Ok, I'm not perfect. I've never claimed to be (except perhaps when drunk), and recent events have proved the fact of my imperfection. Now I've been trading for years, and after the usual newbie issues one has when learning to trade (like overtrading, trading too big, not monitoring trades enough, etc.) things have gone pretty smoothly. I've been consistently profitable for the last 12 years. Ever increasingly so, in fact. But sometimes, I still fall into the rookie mistake trap. Last week it happened in the Forex market. While doing my usual chart reviews early in the morning one day last week, I saw the AUD/USD pair looking like it was, right at that very moment, where I wanted it to be in order to get into a trade. Instead of thinking it over and looking at different time frames, I made a market order and went long 10 lots. Fortunately, I had not completely lost my mind and set a stop. I went to the bathroom, took a shower, came back, and had been stopped out at a 50 pip loss.
What is the lesson here? Its plan your trade and trade your plan. Other trades I made last week, where I did my homework and didn't just look at the chart and think "my that's pretty", went as expected (mostly). But this one burned my fingers. Lesson learned? Perhaps. Historically, I do this occasionally. I'd like to say otherwise, but its the truth. Thank God for stops. Learn from my experience: Don't rush into a trade without examining it from all angles. That is your edge and what sets you apart from the mass of losing traders out there.
Good Trading!
