Forex Trading Experiment Progress Report (2022-Q4)

I finally started trading the Forex market using a live account. It was exciting—so exciting that I kept on checking the charts to see if there was a trigger. I was neglecting the most important ingredient—me, the trader.

Overview of the Trading Experiment

• Approach Taken: I use technical analysis (support and resistance), no indicators, no bots, and no news. My broker is Hot Forex (HFM) and I use MT4 on my Android phone and desktop computer.
• Initial Setup: My starting capital is $200. I trade XAU/USD, like all Leo Advantage students, and trade in H1 (hourly) timeframe.
• Trading Strategy: Swing trading.
• Target: 20% of my trading account net profit from Forex trading.

Performance Summary for 2022, Quarter 4

• Profit & Loss Overview: $4.54
• Key Metrics: Include ROI, win/loss ratio, number of trades executed, and average size of gains/losses.
• Target: Earn 20% of my trading capital per month.
• Comparison with Expectations: Ended the quarter with $4.54 profit, pretty far from my target.

Zooming Out: Performance from the Beginning

The graph above in the beginning.

Lessons Learned

• I already knew some technical analysis even before I started trading in the Forex market. I resolved myself to unlearn everything I knew and start over.
• Unlearning old stuff while learning new stuff kind of cancelled each other out. I ended up not analyzing anything and just doing what I was told. I became apathetic because I was afraid that I might sabotage my learning process if I think even just a little—as weird as it sounds.
• I realized there is nothing wrong with analyzing and feeling emotions. Emotions are healthy and they’re not going to get away. I need to welcome them instead of suppress them. Acknowledge and validate them, and then do what you need to do regardless.
• Money is emotionally charged.

Challenges and Drawbacks

• Difficult Trades: Just one SL (stop loss), but it was enough to wipe out my whole profits thus far.
• Mistakes Made: I stopped thinking, and I tried to block my emotions.
• Adjustments Needed: Learn how to process my feelings, so my mental wallet will expand as well.

Plan for Next Quarter

• Adjustments to Strategy: Continue trading using the same strategy.
• Goals for the Next Quarter: Stop trading when my quota is hit, be consistent with journaling my trades, and analyze and learn from past trades.
• Things to Focus On: I need to focus on processing my emotions. I focus too much on the technical side that I’m neglecting the psychological side.