Trading Account

Trading Account

Monthly Trading Results

Monthly Trading Results
Showing posts with label greed. Show all posts
Showing posts with label greed. Show all posts

Wednesday, November 4, 2009

Greed is (not always) good

Today was a reminder that greed can be bad. There's a saying on the street that 'Pigs get fat and hogs get slaughtered'. This rang true for me today. I was long the AUDUSD pair with decent size, for me anyway, going into the FOMC rate announcement. Shortly before the announcement there was a small pop that could have given me a nice 30 pip gain on the trade. Instead of taking this profit and going on with my day I decided to stay in and look for more profits after the announcement. My eyes grew wide as the whip saw action took the pair up to a point that would have netted me over 120 pips on the trade, so I tried to close out and lock in the profits. Unfortunately I didn't get my close order filled all the way back down to break even where I decided it would be best to keep it open. The pit stop at break even was just that, a pit stop. The pair proceeded directly down and hit my stop loss turning a potential 100 pip gain into a 60 pip loss. Lessons are becoming abundant this week, and the most recent ones are to take a gain when you can, and don't count on being able to close out a trade during heavy market action.
Results for Wednesday: 1 good entry long gbpusd at a short-term reversal candle with the 1 hour trend, bad short eurusd against the trend, ok long audusd mentioned above, bad short audusd right after green long wick reversal candle. 1 for 4.