Thursday, May 7, 2009

GBP AUD- 04:20ET- my typical error.

Same story...well, almost.

Got a nice entry (2.0006- 1.9986 stop) but pace didn't pick up out of it. Ideally needed to scratch and re-enter but I'm not expecting that of myself for now. Price trended down, held my stop almost to the tick (this is where the element of luck comes into play) I then got the move I was looking for...I repeated the same error of lack of wiggle room with my limit target order. Exited with a market order when I realized that was the case for a 6 tick gain.

I remember saying to myself, "exit according to pattern entry not my entry"...In retrospect, although I get points for effort, I didn't quite achieve that objective.

Had I have entered at pattern entry, I know I would have simply adjusted that limit order down by a tick or two. What stopped me was trying to maximize reward vs risk...basically asking the market to respect my entry and profit goals! of course that's important (reward vs risk) but, when you're entry doesn't match the markets entry, you MUST act accordingly.

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