So it seems I wasn't the only one giving the Catholic Church a bad name, but I committed some more trading sins this week.
My feather dusters were all ruffled and this old trend, he played one!
-2.89% on the standard brokerage account
-1.83% on the Roth IRA
down about -135 pips on a single forex trade that I'm still in, which I have vowed to offset with a big winner
I got all jittery and panicky and reverted back to my "I need my Forex Broker and I need him now" ways. Unfortunately, or should I say fortunately, he wasn't in the office, so I couldn't be all "Oh, [Forex Broker's Name], woe is me. What should I do?"
I decided I wasn't going to be helpless this time. I'm going to trade my way out of this. To sound like a broken record, I traded my way into this mess. I'm going to trade my way out of this!
This is what has happened so far... I got into a MAT trade (think two correlated pairs involving European currencies) during my Lunchtime Fun with the Guys of London session on Friday. I was quite sure that risk would take off once again and I would then be in the moola with two beautiful double-edged sword countertrend trades. I kept the trades open even though I had to get back to work.
And I was wrong! They're the Guys of London and they don't do small pips! My account was probably down over 200 pips on both trades at some point, but I didn't get out. And it wasn't because I was suddenly Un-Fraidy Cat. It was because I didn't have access to my accounts. Anyway, it turned out that a retracement on one of the trades would bring me back to a minor 2 or 3 pip loss, which I took. My reasoning is not fear on this, but I wanted to maintain the flexibility of going in the right direction with this pair should my current trade run further into the red.
My challenge on this one is not to focus on how bimbo I've been. I know that part. I was up about +90 pips the past week and am facing a -135 pip drawdown. I allowed my TETSOB to take precedence once again. My challenge now is how to get into a big winner. I would then offset my current loss with the winner rather than using a fixed stop. I'm going to have to probably take a loss at some point with my current position, but when I do it, it's going to have to be fairly minimal. Why take a loss now when I can't be sure my next one's going to be a winner and that this current one's not going to retrace? Markets retrace all the time and I have to now look objectively at where it could potentially retrace to. I honestly don't know if I can do it, but I won't stop myself from trying!
This is also the part where everyone should be burning with venom and hatred at the CFTC for getting rid of the Point & Shoot functionality and forcing its unreasonable FIFO accounting standards on everyone. The only way I can trade myself out of this is with another pair instead of playing a potential retracement.
It's a big week ahead since I'm going to be in the Lovely Land of Neutrality / Tall European Men / Best Chocolate In the World for just a few days. I'm also going to have to get myself out of this trade - preferably alive. I don't usually trade forex on a Sunday, but I'll just keep an eye out today for any unexpected turbulence. But at least I've got something to look forward to. Switzerland is an absolute sanctuary for me. I'd say it's one of my favourite places on earth besides London.
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