Wednesday, December 3, 2008

Trading in direction of the trend

I wasn't by the screen for first part of the trend down. Gbp/usd just bounced of previous day low, I was expecting it as temporarily bounce and quick resumption of trend. Well it wasn't like that, I had to wait 30min before position show me the profit. I did exit little too early, but I would take only 20 more pips max because news time was approaching soon. You never know how deep will fall be. In that situation I simply don't remember to trail my stop and not just exit. My finger is on exit button whole time and it's so natural to press it to guarantee yourself profit.
Later things bottomed and there was long setups developing. I was shaken from second trade in the day. Than I got stuck with buy at the spike up, and lost more than half of profit from the day in spike down. I was mad and entered revenge trade. I knew that it was bad, I knew that I was emotional as soon as I was in. Well I got lucky, because there really was pressure to go up. So I took my profit as soon as I recovered lost gain on that trade before and got few pips more.
After that I decided that I don't have any reason to stay trading when I was emotionally disturbed and show tendencies for bad trading.
I'm glad that in my first trade I decided to go with the trend even when it was already down 150 pips.
Trades were half size, +25 full size pips.



6 comments:

ORION MACHINE said...

Now that is awesome trading FX, great job. Of course the revenge trade was outside the rules, but at least you still went the same direction instead of "showing the market whose boss" Good job buddy. What was your R today?

FX said...

On first trade R was around 20-30 pips, because when it got stuck in range I didn't want to get shaken out easily. So I got around 1.5R on first. Second 10-15 pips, got 0.5R. Third I thought that R was 20 but loss was little bigger than that. Fourth trade with 20 pips R I got 1.5R in the end.
That is all approximate and based on what I remember that I was thinking during trades.

ORION MACHINE said...

It seems like every time you do well, I do shitty ;P I'm down 13% today...

User error basically. I need to scale the zone as usual..

FX said...

I'm sad to hear about your loss today, it looks large but it's only week's profit for you and your method will recover that soon.

StockHunter said...

Nice job, and kudos for knowing when to quit. Looks like you've gotten alot better at controlling your emotions.

FX said...

I do hope so :)