40 pips down on GBP/USD after being 10+ up.
It was certainly a morning where I had to keep my “Positive Trading Attitude”. Kofi and myself don’t often have trades that do not go our way these days so when they come along it can give you a bit of confidence crisis. This is where you need your “Mental Toughness”, “Confidence” in the strategies that we trade and our ability.
Now as I have mentioned this week about the psychology of trading. It would have been quite easy today to walk away and not trade for the rest of the day. However my belief is that if the strategy is saying there is a trade on and then pick yourself up dust yourself down and get on with it.
You need a certain amount of motivation to trade as long as it is used correctly, if the trades are not then the motivation can be misplaced an be more classed as overtrading. As you know that is one of the top ten mistakes that Forex traders can make.
So, back to my trading.
Well I was talking with a friend over Skype and he mentioned that the hour strategy that we use was looking good for Cable at 11:00. I did not get in at 11:00 for a few reasons, one being that it can be a quiet time. So when the signals were still there at 12:00. I decided to trade.
With hindsight and following the strategy I should have waited for the 13:00 candle to finish. That would have got my 40 pip loss back. Anyhow at least I am only down 10 pips today.
If I didn’t have a positive trading attitude then I would have withdrawn in to a shell and not traded for the rest of the day.
I would have traded again, however I needed to take my electric shaver back to a well known high street store as it was not working, not a month after purchase.
In the USA tomorrow an announcement you should be weary of is the Non-Farm, this happens on the first Friday of every month.
To your trading success.
The Investor Guru
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