Probably heard this many times: One pivotal advantage that retail traders have over traders managing other people’s money – we are not forced to trade.
Today is a day I am not going to trade – hugely volatile day yesterday across the board – FX pairs, equities, commodities – thanks to an unexpected ECB rate cut and better-than expected advance US GDP. I am going to protect my bankroll and just observe in JBT today.
Recap on yesterday:
I had an ok session in the JBT room yesterday – actually losing 0.37R (2 losers and 3 winners) – exiting my positions ahead of BOE and ECB rate meetings. Unfortunately I did put on a small EURJPY position 15 minutes prior to the ECB rate announcement – this broke several trading rules – and resulted in a loss of 120 pips (it was only £100, but it’s the principle that’s important here!)
- Rule 1: Always enter a stop loss when entering a trade
- Rule 2: Trade only when I believe that I have an edge
- Rule 10: There’s no “just this time” or “but this time it really is different” excuse for breaking a trading rule