First trade today I decided to fade situation that I usually use as a trigger for a break out and trend continuation trade. The thing is that there was sharp selloff during the night and this is bounce back. So I guess that my gut feel told me to do it so. It was correct 19 pips 0.95R. Interesting thing was that I clicked on exit and platform freeze and was "communicating with server" for 10-15 seconds. Then it gave me 4-5 pips better price than I originally clicked.
Second trade, I was looking at that 5min chart and wanted to short a spike to up trendline if it happens, like it happened before. It stop earlier and I guess I wanted little more drama so I shorted. I heavily base my decisions on all other pairs when I trade one. So I was looking at usd/chf and eur/jpy at that time. Usd/chf was bouncing but eur/usd didn't follow that scenario. I hate when there is no correlation when usually there is one. So eur was strong on it's own. It was messing with previous high in eur/jpy so I just didn't want to get out of that trade in a loss. Then when it came to make new high and on other fronts things were not so rosy I unpopularly averaged. Yes, I know, it's no good but I did it again. I had in my head everything that was said yesterday in the comment section. I just wanted to do it. Bad thing about averaging is losing control and having no exit strategy. Maybe I should just trade my first trade of the day and close it like before. In beginning of trading day I'm not inclined to gamble like later. Later when I have previous profit I just don't want to give it back and that is not good reasoning. That's the facts.
19, 2|16 pips
0.95, 0.1|0.8 R
37 pips, 1.85 R
Tuesday, February 10, 2009
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3 comments:
If you are going to average, I guess you need to at least have a backup "Catastrophic stop" exit plan. Where you ABSOLUTELY call it quits for the position AND the entire day.
Regarding averaging, it just popped in my head that last few weeks I feel pretty much down in my private life generally. It's just overall feeling. So I guess that I reflect that in trading with that poor strategy.
It didn't cross my mind until now. Averaging is generally the worst thing that I do, so I guess that I'm going through worst period privately. Again it's not anything dramatic going on in my life, just my moral is down.
So I trade in that half heart manner, like don't care about it all.
It got to be it.
Makes sense to me man, I have been there too... I am pretty much alone all day, so my private life is not so good most of the day either. By the way, the Video of my Live trading was messed up on YouTube, so if you want to download the video, head back over to episode #25 and there is a link for it on megaupload.com
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