Fundamental vs Technical Analysis
When I started to learn you trade, you naturally seek out what other people say.. unfortunately, when it comes down to what peole do say to start with, it’s mainly share tips.. this is exacerbated by the fact that a lot of people who come into trading are looking for a fast way to make a quick buck… unfortunately, trading does not work this way…
Trading actually made me learn a hell of a lot about myself, I learnt about controlling my emotions and also learnt about myself as a person… a lot of the learning is done through how you behaved through a situation and believe me, emotions come into play when you’re trading with your real money in the market.
Although I’ve been looking at the market now for years, I still make the same mistakes.. just less often and I get frustrated in myself.. I should know better!
Anyway, last night I made the trading mistake of reading into some fundamental analysis and allowing that to make my decision for my trading entry.
I went short with the EURUSD last night after reading an interesting article about how the bullrun with the Euro may finally be over. I got excited over this thinking that this is going to be big.. when a big trend reverses, there’s a lot of excitement (and money) to be made. Of course, this may well be true but the question is WHEN!?
I didn’t think about this last night and went short on a pullback of an uptrend in the 4 hour charts… this was stupid… the 4 hour charts show a clear uptrend and I stupidly went short. The technicals should have stopped me from entering short here but I went and did it and lost out.
I went short at 1.2860 and got stopped out at 1.2901 for -41 points.
