The week was interesting and productive. We managed to compensate for the last week’s drawdown, which is good news. Fin.rez for today is:
Due to the excess of the actual profit from the planned one, I fully compensate for the additional payment of the last week and even a little remains in the insurance moneybox (I was very surprised at this result, but I counted everything three times and all the numbers agreed). The plan for the next week is 6,556.36 rubles. I continue.
Last week I had a drawdown of one position per -1.56% depot with the set risk parameter in 4%… What I mean is – it was a nightmare in reality lasting two trading days and two nights! I had absolutely no plans to fix such a drawdown, especially considering that I was absolutely confident in the growth of the MIX (against the background of record growths on all trading floors, a fall in the dollar, an increase in oil). Yes, at the end of the second trading day, I took profit on this trade, but the sediment remained …
I considered the risk parameter of 4% of the depot as normal for me, but in practice it turned out that even 1.5% causes a storm of emotions and feelings in me. And what will happen to me with 3% or 4% ???
So I made a decision about reducing the risk parameter to 2% from the depot. At the same time, the maximum risk when opening a deal remains 0.15%… With these parameters, I spent the last two trading days and do you know what I noticed? Absolute inner peace.
Conclusion – risk parameters should not only be rational (in terms of profit and loss), but also psychologically comfortable…
To all novice traders, my advice: keep your risk parameters at a comfortable level and, most importantly, always do them (fix the loss by all means). And when you fall into your own mental trap “after fixing the loss, the pose immediately turned in my direction“, Always answer yourself -“there is nothing more important than compliance with risk parameters!“And”no lost profit is worth violating the RM rules!“.
Great weekend to everyone!