Monday, March 29, 2010

I Am SO Fraidy!!


Since I got to breakeven with my GBP/USD position, which admittedly went to financial hell and back, I got out of the position and I'm now in again at a few pips below my original entry level. My reasoning is mainly fraidy.

I was in this trade and I was thinking: I'm in this long GBP/USD trade and it has to go up because I'm in it. It was the whole TETSOB thing. Then, I realised... hey, isn't this the trade setup that I usually like to short?? And it was that very familiar setup indeed, but I didn't see it because I was long. So, I said, I'll get out, recover my money and try to get in again before the night is over, which I've done. I halved my original position and got in at just a few pips below my original entry - in case the Guys of London decide to try on some little black dresses just for fun. I'll be able to hold onto my beret (not that I have any).

I know how lucky I was and in hindsight, GBP/USD could have totally disregarded the bullish divergences. But the Guys of London did the whole Alpha + Tall European Muscular Men thing.

I don't want to go through another week of not knowing if I'll be able to withstand some more GBP/USD volatility, so I'm trying to keep my account flexible. After all, it's tiny.

If you're going to have a big account, it shouldn't be because you're afraid of overleveraging it. It's to maintain your financial agility and flexibility, isn't it. But don't be overly TETSOB - or overly fraidy!

I am so emotionally volatile though...

Good night and Happy Shiny Profit Taking to everyone!



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