Monday, November 10, 2008

Long ride

I got myself into position and after it was half an hour in profit I got married for it so I didn't want to let her go. I would stop myself out if top around 930 was broken to the upside. Reversal came and I was sitting tight, but after news I got shaken out and missed the ride toward 800.
All in all this let's say swing trading isn't for me. It's boring and I always get out too soon or too late. It was half size trade and it felt small to take 10-15 profit when I had it in first 10 minutes.
Well I'm better trader for taking just 10 pips than more but I always convince myself otherwise. It's easier for me not to be in the trade, so I can think more clearly. With this position on I was hypnotized for the whole move.

+10 full size pips


Friday, November 7, 2008

Good news and bad news

Bad news is that I lost today, good news is that I was disciplined and trading inside of set rules.

Just when I wrote this I broke my rules by having one more trade in which I get punished very, very fast. Still I'm going to stay with headline and will not kick myself over that. Before that last trade I was -18 full size pips and now -30 full size pips. The thing that I recognize now that it's important to accept the rules and that I broke them but that I'm not going now on revenge mission throwing all away.

OK, I had this triangle drawn, but I have something against TA because when it start to go as it suppose to I don't believe it. So I didn't short the brake, but I said to myself I will short the test of the line. But to get it short price got to go up there, so let's have a long scalp up to that line. Well as you can see my logic doesn't have firm foundation in this case. To make things worse, I lost all perspective of broken triangle and what is going on, I was just reversing my trades as momentum dictated me. But that whipsawed me a lot. Red lines are losing trades and blue is winning.
So that all eur/usd was half size and was in boundaries of my plan with -18.
Than I put momentum long on gbp/usd and got a nice loser very fast. Well I'm glad, because that trade didn't have a room to be put on with 4 pips spread on gbp/usd, I was breaking my trading plan. Better that I got punished than rewarded on that.

The best thing is that I recognize broken rules and will not now make things worse. That is nice rule also.
I kept cool and I like that.

In day like today when I trade really wrong it's great that I have decision of closing all when I lose my 40 half size chips. There is far more probability that I can do bigger damage than remedy things if I keep trading.
Also I can see that I feel pretty ok when I lose small half size trades and that I should go for more opportunities. Not only like today when I got stuck in bad mind frame to trade so much.

Wednesday, November 5, 2008

Finally some new trading

I had two sets of trades, small loss in eur/usd and nice win with add on trade in eur/jpy.

I get back to trading with half size lot's but got leverage up a bit. Half size because I feel comfortable when I'm losing on half size trade. I can better grasp what is going on and decide do I want to take a loss or leave it some more on. If it's going my way than I can add another trade easily. That's especially handy now with big ranges. Leverage is now around 7 for full size position. As I like structured trading I decided to start a day with 40 half size chips available to spend. It's like going to casino, you can lose as much as you take from home but not more. So I have 40 available pips to lose each day. On the other side I cap my winnings at 80 half size pips. For me it's far more appropriate not to go after more because in my trading history I never really get any big days. But many times I'm trading like I aim for big gain and usually I lose at that time big. That is a range of -1.5% to + 3% a day which is ok with me. I want to feel comfortable losing those 40 pips and want to be safe that when I have nice day like today that I hold to my winnings.

I'm still little afraid of trading and losing because of my last very bad days so lets start slowly.

Today +38 full size pips. I could stay in eur/jpy longer but it gave me just before my exit 25-30 pips in a spike and I was around my daily target so I just took the profit.