Tuesday, March 03, 2009

It's All In the Mind

Traded Yen Futures and EuroFX Futures in the overnight session

Read Full Post.....

Long 6JH9 @0.010253, initial stop @0.010247 (white line)
Got stopped out.
In retrospect, this was not such a good trade setup. I entered on the break above the 9 bar EMA, but my manually drawn downtrendline (red diagonal line) was not violated, which meant a high probability that the prevailing downtrend was still intact.
I had a "this doesn't look right" feeling in my mind, but ignored it because I wanted, and hoped that the trade would go in my direction. It's true what they say, it's hard to be neutral and unbiased once you have already taken a position.
So I wound up waiting painfully for price to confirm the truth that I had decided to ignore.

Long Euro @1.2624, initial stop @1.262, exited @1.2640

1.2624 was :
1) 38.2% retrace of the up move earlier in the evening.
2) the upper range of prior congestion
3) just under R1 pivot

Lots of good reasons to enter long, which i did.
1.2640 was the area where the 9/20 bar EMA was located, and also the upper end of the Keltner channel. This seemed like a natural point to exit my trade. How was I to know that Euro would continue on for another 20 pts ?
The problem was that my prior losing trade made me a bit overly trigger happy.

All i can do is keep practicing, and one day, I shall find the big profits.

No comments: