Given my propensity to over-trade and blow up, I have found an insofar successful circumvent.
How long this will last, I'm not sure, but so far it has managed to satiate my yearn to be in the FX markets while limiting any potential drawdown from stupid itchy fingers-inspired over-trading.
I have now started to use an FX broker which allows minimum trade sizes of 1 unit. You read that right. Not one standard lot, not one micro lot, one unit.
This means a position of 1 unit gives you a per pip equivalent of approximately 0.0001 USD hahahah.
Now I obviously don't play such small sizes, but I now start at 1,000 (a micro lot) or 500 units.
All this action and I need only fund my account with a couple of hundred dollars to get started.
Moreover the trade sizes are so small that I don't bother with monitoring the prices all the time anymore. So much more carefree, so much less stressed. I have better life balance and can spend more time on my kids and family without having any worries at the back of my head.
That's why all trade gurus always recommend trading in small sizes and with amounts you can afford to lose. Yet it is easy to preach, but the reality is that it is far harder to resist that one good trade, that air of consecutive-profit confidence, that cannot-go-any lower/higher price.
How to blow up with this strategy? I don't know yet.
All I know is that even if I blow up, all I lose is tens of dollars rather than a few thousand bucks.
Which is a great deal for me these days.
It is time to have more savings in my coffers.
:P
Let's give it a few months and how things go.
Trade safe.
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