Christmas and holiday season slightly shortened trading week in the Forex market. Currency markets have been closed for a long weekend. Let’s see how did our experiment go? Have our participants increased their initial investments or maybe lost a huge part?

Due to a shorter trading week everyone probably spent their spare time searching for Christmas gifts.  That’s why our participants executed only a few trades in the Forex market. Finally, our participant Y started to trade in the real currency markets.  Unlike the participant X, participant Y tries to follow his trading plan he has defined before: uses technical analysis tools, does not exceed maximum leverage (risk do not oversteps gain), fills trading journal. Meanwhile, the participant X still continues to trade aggressively with large leverages (however, initial investment hasn’t been lost yet). Also, we should mention that participant X spent more time to follow the trades he already placed than to search for new openings he could invest in. Participant X still hopes that commercial transactions carried out in the first week will change their directions and finally become profitable: Let’s check what results we have after the second week:

  • Participant X placed only one trade (one trade from the previous week has been also closed) and earned 10.77 EUR. Participant Y executed 5 trades and earned 8.4 EUR. Accordingly, their initial investments grew by 4.26% and % 4.2%.
  • Trades were placed only on EURUSD and GBPUSD hourly charts.
  • However, participant X risked more than 73% of his equity on a trade, while participant Y haven’t overstepped 5% boundary. How did participant feel when drawdown reached 73.94% of his equity? According to the experiment participant X, risk has been followed by repetitive, fussy access to a trading platform (sometimes it was impossible to think about anything else). Especially, when trades which were placed started to move contrariwise than it was expected. Unsuccessful trades very often trigger stimulus to place new trades in order to eliminate losses or even earn.
  • Participant Y still has not closed one trade (GBPUSD opened on 18/12). Although, GBPUSD trend moves to the right direction, you never know how fast it can change. Soon, we will see what participant Y decides.

Week 3 will be the last this year. Maybe participants will not blow up their trading accounts.

To be continued…