Wednesday, March 31, 2010

Bimbo, Bimbo, Bimbo = Plucked Thrice


OK... I admit it. Chinese guys aren't the only ones who take miscalculated risks. Chinese women do the same. In hindsight, I plucked myself three times with this recent GBP/USD trade. The eyebrow-less look does not suit anyone!

1. I got in at a Don't Touch the Stove, It's Hot Moment. My trade was down at least -350 pips. I then was able to correct this TETSOB mistake by getting in at a very good level of support, which I have the suspicion the bigger players are defending.
2. When the trade got to breakeven, I plucked myself by getting out of the trade and buying back only one lot at a slightly lower price because I thought I was offsetting some risk. It's true, but if I wasn't that scared at -350 pips, why was I all of a sudden afraid of a retracement now? And keep in mind my account is tiny.
3. I again committed another trading sin yesterday when UK data came out better than expected. Seeing no real follow through in prices, I got out pronto. I was so happy with my 97.4 pips profit, but looking at the market today, I clearly plucked myself not once, not twice, but three times! I missed out on at least another 110 pip move up.

My usual response to this would be... I want to get revenge and I'll short this pair just for no apparent reason. However, did I inadvertently become a Trendsetter / Go-getter / Farm Better?
I will buy again... but I'm going to keep my trading discipline. The worst thing that could happen now is for me to get into another Hot Stove, Don't Touch trade.



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