While adding my lines to the charts yesterday evening I spotted a nice triangle on the 1H chart. I decided to trade it and leave the TL trader to do its thing while I slept. But I set at 1% risk. This is fine except that I had been trading at 0.1% so the trade was completely out of kilter with the rest of my tradaing activity.
This is what happened…
It opens the trade and it loses.. the spread overnight (ON) is 10pts. So trading a 1% and 30Euro/pt meant that the trade was 300Euro down before anything had happened. This is not tradeable.
Having lost being unhappy I took a revenge trade. It was a perfectly nice setup but again before the open so it also had a 10pt spread.
All I needed to do instead was…
Wait fot the open and set 1min TL trader to do its thing. The long trade was a very nice setup and is currently +25 above the level. At 100Euro a pt that would have netted me (25×10)+(25×20)=650 and I would have 50 contracts open with STE.
And to really put the icing on the cake….
Sell a fade of CBOL on the 3min
These losses today show me just how off kilter I am after a bad loss: none of my analysis was done, I had no feeling for the market, I missed trades and I couldn’t see the market and now have to sit out for a couple of hours.
In this situation I will fragment and lose all focus then I will stop caring and perhaps put on a random trade – vaguely hoping to get my money back. This is the FREEZE state.