Friday, December 12, 2008

Bad trading and lessons for the future

Few things that I would like to mention today. First I found it amazing how I'm coward to risk in the direction of developed trend, but I'm so cool about stepping in to pick the reversal. I don't mind my counter trend trades, I just wish that I do some scalps in the direction of the trend. Second, I was timing my eur/usd with eur/jpy trend. So why didn't I trade that idea with eur/jpy? Just because spread was 3.3 and not 1.1 as was in eur/usd. Well you can see on chart how later eur/usd didn't move much on the downside but eur/jpy did. Bigger spread shouldn't be obstacle. If I'm willing to risk and have reasonable stop than trading higher spread pairs should be ok for me.


Third thing today is gambling. I judge gambling and that is the problem. The things you judge are just repressed desires. My risk aversion is connected to my judging of gambling. But I do enjoy gambling from time to time like in eur/jpy trade, but I feel guilty about it, as I'm doing some kind of sin.
Every trade on it's own is gamble, hundreds of trades with some edge are system. I'm just saying that I got to loosen up on that gambling thing and enjoy it freely if I want, not like this with some trade that shouldn't be put on in the first place. I should enjoy the gamble part in each and every trade I make because there is always gamble component. Than I wouldn't have to enjoy it in bad trades.

Well I wasn't very much into trading today. My choices were poor. Nevertheless I made some profit and I try to learn some instructions on days like this.
+16 full size pips

5 comments:

ORION MACHINE said...

You are growing. I am surprised to see you say you had bad trading, but still made money. You are getting closer and closer to being a professional. Almost every one else would be seeing the profit and thinking "hey I did something right".

Gambling is a sin and you should feel guilty about it, but the sense you are using it in is not quite correct i think. Gamblers don't think in terms of the long run, you are not gambling, you are taking the required risk that your business needs in order to turn a profit. great job today.

ORION MACHINE said...

By the way, scalpers above all should be concerned about spreads, because it increases their edge and increases the cost of business.

Higher spreads are also a warning that something is different between market participants and should be considered when watching price action.

StockHunter said...

Well said ORION.

FX said...

Yeah all is true that you said orion. Some of the stuff I say here is like for my ears only. Meaning that it mean something to me that it doesn't to others. As I don't write any other journal this is the place for it.

ORION MACHINE said...

hehe, yeah i get it totally. :)