Sometimes we want to be so accurate with our trading, that it gets in the way of the real objective, to make money. After assessing my trading history, I noticed that some trades would get stopped out a little early and almost always go in the direction for around 30 – 40 pips, often more. But why was I getting stopped out so often?
High Risk, High Reward, High Pressure
By trading heavier volume and winning less trades, there was good money, but higher pressure. I realised that if I reduced my volume, increased the stop size and let the trade run as it needs to, I would win more trades and ultimately make the same if not more money without the pressure.
Take the pressure off your trading
The solution, trade less volume with a bigger stop, leave it and come back a little later to see if target was hit, or if it was in profit enough to press close. Attempting to be within 10 – 20 pips of a trade is quite difficult, and on the trades that aren’t as likely or certain, it is so much easier to take the pressure off and have a go at more trades that you would if you felt you have to go heavy in all trades.
Testing Your Strategy On Light Volume
If you need to have a second account to test out this theory and separate your normal trades, perhaps it will take the pressure off your trading once you have the data and it is working for you. Using data is a superb way to gain clarity around your trading. Gather data on what you actually do, then extrapolate it into usable information. For example, if you are getting stopped out early or feeling under pressure, it is probably time to reduce your volume and increase your stop. Place your trade, step back and come back later. Trading isn’t fun when you sit there watching every 5 minute interval like it is make or break. Over a month, if you win more of these with less pressure, your life and trading balance will probably reflect that.