I would like to show you my recent trade plan which I ruined because of "feeling". All the setups were initially correct. Even when I was asked why I put the stop-loss at such an odd number, I was very clear. Here is the tape reading:
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Jim
June 24, 2007 8:04 PM
Tamkras said...
i try to keep it around 50 pips. if i deduct 50 pips from my entry i would get 1.6497. it is very close to the psychological level and i saw it many times when the price takes it by 10 pips further and goes back. so, i've put 61 pips.
June 24, 2007 8:43 PM
""June 24, 2007 8:04 PM
Tamkras said...
i try to keep it around 50 pips. if i deduct 50 pips from my entry i would get 1.6497. it is very close to the psychological level and i saw it many times when the price takes it by 10 pips further and goes back. so, i've put 61 pips.
June 24, 2007 8:43 PM
This is the chart which shows evolution of impatience and how the perfect plan was ruined by the feeling. Let's walk over together.
Point A. Entry
Point B. Manual Exit with 20 pips loss. Price was sliding along the trendline. I "felt'" no fast recovery.
What happens next is me being made the laughing-stock.
Point C. Price plunges to the low of 1.6490. Didn't I say earlier about this scenario? Too late. A star is formed which would confirm to stay in the trade.
Point D. A point of potential profit-taking. In retrospect.
What we have instead is 20 pips loss.
3 comments:
Good lesson learned, thanks Tam.
Jim
hehe, I made a comment on the other post before reading this one.... I used the word "feeling", now I have no idea what to think.
I took this E/CHF long on demo account. I closed it manually even before you closed. My wife kept it longer than me. For her, holding that position, which ever recorded over 50pips loss, has been a source of stress. Finally she could close it +4 pips. She was happy for that after several days of agony ! From hindsight, I can say that there still remained certain downward momentum on Monday after 80 pips drop. I can see it from MACD daily.
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