I started today at 10.13am and finished at 10.38am for +3 pips off three sell trades. And I am pleased to say that all three trades were executed quite well.
The first trade lasted 9 seconds to produce +1 pip. The second trade lasted 54 seconds to produce +1 pip and the last trade lasted 25 seconds to produce +1 pip.
Whilst I was writing the above, I couldn’t help but wonder if I would have GOWID for a small loss if these trades had gone negative, or would I have waited allowing large losses and hoping they would reverse again. The answer is I don’t know for sure. But I need to hold on to the feeling after these rare good days of trading and have to be confident that I would GOWID if a trade goes bad and keep the losses small.
I found an article yesterday in City A.M. titled Forex traders should tread carefully to avoid mistakes and they talked about three major mistakes that we should be wary of. I thought two of these had quite a bit of relevance to me. The first was about Boredom Trading and the other was about Being a Possum. I noticed that I have in the past resorted to trade, in fact, I did it yesterday, to give me a bit of boost – the lady behind these concepts, Kathy Lien warns this simply should not be done as it can go drastically wrong. Being a Possum on the other hand is all about GOWID or a lack of GOWID, and I have done this many times in the past as well, the last time I did this was last week, Lien captured this concept really well when she describes it as: Trading is a game of survival and closing your eyes, hoping the fire will put itself out, is not the right decision. If it is a small fire, it is smarter to put it out before it even comes close to burning down the house; if it is large one, it is better to abandon your home and call in the fire-fighters. In trading, if the reason for the trade is no longer valid, then get out before the losses grow – sounds familiar to me.
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