Wednesday, December 3, 2008

Easy money makes you greedy

Easy money again today, by just following the direction of the markets at their opening. If European markets open down, eur/yen goes also down (the opposite is not always valid). This can produce a dangerous confidense sometimes and this is visible on the third trade on the chart... 12 trades in total, 10 winners, 2 losers. +7,5% on account and then i stopped for today, and was happy to do this.

I wanted to share this because there is a striking difference with my attitude yesterday. Yesterday it was an identical market, I made a fast 10% on the London opening, by following the DAX...The easy money made me greedy, I wanted more, I continued in the afternoon and was trapped in a consolidating market. Result : I gave back the nine tenths of the gains, little by little.. My frustration was bigger than the lost gains..

We learn something every day, each day adds to the big unwritten archive named experience or screentime ot whatever you like...

2 comments:

Martin said...

Dear Constantino,

I just checked your Monday's trades. Trade no 3 was very risky, am I right, what is your pain level if it is against you? Greed is not good, and maybe it helps you to make just 2,5%!!!(huge gain) per day. Emotion free trading...this is our goal. Have a nice trading next days Martin

Constantino P. said...

Thank you Martin for the comment, you are perfectly right. By the way i started reading the pdg you sent me. Excellent! thank you again.