I have triple the lot size and make it to be 40 lot size. and I guess, you guys can have a guess that the EJ movement still against me as I was expecting some small retracement for me to cover the loosing trade.
at one point, I was out of 800 USD and my account still can cope with the rapid movement of EJ and its near to 60 % of used usable margin !!
After a week of waiting, price was starting to fall and move back to my original position where the position has been closed in profit. But the thing is, I can't open my normal lot size as the margin has been used hugely on EJ trade that I've hold for over a week.
If I can turn back the time, I will never risk my account on a single trade and just following my MM rules religiously no matter how confident I am.
Lesson learnt, never risk your account with opening a large lot on a single trade. Its better to have a modest or average profit rather than blowing up your account for just one single day.
I'm reminding myself and other traders .....
