Thursday, May 17, 2018

Huge mistake! Didn't follow my rules


May 18, 2018      

      
           Yesterday I felt like I didn't want to trade since I have already reached my weekly goal in just 3 days. My goal is to gain 25% weekly. I was feeling overwhelmed that day since the past two days of my trading was terrific. I told my wife that I don't want to trade anymore since I have reached my quota of the week. She advised me that "why don't you just keep on trading, you might earn another $500 today" she said. I took her advice and traded that day even if my intuition tells me that I should not trade. 


Around 3:30pm in the afternoon, after I finished watching a movie. I did some short analysis on the markets and went on trading. I bought 12.70 micro lots on the EUR/ USD and 19.70 on GPD/USD. Those trades didn't turn out well (loss $86). So I tried again thinking that it might go the other way. I felt anxious and didn't wait for the right moment to trade. Took my shorts on both the EUR/USD and GPD/ USD. I also added Gold on my short trades. After a few moments, I earned a paper gain total of $80. Then suddenly, it went against me. I was thinking that it is only a retracement so I don't have to worry about it. But after few hours my stop on the Gold and EUR/USD got hit and I lose a total of $90 again. 

After that loss, even if one of my rules tell me that I should not take another trade after a $100 loss. I was still stubborn and took another 5% trade on the EUR/CAD (I should only trade 5% once a week). To make the story short I lost again on that trade. All in all my losses yesterday was $359. I almost lost all my earnings on Tuesday which is $380. 

This was another day to be remembered and I have learned a lot from it. The first rule, do not break your rules. This is important because a lot of good traders also forget this important rule. And do not also trade if you are emotionally unstable because that will hurt you on your trading. Today I have a lot of things to add to my rules because of the losses yesterday.

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