The Story
The 1st “Live Trading Rally”.
November 6, 2019
The first Live trading rally hits. Mrs. “E” takes profits and opens new trades all in the blink of an eye. What she didn’t keep in mind at this point was that her trading Margin Level was being adversely affected.
In a few minutes, Mrs. “E”'s balance climbed to a whopping 840 USD. She was almost at her goal of her first 1000 USD, but with serious consequences. In the moment of adrenaline rush with open trades, she didn’t control the opening of new trades correctly. It works like this, a trade must be opened and run consecutively with the relevant buy or sell open trades to increase the Margin Level constantly. Not controlling this aspect leaves you with a Margin Level whereby one can not open new trades once it gets out of control.
Mrs. “E” realized she has traded herself into a catch 22 situation. All was not lost, she has the intelligence to conquer this setback. She started out trading very small trades increasing her Margin Level and at the same time, she started consolidating the open trades, every day she would close an excess trade. This meant her balance was being brought down first to $700 then to 600 then to 500 at which point she was left with 4 open trades, 2 buy and 2 sell trades. Still too many.
She took the decision [not lightly] to bring the open trades down to 2, 1 buy, and 1 sell which was then her ultimate trades, no more no less. This resulted in her bringing down her balance as well this time to 360 USD. Knowing it is going to be another challenge with Margin Level which was now at 124% and a fight to bring her trading balance up to above $500 where trading is then slightly easier keeping an eye on Margin Level every step of the way.
The first lesson learned, the hard way, don't ever get excited when trading and think one has mastered anything, short of it is, no one master the art of trading in such a short space of time, in fact, it is not possible to master the art of trading taking into consideration volatility of the markets at any given point in time.
She did not give up, she went back to the drawing board, analyzed in depth where the mistakes were made, noted the exact mistakes, and made a mental note never to overreact, always keep an eye on Margin Level, in fact, she is now noting the Margin Level for every trade daily per trade, neither become joyous and happy until that trade is way above target and can be closed with a very successful profit.
Mrs. "E" explained to us as it must be clearly understood, not every trade can be successful due to several reasons, and if the trade turns against you and become awkward, your trading plan must be adhered to at all cost.
The one personality trait we as Mrs. “E”s group of close friends admire more than anything is her determination. Never giving up is just not in her vocabulary. One must admire her for this one single strength hidden deep inside her, never give up, fight to the end, forever positive, one will never even remotely see a whimper of negativity. Truly a woman of strength and determination to be admired.
