So, this week was, once again, not quite what I hoped for. Such is life
I took a long trade on CHF/JPY in the early hours of 1/15/2019.
I liked that price seemed to form a hammer near a level I identified as support, and thinking the thrust up from a few days ago might continue, I went in. I set a limit entry on the 50% retracement of the bar. I kept risk at 0.5% of the account and had an achievable 3 R.
So price went lower and stayed there. It probably wasn’t a good idea to trade long given that the downtrend was still not officially broken and price was still trading below both the 10 and 20 day EMA.
So, I stubbornly pressed on (why have one losing trade in the week when you can have 2 ) and made one more trade for the week, a long on EUR/USD.
So here I was banking on the support trend line from November to hold. I was thinking with the most recent Brexit nonsense having cooled this one would have a chance. I knew there was some econ news coming out the next morning, CPI for the US, and remembering how sitting out econ news cost me a profitable trade last week, I put the trade on.
And voila! Like the great trading magician I am, I made 0.5% of my account disappear.
The funny thing about this trade is I didn’t feel that great about it, even as I put the order in. My wife had come in and began to talk me, which kind of distracted and annoyed me. I had to ask her more than once to repeat something and eventually she got annoyed and left the room.
Not only did I impoverish myself a little more, I also booked myself a room in the doghouse suite. I had no idea I could multitask like that
So what did we learn this week, children?
If I’m distracted, annoyed, or otherwise unfocused when I’m looking at charts, I will make a bad decision.
For the love of Pete, be patient! Wait for several factors to converge before doing anything.
I need to do a better job of defining entry parameters, to figure out what a confluence looks like before pulling the trigger.
I can be disciplined enough to keep my risk consistent, not move stops, and spotting situations where a 2 or 3 R is possible. I am pleased with this.
I need to revisit drawing support and resistance lines, I’m pretty sure I have too many.
Ok, that’s it for now, happy trading!