Millionaire TradersQ: How did you recover your confidence after this?
A: Winning and losing are all a part of trading. If you believe in
your system, you shouldn’t let it get to your confidence because
you will be able to trade again and hopefully make the money
back. Even though I lost half my capital, I still had the other half,
so I had the capital to recover my prior losses. I think that capital
preservation is most important.
Q: Did you learn something from this trade?
A: Definitely not to be greedy. If I have profits, I now look to
pocket them. At the time, I was hoping for a big ticket winner if
the position moved in my favor, ignoring the risks. It’s a mistake I
won’t make again. At the time I lost close to$200,000 U.S. dollars.
Q: When you look at charts, do you add indicators?
A: Yes, MACD, moving averages, DMI. My charts are generally
very simple—only a moving average on top and then maybe either
the MACD or DMI on bottom. If there are too many things on the
charts, I think it’s confusing. I don’t think you need to put too many
things onto the charts. It’s important to analyze when trading, but
because every indicator is different and may give different entry
signals, you can get more confused rather than more clear. I don’t
rely on too many indicators. Picking a few key ones is enough.
Q: You have already said that entries are important, as well as
scattered exits, which do you think is the most important?
A: I think entries are the most important because if you enter
well, then it gives you a good price to work with. But I also think
that exit is also important because many people will enter in the
market, have profits, but because they do not exit properly, the
profits will turn into losses.