Here’s the end of the story – at least for now…
USDJPy sell 26-02 & 04-03-2019 – Close 20-03 & 21-03
Wednesday featured a significant price drop on this pair which I’ve used to close the initial position that weighted on me heavily for the whole time – it lost only 5.3 pips but one would have to add a swap close to 4 times that value into equation.
I’ve been mighty tired with the whole transaction mainly due to it being underwater for the whole time. After closing the initial sell I’ve set up a “safety” SL in case of a whipsaw so I don’t get back to being underwater on the trade.
The placement took some minutes of pondering but I’ve (unfortunately) managed to “hit the mark” and found a daily high on Thursday effectively closing the remaining position.
Which turned out to be a terrible outcome on Friday – this was a classic example of being able to “hold” a loosing position for weeks and “wavering” when that same position went into profit for the first time.
That can be clearly seen on the daily history described in “pips” – once I’ve come out of the woods there was an extremely big pressure to “take whatever I got” even though I’ve known it was very little compared to the previous loss held. One of the secrets to good trading is inverting this natural tendency into cutting losses quickly (short hold) and letting profits ride (long hold) – not the other way around as seen in this example.
- jumping the gun on initial sell (error)
- hanging on the initial sell despite growing loss (error)
- scaling-in at proper time (good)
- fear of adding a second scale-in when confronted with a favourable entry point (error)
- closing the initial position around breakeven (undecided)
- setting a SL – any or too strict due to “trade-loss fatigue” (error)
Despite such glaring errors I’ve somehow managed to finish in the black, of course one should point out that I’ve possibly left a whole lot more on the table – the next weeks should tell. Even though this trade resulted in a profit I’m not happy with it because the way I’ve lead it was quite sub-optimal – then again maybe I’m starting to get a hang of it and at least moving in the right direction for once, only time will tell.