Thursday, October 22, 2009

Angry bet

I'm such a bad trader that I wonder how do I manage to stay afloat this much as I am. I'm so liable to acting on bad emotions that it's ridiculous.
I lost my full stop on eur/usd trade that wasn't really trade in which I had idea what is going on. Gbp was flying down after the news eur/gbp up and I gave a shot that eur/usd will go up because it was sold out whole morning. Well it didn't.
Wave of anger just flew through me when my stop was hit and price bounced up from it. I couldn't stand it so I guess I needed to react. So I was long gbp/usd. Nothing else but an angry bet. I guess it's easier to stand risk in a new trade with hope of profit and satisfying the need to recover just made loss. That is usual reason in all my "bad trading". Averaging, moving stops, huge risks for small rewards. It's emotionally easier then emotions of a loss. It seams that only reason for trading bad is managing one kind of emotions with different set even if it's long term financially unsound. In that moment of emotional emergency you just act to make it easier emotionally right now. You don't trade for a profit or a break even but for emotional relief.
That was my gbp/usd trade. I moved stop on it and I would lost at least 30 pips probably more and then who knows how would emotions hit me and what would I do next. That is how every bad sequence starts.

Only thing positive that I learned so far is that if you have very good reason for a trade if it goes in a loss it's not such big deal. So I try to avoid this half baked ideas like my eur/usd long trade because they hit me hardest. Maybe I'm just harsh emotionally to myself because I know that I just lost on mediocre idea and a trade. So I blame myself for that loss. It's best to dig out best mental attitude every time you sit to trade, just to be in the zone and avoid problems.

+6 pips


PRD trader said...

May i ask you,what is your lot size? or you don't use any fixed size.

FX said...

I do use fixed size. I can tell you just that this month I'm using 12 times leverage for beginning balance.