I signed into my Forex practice account today and immediately noticed that the EUR/USD market has been see-sawing for the last couple weeks. Well, on the 4-hr charts anyway. I went to the 1 minute charts and my indicators were all pointing up, the 1 hour chart was pointing up, and I placed an order to buy. It looked so good. Now here we are, 2 hours later, and I'm down by 3 bucks. I watched the charts for a little while and when I went downstairs, I was up by about the same amount. The history looks like it went up for the first 20-30 minutes and went sideways for the rest of the time. The down-turn is a minor hump, it still looks like it might come out of it.
This reminds me to mention mind sets. Everyone tells you not to play on emotions. That is so true. I have my trailing stop set and it will exit if the trend goes too far the wrong direction. In January, I have to admit that I played on emotions a bit too much. I wasted a $500 account inside a week. All because I bailed on a negative move. In more than three quarters of those trades, if I had left the trailing stop alone, I would have been in the money after a market rally. I also bailed on gains too early because it turned down for a dozen or so pips before climbing again.
I remember one trade, 3 minutes after I pulled out and took my profit, the market did one of those 150 pip jumps, up. I don't think anyone is fast enough to get a trade in on one of those. Well, I am going to see what happens in the morning. Either I stop out or my take profit will kick in and exit with money in the bank, so to speak.
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