Sometimes you just have to accept that you are going to be really silly and maybe just not follow your plan.
Yesterday that was me, and I ended up down 3% on account.
The first thing that went wrong was that I actively wanted to do business on ECB day.
I never do that, and the select few times that I have, I’ve been spanked, with one exception.
The second issue I ran into was buying the Euro thinking it would shift to the upside quickly due to there being a build up of stops. See here:
Price did run them, but I should have used this as a sign that the move would be fuelled to the downside, the reason being is evidenced here:
Trying to buy the Euro at an area of key support with a volatile ECB presser, with market flow being to the downside are you, David?
The third problem with yesterday was that I really didn’t even follow my longer term view for the Euro… which I had posted the night before.
I’m honestly laughing to myself now, because I feel like a total tool and I shall not be making this mistake again… what’s worse is that I had never been this unbelievably stupid before.
However, my saving grace is that I have a 3% limit on the day and a 5% limit on the week.
If I lose 3% in one day, I go away, don’t look at a chart for a day, then come back and see what I’ve done wrong the next day, as I’m doing now.
If I lose 5% then I simply come back the next week. I don’t even bother looking at what I did wrong that week because there was clearly something up and so I wouldn’t be able to analyse my own behaviour properly.
Now I know what I’m doing next week on the Euro, but I also know what I’m doing on AUDJPY next week now too.
Here’s my plan on AUDJPY:
Stop is above 84, target at 80.75 with a sell above 83.10, depending on how price behaves.
If it does extend higher then I’ll divide my positions between 83.10 and 84.00, but ideally, I just want to sell into a peak above 83.10.
I wanted to write this post more for a cathartic reason – I don’t mind losing, but when I’ve done it in such a stupid and more worryingly, rather careless way, it gets to me.