Friday, November 27, 2009

Long EURUSD at 1.5009


Date: 25 Nov 2009: Open Trade
I long EURUSD at 1.5009 with the size of 0.24 when the price broke above last two day's high.



Date: 26 Nov 2009. REDUCE POSITION
I reduced position at 1.5076 of size: 0.10 remaining 0.14 with a profit of USD67


Date: 27 Nov 2009: Stop loss Level Hit
My stop loss was hit at 1.4878 lossing USD183.40. My balance equity now is USD4,951.74.

Thursday, November 26, 2009

Short CPO Feb 2010 Contract at 2463


The price opened with a gap up but fail to maintain at the high. Instead, it dropped all the way to as low as 2461. I shorted at 2463. Reason being 1) Price broke below recent low of 2469 and 2) Stochastic of 1 hour chart is on the way down.
The details:
Date of entry: 26 Nov 2009
Trade Code: 20091126A
Action: Short CPO Feb 2010 Future Contract
Price: 2463
Volume: 1 Contract

I closed the position 10 minutes before the market close at 2487 as I realized that there will be public holiday tomorrow and follow by weeken. I have been lossing money including this trade so I just want to get out of the market and have fresh start on Monday. It has been a bad week for me. What to do, trading is trading. I just have to live with this kind of situation.
I further loss RM 625. My account balance now is RM 30,425.

(The details of my account is at http://www.bullsa.com/2009/06/my-future-trading-account-records.html )

Wednesday, November 25, 2009

Long CPO Feb 2010 Future Contract at 2501


What can I say? The price just broke yesterday high (recent high) of 2395 and I took long position at the peak of the morning; 2501.
The details:
Date of entry: 25 Nov 2009
Trade Code: 20091125A
Action: Long CPO Feb 2010 Future Contract
Price: 2501

Cut loss at 2485 when the price falled to continue its up trend.
The details:
Action: Short to close at 2485
Loss: RM 425
Account Balance: RM31,475 - RM475 = RM31,050

(The details of my account is at http://www.bullsa.com/2009/06/my-future-trading-account-records.html )

Tuesday, November 24, 2009

Short CPO Feb 2010 at 2440


The price opened with a gap down at 2440 in the afternoon session. I shorted at 2440.
The details:
Date of entry: 24 Nov 2009
Action: Short CPO Feb 2010 Future Contract
Shorted Price: 2440

I cut loss when the price went against me at 2469 lossing 30 points which brings me a loss of RM750. (2469-2440+1=30 points).
My balance now is RM 31,475 after the loss of RM 750.

(The details of my account is at http://www.bullsa.com/2009/06/my-future-trading-account-records.html )

Friday, November 20, 2009

Short CPO Future Contract at 2366


The price broke below the low of 2373, I shorted at 2366.
The details:
Date of entry": 19 Nov 2009
Trade Code: 20091119b
Action: Short CPO Feb 2010 Future Contract
Shorted Price: 2366

The price reached the high 2394 which is my stop loss point. I was stopped out at 2394 lossing 28 points.
The details:
Date of exit: 20 Nov 2009
Action: Stop loss hit at 2394
Loss: RM 750 (2394-2366+2=30 points)
My balance now is RM 32,225 after the loss of RM 750.

(The details of my account is at http://www.bullsa.com/2009/06/my-future-trading-account-records.html )

Short FKLI Nov 2009 Contract at 1274


The price falled to break the moving average (10) indicating the weakness of the market, I shorted FKLI Nov 2009 at 1274.
The details:
Date of entry: 20 Nov 2009
Trade Code: 20091120a
Action: Short FKLI Nov 2009 Contract
Short Price: 1274
I closed the position at 1273 (breakeven)

Thursday, November 19, 2009

Long CPO Feb 2010 in the afternoon


Long CPO Feb 2010 in the afternoon when price hit 2378. It is a nice break up of the high 2370.

I close the trade at 2382 with a little profit of 2 points. The volume of the market was so little that there was no trade for the first 2 minutes of market opened. There seems to be a sideway ahead.
The details:
Date of exit: 19 Nov 2009
Action: Short to close position
Shorted Price: 2382
Profit: RM 50
My Account Balance: RM 32,975 after the profit of RM 50 (2382-2378-2=2 points)

(The details of my account is at http://www.bullsa.com/2009/06/my-future-trading-account-records.html )

Tuesday, November 17, 2009

Close Long CPO Feb 2010 Position


Long CPO Feb 2010 future contract at the open with the price of 2310. Today is the first day of the active month for Feb 2010. It is a break up of the recent high.
The details:
Date of entry: 16 Nov 2009
Trade Code: 20091116a
Action: Long CPO Feb 2010 Future Contract
Long Price: 2310

The price hit my stop loss at 2331 with a little profit of 19 points after commission. I am ok with it as long as I am out with profit.
The details:
Date of Exit: 17 Nov 2009
Action: Short to close CPO Feb 2009 Future Contract
Shorted Price: 2331
Profit: RM 475
The balance of my balance now is RM 32,925 after the profit of RM 475.
(The details of my account is at http://www.bullsa.com/2009/06/my-future-trading-account-records.html )

Thursday, November 12, 2009

Close Final Position: Long EURUSD at 1.4876


Date: 4 Nov 2009 (Enter Trade)
I placed my buy order ealier and I got in the trade at 1.4876. It is hard to turn my position from short to long specially when I just had a huge loss of USD910.85 (16% of my total fund).
Date: 5 Nov 2009 (Reduce Trade Position)
I reduced my position from size 0.50 to 0.40 as I realized that my fund has reduced to USD 4669.14. (Deposit of USD 1000 for the size of 0.10)


Date: 6 Nov 2009 (Changed Stop loss leverl)
I moved my stop loss level higher to 1.4799. The potential loss will be USD 308 (1.4876-1.4799=77 pips, 77pipsx4=USD308)


Date: 10 Nov 2009 (Reduce Positions) I further reduced my position (size:0.20) by shorting at 1.4966 with a little profit of USD180.

Date: 11 Nov 2009 (Further Reduce Position)
I further reduced my position (0.10 size) remaining size 0.10 with the profit of USD166


Date of total exit: 12 Nov 2009 (Close the final long position)
The price finally hit my stop loss of 1.4928 with profit of USD52 only.

Closed Position to Long CPO Jan 2010


Sring of losses can really make me feel miseradle but I have to do according to my plan. It is hard. I reversed my position to long the moment I was stopped out at 2258.
The details:
Date of entry: 12 Nov 2009
Trade Code: 20091112b
Action: Long CPO Jan 2010 Future Contract
Price: 2258
Volume: 1 Contract

Date of exit: 12 Nov 2009 (Closed position the same day)
I closed my long position at 2264 with a little profit RM 150 (2265-2258-1=6 points x RM25=RM 150).
My balance now is RM 32,450 after the little profit of RM 150.

(The details of my account is at http://www.bullsa.com/2009/06/my-future-trading-account-records.html )

Turned Short FKLI at 1262


Date of entry: 12 Nov 2009
I shorted FKLI Nov 2009 Future Contract when I was just stopped out my previous long position (trade code: 20091104). I am not sure of this trade at all since the whole markets are at the sideway mode; stocks market, forex, commodities. My reasons of shorting are 1) The price broke below 1269 which I believe is a strong support (refer to chart) 2) Stochastic is still down indicating that the market bearish. 3) Daily Stochastic turned down.
Trade Code: 20091112b
Price shorted: 1262
Volume: 2 Contracts

Date of exit: 12 Nov 2009 (Cut loss the same day)
I closed my position short position at 1273 (the worse price) lossing 12 points including commission with the reason 1) Stochastic turned up from oversold area 2) Bullish engulfing parttern.
My balance now remain RM 32,300 after the loss of RM 1,200 (1273-1262+1=12 points x RM100 = RM1200)

(The details of my account is at http://www.bullsa.com/2009/06/my-future-trading-account-records.html )

Long FKLI Nov 2009 Again


I longed FKLI Nov 2009 future contract at 1256.6 as the price broke above previous high of 1254 registered on 30 Oct 2009.
The details:
Date of entry: 4 Oct 2009
Trade Code: 20091104
Action: Long FKLI Nov 2009 Future Contract
Longed Price: 1256.50

Date of Exit: 12 Nov 2009
I finally exit the trade at 1262 with a little profit of RM 450. This is one of my longest holding trades.
The balance of my account now: RM 33,500 after th profit of RM450.

(The details of my account is at http://www.bullsa.com/2009/06/my-future-trading-account-records.html )

Shorted CPO Jan 2010 Future Contract


Date: 11 Nov 2009
I got in short position Jan 2010 Future Contract at 2229 in the morning when the price broke below 2235 (refer to chart)
The details:
Date of entry: 11 Nov 2009
Trade Code: 20091111a
Action: Short CPO Future Contract Jan 2010
Volume: 1 Contract

Date: 12 Nov 2009 (Closed Short Position)
I closed the short position at 2258 as very thing seems bullish 1) Stochastic turning up, 2) The price reach above moving average
I loss RM 1025 (2258-2219+2=41 points x RM25 = RM 1025).
My balance further reduced to RM 33,050 after the loss of RM 1025.

(The details of my account is at http://www.bullsa.com/2009/06/my-future-trading-account-records.html )

Tuesday, November 10, 2009

Close Long CPO Jan 2010 Future Contract at 2254


I turned long CPO Jan 2010 Future Contract at 2254 (almost at the high) with the reasons: 1) Price broke above moving average (in purple line) 2) Stochastic is up.
The details:
Date of entry: 9 Nov 2009
Trade Code: 20091109c
Action: Long CPO Jan 2010 Future Contract
Longed Price: 2254
Volume: 1 Contract

Date: 10 Nov 2009 (A lossing Trade Again)
The price hit my stop loss at 2248 in the afternoon session at the open lossing 8 points with commission.

The balance now is RM 34,075 after the loss of RM 200 (2254-2248+2=8 points)
(The details of my account is at http://www.bullsa.com/2009/06/my-future-trading-account-records.html )

Monday, November 9, 2009

Short CPO Jan 2010 Future Contract


I shorted CPO Jan 2010 future contract at 2219. I actual entry point was much higher. I was late, but I still did. The price broke recent high.
The details:
Date of entry: 9 Nov 2009
Trade Code: 20091109S
Action: Short CPO Jan 2010 Future Contract
Shorted Price: 2219
Volume: 1 Contract

The price hit my stop loss at 2234 lossing 15 points. The rest of markets are up actually. Exiting short position is a better thing to do now.
The details:
Date of exit: 9 Nov 2009 (the same day)
Action: Long to close position
Longed Price: 2234
Loss: RM 400 (2234-2219+1=16 points) (16 points x RM25 = RM 400)
My balance further reduced to RM 34,275 after the loss of RM 400.

(The details of my account is at http://www.bullsa.com/2009/06/my-future-trading-account-records.html )

Sunday, November 8, 2009

No way we could control our emotion

We are always advised to control our emotion. Trading wisdom remind us the important of the emotion control. Think about it for a second, can we really control our emotion? We are human being. We are made to be emotional. In fact, there is no way that we could stop our nerve system from the reaction.

The best way, I think, is to walk away from the situation or problem temporary; do something else for the time being or something that you like to do. When we feel better, come back to the situation or problem again. This way, I am pretty sure that we would have different prospective of the situation or problem. This is what I normally do and it works well for me.

When I have a string of losses in my trading, I just stop trading. I off the computer and do something else like meeting friends, going for a good massage or ….. anything would make me feel good.

Think about it.

Friday, November 6, 2009

Close Long Position: CPO Jan 2009 Future Contract


I long CPO Jan 2009 future contract at 2264. The price opened way above yesterday low of 2254.
The details:
Date of entry: 5 Nov 2009
Trade Code: 20091105a
Action: Long CPO Jan 2009 Future Contract
Longed Price: 2264
Volume: 1 Contract

My position was stopped out at 2252 lossing 13 points including commission. The balance of my account is now RM 34,675 after the loss of RM 325.
The details:
Date of exit: 5 Nov 2009
Action: Short to close CPO Jan 2009 Future Contract
Shorted Price: 2252
Loss: RM 325 (2264-2252+1=13 points)

(The details of my account is at http://www.bullsa.com/2009/06/my-future-trading-account-records.html )

My Future Trading Account Records

This is my actual account record for future trading (FKLI and CPO); Every trade done will be recorded accordingly. I will not hide the ugly trades. All the trades are real. The details of all trades (I call them 'Action') can be found at 'My Trading History (Futures)'.
CURRENT:
Action 20091228: Long FKLI Dec 2009 Future Contract at 1273: Loss RM 700 = Balance RM 30,450

Initial Balance as on 15 April 2009: RM 32,000
Action 20090415: Short CPO July 2009 Contract At 2400 : Profit RM 1,250 = Balance RM 33,250
Action 20090421: Long FKLI April 2009 Contract At 974 : Profit RM 100 = Balance RM 33,350
Action 20090423: Long CPO July 2009 Contract At 2511: Profit RM 25 = Balance RM 33,375
Action 20090506: Short CPO July 2009 Contract At 2653: Loss RM 575 = Balance RM 32,800
Action 20090511: Short FKLI May 2009 Contract At 1015: Loss RM 550 = Balance RM 32,250
Action 20090519: Long FKLI May 2009 Contract At 1028: Profit RM 900 = Balance RM 33,150
Action 20090525: Short CPO Future Aug 2009 Contract At 2445: Profit RM 450 = Balance RM 33,600
Action 20090604: Long FKLI Future June 2009 Contract At 1068: Profit RM 750 = Balance RM 34,350
Action 20090605: Short CPO Aug 2009 Contract At 2520: Profit RM 1450 = Balance RM 35,800
Action 20090625: Long CPO Sept 2009 Contract At 2288: Profit RM 775 = Balance RM 36,575
Action 20090630: Short CPO Sept 2009 Contract At 2236: Loss RM 925 = Balance RM 35,650
Action 20090709: Short FKLI July 2009 Contract At 1056: Loss RM 600 = Balance RM 35,050
Action 20090710: Long FKLI July 2009 Contract At 1065.50: Profit RM 900 = Balance RM 35,950
Action 20090722: Short CPO Future Oct 2009 Contract At 2095: Profit RM 400 = Balance RM 35,550
Action 20090724: Long CPO Future Oct 2009 Contract At 2124: Profit RM 1,650 = Balance RM 37,200
Action 20090807: Long CPO Future Oct 2009 Contract At 2325: Loss RM 225 = Balance RM 36,975
Action 20090811: Long CPO Future Oct 2009 Contract At 2340: Profit RM 1750 = Balance RM 38,725
Action 20090811: Long FKLI Aug 2009 Contract At 1184: Loss RM 450 = Balance RM 38,275
Action 20090817: Short CPO Future Nov 2009 Contract at 2356: Profit RM 500 = Balance RM 38,775
Action 20090817: Short FKLI Aug 2009 Contract at 1154: Loss RM 550 = Balance RM 38,225
Action 20090901: Short CPO Future Nov 2009 Contract at 2305: Profit RM 1650 = Balance RM 39,875
Action 20090909: Long CPO Future Nov 2009 Contract at 2209: Loss RM 850 = Balance RM 39025
Action 20090910: Long CPO Future Nov 2009 Contract at 2226: Loss RM 1675 = Balance RM 37,350
Action 20090914: Short CPO Future Nov 2009 Contract at 2092: Loss RM 1250 = Balance RM 36,100
Action 20090924a: Short CPO Future Dec 2009 Contract at 2100: Loss RM 825 = Balance RM 35.275
Action 20090925: Long CPO Future Dec 2009 Contract at 2130: Loss RM 300 = Balance RM 34,975
Action 20090928: Short CPO Future Dec 2009 Contract at 2121: Profit RM 100 = Balance RM 35,075
Action 20090925: Short FKLI Future Sept 2009 Contract at 1214: Profit RM 950 = Balance RM 36,025
Action 20090930: Short FKLI Oct 2009 Future Contract at 1204.5: Loss RM 900 = Balance RM 35,125
Action 20091001: Long FKLI Oct 2009 Future Contract at 1212.50: Loss RM 1400 = Balance RM 33,725
Action 20091002: Short CPO Future Dec 2009 Future Contract at 2090: Profit RM 650 = Balance RM 34,375
Action 20091006: Long CPO Future Dec 2009 Future Contract at 2062: Profit RM 200 = Balance RM 34,575
Action 20091008: Short CPO Future Dec 2009 Future Contract at 2061: Loss RM 575 = Balance RM 34,000
Action 20091008c: Short CPO Dec 2009 Future Contract at 2040: Loss RM 975 = Balance RM 33,025
Action 20091009b: Long CPO Dec 2009 Future Contract at 2085: Profit RM 1,800 = Balance RM 34,825
Intraday Trade 20091014: Long CPO Dec 2009 Future Contract at 2185: Loss RM 650 = Balance RM 34,175
Longest Trade 20091005: Long FKLI Oct 2009 Future Contract at 1214: Profit RM 3100 = Balance RM 37,275
Action 20091015: Short CPO Dec 2009 Future Contract at 2161: Loss RM 125 = Balance RM 37,150
Action 20091015: Short FKLI Oct 2009 Future Contract at 1246: Loss RM 1500 = Balance RM 35,650
Action 20091016b: Long CPO Jan 2009 Future Contract at 2178: Profit RM 200 = Balance RM 35,850
Action 20091020a: Long CPO Jan 2009 Future Contract at 2211: Loss RM 425 = Balance RM 35,425
Action 20091020c: Short CPO Jan 2009 Future Contract at 2195: Profit RM 450 = Balance RM 35,875
Action 20091016: Long FKLI Oct 2009 Future Contract at 1261: Loss RM 850 = RM 35,025
Action 20091022a: Long CPO Jan 2009 Future Contract at 2205: Profit RM 600 = Balance RM 35,625
Action 20091026a: Short CPO Jan 2009 Future Contract at 2221: Profit RM 1625 = Balance RM 37,250
Action 20091026a: Short FKLI Oct 2009 Future Contract at 1247.50: Loss RM 100 = Balance RM 37,150
Action 20091029: Long CPO Jan 2009 Future Contract at 2153: Profit RM 350 = Balance RM 37,500
Action 20091030: Long FKLI Nov 2009 Future Contract at 1248: Loss RM 1350 = Balane RM 36,150
Action 20091103a: Long FKLI Nov 2009 Future Contract at 1249: Loss RM 1150 = Balance RM 35,000
Action 20091105a: Long CPO Jan 2009 Future Contract at 2264: Loss RM 325 = Balance RM 34,675
Action 20091109S: Short CPO Jan 2010 Future Contract at 2219: Loss RM 400 = Balance RM 34,275
Action 200911109c: Long CPO Jan 2010 Future Contract at 2254: Loss RM 200 = Balance RM 34,075
Action 20091111a: Short CPO Jan 2010 Future Contract at 2219: Loss RM 1025 = Balance RM 33,050
Action 20091104: Long FKLI Nov 2009 Future Contract at 1256.5: Profit RM 450 = Balance RM 33,500
Action 20091112c: Short FKLI Nov 2009 Future Contract at 1262: Loss RM 1,200 = Balance RM 32,300
Action 20091212: Long CPO Jan 2010 Future Contract at 2258: Profit RM 150 = Balance RM 32,450
Action 20091116a: Long CPO Feb 2010 Future Contract at 2310: Profit RM 475 = Balance RM 32,925 after the profit of RM 475
Action 20091118a: Long CPO Feb 2010 Future Contract at 2378: Profit RM 50 = Balance RM 32,975 after the profit of RM 50
Action 20091119a: Short CPO Feb 2010 Future Contract at 2366: Loss RM 750 = Balance RM 32,225 after the loss of RM750
Action 20091124a: Short CPO Feb 2010 Future Contract at 2340: Loss RM 750 = Balance RM 31,475 after the further loss of RM750
Action 20091125A: Long CPO Feb 2010 Future Contract at 2501: Loss RM 475 = Balance RM 31,050
Action 20091126A: Short CPO Feb 2010 Future Contract at 2363: Loss RM 625 = Balance RM 30,425
Action 20091201A: Short CPO Feb 2010 Future Contract at 2450: Loss RM 400 = Balance RM 30,025
Action 20091201B: Long CPO Feb 2010 Future Contract at 2491: Loss RM 250 = Balance RM 29,775
Action 20091204A: Long CPO Feb 2010 Future Contract at 2497: Profit RM 1600 = Balance RM 31,375
Action 20091207A: Short CPO Feb 2010 Future Contract at 2558: Loss RM 275 = Balance RM 31,100
Action 20091209A: Short CPO Feb 2010 Future Contract at 2531: Profit RM 725 = Balance RM 31,825
Action 20091207: Short FKLI Dec 2009 Future Contract at 1258: Profit RM 400 = Balance RM 32,225
Action 20091214A: Short CPO Feb 2010 Future Contract at 2497: Loss RM 700 = Balance RM 31,515
Action 20091214: Long FKLI Dec 2009 Future Contract at 1265: Loss RM 1,000 = Balance RM 30,515
Action 20091221A: Short CPO March 2010 Future Contract at 2580: Profit RM 425 = Balance RM 30,950
Action 20091221B: Short CPO March 2010 Future Contract at 2551: Profit RM 750 = Balance RM 31,700
Action 20091223: Short CPO March 2010 Future Contract at 2495: Loss RM 700 = Balance RM 31,000
Action 20091224: Long CPO March 2010 Future Contract at 2528: Profit RM 550 = Balance RM 31,550
Action 20091228: Short CPO March 2010 Future Contract at 2589: Loss RM400 = Balance RM 31,150
Action 20091228: Long FKLI Dec 2009 Future Contract at 1273: Loss RM 700 = Balance RM 30,450

Wednesday, November 4, 2009

Short EURUSD at 1.4673


This is my first record for forex trading. I trade based on daily chart and weekly chart. I place stop loss far so I need bigger margin (1:10). I shorted EURUSD at 1.4673 ON 3 oCT 2009. Please refer to chart for the details.

The price hit my stop loss level at 1.4855 lossing USD910.85. I have nothing to say since I have to base on my trading rule; placing relevent stop loss to minimise my loses when positions go against me.

My New Forex Trading Way

My Forex Trading:
1) I am using weekly chart and daily chart to trade (I know most traders using much shorter time frame, I use longer term; weekly and daily to avoid those ‘robots and scalpers’)
2) My trading decision is based on break out of the prices of high and low
3) I am not using technical analysis like MACD, RSI, Stochastic and Moving Averages etc. As I want to keep trading simple
4) Risk Management: I place stop loss far at least last two bar’s high and low so I need bigger margin for all my trades
5) Money Management: The maximum I can loss for every trade is 10% of my total equity.

I will add more as and when needed

Tuesday, November 3, 2009

Closed Long Position For FKLI Nov 2009 Contract


I longed FKLI Nove 2009 Future Contract in the morning at 1249. There is not much of bullish reason actually so I will put tight stop loss just in chase.
The details:
Date of entry: 3 Nov 2009
Trade Code: 20091103a
Action: Long FKLI Nov 2009 Future Contract
Longed Price: 1249
Volume: 2 Lots

It is true enough that the price is in consoliation at least for the last three days. I loss another 10.50 points after the stop loss of 1238.50 was hit.
The details:
Date of exit: 3 Oct 2009 (Same day as date of entry)
Action: Short to close long position
Shorted Price: 1238.50
Loss: RM 1150 (1249-1238.50+2=11.50 points)
My account balance further reduced to RM 35,000 after the loss of RM 1150.
(The details of my account is at http://www.bullsa.com/2009/06/my-future-trading-account-records.html )

Monday, November 2, 2009

Closed Long Position For FKLI Nov 2009 Contract


I longed FKLI Nov 2009 future contract at 1248 with the reasons 1) Price broke above Yesterday high of 1241 2) Stochastic turned up from oversold area 3) Price open way above moving avereage 10. I am not kind to trade during month end (changing month) usually but with the 3 bullish reasons, I took the long position.
The details:
Date of entry: 30 Oct 2009
Action: Long FKLI Nov 2009 Future Contract
Longed Price: 1248
Volume: 2 Contracts

I close this long position at the open and the price was done at 1235.50 lossing 12.5 points. It looks like the market is in sideway mode; one day gap up and the next day gap down.
The details:
Date of exit: 2 Nov 2009
Action: Short to close long position
Shorted Price: 1235.50
Loss: RM 1350
The balance of my account now is RM 36,150 after the loss of RM 1350
(The details of my account is at http://www.bullsa.com/2009/06/my-future-trading-account-records.html )

Sunday, November 1, 2009

BEING CONSISTENT

I got a very nice article that could benefit fellow traders:
'Being Consistent' (trading article by Joe Ross, a very well known trading guru who changed my trading life. www.tradingeducators.com)

Two key words you often hear in trading are consistency and self-control. A winning trader makes consistent profits. Here's what that means. In contrast to experienced traders, less experienced traders' equity curves go up and down, but mostly down. The equity curves are jagged and show extreme peaks and valleys. A mature trader, in contrast, has a smooth, rising equity curve. That doesn't mean that an experienced trader doesn't run "hot" and "cold." Even the best traders have slump periods. But what they don't do is allow their emotions to guide their trading. They don't impulsively abandon their trading plans, panic at the wrong moment, or make numerous trading mistakes. When they happen to hit upon ideal market conditions, they are able to take advantage of them, so that in the long run they come out ahead. The more you can trade consistently and with self-control, the more profits you'll realize.

How do you trade more consistently? One of the first steps is to develop clearly defined trading plans and try to stick with them. Self-control means that you learn to follow a trading plan consistently once you are in the trade.

Mature traders may have extensive experience to know when to stick with a plan or when to dump it. But a novice trader doesn't know how to react so intuitively. He or she must have clearly defined strategies to enter and exit a trade, and deliberately follow them. In the end, trading is a matter of taking advantage of chance. To take advantage of the law of large numbers, you must make many trades, and do so consistently. I'm not saying that you must make many trades each day; the less you trade, the more money you will make, and I have proved that to be true to my own satisfaction.

Ideally, your objective is to try to put on a trade with self-control, reacting effortlessly over and over again. By chance, your plan may work, or equally by chance, it may not work. If you use a sound, reliable trading strategy, however, you will be right enough times to make a profit across a series of trades--taking advantage of the law of large numbers.

What happens to many novice traders, though, is that they allow their emotions to take over at critical moments of trading. They lose control. They may jump into the markets before they are ready because they crave a little excitement, or they may close out a trade early because they are afraid of losing money. Even traders who have a well-devised trading plan may not follow it out of fear or greed. When this happens, a novice trader will lose money even when the market conditions favor their trading methods. They lose money when they should have been making money, and then, when the market conditions change and are not conducive to their methods, they lose even more money. They may occasionally hit upon those moments when everything "clicks" and make a profit, but it is usually short lived.

It is important to control your emotions when trading. Don't act impulsively. Identify when you are uneasy or fearful, and take steps to reduce the fear. For some people, emotion control may be as extreme as standing aside for the day, or even days. For other traders, it may mean working out regularly and using meditation or relaxation techniques to remain calm. Perhaps the best method of emotion control is to manage risk. If you know that the outcome of a single trade can have relatively little real impact on your account balance, you won't be as worried and you'll trade more freely.

Finally, don't trade beyond your skill level. If you stick with what you know initially, you will be able to build up your trading skills and confidence level. Master traders know that they have a few foolproof weapons in their arsenal of trading methods that they can use to recoup major losses should they need to. Once you realize that you can make lost money back if you need to, you'll feel a sense of freedom. You'll know that should you experience a drawdown, you can get back in the game and, in the end, there is really nothing to worry about. Until then, however, you must practice trading conservatively until you build up the requisite skills. The best way of doing that is to develop a trading plan and follow it. Trade with money you can afford to lose, and manage risk carefully. By building up your trading skills and developing a strong sense of discipline and self-control, you will eventually develop the ability to trade profitably ac! ross a variety of market conditions, and remain profitable in the long run.