Oh my. CFD isn’t for everyone. I started the day by going long on Dax, which worked out fine for the entire day. But then, when the CPI numbers came out showing an increase of 0.5% instead of the anticipated 0.3%, Dax and other indexes just plummeted. See the image below for my position:
I did anticipate a large swing during the release, but that Dax would drop more than 200 points was totally mindblowing. The worst part about it, is that I did use Stop Loss on the trade I had active, but I weren’t able to do Guaranteed Stop Loss. What happened is that the positions did not close when the price hit my Stop Loss level. It just continued down like crazy. I was frantically trying to close the positions manually, but because of the volatility it took me a while to execute the orders. I did lose a lot on that trade, but thank god it didn’t wipe out my entire bankroll. That’s the risk when trading with CFD. But on the other hand, think if I actually did a short here, and bought the dip.
What is annoying is that the price rebounded back to a higher level than my original entry level. So if I had just waited it out, I would have made a very decent gain today. But when you see the market falls like that, you get nervous and just want to get out as quick as possible. I did believe it would fall further. This was a messed up trading day.
What I’ve learned
When there are macroeconomic numbers being released, the safest way to approach that is to have 0 active trades. Then trade on the information that comes out right after. You wouldn’t be able to short Dax or Dow Jones because the robots are too quick. But you could have anticipated the rebound and bought the dip (which I should have).
From now on, I’ll continue with my leftovers and try to build my bank roll back up. I won’t do this mistake again, and I’ll also be quicker to close wins.
My Results
| Order | Entry Price | Take Profit | Stop Loss | USD | Bank Roll USD | % of Start Cap. | |||
| Start | 258 064,52 | ||||||||
| Day 1 | 25.01.2018 | Dax | Buy | 13268 | 13274 | 13262 | 6 472,52 | 264 537,03 | 2,51 |
| Day 2 | 26.01.2018 | Dax | Sell | 13342 | 13318 | 13392 | 7 642,84 | 272 179,87 | 5,47 |
| Day 3 | 29.01.2018 | Dax | Buy | 13331 | 13336 | 13313 | 12 508,39 | 284 688,26 | 10,32 |
| Day 4 | 30.01.2018 | Dax | Buy | 13226 | 13233 | 13176 | 6 625,94 | 291 314,19 | 12,88 |
| Day 5 | 31.01.2018 | Dax | Buy | 13217 | 13230 | 13187 | 26 474,06 | 317 788,26 | 23,14 |
| Day 6 | 01.02.2018 | Dax | Sell | 13291 | 13265 | 13327 | 10 834,58 | 328 622,84 | 27,34 |
| Day 7 | 02.02.2018 | Dax | Buy | 12797 | 12825 | 12772 | 72 314,97 | 400 937,81 | 55,36 |
| Day 7 | 02.02.2018 | Dow | x | x | x | x | −340 000,00 | 60 937,81 | −76,39 |
| Day 8 | 05.02.2018 | Dow & Dax | x | x | x | x | 353 333,33 | 420 000,00 | 62,75 |
| Day 9 | 06.02.2018 | Dow & Dax | x | x | x | x | 236 933,20 | 656 933,20 | 154,56 |
| Day 10 | 07.02.2018 | Dow & Dax | x | x | x | x | 278 933,47 | 935 866,67 | 262,65 |
| Day 11 | 08.02.2018 | Dow & Dax | x | x | x | x | 212 533,33 | 1 148 400,00 | 345,01 |
| Day 12 | 09.02.2018 | Dow & Dax | x | x | x | x | 272 266,67 | 1 420 666,67 | 450,51 |
| Day 13 | 12.02.2018 | Dow & Dax | x | x | x | x | 171 240,00 | 1 591 906,67 | 516,86 |
| Day 14 | 13.02.2018 | Dow & Dax | x | x | x | x | −705 240,00 | 886 666,67 | 243,58 |
| Day15 | 14.02.2018 | Dow & Dax | x | x | x | x | −481 600,00 | 405 066,67 | 56,96 |
As you can see, I’m still up by 56,96% which is very good. But my two last drawdowns has just been amateurish. But I’ve learned from my mistakes. Hopefully the coming days will be better.
I’ve lost 336 trades, won 337 trades and have 2 even trades. This is very bad if you want to keep making money. I have to improve this number.
As you can see, the loss of worst trade has increased to 920 712 NOK which is 115 000 USD. That happened today with my failed trade.
Lol. Look at this. Fucking insane. I have to keep my mind together and find my grove back.
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