Monday, January 21, 2008

Everything was fine until

I first got two nice positive trades in eur/jpy. I saw opportunity's for bounce and took them and take profit fast. All was well.

forex intraday trading

Later reason why I entered long wasn't the fact that I see something in market action that gives me a clue of going long. No, I saw that usd/jpy was breaking down 106 level and I decided to fade it.
Difference between first two trades and this one was that now I didn't see market action that gives me that idea. I first have idea and play it against market action. Again I didn't trade what I see but what I think.
When I do that I usually try to save myself from loses with averaging. I'm angry and emotional.
After first stop, I took revenge trades and got stop on them too. In the end I took another two trades and a number of other smaller trades with mixed results. It was cooling of emotions. Emotion to get loses back immediately is very strong.

forex intraday trading
forex intraday trading

I could bet that I wouldn't average on my first two trades of the day if they gone wrong.
I don't know why I trade two different ways, one ok and other wrong. Maybe because I hit my boundary that I blog about the other day. Maybe first +20 pips was enough and because I was after more I got to lose somehow. I'm glad that my biggest problem isn't averaging but unconsciously slipping in another style of trading.

So today's roller coaster was roughly +10 +10 -80 +28 = -32 pips

forex intraday trading

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