This hurts. This realy hurts…

Well, the first month on my new trading account is over. I have tested new instruments that I can trade on, mainly CFDs on the German Bund future (German Bonds), the DAX index future and E-Mini S&P 500. It’s something totaly different trading on a “real” money account instead on a cent account. Last one is real money, too. But you can scale your positions much better.

I have started my account with 350,00 EUR and after some losses, I also made some profits this month. Highest account balance reached has been 380,00 EUR this month, and on 30th of September, my balance was 364,00. So this is a profit of 4% for september. Not much, but it’s still a profit.

But at that time, I have already had a losing position open in BUND, which was a pending order. I have seen that a (spread) tripple top formation will be formed @121.85, so I opened a pending order at that point, where this formation would trigger a signal.

I wanted to risk 3% on this trade and decided to open a position with a size, giving me ~0,25 EUR profit or loss per tick. My stoploss I put 1 box below this formations bottom, which was at 121.50, that’s 36 ticks lower. Now, my stupid mistake was, that I opened 0,25 LOT instead of 0,02!

It was a pending order and my risk was a calulated ~9 EUR. I closed my laptop and went home from university. In the evening I opened Metatrader again and saw my stupid mistake. I was at ~60 EUR in loss and I hoped that the next day would open higher. And it did… but not for a long time. Soon, prices did fall and hit – you guess it – my stop loss.

Now, that would not make me angry, alone. It was a stupid mistake and I could live with it – should not happen again, never ever! But ok.

But… what really made me angry was, that the price hit exactly my stop loss, TO THE POINT! And in the next moment, it went off more than 100 ticks. So, instead of ending up with a huge, substantial loss of 90 EUR, I would have now been in the profits with ~80 ticks, which would have been 200,00 EUR according to my position size. Instead of 500,00 EUR, I am now ending up with ~250,00 EUR.

It would be ok for me, if prices would have fallen 20, 40 or 50 ticks below my stop loss. Then I could say “I was wrong”. But I was right. I had a long bias on the BUND and it proved right. But I have had my stop loss 1 tick to high and so the market proved to me: you were not right

Here are some screenshots of this situation:

I had a bad start this month. I’ve lost ~30% on the first day (instead of 3%, which I planed to risk), pulling me back to 250,00 EUR. I hope that I can get back some of my money in the next days. Today, I already made it back to 266,00 EUR. But mentaly, this was the badest day since the start of this challenge.

Point & Figure indicator

As I’ve mentioned before, I have a new website which I am developing. The new forum is ready and I’ve got a new server. Everyone who is interested, can get a free 30 day trial version of the indicator. The usage of the indicator is limited to one account, so that it’s not possible to get a new trial each month

At the moment, I have to compile this indicator for each account by hand. But my new server is up and hopefully I can get it done, so that it’s compiled automaticaly without my interventions.