I made 500 pips in 4 days when I was about to throw in the towel

I would like to share this email with you. It’s long, please be patient, but to anyone trading, whether it’s Forex, Stock, Futures or anything, whether you are in the process of doing it, just started, not started, losing money, winning money, PLEASE READ BELOW.

After every hands on, I will tell students that they can stay back for me to answer any ‘personal question’ – obviously I meant a one to one discussion on their trading and issues. I’ve attempted to solve many students problems. Some which I was successful. Some not. Some gave up. Some went on to make lots of money. Some lost money.

I spoke to Snehath on the first forex hands on class after New Year. The first thing he said “This year was bad”. It’s only barely a week after start of 2011…..I talked to him for a while, trying to understand his issues and proposed best solutions base on my understanding and also my experiences for the past 18 years.

I happy and appreciate this effort to stay on this forex game. And I’m glad to receive this email “Breakthrough finally”.

Binni Ong

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Email from Snehath

 

Below is the content found in the document he sent “No trigger No trade” (we made some changes to grammar and inserted some graphics)

FX trading is an activity that has its ups and downs. At one point, throwing in the towel for FX trading crossed my mind. After a lot of reflection and hard work, I feel on top of the world. Let me share with you my story.

""February 1st 2011 5 p.m – Transactions are lined up to short GBP/USD. The pattern looks good. I am seeing Head and Shoulders, double tops and everything else that will convince me that this is a good trade.

February 1st 2011 5.30 p.m – GBP news is released. The GBP/USD shoots up and I am condemned to another loss trying to short a raging bull.

February 1st 2011 5.45 p.m – Driving back home utterly disappointed that I have messed up once again. Phone beeps and the last tweet I see for the year of the Tiger is “no trigger no trade, i stick to the rules“.

February 1st 2011 7.45 p.m – Back home. Mind is going a bit blank and I think to myself: “Should I throw in the towel? This really isn’t working”.

I decide to analyze my transactions for the last one month and realized that all the transactions that I have failed in are the ones that I have tried my luck and not acting upon a trigger.  Countless times I have tried to short EURUSD, GBPUSD and also long USDCAD without a trigger.

With the long weekend around the corner, I think to myself that I am going to stick by the rules – before I press the button to transact, I must be convinced there is a trigger. I will record down my transactions in a excel sheet and must plan my trade – no impulsive trades allowed. I owed that much to myself and also to Binni who has been drumming this into our heads over and over again.

 

My background

Sorry, I forgot to introduce myself. My name is Snehath Dias and I joined TerraSeeds FX Tflow® Intake 13 back in September 2010. I have no background in FOREX or stocks – basically 5 months on the job. I had a rough start to my trading life and had a good month in December. That good month in December was my downfall because I got aggressive and thought that I can conquer the market in 2011. Needless to say January was a disaster and I was on the verge of giving up.

 

What happened next?

Sticking by the rules, I decided to analyze charts for TFLOW focusing on Day charts and looking for 13TL breaks or WRs of Point 2. I was amazed at the number of transactions I found and how I was able to earn pips effortlessly by trusting the flow and holding on rather than looking for quick pips.  Here is what I have been doing over the last 4 days.

PairLong/ShortProfit taken at/ Current number of pipsIntended target
Total494 pips744 pips
AUDUSDLong70 pips (Couldn’t last the retracement)140 pips
GBPUSDLong10 pips (Couldn’t last the retracement)100 pips
GBPJPYLong10 pips (Couldn’t last the retracement)100 pips
NZDUSDShort68 pips (Going to hold on as long as possible)Still open
EURGBPShort86 pips (Going to hold on as long as possible)Still open
EURUSDShort250 pips (Going to hold on as long as possible)Still open

As of last night, I had a total of 494 pips for 4 days of work. This morning my open transactions had retraced but I am planning to hold on as long as possible. (I chickened out far too early in my first transactions so need to be brave until reversal signs appear). Here is a screenshot from last night.

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Screenshot of my FX trades

I am very happy with the EURUSD short. I spotted an hourly TFLOW and lasted to the 261.8% PT. (120 pips). I let the other transaction run further as there was a D1 chart break. My hope is to last up to the 50% retracement of the last D1 up flow which will be 400 pips!

What I did wrong in January

I realized that in January I was obsessed with finding the top most point of the reversal. Instead of riding the trend I wanted to counter trend the raging EUR and GBP bull. 95% of the time I was wrong and that meant that I was losing 95% of the time by trying to gain additional 50 – 100 pips.

Once I started using TFLOW and triggers again, I didn’t care about catching the top or bottom of a reversal. I let the market settle in and wait for a trigger to execute. The EUR/USD was executed 100 pips from the reversal, EUR/GBP a good 150 pips from the reversal as well. Sure I am losing some pips not catching the highest point, but at least I am not losing $$ anymore.  I think that is more important.

The future

I was jokingly telling Binni that I need the year of the Rabbit to get me out of my situation. It certainly looks brighter now and I will call it the year of the TRIGGER because I am not going to take anymore trades without one.

I worry that I will get complacent – that is my biggest enemy. After a good week like this, it is easy to think that you are on top of the world and you have conquered the FX market. I need to continue with my journal and justify every transaction prior to taking it. I would encourage my fellow traders to do the same and remember the four wise words for the year of the Rabbit are:

NO TRIGGER, NO TRADE!

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3 thoughts on “I made 500 pips in 4 days when I was about to throw in the towel”

  1. Binni Ong says:

    My follow-up email to Snehath
    ——————————————————

    Dear Snehath

    Happy New Year to you too.

    Yes, indeed, I had a good break – you realized I didn’t tweet, that means I wasn’t looking at my iphone at all for the charts.
    And yes, I didn’t catch that short on EURUSD.

    Haha….I want to laugh – because I’m happy for you.
    But also to tell you that those who won in forex are those who won themselves.
    At the end of the day – it’s not the method.
    95% of people who lose money because they couldn’t overcome themselves.

    Journey is still long – mine too. There are times that I make losses – I got crazy.
    Teaching what I’m doing is a constant reminder of what I should do to make money.
    Same as tweeting – I’m responsible for what I said because that concern my students’ money.

    Great that you understood the meaning of ‘no trigger, no trade’.
    I guess that understood is a mild term.
    Should be – you’ve realized the true meaning to it. 

    Appreciate a lot on the article.
    It meant so much – an appreciation which will bring me tears (well, I’m a person who can’t watch sad movie)

    I’ll share this with all students who need encouragement.
    But there still be times that you will feel demoralize and a string of losses.
    Just to let you know in advance – it’s common.

    Cheers
    Binni

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