Hi John
subject : Non farm pay rolls - don't trade then unless you want to be crucified
Today I learned an expensive lesson. How stupid can I get. You'd think after all these months trading I'd not make this error of trading around an announcement and especially this one. I will never trade on announcements again. (I'll try anyway )'m amazed it actually let me into the trade. Leigh is seriously pissed with me. I am pissed at myself but strangely calm as I have learned yet another valuable lesson. Argggg down that road again we go.
The Forex factory server was on overload and unavailable for 30 minutes before. Hint one that everyone was waiting. Then the mad scramble and off it shot in my direction and that profit turned into a massive loss seconds later as I had no time to put in a stop. Thank goodness I was trading a $1 a pip. I had waited to get in but obviously not long enough despite using the 5m chart as my entry. I now know that the 5m chart in cases like this is like being on the 1m chart. When I entered my buy trade on the euro it shot up as the result was negative and then it turned. It was too fast to let me add a stop and so I sat holding my breath as it went the other way within seconds. I eventually got out as my order was put on pending and then when it offered me a quote I took it and got out as it continued going even further against me. I didn't get out when I could have minimizing my loss as it recovered slightly but it didn't go all the way to the recovery. At that point I had a chance to get out but again you don't go on hope you go on what you see and just then it went the other way and dropped some 200 pips.
Yesterday I traded on Deal book and it was great. The trailing stop is magical. What I did wrong was not have my stop wider than 10 - even on currency. I realize with the Dow it needs to be massive It went my way and I decided to stay in the trade and let it run and not get out as I usually do. Well this time it did continue in my direction however it went back up after a while and stopped me out thereby ending the trade. Its like fine tuning a car or should I say in my case trying to get our coal stove to work. Leigh lights a match and voila it works. I try the same and end up using electric heating and spend the rest of the day glaring at the stone cold coal stove.
and that's me for now. I'm not going to trade now for a while as that may feel like revenge so I'll get up and do something else
have a good weekend
Desiree
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Hi
ReplyDeleteThanks for your efforts in posting this blog, it’s a great idea to follow the life of a new trader..... It’s a long read, but now I’ve caught up it should be a bit easier :)
I have a small suggestion though to add to an otherwise great blog, it would be useful for me (and perhaps others) if you could on occasion post your overall profit / loss since starting out maybe as a percentage if you don’t want to share actual figures, it would give a good insight to how long it really takes to start earning an income whilst trading.
Personally I’m still at a stage where I’ve read a lot about it, but not actually had enough courage to place a real trade as I don’t really have money I can afford to lose right now. Reading your success stories has certainly provided me with a bit more confidence to perhaps go for it myself this year....
Cheers
Dan