Today was not only a losing day but it was a test of discipline. There was One signal that happened today at 1:15am. It looked so ugly. I didn't want to pull the trigger on it because if you look at it well, you will notice that I had to go short right above the support line of 1.9851. Not only that but it had been tested 3 times before without breaking it and on top of that by the time I got the signal we were coming off a 100 pip decline with no retracement. It was just against everything I felt.
But discipline is discipline, and a strategy is a law of probabilities and in no means infallible. The hardest thing to do is follow it without thinking and letting it take it's course. You cannot pick and choose which trades you are going to do and which you are going to stay away from. At that point you might as well just start guessing without a strategy.
So today was one of those days where I pulled the trigger against my thought and well, this time, I would have benefited from listening to my instinct. But as we have seen previously, my gut has been wrong more often than not.
At 1:15 am the signals were there for the short trade and so we got executed at 1.9855. The previous swing high was 1.9885 for 30 pips and so that let me go for 3 lots. The next 50 level was only 5 pips away so I decided to put my limit at the same amount I as risking. 30 pips. So my target price was 1.98225.
I let it ride and on the very next bar I was stopped out for a 30 pip loss. I wasn't surprised but I was upset. I questioned my decision to enter. Now that I have blown off the steam (yeah..like poker you can go on tilt from trading..so check emotions at the door) I can say it was the right thing to do.
There were other crossover during the day. The signals were there except for the MACD was already negative and so that canceled out the the trade. So I did nothing more today.
One trade. 20 minutes. 30 pip loss. times 3 lots = $900. That's the way the cookie crumbles. Fortunately we are early in the month and I am confident we will make it up.
So here are the charts for the day. Tomorrow is another day.
Talk to you soon.
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