Monday 22 June 2009

Making Every Mistake In The Book




















I went to sleep knowing that I have 100k EURUSD at 1.3926 or so. I put in a limit to sell them at 1.3930. Woke up several times during the night and price was always hanging round 1.3910-20 level.

Then several hours later (morning CET) I see the price is coming apart. Next I think: Okay let's get the average price down and buy another 100k at 1.38897. Seemed like a good idea. I had in the back of my mind that IFO in Germany should be decent and give EURUSD some support. Well, it was decent but no support and price moved from 1.3880 to 1.3860, then hung around 1.3870 shortly. Next thing I know we're down 1.3850, I buy another 100k (total 300k) at 1.38478. Then it dropped to 1.3835 or so. I felt like kicking myself. Opened the order window "Close Position" but couldn't bring myself to do it. 20min later I had 8 pips profit on the last 100k, so I thought let's decrease the bet.

So at the moment I have a realized loss of over 600 USD and the 200k are showing me a loss of 350-400 USD (I prefer the smaller number). I had been at -1'500 USD when EURUSD was at 1.3835. Felt worse.

Analysis: I'm still trying to do what initially worked (averaging) and hoping for rebound. But hope isn't something that is allowed!

PS: The red arrow up at 1.3930 is my sell order I put in earlier. Not looking like I'll get a fill there!

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