Wednesday, November 19, 2008

November 18th Recap - When Bad Things Happen to Good People

So today started off with me a bit down in the slumps about yesterdays performance and screwing up on that one order. So I made a point of double checking all of my orders today. But apparently not well enough because another order slipped and kicked me out of a position I was trying to get my stop to par on and ended up exiting me prior to my target being hit.

I had one good trade that worked without fault. The other two were PAINFUL. Unfortunately the EURUSD trade came up to my stop and apparently through it by a partial tick and exited me for a max loss and then went right down to my target. So now I need to make a point of giving my stops not 1 pip, but 2 at their initial stop values so I don't get kicked out of a move by my broker.

The last screw up of the day was in the GBPUSD. I had been holding this trade through ups and downs for the better part of 3 hours. By the time I got it to work so I could get to par it went down and stalled 5 pips from my exit target. Fine. I held through a wave back up close to my stop and it fell down again. At this point it went down and retested the lows. I had already been stopped out of the EURUSD short so I was wanting to lock in profit and end the day on a good note. I saw it retest the lows and then engulf. I'm thinking to myself... ya know, I should just bail, its over. So I did. AGAINST MY RULES. Then of course the next bar went straight down to my target. Go figure. It wasn't a huge difference, but 20 pips of profit is 20 pips of profit.

So all in all, we had a profitable day, but a day that was 100 pips shy of its full potential of the 4 trades taken due to either order entry errors, bad luck with the broker and needing a 1 pip wider stop, and bailing on my management. Disappointing to say the least.

The good thing of note is this. The results if I had been using my old initial stop management? 3 Losses, 1 win. Yup. This new wider initial stop turned 3 losses in the 3 wins (if it weren't for my own mistakes).

Trade Results:

EURUSD: -49.00 (High Ticked Out)
AUDUSD: +16.10 (Order Error)
GBPUSD: +50.10 (I'm a pansy)
USDCAD: +30.82 (Worked so fast even I couldn't screw it up)

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