I am sure every trader out there come across and face their very own demon inside them. The fact it is not a demon but how your mindset has the tendency to trigger emotion base trading.
Below is a chart that was traded yesterday.
Initially An Asian Demand was formed before London Open. About 40 minutes later, it went for the Asian demand for buying and this fills the order long on EURUSD. My plan was to allow it to move towards the TP for 40 pip. Which on the initial run failed to rally above current resistance. THen came on the NY session , re enter BUy at the demand after it fills the demand level completely 100% means all buyers are IN. I had the initial trade on BE. But as soon as the 2nd one re entry, I was over protecting it and move my SL too soon. so IT broke even as well which could have gone well. That I can forgive my self. But what I did when I was already feeling sleepy and tired for the day, Just after that BE stop out, I put pending buy for a fresh pull back on the rally after the news release.
I didn’t realise I fell asleep while waiting for the pull back. I didnt put a SL!!! ( Never trade when you are tired and about to sleep ).
AS soon as I was awake because I realise I didn’t put a SL, the price had went 20 pip against me. I immediately after woking up close the position without hesitation.
2 things that can result of this. 1. I will have a drawdown value on my performance statistic 2. It will trigger emotion base trading.
How do I overcome No.1 ? Trying to forget it and there is always tons of opportunity that can easily recover that loss.
No.2 This can get at the back of my mind and even push me to chase a trade or desperately trying to make a come back. Which is an Obvious sign. If you look On the right side 2 red small lines, is a short position I made after waking up. WHen I realise it is a wrong thing to do, I minimise the risk for 4 pip SL. That way it tells me I am doing it wrong.
The problem with this trading attitude, it can result in habitual traits. SO to avoid it repeating, NEVER ever make a sudden quick decision after waking up, NEVER ever trade when you are tired and feeling asleep even without realising feeling asleep.
What am I going to do today, do the usual routine!