Not only has my blog become Trading Ego Central, it also seems like I'm on a secret mission to lose money, doesn't it?
I stopped myself out of this trade with a Stop & Reverse, which I promptly closed out with an additional small loss. Total loss on this trade was -24.72.
The thing I'm most ticked off about is that USD/CHF finally did start to break down after I got out of the trade. I know this sometimes happens, but how does one distinguish between a trading ego and trading conviction? It's a very fine line isn't it. I think my mistake with this trade was being emotional and inconsistent. I always wait for the break to happen before getting into the trade, but this time, I jumped in head first too soon and hit the bottom of the pool.
For those that secretly smirk about my mini-lots, there's nothing wrong with having a small account and big dreams. Still, I am looking to develop a scalable strategy and since I'm still experimenting with my trading, I'd rather continue with mini-lots than have any unwelcome surprises.
I'd been condemning myself since last night, but then finally realised that we are not only as smart as our stops, but also as dumb as our stops. So, my previous Bimbo Trading the Wrong Side of the Road Trade was only a -1.97 pip bimbo trade whereas this USD/CHF trade turned out to actually be more bimbo from a money management perspective even though the trade philosophy was actually sound. Whatever your reason or bias for being in a trade, sometimes, I think trading conviction actually ends up hurting us more than we realise.
After a stream of expletives, I'm finally a bit calmer. The positive US GDP report and my portfolio being +3.57% so far do help.
I've got to at least do better than minimum wage on my next trades. Otherwise, this would all be a colossal waste of time, wouldn't it?
Guys of London, help me out here!
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