After the setback of recent months, there is finally some satisfaction. In July I traded very conservatively, with very low risk and overall achieved a result of + 2.6% capital growth.
The average loss this month was -0.15% and the average profit from the transaction + 0.36%, thus producing the 2.4 ratio. Even though this is not my desired result, it is pretty close to it.
I have not risked more than 0.5% of the capital per transaction this month. Compared to normal market conditions when I risk with up to 3% of capital per trade it is rather significant change. I’ll get back to my normal trading scheme once my results will improve. Otherwise increasing risks while loosing money is not a good idea.
It is one of the most common mistakes that beginners make – keep increasing “bets” after the loss, hoping that the next transaction will bring bigger profit to cover the loss. It never works!!
You can’t predict how long losses can last, and if you keep pushing it further and further you may burn your account before you know it.
The total results for this year so far are as follows:
· profit 15%;
· win rate 41%;
· risk reward 1.78.
It is the Risk Reward (RR) ratio that needs to be worked on. There is a lot of profit here. The higher the score, the better and more confident I feel.
Based upon my previous experience, I can confidently say that if you want to have a nice profit by the end of the year, you have to have your RR ratio around 3.
Looking at my overall results, I see the Pareto Principle again. Less than 20% of my successful transactions make more profits than the rest of 80% which can be considered as a “noise” for that matter.
I don’t include my transaction with cryptocurrencies in my monthly chart since I want to keep these results separately, considering it as another high-risk asset. Besides, some of it I have acquired by mining. So, I want to keep my monthly trading results as clear as possible w/o adding too much to it.
My crypto portfolio includes many different currencies, but the lion’s share of it consist of BTC and ETH. Latest increase of value cheers me up, however I don’t actively speculate on cryptocurrencies, keeping BTC in the “cold wallet” from the time when the price of BTC was $4000.
What breaks my heart, though, is the prices of gold and silver in recent months. I predicted rise if precious metals and recorded the profit myself quite some time ago. However, I thought that there will be a bigger correction before these prices will rise further. But alas, no correction followed, and prices kept climbing higher and higher. Well, all this is a part of the process and we just have to continue spot trends and become better at predicting which one is more successful than another.