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At the end of this 10-day period of losses a seeming miracle happened; I started to make money. My target was to get to + 1000 and then not give back more than 20% of my gain. So when I had a profitable day I was making between 800 and 2000, for an average of about 1200. Not only did I start to make money, I did so for 15 days in a row, three entire weeks without a loss. This marked the beginning of a new era of trading for me. In retrospect, I believe that I had been trading scared, scared that I was really a loser. The two weeks of rigidly sticking to my loss limit caused me to revaluate myself. I started to feel good about myself for sticking to my limit. Before it was bad if I lost money, now it was only bad if I lost more than my limit. Before, I never knew whether I was going to make 1000 or lose 5000; now I knew that the worst case was a loss of 500 and that was OK. I started to see that sticking to my trading limits was a sign of strength and my confidence started to rise. Looking back at my first year's losing streak, if I had restricted my losing days to - 500 my loss of 61,620 would have turned into a profit of 83,525. Not only that, I think that had I been sticking to a loss limit during that period, my confidence would have been that much greater and my percentage of profitable days would also have been higher. 7 Section I: Futures Trading Chapter1: Introduction The trading revolution We live in very exciting times, the futures industry is going through a revolution, a revolution brought about by advances in technology. How it used to be |
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