Thursday, November 29, 2012

An interesting few days...


Monday provided a gush of low-volatility entry signals on the EURUSD, NZDUSD, gold and silver.
I decided to trade the EURUSD, being the most liquid, and both a long and short were triggered on the break of Monday's high and low.

I initially aimed for a 1.75:1 reward:risk ratio. As you may see, my long didn't go far before I was stopped out. Price broke downwards and after triggering my short, I began to lose confidence about my trading plan and closed my trade with a reward:risk ratio of 0.3:1.
Price continued to move down and would've hit my initial profit target. It then reversed, producing a bullish pinbar this morning.
The main lesson here is psychological. If I had maintained my faith, I would be in the green right now. My trading plan is complete. I just need to stick with it. Trading is 10% technique, 90% psychology.

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