Because I have vested interest in forex trading, I am particularly interested in the topic of leverage, compounding, scaling up, etc. Trend trading , a strategy that I am now employing have been giving me decent returns thus far. The trick, simple as it might seems did not occur to me at the early stage of my investing. Perhaps, one needs to pay sufficient tuition fees to the market before wising up, haha.
As it is, the trick was to control on the position size and the stop loss level. By having a small size, I ensure that I stay invested in the game. With a tight stop loss, I ensure that my capital is protected sufficiently to bet on the next pair. The strategy of 60% losses may not seems logical in the first place but over time, the bigger winners , fewer as it may be will outweigh the losses.
Thus, it is crucial that I get the right strategy, long or short and riding the trend rather than the precise entry price as the trend will take care of the pricing. Trying to catch the top to sell or bottom to buy can be a nice feeling for the ego but did little on the profitability of the game.
So, I have been thinking with a small capital , how else can I leverage the game to achieve an exponential returns without increasing the position size?
1. Would diversification helps? ie. betting on more pairs to even out the exposure with some longs and others short?
2. Would trading less frequent by adopting a higher timeframe help since there is lesser entry and exit points?
I am a bit confused, trying to accomplish one too many things at one go. I should surrender to God and let him take over. I must focus only on the end goal - becoming a successful and constantly profitable trader. The means of achieving it is not my concern, I need to quite down and listen to God's words, which can come to me in various forms. Signs and wonders would be given to me and I need to be open to it and clear my mind of any obstacles to receive it well.
Worries, anxiety, fear, stay out of my life. Get out of my head, I command you at this moment. You have no place to stay and this is not where you should belong, so get the hell out. My mind is filled with hope, faith and courage and the love of God who will bless me in all things that I do.
I must focus on the Maker, God and not what's made, losing my focus and going for the trees instead of the woods. The woods will direct my path and I would not be afraid even the journey ahead may be full of challenges.
I know well God will go before me, ensuring my path is protected and good resources will be lined up along to help me achieve my goals. Thank you Lord once again. Writing my thoughts down help me to destress, calm down and clarify my thoughts !