Friday, September 28, 2007



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I made 3 trades of the British Pound futures yesterday.

Trade1: long 6BZ7 @2.0173, stop=2.0165, exited @2.0178
Trade2: long @2.0165, stop=2.0158, exited @2.017
Trade3: long @2.018, stop=2.0172, exited @2.0179

I knew that a big move was going to occur in Cable, and had a hunch that the big move was going to be up; however, I felt tired, and didn't have the energy to stay up to see what was going to happen.

The worst trade I made was that last trade. Even though it never hit my stop, I closed out that trade manually. I thought it was taking too long for the trade to unfold, and my eyes started becoming droopy. I was debating whether just to leave that trade on overnight with my stop in place. It was in a nice area which defined my risk. I decided against doing so, and that was the fatal mistake, as I woke up to this consequence this morning:

My trader's intuition turned out to be correct, but my thought process at the time was, "I'm tired, I don't want to risk the 10pts that I made." This meant that my trading decision for that last trade was affected by my previous trades.

Every trade should be treated as a new, and separate trade, like a clean slate, independent of whatever happened before. I really need to learn this lesson quick if I am to ever have any hope of catching the big moves in Cable.

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