Trading on 5 mins time frames can tend to mean I'm always watching the trades, instead of leaving it after it has been triggered to do its thing. Had I been awake on Monday I would have noticed that cable failed miserably to break the 50 level three times.
On the third occasion I would have exited the trade. But when I awoke out of my slumber there was an announcement that had sent the trade the wrong way. Not a good way to began the week, 30 pips loss to make up!
Onto this week and today at around 8.10 am I was feeling as sick as a parrot. Psychological warfare of the trading mind is always a big issue. My loss last week was still in the back of my mind. This morning the movement on pound dollar began at 7 am as soon as the markets opened.
It moved for a long trade virtually straight away.I then waited an hour while it attempted to clear 16,550, at one stage I had 16 pips but was holding out for 20. When the ftse opened at 8 am my long trade retracted significantly. This happens all the time and is why I place my stop below the ma 20.
Having loss the previous Monday and also so close to 20 pips this morning I made the subconscious decision not to lose! My stop loss was the other side of the ma 20, I really should have stayed in the trade. But I took myself out at break even.
Trading has that knack of maximizing your mistake. Soon as I exited the trade it bounced off the ma 20 and in 10 mins I would have got my maximum limit of 30 pips!
I continued to observe Pound Dollar while talking on Skype to my trading partner Adrian Clarke. We noted the long term up trend on both strategies so looked for a breakout of the channel. The 16,000 level was going to be the next significant test on the upward trend.
I waited for the retraction after the test of 16,000 and then entered the trade when I gained confirmation of the histogram change at 15,995. With how long the trend had been going for I set the limit to 15 pips only.
Although myself and Adrian had set entries I didn't declare I had entered the trade? Half way through he asked if I was in? I came clean and explained that I was nearly at my limit. At which point Adrian confessed to also being in the trade 10 pips earlier using the forex 1 hour strategy. He is a sneaky bugger Adrian.
I would have only found out about that trade after he had taken the points. We did have a good laugh about it, but in all seriousness I should have taken 45 pips today!
To Your Trading Success!
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