Back to bad trading habits….
I was doing pretty well of late but my trading seems to have suffered a turn for the worse of late. I know that I am entering trades when I shouldn’t be.. they are like gambles. My short of the GBPUSD at 16263 was premature. The trend was clearly upwards but I was seeing a slowdown in the rate of progress the market was heading upwards.. it has powered uphill rather rapidly and I was expecting the market to subsequently move down before a continue journey upwards. Countertrend trading as this is called is risky as you never know when the countertrend will turn.. if indeed it does counter… which is doesn’t look like doing right now.
Sure, upwards momentum has indeed slowed but this doesn’t mean it’s going to fall. The money is on the uptrend but I have committed myself and will ride the trade to completion.. my stop is at 16300 which is probably too tight.. it should be about 10 pips above this but I am not prepared to put more money towards a bad trade.
The other bad trading habit is not being patient when awaiting an entry… I have come home from work and want a gamble… this is the road to ruin. I don’t think the trade is giong to work out today (however, you never know with the markets). I will take the hit on the chin and learn from my mistake… loss of money is a good motivator…
