Welcome to the circle of thoughts

It’s 10:50 PM, my time. I’m looking outside of the window and I’m thinking about how things can turn bad and get worse.

I think it’s the first time I am writing at this hour and the first thing I’ll do after finishing this article (after sending it to my wife and to my friend) will be to go to bed. Tomorrow it’s another day of work. And now the work is from home. It has been a month or so since I am working from home. Considering the circumstances I am happy that I have this possibility.

I know that the illness outside it’s bad and everybody is worried. I will not give any advice, insights or even guesses of the direction we are going (neither medical, neither economical)

Actually, the first phrase I wrote is related to my trading account. As last month I saw that 240USD drawdown I continued to work with my current investor and trusted one more time the system. And the expected happen again, the system failed.

This time I saw it coming and managed to disconnect from the investor, closed my phone and went to sleep. First thing in the morning, I checked my trading account, –1000USD open positions. Looked for the investor in the charts, he took another hit for around 30% of his account. That is close to 50% of value in a span of two months. One week later (I checked) he quitted.

Money, Burn, Dollar, Waste, Finance, Fire, Investments
Photo on:Pixabay

The month March went by in a struggle to close the open positions, get back in track see if I can turn the tides. I managed to close -350USD and that brings me to a total of -526 since the beginning of the year and I have an open position size of -700USD, and everything on EURUSD like it had been the last two months.

What went wrong

  • Trusting a robot in these times
  • Not looking on the chart, seeing the big pictures
  • Going against the trend 3 times (that is 3 times….I mean…no words)
  • Panicking and I really had a mini panic attack
  • Adding to bad trades
  • The most important, let it go against my fundamental rules, written even on this blog (1-2% loss)

I have no excuse, I knew how the robot trader, I knew how it will react to bad trades, I didn’t know what are his exact entry points but the image was pretty clear.

This time I really learn my lesson. And now, after witting the post, I analyzed the chart, from 1h perspective, for the last 2 months. Guess what, If I would have respected my strategy, everything would have been OK.

It’s not clean, it’s messy, it is a big pile of lines. But it respected what would have been my strategy.  And this gives me hope. I know it is easy to talk from the ‘what would have been’ point of view. Please excuse me a bit as I am working up my motivation again.

What will the future bring

In terms of economics and progress and the stop rate of the illness, we don’t know.

In terms of the account I plan the following action items:

  • First I will stop posting the monthly statements and I will abandon following the investment plan, till the problem of the current open positions is solved.
  • I will give it 1 more month probably before throwing some money in the trading account, just to clear and calm my mind.
  • I will trade, based on my strategy, entry and exit positions to minimize the draw-down ( I am not in full lock-down on the account, so I am able to take I trade)
  • I will clean that chart and make a fresh analysis and will trade the EURUSD until I bring more money to the account
  • I will not use anyone system anymore
  • I will come back here with updates on the situation (maybe each week, or bi-monthly)
  • I will trust more my analysis on the chart and rely solely on them
  • When everything is settled, I will draw the line, see where we stand on the investment plan, put some money in to be as close as possible to the expected growth curve and carry on

So, it is not the end of the world. Yes! I am in a bad position, Yes! I am upset, Yes! I will have a lot of work, Yes! I will throw away a pile of money, but the end goal is there and I ….WILL ….NOT ….QUIT! (cliche?!)

Thank you for reading this!

Disclaimer: I am not a financial consultant, all the information you find here are my decisions, I taken in that moment, on my own analysis. I am open to any type of discussion about money. If you want to replicate my portfolio take into consideration that it is your money.

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