Hello speculators ,
as it happened the second time, i would like to tell this funny story-by the way it is a contribution to the discussion, why a certain kind of “revenge trading” works(or better “could” work) under appropriate circumstances.
The story:
Yesterday i funded my “real-account” with 50 EUR to test a scalping strategy under realtime conditions before going in with real big money. I was satisfied with the results this day, (not the first test) and started again today morning with my “trading work”.
After the regular winners i left the hotel against noon and headed to my wareehouse to check some things.After that, against 16:40, i entered the subway to go back.I just checked some charts on my mobile in the subway, as a nice collegemate entered the subway at the “Business University” station and took place right beside me.
That moment i opened EUR/USD chart, and spoted the sharp upmove of EUR on 5 Min.bar chart at 16:49.(red line)
I realized that the Collegemate glanced at my display and i thought-
" he,he,he, gonna show you what a smart guy i am".
I just gambled on a short time continuation of the move without doing further analysis (the odds where not bad), and jumped in long with a mini lot.
I was right, EUR kept on rising some seconds, on my display she could read " close with profit", but unfortunately not higher than the comission, so i did not close at the moment and waited for further gains. The college mate was smiling seeing my blue “close in profit” on the screen, and got out next station.
Than i was sitting there like an idiot, because EUR turned suddenly around and dashed into loss. In the down move i scalped some profits, but later i had to close the position with loss around 21 EUR.
I was a little bit angry that i played again this funny game, and i promised to myself i am going to get back immediatly that loss when i reach the hotel and never do such bullsh… again.
In the hotel (on the laptop )the “Recovery Rally” began for the next 3,5 hours, and contrary to “angry-emotional” revenge trading, (what people often do right after the loosing trade), i kept a cool head and gained back great part of the loss pip after pip with “Recovery Trades”.
So maybe this could be an advice for similar situations, that it is not a crime to bundle energy and be higher motivated to equalize a loosing trade, but you need a cool head and follow strictly your origin trading rules. And i am sure that the successfull recovery is also due to the break between the event “loosing trade” (in the subway) and the beginning of the recovery mission (hours later in the hotel).