Happy new year everyone. I am sure everyone is doing as per their new resolution. I started mine a bit of a hectic. I think the reason behind it was because 1. I was tired and fatigue from working off my new website for the group. 2. I was busy helping my wife’s business run. And 3. I ‘ve started the new year’s chores sending and fetching my kids to school.
I only did little time on my analysis and was not thorough. So I put up with a day trade set and forget yesterday with 2 trades being stop out.
I didn’t bother about the trade, I set and leave it. I checked it, stop out, and put another and repeat the same mistake. This happens when you don’t trade or had taken a long leave of absence. It means I was out of tune with the market. So What I did was, I took a nap. Rested my brain activity in order to replenish energy with the sole purpose to focus my mindset.
Roughly 1 am on my time, which was roughly after lunch NY session, I tool a sell trade after spotting some good level on the 5 min. IT was last friday supply that has not been tested.
But by the time I looked at it, it had filled the orders twice into the level. I I took a chance to sell it on a pull back and after it leave the level.
So that has covered my 2 stop outs. and a bit of extra profit for the day as well.
Now what did you learn from my trade there ?
1. I didn’t quit, I keep on trading without even feeling negative about my stop out.
2. After a rested body and mind, I was able to focus and saw the real opportunity.
3. I didn’t even hesitated but with full confidence short the pair.
4. I exit as per my trade plan of 1: 3 RR.
Clearly there was more to Psychology then risk management.
So don’t make your first trade be a turn down, it could be telling you you are too hasty or not focus to see where the actual Price imbalance are.
Always have a healthy lifestyle and balance in your energy so You can focus 110% on your trading.
Will I repeat this mistake again ? Yes , but not too soon , probably for a while before I start to realise I made the most little common mistake every trader does.
IT’s natural. As long as you stick with your money management. And be profitable in the long run, stick with it.
Happy hunting 2014!!