Last Friday, I took a false trade. With my busy schedule, I made several mistakes and ended up with several losses. Here is where I went wrong and the lesson learned :
It was last Friday I was at a busy schedule and due to several back-to-back meetings I missed the London season, knowing that NFP results would come out in the pre-opening I deliberately gave up to take a trade. However, changing my mind I put a sell-limit order at 21467.18. At the NFP result, it triggered and due to fresh hype, I made it break even since the behavior was suspicious. Then the rest of the roller coaster drive was as below.
- I was stopped out at 21468.06 – I was safe as per my conscious decision.
- Then my unconscious mind came into play. I took another market sell order at 21466.63 and kept the stop loss at 21482. – This was an entirely foolish entry even ignoring 0.2% (4225) tall bullish candle.
- Then the market started to rally. I was an ordinary dude and dragged my stop loss to 21523.96. What a terrible decision—I risked 11.2% of my capital.
- Then I was stopped out again and this time with a big fine. USD 56
- Knowing the market was continuing further, I was fooled by my mind to take three pyramid orders on each small downfall. Actually these bearish candles are very negligible and my mind and my mobile screen fooled me. (Do not trade with your mobile even if you miss an opportunity due to your busy schedule.)
Conclusion :
Your mind is your greatest enemy. Do not let it interfere with your conscious trading plan. don’t change your plan due to frequent noise impulses.