The 8 Losing Trades:
Here are the 8 losing trades that I made you can save your Time and Money by not repeating them, so Let’s get started!
I’m not here to paint a rosy picture of trend following, but rather to show you the reality of it. As a trend follower, I accept the fact that I have a low winning percentage. Thus it is no surprise to face a losing streak which is happening to me right now.
I risk 1% a trade so after 8 losing trades I have lost 8% of my equity. It is not a big hole and can be recovered easily with 1 or 2 winning trades.
Below are the charts of the trade I’ve taken and got stopped out. The arrow marks my entry and the red line my stop loss.
Most traders would throw in the towel and hop onto the next trading system. But a trend follower like me will continue executing my trades because the next big winner could just be around the corner.
So, how many trades have you lost in a row?
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Hi Raynor! Thank you for your constant updates and videos. I always follow them and have learned a lot. Would just like to ask a few questions.
I notice that your stop losses are very near support and resistance levels where price has shown to test and reject them. Will placing them further away from such levels give trades more chance to grow as other traders like to place pending orders and stop losses near these levels too?
Thank you glad you liked it!
I placed my stop simply based on 2 ATR, so what you noticed is that those breakout trades i had tend to be cutting into support and resistance area.
I may or may not re-enter depending on the relative strength of the product.
Thanks for the prompt updates.
I learnt that you had changed your trading strategy from weekly daily to H4 H1.
Few questions below;
1. Will you change your time frame strategy to weekly daily mode due to your long losing streak?
2. The 2 ATR that you have mentioned above, which timeframe are you using to calculate the stop loss? H4, Daily or Weekly?
3. The ATR is based on 14 days, 50 days or 100 days?
Happy trading and thanks 😉
I’ve not change my trading strategy, I still follow the trend on the daily/weekly but enter on the 4hour and sometimes 1hour as mentioned over here.
1) No i do not change my time frame, I simply trade according to how i have been trading.
2) The ATR will depends on my entry time frame. If i’m entering on 4hour, it will be 2ATR on 4hour.
3) It is based on 20 period.
Welcome and good trading!
Thanks Rayner for showing the reality of trading and you have humble yourself. This, I respect a lot from traders like yourself. Many traders show their winners but not there losing trade. In your blog you have demonstrated the importance of money management. Have a good week 🙂
You’re welcome and thank you for the kind gesture.
I don’t see a point in simply showing winners as subconsciously I know i would be lying to myself and the world. And i can’t live with that conscience.
Thanks for dropping by!
It does’nt depend if price rise or fall. The final question is allways “when to close”.
I’ve -3.6% Loss this month, But my equity curve is just in a retrace 😉 I am convinced that soon or later, my balance geting green numbers, this month.
Menthaly i could not whait till the Price hit my SL, based on ATR2. It would be to much stress for me. Thats why i am useing dynamik risk, that allow me to close with a partial loss. But it shows that Rayner trade consistant and menthaly well balanced and trade his system witch suits to his personality. This should be the aim for every Trader.
Sorry to hear about your loss this month, but great to know your emotions are in check!
Rock on, you will have better days ahead I’m sure.
Losses are a part of the buissnes. The hard part is when you got a 0% month and pay your bills from your deposit.
But nevermind… I see losses allways as a nececary risk. Without it, the winners would not be posible.
Cheers and trade well 😉
True that. Or simply put losses are the cost of doing business.
Love what you have been doing. Found your site through HWZ.
Pretty sure you get this alot, but which platform do you recommend with small time retails like me.
I typically trade 10k-30k lots. With 3-5 trades a week.
Started with a capital of 3k so it doesn’t allow me to do much.
Should I go with Phillip Futures or Saxo?
Which platform are you using?
Did MT4 come with your account?
Thank you for your kind remark.
So you trade 1 – 3 mini lots, 3 to 5 times a week on a 3k capital.
From a position sizing point of view, I wouldn’t risk more than 1% a trade. So each trade I will lose a maximum of $30.
I’m with Oanda right now and I use MT4 for charting. Yes Oanda has MT4.
Similarly you can check out plus500, cmc markets, igmarkets as they offer a wide variety of products as well.
Best of luck!
Rayner knows best 🙂 And so far we do not know anything about your experience and trading style, blind i would also recommend you not to risk more than 1%. I realy recommend this in your first steps.
Broker & Platform… My recommend criteria is:
1. FCA regulated and every Country got somtimes seperated regulations by his own law like BAFIN and how they all called 🙂
2. Found your deposit it in your homeland curency.
3. Your deposit must be segregated by your Broker.
4. And at least chose the platform you prefear like MT4.
Hi Rayner.. thanks for writing such a good post to help new trader like me.. just want to ask you a question.. is it anyway to minimise your losses ? i figured that i incur more losses as i stack more trades.. any solution to this? thanks!
There’s no way to minimize losses, it’s simply the cost of being a trend follower.
If you find yourself incurring losses too fast, reduce your frequency of stacking in more trades.
Likewise consider reducing your risk on each trade.