Thursday 23 July 2009

Lots Of Trades For Nothing (updated)

#1 Trade
First trade started going wrong immediately. Price had broken out from 1.4220 area and I thought 1.4244 would be good area to short (more than 20pips out of previous range). Then it went up another 5 pips in minutes after my short. Thought ok: let this be the trade that I don't only use 100k but 200k and get all the more profit. When it went above 1.4250 I felt bit uneasy having double the size on the line. So when 20minutes later I could get out with a 77$ profit (1.4242), I thought great. Then it went up again and I felt really clever for getting out with a profit.

#2 Trade
20 minutes later it broke above 1.4260 and an urge overwhelmed me to short. Literally as soon as I shorted it shot up 20 pips within 4 minutes. Okay, down 200$, try the same maneuver as earlier and double up. It went to 1.4290 :S. As soon as it came back down again to 80 I sold the extra 100k and decided to just stick with the first 100k. I went black again for the day on paper (20-40$) but then it started moving up, I hesitated but got out.

Result of the 7 trades: paid 80$ com or more?! and me? I am up 1$ on the day. So at least I can book today as no loss. But I have no-one to blame but myself. Sucks :D

The bad news:
1. I doubled up on losers. Twice!
2.
Now I can't trade as I would if I hadn't traded earlier. I have these levels 1.4280, 60, 40, 20 in my head. I can't short easily below 1.4268 as I feel stupid if I sell below where I bought back. And I don't feel like buying. I have too many biases I think. If we went back to 1.4280-90 level I'd love to short again. But the risk is there, that we break those levels to upside and go though the big level 1.43.

Lesson Of The Day
My "system" isn't a high probability/low risk one and doubling up tends to increase my anxiety and cloud judgement and makes me forget the important technicals. 1.4268 I should have had a stop in my second group of trades there! That would have been 2 pips above the previous highs of the day.

Update! I'm so mad at myself. 1.4200 again. Maybe I can give my "gut feeling" credit for knowing that 1.4240 and above would be tough level to hold. But there's a moron inside of me that loses patience and closes the best ideas (or am I just selectively filtering out something!?). As I stated above, I never had bullish bias during the move higher. I always wanted to short. That's why I'm really mad for not sticking to my guns.



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