I shorted this at 31 on the pre -London session, assuming a drop continuation, despite the MACD and CCI divergence and ... I was trapped there! Price reversed sharply and I could not close this losing position. The move was steady : -10p, -20, -30, -50... Several trendlines breaks were there to tell one thing : the move is up. No way, i was just looking the euro climbing. It stopped at 167.05. At this point i was -74p and -18 % on my account! The price reversed then , I closed half at 166.74 and -43p and half at 44 and -13p, averaging 28p loss and -6,65 % on account. Bad execution, bad money management, everything was bad on this. What if the price didn't reverse ? I would close the trade at -100p, maybe more, maybe not close at all... The sky is the limit...One big mistake, one bad execution is more than enough to eat back your hard earned pips. This is the capital mistake one can do, a fatal one. If you want to kill your account, don't use stoploss or constantly move them.
I cannot scalp using position trading methods.
Will remember long this Wednesday. i will not be lucky next time... Must keep the 10p SL by all means.
2 comments:
how painful... i had same experience lost month with pound/yen. Discipline is a must.
Gershom
This is the type of lesson we should learn from, it’s not necessary to lose by our self to learn, if we want to become successful then we should be learning from everyone and only then we will find success, I am lucky to be working with OctaFX broker since they have excellent 8 USD no deposit bonus, so I can use that learn and get rid of these errors without losing anything at all and that is what makes me so a really good trader.
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