Thursday, August 28, 2008

Overtrading today

In the morning I had my share of drama with trade closing slowly towards stop. I had close encounter with emotions. I moved my stop for 1 pip. Pressure was so high to avoid stop, avoid loss, avoid pain in the end. So I decide let's move it for one pip, and it made a difference in my ability to cope with emotions. In the end I lost on that trade and one pip didn't make the difference but it did psychologically. I don't feel bad about moving stop for that one pip, because it was conscious psychological exercise. From that point I was emotionally distorted and I did many more trades. I had -20 stop taken in gbp/usd also. I had slow reactions but I did reverse.
Well nothings much changed when I check my emotions now and before big loss. Only thing is that I'm trying to maintain -20 max s/l and avoid averaging even more important. Until I'm good with that I'm satisfied. I don't expect to mend all bad behavior at ones, no averaging is premium for me so let's work on that.

It was a choppy day and hard to read for me. Lately my trading is based on scalping in the direction of the trend. Without follow through I don't have good results, it's like I'm late in the move.

More and more I realise now with trading with stops that I got to milk as much as I can when there is real opportunity and big strong move. Just scalp isn't good enough, because -20 stops are big setbacks and small profits can't recover that easily. Also I got to pay attention to trade when I really see something because random trading is expensive.

+13 pips today

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