Forex Update – April 2010

I’m not sure about you but for me April just few by. Between my current day to day job, injuring my shoulder, and a handful of other stuff I hardly had time to tend to my little website here. I also didn’t have nearly as much time to trade on the forex as I had would have liked.

The first week and a half of the month went well and I was well on my way to attaining my goal of a 25% return. Now, some of you out there in the wonderful world of the internet might say that 25% is totally unrealistic. You are probably right. I don’t expect to reach 25% every month but you have to have some kind of goal right? If I didn’t have a goal then I’d have nothing to aim for. This however is on the point of this post but more of a clarification for my little buddy who left me a nice comment on my post from last month.

Now for the meat of the post and I’ll start off with an apology because I haven’t had time to make any graphs but next month I should be back on track.

The first nine trading days were going well. I was on track and my new trading strategy was working well. I had returned just shy of 10% of my initial investment which meant I was about 1/3 of the way to my goal. After this I made a simple mistake and things took a turn for the worse. I entered into a long position and the market took a turn for the worse and decided to hold its nose dive. Normally not an issue because I was trying out some different stop loss strategies but for whatever reason I didn’t get one put in.  Since this is only a practice account and not real money, I thought I’d let go and see if it ever recovered. I continued to trade and increase my percentage.

All was well until the end of the month came. I’ve decided to close all my positions at the end of the month to make keeping records simple. Normally I’d leave them open if they were doing well. When things were all said and done and I had closed all my positions, I was left with less than I’d like but still in the black which is never bad.

I ended the month at around 13% of my initial investment and I learned a valuable lesson which is to always double check your stop losses. A simple mistake that could have ended in disaster but thankfully didn’t.

On a side note, I think I may have found a strategy that works for me. While there are some losses I, in the end I seem to be coming out ahead and by a fair amount. I’m lagging behind this month and I’m hoping things fall back into a rhythm and I can’t start hitting the forex hard.