Wrong When I’m Right, Right When I’m Wrong

My final trade last week was a Gold short. I had a chart. I had some nice lines on it. I had a set-up. I had a plan. It was simple and basic and I had no hesitation in pressing the button. You can see the set-up and the result on this tweet. The trade failed. That was Friday.

Fast forward to Monday’s Asian session. I was watching AUD/USD and EUR/JPY. I tweeted my trades and it seemed as though I timed things perfectly, selling the top on both pairs (1.0480 and 109.80) aiming for a daily range move down of about 100 pips and even thinking about a weekly range to the downside in the order of 300 pips. In the end I managed to lock in about 40 pips on each trade. Then I attempted another round of shorts only to get stopped out pretty quickly giving back another 12 pips on each pair.

Although I made money on Monday’s trades and lost money on Friday, I feel much better about Friday’s losing trade. I feel good about having shorted Gold at 1645 and taking a loss at 1655 because Gold is now 1685. Why? Because I didn’t second guess and I didn’t expect anything other than a result one way or the other – win or lose. That is the right way to trade. But Monday’s (winning) trading didn’t impress me. I made money but I failed to see the turn in the market. I failed to see the turn in the market because I didn’t want to see a turn in the market. That was my mistake. That is the wrong way to trade. And it’s that kind of bias that can quickly destroy your morale and your account. Thankfully these days I often win the battles against those kinds of demons. But every now and then the demons put one in the back of the net.

The question is – was I lucky to have scored the win, or did experience subconsciously play its part? I don’t know but now that I’ve analysed the trades together with my thoughts during those trades and put it in writing (writing helps me remember), I can move on to the next day, the next chart, the next trade.

10c

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