Wednesday, October 22, 2008

Reasons behind the trades

I was looking at all pairs, there was bounce from the lows today. Gbp was very strong, I was looking in getting good spot to go long on it or eur. At that time there was spike down in chf at second chart. So in tight congestion of 20 pips break out came with price quick return back. There wasn't such thing on other pairs but my idea was that now is obvious that there is strong enough support for the dollar. So I shorted gbp. It was slow and I made exit, premature because half hour later price is down 90 pips after my exit.

Euro trade came because sudden move came as result of eur/jpy falling and going for break
127 level third time today. There was break but price wasn't falling so strong and when it stooped I hoped for snap back. So I went long eur/usd because of smaller spread. I was in little bounce positive and my internet connection brake and didn't want to reconnect. That didn't happen to me for a very long time, maybe years. So I restarted pc and it worked than, I logged on platform an I was like 8 pips positive.
I didn't get out but I was waiting. When there came b/e, and -11 points that I gain in previous trade I was just frozen. I couldn't get out. There was stop at -20 and I didn't move it but I wasn't able to get out sooner also. My reasons for the trade didn't work. There wasn't snap back on eur/jpy and here I was with trade opposite of the trend getting in bigger lose for me. Still I couldn't get out.
This discipline thing is going to be hard, I have such strong emotions in those moments that I just can't override. Only time and repetition can maybe "cure" me. I need to have stop in because when I froze it can take me out if I don't move it.

Bad thing today was that I changed my mind so quickly. Idea on chf and gbp was working after my exit. So that was also valid for eur so that bet with eur/jpy snap back wasn't so good.
I usually do that, when I exit prematurely I start to look for the trade in the opposite direction, but the trend just started, it's hard to go back in, hard to stay out and fullish to go opposite.

+24 pips


MarcoA said...

If I'm reading this right, you set a stop, the trade didn't work, you got stopped out with a small loss. Process A+, Capital preservation A+.

FX said...

Well not exactly. I set a stop trade did work out and I had two profitable trades.

Second eur/usd trade I wanted to get out sooner than my max stop when it started falling on me but I froze up, it didn't touch stop, so I got out with a profit in the end. You can see it in the last chart.

I felt emotions, ugly ones, it will all be slow recovery.

MarcoA said...

"If I'm reading this right", grin, crack open the bubbly


Marcoa makes a point, we need to be recognized for our small achievements. Good for you. ;)

FX said...

If you two like that than trades from next post are even better :)))

I put behind counting dollars and start hostage negotiations with my emotions.