Monday, March 2, 2009

Mental Drawdown

Taken two losses, one in the usually well-behaved GBP/USD and one in the CAD/USD which, if my memory serves me right, I've never traded.

CAD/USD- The case for taking the trade was weakened when the pace of the 2nd correction slowed to the upside. I decided to take it anyway. 10 tick loss there...

GBP/USD- Much better combination of supports on the larger timeframes for this one. Only intraday con I can find is that the shape is not quite as skewed as I'd usually like it to be...12 tick loss there.

Using this pattern (perhaps like using any other) requires an element of discretion even if I have rules for entries, stops etc. Until now, I've usually been very selective in what I'll trade but I feel that I may have been somewhat nonchalant in the last two trades, perhaps due to pushing the boundaries in pattern recognition with Yesterday's trade...the fact that this is the first time I've had two losers in one session and that they didn't come close to calling a market reversal even in the short term (that's happened very few times this year) suggests I could be in a hurry and, as such, have considered things I would have rejected before.

So I'm pulling in the reins again and waiting for the quality setups that I'm used to.

* UPDATE * Took another setup in the NQ into the 13:30ET correction period. Fantastic setup but, unfortunately, got shaken out at the days low! That ends my day from hell :)

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