Tuesday, June 24, 2008

Market was joking with me today

Just check out my first three trades. I was out just before profit. The last trade with averaging I was happy to get out at b/e, if it didn't climbed I would bet and wait for news. I wasn't available later to trade the news.
b/e today



I always mean what I say in the nicest way FX, because trading is no joke and I know its very difficult. If you look at the first chart, it seems as if the market was not joking with you at all, profit potential was there for every single trade you took as I see it. Yes its hind sight, but I really get the feeling that you will have many many days to come like this if you don't change your thinking. Why on earth will we let the losses go on and on yet get out at break even? Why do we snatch up the winners before they can blossom? The answer is -incorrect thinking. You and I both know this. Your leverage is small, what have you to fear? Why enter a position if you are not willing to stick with your profit targets? If you do not have the discipline to stick it out then the trade should never have been made in the first place. Its almost as if you trade to lose.

FX said...

I know Orion that your intentions were always good. I welcome all your comments. :)

That's exactly the point why I said that it was joking with me. In hindsight there were profit potential in most of them. It's scalping and I expect to be in profit immediately, if I'm not it's mistake in judgment. First trade dived down on me, than came back than again started to fall and I exit it. Second on 10sec chart before my exit it formed nice triangle ready to break up, but it didn't. I didn't want to stay and risk a loss like I did in my last trade.

I don't think much any more about the fact of cutting profits short and letting losses run. I decided that I can't change that so easy, maybe never. That's human nature.
That's why I chose scalping as way to trade that minimize impact of those problems. Small and fast wins and losses.

It's not so much problem with fear, I just mess up things when I wait longer and go for swing style trades. You could easily see that on my blog last two weeks. Only when I scalp and take small wins things work. When I stay longer I do so many mistakes because of emotions that accumulate holding open position.

I don't have profit targets I enter the trade because to me in that moment it look like there will be the move. I got to reevaluate my thinking as time passes if I'm not in profit yet. When I exit I just decide in that moment that's the better choice than stay more in a risk. It's not always correct choice.

My only regret today is third trade, where I did believe it will go up after my exit but I didn't want to risk after b/e. I was positive that it would go up when I entered but I was wrong on that.

It's true that first trade wasn't very wise to exit it without it going against me. But in the heat of the moment that was my choice.


I respect your outlook. Each man has his mind made up about the market whether he knows it or not. :) Wish you the best as always.