017: Margin Call
It's funny how I used to laugh at fellow newbies who weren't able to manage their leverage well, hit margin call and must start over again-- then risk experiencing that myself this week because the EURUSD moved up against my favor and I have the lowest drawdown ever now. I was short EURUSD but overestimated USD and didn't pay much attention to the not-so-ok messages from its economic indicators.
Those who are still in demo (like me, it's my 8th month now) were luckier than those friends and acquaintances who lost real money. I have no idea what their risk and money management styles were, but I noticed that majority of those who lost were the ones who decided to trade in a real live account right away after only 3-6 months of demo trading.
I can imagine the pain of losing (even if I'm on demo) and it sucks. Either I have to start again especially in the 1k Challenge trade "from scratch"--meaning, I have to have a total overhaul in my curent strategy, perhaps move to technical and learn scalping which I'm not really really good at but must find a way to make it work, OR stick to my current fundamental and sentiment strategy and continue swing trading but reduce my trade lots (no matter how boring the result will be).
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I've stayed away from monitoring my trades for the past week and decided to look for other source of motivation to carry on. I've learned a LOT from the following "distractions":
1. Margin Call - This movie made me realize the importance of not being impulsive (quit job, trade for a living, ha!) and use my brain. The pivotal moment was when the CEO asked his team why he earns more than them, and he emphasized that he doesn't wanna cheat so it's imperative to be first or be smarter. Another obvious reason why he earns most is that he owns the business itself. Kyosaki's ideas in his books are brilliant. I must also start and run a business, even just a small one and succeed from it aside from trading stocks and forex, before turning my back from the corporate life. It's easier also to borrow from banks when one's employed and has a successful business at the same time. I really still have sooooo much to learn as well, not only in forex and running a business, but also in my current job.
2. My Boss, My Hero - All these years, I still haven't gotten over the fact that I've stayed in a course which I never liked, and stopped appreciating the value of going to school (because of Robert Kyosaki's radical ideas)-- until I've watched this Japanese series. Even if I've only learned the basics on how to achieve the elusive financial freedom right after college while I was already working, school actually taught me a valuable lesson in character development, especially leadership, stress management and perserverance. I know I'll lose a lot of times in trading and running a business, but that's part of winning as long as I never quit and never staying average-- I think the latter one I've learned from BBC Sherlock.
3. Traders Podcast - It's so refreshing to listen to this on my way home while being stuck in traffic, and even in the office when I feel de-motivated. Rob Booker, the host, has successfully revealed the unglamorous side of trading for a living and offers a lot of useful tips and insights both for newbies and experienced traders (not to mention that he's very funny even in his book -- Currency Strategy, which I'll be reading tonight because I've just finished reading my 4th Robert Kyosaki book, Retire Young Retire Rich).
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Why #17?
Because this is a continuation of my old forex blog.
