I wore my little black dress to my Lunchtime Fun with the Guys of London trade and not only got booed, but stopped out. Apparently, they have no fashion sense whatsoever. Never mind that my little black dress is a few seasons old. A classic is a classic.
What happened?
On Friday, 16 October 2009, I sold GBP/JPY at 148.73, targeting 146. I wasn't even 30 minutes into the trade when it got to about +15 pips or so, at which point I had to head back to work from my lunch break. Therefore, I set my stop at 149.11 and due to a minor break above 149, I was thrown out of the trade and became water under the GBP/JPY bridge.
In hindsight, I allowed my greed to get the better of me. I looked at the profit potential and ignored my most important money management rule, which is never to allow a retracement hit me on the way out.
I'm still so ticked off even though I only trade mini-lots, which means my loss was about 41 pips. Not that I'm a sore loser (OK, perhaps a bit), but I'm still convinced that there's massive downwards potential on this trade. Sometimes, I wonder if I was Swiss in a previous life. I mean, if I have to care so much about a 41 pip loss... (No offense to the Swiss, but they're just very... exacting).
The way I see it is this: the Guys of London started selling this pair the moment they started trading. About the time they started heading to the pub, they'd only tracked a day range of a bit over 130 pips. That's nothing in GBP/JPY World. They don't call it a day just like that.
Something is going on here and therefore, I'm convinced that the coming trading week will see more action.
One time, I was at a Brian Dolan webinar and he mentioned something about a self-limiting circuit breaker. It got me thinking... I'm so like a self-limiting circuit breaker with my trading.
I've got to do better!
How much farther now, Papa Smurf? Not far now!
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