Some Days Just Start out WRONG

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 ūüôā

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:

GBPCHF +20.1
GBPUSD +58.1
GBPJPY +51.9
GBPUSD +52.1
EURUSD -17.7
EURUSD +36.9
GBPUSD -5.3

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.

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