I knew it had to happen...I'm suffering from every common error made by novice traders under the book. Some of my personal best this month:-
* Hesitating due to fear induced from previous losses.
* self destructive/revenge trading...jumping into less-than-solid setups to "show the market I'm not afraid"
* Entry based exits- rather than relying on the chart to tell me when the edge isn't working. I've sometimes exited because the loss wasn't tolerable (due to impatient entries), often times stopping myself out to the tick.
* Hesitating due to fear induced from previous "losses"- differs to the first bullet point in that these are opportunities that have been passed on for any number of emotional reasons which would have been profitable.
In short, these are based on trading either the actual bottom line or the virtual bottom line If I had/hadn't done xyz I would/wouldn't be up/down by X amount.
Case in point. Took an absolutely horrendous trade in the GBP/USD which failed for 12 ticks- this one falls under the revenge catagory. Then, when a perfectly good Mini Gold setup formed into 13:30ET, I hesitated due to the waste of capital earlier. Of course that one is now following through nicely. Forget the account equity!!
*UPDATE*- EUR/USD at 14:15ET, followed by YM at 15:00ET finishes off "momo season"...as a consequence from the above, I hesitated on EUR/USD and, by the time the massive YM reversal rolled around, I had already resigned from watching the charts for the day.
I usually make less money than my strategy allows due to the aforementioned lack of emotional control from time to time. So far this month, I've allowed this to dominate my trading hence turning diminished profit potential into all out losses.
No comments:
Post a Comment