Monday, April 24, 2006

R.I.P. First Demo Account

This weekend's horrible plunge of the dollar took out my account. I am currently at $29.22 and can no longer open positions.

I knew this drop was coming but I didn't really expect it this weekend. I'll draw the following conclusions and spend some time in mourning while my provider resets my account:
  • My system needs an exit strategy to be used in a trending market; ideally this strategy would allow me to actually make money but at worst it would simply prevent the loss of huge amounts of money
  • I probably shouldn't hold positions over the weekend; I'll have to do some more research to support this but the dollar gapped down about 100 points which really hurt my two open longs
  • Finally, I really shouldn't double up on my positions; I had two longs open that really hit my account hard when the market went against me

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