Rollarcoaster

Today has been a real mixture, I’ve had excitement, disappointment and just about every other emotion inbetween. 

I took the first 2 hrs off from trading to visit the Forex Expo that was in town and whilst nothing was outstanding it was a worthwhile visit and I did meet a few interesting people. I returned to find that I’d missed a losing TUFXP trade so at that point I was feeling rather lucky! I was back in time to hedge the MPC minutes and I really wish I’d stayed at the Expo for longer. I suffered my first really awful slippage with my broker and instead of a 25 SL they decided 56 pips was more inline! I was nothing short of fuming and I was totally flustered and ended up messing up the winning part of the trade and eventually closed it for 0 pips. So a 56 pip loss was registered and I was genuinely fuming with myself. I let my emotions get in the way and even allowing for the horrendous slippage, it should have been at worst a -20 pip trade. To add further insult to injury there was a potential TUFXP trade forming and I set an order to open as I was busy doing a few other things in my trading room. I totally missed the fact that the trade had expired and by the time I had realized it had swiftly gone onto it’s SL of 25 pips. So only a few hrs into my trading I was a rather disappointing 80 pips down. By this point I was struggling to keep my emotions in check and ended up taking a nonsense of a trade on USDCAD during the news and I got whipped for 10 pips. Why I took the trade, I’m not sure. This brings me onto my next point; emotions during trading.

Emotion is an extremely big part of intraday trading and today I let myself down by letting them run away from me. Being strong-minded is of paramount importance to me and when I slip up it reminds me that I am still very much learning the art of mastering all emotions. Trading is a psychologically tough game and the desire to close trades early is a very tough urge to resist especially when you’ve had  a rough day, you see pips in the bank and you want to close early to limit any further losses or to repatch the losses already made. However, this is a huge fundamental flaw in the human emotion side of trading. I use strategies that I trust 100% implicitly and I know if I continue to follow the rules and basic principles I will come out on top. Having faith in your strategies is key and trusting it is as equally as important as picking a strategy itself. 

The day did get better in the very last 45 minutes of trading with two winning TUFXP trades. I decided to simply close my broker down and let the trades play out, babysitting the trades would have been nothing but torture as one was a GU short and a EJ long. It isn’t too often you see negative correlation between the two so I was very happy to see both had won. So whilst a loss of 40 pips on the day wasn’t what I was looking for, I came away from the day feeling positive for had it not been for the slippage and a simple error on my behalf it would have been a good day. 

Last but certainly not least, I have opened my very own forum here. It will take a while for the decent content to fill the boards but I have every faith in the members and myself to make it a fantastic place to be. It covers all things forex including winning MT4 strategies and TUFXP strategies. Registration is free and everyone is welcome to join.

Thanks for reading.

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    • Austin
    • November 18th, 2009

    John, another honest and open blog today – always makes for very interesting reading

    Wanting to say something constructive (and please don’t take this the wrong way), are you tying yourself in knots with your many and various methods of trading?
    * TUFXP (two pairs, or is it three?)
    * Breakout strategy (Big Dog from FF)
    * Trading the news
    * Your new trading room
    I just wonder if you would be better focusing on one or two methods and doing them well ie more per pip on fewer methods
    A bit like the fox and the hedgehog – the fox can do lots of things well; the hedgehog can do one thing really well

    Just my two penny worth (and bearing in mind that I am only paper trading just now)

    Happy pipping

    Austin

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