Wednesday, May 13, 2009

GBP AUD- 03:41ET Emotional Trading Once Again

You can be so right yet painfully wrong. Stopped to the tick again! Target was then hit with the solid move up that I was looking for. Had my opportunity to exit with a smaller loss/scratch but didn't take it.

When completely objective, I'd have opted to cut my loss shorter than my maximum stop (as I've done at least once last week). When there's emotions clouding my judgement, I let the stop protect me. However, lately, my stops have been taken out literally at highs/lows before price often shoots off in my direction. I can almost feel that I'm one of the stuck shorts/longs and it's clear my position is being covered at the extreme of panic/fear.

Extremely frustrated. I've become part of the crowd!

The reason is clear too- the increase in risk. Still going to finish the week at this level though.

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