Alright, now to be clear, I didn’t actually lose $5,000 on the 8th of December, BUT, I did lose a small $5,000 account.
I wanted to use this opportunity to show the world of traders that losing an account is normal, and should be embraced.
The picture I have attached here shows a graph of my performance over 150 backtested trades. Considering my risk settings and profit targets, each green line represents a passed account and each red a blown account/accounts.
What you can notice from this is, I lost all my accounts and some more, and then gained a bit again in the end, but overall I made A LOT of money. My real trading experiences have been very similar as well. There are phases where I lose and where I win, but overall in the long term, as long as I follow my plan for each trade I end positive.
This shows you the importance of long term thinking. If you knew it would take 2 more blown accounts before you made six figures profit this year, then you would want to blow those accounts with a smile, because you know what comes after. In reality if you follow your plan, that’s almost exactly what will happen with you.
Never forget to zoom out, wait for the long term to play out. If you haven’t taken at least 200 trades consecutively that perfectly followed your plan, then you aren’t allowed to say it doesn’t work.
(This is just my opinion, not financial advice)