Start of your New Week
I am sure people are wondering how my accounts are doing. It can be a lonely feeling when your account is going down. Sometimes it helps just to know that you're not alone.
I'm optimistic at the start of this new week. This past week was not great for my accounts, as most of you saw in your own accounts. We have to expect the down swings along with the up swings. What made my drop even bigger was last week in my IRA account I decided to start a new portfolio with 3 pairs (everything but EUR/USD). That was a bad combination for Thursday because EUR/USD was the only pair that didn't go down. The best combination to have last week would have been EUR/USD and USD/CHF. Who knows, maybe both GBP/USD and USD/JPY will bounce up this week and now is a good time to start a new portfolio with them. I don't do any research to try to time the market so I have no idea. By the way, I haven't changed my main account, I'm still trading all four pairs.
Having a big drop in a demo when you're first learning FreedomRocks is also unfortunate. I've seen it happen, people will start a demo account and have it go down during their free trial. They get discouraged and don't stick with it to see their account swing back up. I don't blame them, I know it's hard to have patience, but when their account drops, they immediate think the system doesn't work. It's hard for people to remember that FreedomRocks is a long-term system. Same thing when accounts immediately go up, I try to remind people that it won't always go up. It seems to take people a month or two to really understand and get comfortable with the movements in their accounts.
These draw downs are toughest on the people that just started a live account. It's very had to have a demo doing well then start a live account and have it drop a huge amount in the first few days. Without having made some money first, seeing a big drop is hard to handle. Many people get rattled. I would love to people able to tell people that it will bounce back this week. The truth is, we just don't know. My account has always bounced back, but each day is different than the last...we never know what will happen.
I think part of why it's hard to see FreedomRocks as a long-term strategy is that we often see very quick and very large movements in our accounts. Many people are used to seeing stocks or mutual funds takes weeks to make the same kind of movements we sometimes see in a matter of hours. Part of that difference is the volatility of the Forex market, but it's also because we are using a large amount of leverage. The way to feel more comfortable and make the peaks and valleys smaller is to use a smaller margin percentage.
The trouble with a high margin percentage is that people get aggressive (or greedy) and want to make a ton of money quickly. I'm guilty of that myself at times. It can be a tricky balancing act, trying to push your returns higher without being too aggressive and risky.
I'm optimistic at the start of this new week. This past week was not great for my accounts, as most of you saw in your own accounts. We have to expect the down swings along with the up swings. What made my drop even bigger was last week in my IRA account I decided to start a new portfolio with 3 pairs (everything but EUR/USD). That was a bad combination for Thursday because EUR/USD was the only pair that didn't go down. The best combination to have last week would have been EUR/USD and USD/CHF. Who knows, maybe both GBP/USD and USD/JPY will bounce up this week and now is a good time to start a new portfolio with them. I don't do any research to try to time the market so I have no idea. By the way, I haven't changed my main account, I'm still trading all four pairs.
Having a big drop in a demo when you're first learning FreedomRocks is also unfortunate. I've seen it happen, people will start a demo account and have it go down during their free trial. They get discouraged and don't stick with it to see their account swing back up. I don't blame them, I know it's hard to have patience, but when their account drops, they immediate think the system doesn't work. It's hard for people to remember that FreedomRocks is a long-term system. Same thing when accounts immediately go up, I try to remind people that it won't always go up. It seems to take people a month or two to really understand and get comfortable with the movements in their accounts.
These draw downs are toughest on the people that just started a live account. It's very had to have a demo doing well then start a live account and have it drop a huge amount in the first few days. Without having made some money first, seeing a big drop is hard to handle. Many people get rattled. I would love to people able to tell people that it will bounce back this week. The truth is, we just don't know. My account has always bounced back, but each day is different than the last...we never know what will happen.
I think part of why it's hard to see FreedomRocks as a long-term strategy is that we often see very quick and very large movements in our accounts. Many people are used to seeing stocks or mutual funds takes weeks to make the same kind of movements we sometimes see in a matter of hours. Part of that difference is the volatility of the Forex market, but it's also because we are using a large amount of leverage. The way to feel more comfortable and make the peaks and valleys smaller is to use a smaller margin percentage.
The trouble with a high margin percentage is that people get aggressive (or greedy) and want to make a ton of money quickly. I'm guilty of that myself at times. It can be a tricky balancing act, trying to push your returns higher without being too aggressive and risky.
Labels: forex
posted by Blogger Guy at
3:09 AM
1 Comments
