The month of October's +1,717 pip profit was in the top 10 of monthly returns since I've started trading FPM live in the summer of 2007. It was a welcome month after the past few months where I've basically been treading water since May's 4,500+ pip win. While I'm still in a slight drawdown, I now have the chance to be at a new high in my account balance by the end of the year; because if you include 3 profitable trades from October that are still open as of this blog post, and 4 more profitable trades that I've opened in the first few days of November, I am at a new equity high!
Once again the lesson to be learned here is you must be persistent and disciplined in your trading. Even though my pip total for the year has always been positive, it wasn't easy to have a losing month 3 out of the last 4 months before the large winning month of October. If I had given up because of those losing months, I wouldn't have won the pips in October or opened the trades in early November that have me at a new equity high. Trading psychology is extremely important in your development as a trader! That's why information to help you learn about trading psychology is included in the material in the Forex Profit Monster trading system. The other thing to learn is to manage your money properly. Don't do stupid things like doubling down on your trades because you think you're due for a win. Stick to position sizes that are reasonable for your account size and learn to ride out your losing periods. You can't win at trading unless you learn to manage your money properly! Again, this is why I wrote an eBook on money management and include it with Forex Profit Monster (this information is also included with my day trading system Forex Day Monster).
Here are the results for October 2010:
31 trades taken
11 wins: 3,489 pips
20 losses: 1,772 pips
Total: +1,717 pips
35% win rate of trades
Avg win: 317
Avg loss: 88
Avg risk reward: 3.6 to 1
Details of results on the 8 pairs I trade on the 4 Hour chart:
USD/CHF 2 W, 0 L +514
EUR/USD 1 W, 4 L +470
EUR/JPY 1 W, 4 L +434
GBP/JPY 1 W, 1 L +212
USD/JPY 1 W, 2 L +158
AUD/USD 2 W, 4 L +116
USD/CAD 1 W, 2 L +17
GBP/USD 2 W, 3 L (-204)
Here are the results for 2010 so far:
January: +823
February: +669
March: +434
April: (-446)
May: +4,597
June (-1,870)
July (-185)
August +903
September (-1,737)
October +1,717
Total: +4,905 pips
Average: +490 pips per month
That's it for this month... hope your October (and so far November) has been as profitable as mine!
For more information regarding the Forex Profit Monster trading system (and my day trading system Forex Day Monster) visit my website at www.forexprofitmonster.com, or my eBay page at http://myworld.ebay.com/jimsgr8stuff4less/.
Jim
www.forexprofitmonster.com
http://myworld.ebay.com/jimsgr8stuff4less/
