This morning started as usual with me waking up about 10 minutes before my alarm going off at 0530 hrs. I turned the tele on ready to watch World Business Report on BBC1 to get a little update on what’s been happening over night as I got my brain into gear.
By 0550 hrs I’m at my desk checking to see if G-Force has set up today. And notice that there is no breakout trade for me this morning and everything looks slightly less than exciting so I decided to install a new CCI indicator that a trading buddy had given me onto my charts.
AND THAT’S WHEN THINGS STARTED TO GO WRONG!
For some strange reason I decided to download a new metatrader to put this indicator on but I didn’t save this new metatrader with a different name so I completely wiped my working metatrader with all my setups and indicators on it. URRGGHHH!!!!!!
It’s now 0630 hrs and I’m rebuilding charts when a trading buddy skypes me and says he’s in EJ (EURJPY) long and GJ (GBPJPY) is looking really sweet. So of course now I’m really mad at myself 2 great opportunities missed while I faf around rebuilding charts. Wonderful!
Just after 0700 the rebuilding works are complete when the next Skype text comes through saying he’s out with +20 and +30. Job done for the day (for him anyway – well done buddy) and I haven’t even started yet. GRRRR.
Recognising that I’m not in the right frame of mind to trade I decided to give myself some time out. Had some breakfast away from the screens and watched a bit of GMTV and when I figured I was ready I went back to my desk.
After about 5 minutes I see what I think is a nice set up on cable short which had just started to give back some of its gains from this morning. In hindsight the trade was pretty awful – I touched lucky and it netted me +36.9 pips but it was all wrong – didn’t realise that at the time.
Banking 36.9 pips in 6 minutes has a great feel good factor to it, especially after a rubbish start. I am so good at this! Yeah Baby. Entered the trade at 1.4814 at 0925 exited at 1.48045 at 0931. Six minutes – job done. BAD -what I had just done was a job on myself. Looking at this trade now I know that I touched lucky. The only good thing about it was the exit – with the limit order placed just above the figure at 1.4804
OK – maybe I’m being a bit hard on myself, it wasn’t that bad an entry on the break of the consolidation, but I know that that was not the reason for my entry.
The next trade proved that I was riding on luck – trading because I’d missed out on the trades from earlier in the morning. This time the market smacked me good and was my wake up call.
A short trade on GBPCHF that took my profits from the previous trade and a bit more. By the time this next trade closed I was 39.2 pips lighter. Entry @ 1.64428 at 1007 and exit @ 1.64820 at 1031. Resulting in -39 pips in 24 minutes.
When I got stopped out of this trade I knew I was slightly bonkers. Entry was wrong. Stoploss was wrong. Trade was wrong. Only thing that was right was the direction (trying to rescue my pride 🙂
It was at this point that I decided to phone a friend to save me from myself. On the promise of a second breakfast I drove to my friend’s place (another trader) where a cup of coffee and bacon sarnie was waiting for me – yummy – more importantly it gave me a chance to break the pattern and to stop me from trading so that I could collect my thoughts.
The break worked. I came back focussed and ready to trade the New York session to some great trades:
PIP TOTAL: + 190
Lessons from today:
Having a contigency plan is essential.
Today 3 elements of my contigency plan came into play:
1. I have a memory stick with my complete metatrader setup (sound files, templates, indicators, profiles etc.) so that I can restore my workstation relatively quickly. There is also a folder with this information on every computer that I use and also on a separate hard drive in case of emergencies.
2. If I’m not in the groove I take myself away from trading – have a cup of tea, watch TV, chill out.
3. If I feel compelled to trade after making stupid impulsive trades – I leave the house ……QUICKLY!!!!!!!………..go to the gym/go meet a friend. Pattern interupt is a damage limitation exercise necessary to save the funds in my account.
As I look back on today it was a bit of a rollercoaster. But it was a good day thanks to the contingency plan.