I took 3 trades off the table this morning as I convinced myself they were going to hit my stop-loss. They didn’t (only just) then the price went on to record nice continuations in the direction of my original position. Does this sound familiar to anyone ? So not a positive start to the month that I had hoped and planned for in my mind over the long weekend break.
Over the weekend I had decided to become a little more aggressive with my position entry which I did do this morning. I also decided that I would get out of a losing trade at first signs of “trouble” – which I did. I think the later was a mistake on this occasion. I need to be able to differentiate between a trade going the wrong way and a the markets normal breathing. This gets me back to the stop-loss. When the trade was executed I have put in a stop-,loss where I believe that if the price moves past then I would deem the trade to be not within my rules anymore. The Stop-Loss today on all 3 trades was in a tight, but reasonable position. I reacted a little like the boy in the Mark Douglas book “Trading in the Zone” when confronted with a dog. As he was once bitten by the dog, he believes he will now always be bitten by the dog……I must remember that every moment is unique……
Hope everyone else managed to capture the nice moves on EURUSD and EURJPY today. I was surprised the Yen has moved considered it is Golden week this week. in Japan.