5. Cashtrap test of my knowledge
It’s February 3 and my Videforex account has not been funded yet. (It’s complicated. Now I’m waiting for them to authenticate my identity.) So, I’m going to create a Cashtrap test to see how good my trading knowledge is.
Using the 8 steps from the previous blog post, I’m going to make 50 pretend trades. If I make a successful trade, there will be a one in the appropriate spreadsheet column. If it is a failure, there will be a zero. After 50 trades, I’ll add up the zeros and ones and double the total.
If the total is 70% or more, I’ll be happy. Otherwise, I’ll have to do lots more studying.
Look at the image to the right. It’s from the Forex Factory website. There is a red folder. That indicates that the OPED-JMMC meetings will be affecting all currencies.
Cashtrap test is nerve-racking
Three of the first 4 were called correctly. However, watching the price go up and down so close to the invested price was stressful. I’m going to finish all 50 of these trades.
But, on the same days I’m going to be demo trading live with some expert traders. In the course I’m taking there are experts who have to have a success rate of at least 70% in order to be an instructor. We can watch them trading live and make the same trade they make at approximately the same time.
Feb.8 and I’m learning lots. Remember that a successful trader must be patient and disciplined. I was not disciplined in the make-believe trade I just made. See that zero in the column. That means I lost.
The good news is that I succeeded at 5 out of 7 trades. The bad news is that this 7th trade I was not disciplined. I made a mistake that was so stupid that I won’t even tell you what it was. More good news was that I learned from my stupid mistake and will likely never make it again.
Always study why you lost a trade and learn from it. Losing a trade per se is nothing to be embarrassed about. Losing occasionally through no fault of your own is the nature of this job.
However, I still expect that within a few weeks, I will be succeeding at over 70% of my trades on my demo account.
Feb. 9. USDJPY — Currency strength said put, Hourglass said put, it looked like it was near the top Bollinger band and I still lost.
My strategy needs refining. In retrospect, I looked at the Videforex chart. It looked like I was rather close to the support. I guess I’ll have to start studying support & resistance. Maybe I’ll go over the video again.
The important thing is to study & learn from every loss. That’s especially so when I’m still using my demo account.
Feb.16 I’m still learning. Today I was using my demo account with the educator called Milly. I won one and lost 3. Out of the 15 trades I’m logging, I’ve lost 8 and won 7. I’m not going to start using real money until I’m at least 35 out of the previous 50 consecutive trades or 70%.
This was my first time trading live with Milly. I’m hoping that I can go nowhere but up. Tomorrow I’m trading live in two different sessions — with Milly & with Matty.