Someone may tell you they have a strategy that makes you always win in the market, or their trading strategy knows no loss at all. Then I would like to confirm that those people are scamming or they have never really traded.
In the investment world, losing is like a fall when you practice cycling. If you do not fall, you will definitely not be able to ride a bike. That is the obvious fact that everyone knows.
The first week of September was one of the many “falls” of mine when making money in Olymp Trade. Losing more than $500 within a week was a huge hit of the market to me after making more than $2,000 one week before.
In this article, I would like to share what I learn from this failure in Olymp Trade with you. This is for you to see that in this profession, sometimes, winning or losing is not so important. The most important thing is to know where to stop, learn from experience, and keep moving forward. That’s what can soon bring you to your destination: Making money steadily in Olymp Trade.
What I learn in Olymp Trade
Winning or losing is normal. Knowing where to stop is important
It was Monday morning (August 31st) that I deposited money into Olymp Trade to start a new trading week. Following the excitement from last week, I spent $1000 this week with the goal of making $500. With the Olymp Trade 50% bonus at the beginning of September, in total, I had $1500 in my account.
Why did I fail?
There are 2 main reasons for my failure. I will analyze each reason for your understanding. Sometimes, just a little negligence is enough to make you fail badly.
Last week, I made more than $2000 from Olymp Trade. It was the first time that I have made that much, so probably, it gave me a subjective mentality. Willing to deposit $1000 and trading process (I’ll talk about this later) both say that “I was too subjective with the market”
Here is my trading history for the past week. In general, regarding how to open an order or manage capital, I still did well. The only thing is, with an indecent mentality, I was crushed by emotion when the trading results were not as good as I expected.
My trading strategy used in Olymp Trade revealed many shortcomings
The strategy I chose to trade last week was trading with RSI and SMA30 indicators. I will not repeat the strategy but will only explain it through opened orders in the next section.
This is the strategy that I have tested within a certain time. The efficiency that it brings is quite high. However, within a week where probably it didn’t work anymore, I had to pay for it.
Maybe next week or next month, it will be correct again. It doesn’t matter. The thing is when the strategy goes wrong, you have to stop. See what is going on with you, whether your mind is stable, what your strategy is lacking. That’s exactly what I want to share with you. Here, I will show a few orders in which I lost money with this trading strategy.
Review on opened orders in the 1st week of September (August 31 to September 02)
Please read this part carefully because I will clearly state out why I opened each order and why I lost it. So, you don’t have to learn from losing in Olymp Trade like me. I hope this will help you stay away from my “car crash”.
Orders on August 31
1st, 2nd orders: The price was in an uptrend. It pulled back, touched the SMA30, and then rebounded. At the same time, the RSI hit the 50 line and went up. Opened an UP order with an expiration time of 15 minutes. Everything was fine but the result was losing. The most reasonable explanation for these two orders is that the winning probability of the strategy did not happen.
3rd order: It was still an uptrend. The price continued to touch the SMA30 and rebounded. However, it seemed that the bullish force was all in that green candle. When I opened an UP order, the price fell sharply. This was my last order on August 31. With 3 losing orders, I decided to stop trading and would come back the next day.
Orders on September 01
I opened 5 orders on September 01. The result was 3 wins and 2 losses. This is the only day that my trading profits in Olymp Trade have been positive for the whole week.
1st order: I won this order when everything was perfect. The price was in a downtrend. It slightly increased to touch the SMA 30 and then fell sharply. RSI hit the 50 line and then pointed straight down. Opened a DOWN order.
2nd order: The price was in an uptrend. It slightly touched the SMA 30 and turned back. RSI also just touched the 50 line and went up. I still opened an UP order. The result was winning but not too convincing.
3rd order: In this order, the RSI had not yet rebounded clearly, but the price created a Morning Star pattern right at the SMA 30. I decided to open an order and the result was a loss.
4th order: This was a winning order. This is basically an order opened correctly following the strategy.
5th order: It once again was a shortcoming of the strategy. Although RSI had turned down, the price did not completely escape from the SMA 30. I still opened an order. And as a result, I had to pay $100 for this subjectivity.
Orders on September 02
There were 3 opened orders. There were 1 win and 2 losses. It is really necessary to carefully review this trading strategy using RSI and SMA30 in Olymp Trade.
Once again, I lost $500 in Olymp Trade. Would I feel sad? Yes, sure! I have been trading in Olymp Trade for over 3 years. I have lost a lot and also earned a lot. $500 is not too big but it is enough for me to understand that I still have a lot of weaknesses. From the strategy, the trading psychology, etc. all need to be reconsidered.
The most important thing I have done in this failure is to stop. If not, I might not have been able to place a withdrawal order for the weekend.
I hope this article will be useful to you. I will be back next week. Stay tuned to see how I overcome and get up from what I learn in this Olymp Trade failure. Goodbye and wish you a successful transaction.