Always remember to know that trading is not for excitement if you want to make fortunes unless you have tons of money to waste in trading. We know that we cannot avoid Multiple Losing Trades in CPO Futures trading or any other futures products and we must therefore be able to survive such stressful trades that may kill us.
So, here is my thoughts for this July - Multiple Losing Trades and NO Excitement.
- Multiple Losing Trades or MLTs - Since we can't avoid MLTs, we raise up our Capital Risk Ratio! Manage high CRR at 5x or even higher if you know that you have proven profitable trades year after year on your trading system. For example, 5x CRR on CPO Futures mean you are only trading 1 (yes, ONE) lot for every RM20,000 in your account! If you can do this without affecting your trading psychology, trading success is not just a dream for you. Keep it up with such psychology and discipline.
- No Excitement - if you want to waste you money on excitement in trading, go ahead and thank you. Technical trend indicator is a kind of program trading indicator and traders will have to put in the orders to trade based on the indicator ! Therefore, be ready to get as boring as possible like a program that have no feeling. Just do your homework and make sure your technical trend indicator has a yearly proven profitable record for the past 10-20 years, then just "BLINDLY" follow and be BORED.
Five more months to go and we shall able to see what is the year end result for the technical trend indicator in CPO Futures trades in Year 2020 updated in CPO Futures blog. The credit has to be given to TOP who had just passed away recently. He taught me the technical trend indicator in year 1990s. The technical trend indicator made profits every year for the past 10 (ten) years except in year 2018 made a loss of 8 ticks (gross in theory). So, you should know how stressful in year 2018!!!
Just for a record: July's Accumulated Loss : 188 ticks per contract size!