Hope everyone had a good July 4th yesterday, I certainly did, especially when it’s not a holiday in Canada.
I had a good time to enjoy a nice day out with Erica, it’s always lovely to go out when it’s not holidays, and always stay in when the holidays come.
I started my first trade today with AUD data, and as expected, it was a trade i should not have taken.
Few reasons, it was not in my regular trading hours which i normally don’t trade Asia session, second, I just had a fantastic meal and felt so sleepy, and guess what? I looked at the wrong data...
So yeah, that was what happened to my first trade after nice holidays and a nice meal, my brain was not sharp enough and I looked at the wrong datas.
It’s so critical to understand that at the end of the day, a winning trader does not have any magic power or strategy, nor are they more intelligent, or have some sort of “holy grail” that people don’t know, the truth is that everything in the financial market nowadays are completely transparent, free and fast to absorb for everyone.
The real difference between the winning trader and losing trader is that winning trader always try the his/her best to reduce the human errors.
And that human errors often lie on the psychological aspect which is the risk management of the trade, and the attitude.
The error occurs when you’re not careful, when you’re too cocky, or when you’re not fully prepared, because even when you’re 100% certain and prepared, you’ll always need some margin of safety for your trade.
No one can predict the future, what we can do is merely minimized the impact of the uncertainty.
Anyway, that was what happened, I got out right away when I realized my error but still lost $135...
Then my second trade came hours later with the AUD cash rate, as expected, the rate was on hold.
I was expected a fall for GBP/AUD if the rate is on hold, due to the same bearish sentiment for GBP and relatively strong sentiment for all commodity currencies from last week.
However, i was not sure whether the sentiment would still be strong for commodity pairs, so my goal was to grab few pips only unless there is a huge initial spike down.
At the end, the pair only moved 25 pips in total, and it actually went against me for few pips at the beginning, i knew right away that it’s not acting as my plan, so I took my 10 pips and got out. The pair stalled after that until London session where it resumed the downside.
So i’m back with negative $40 for the day.
Then the rest of the session was really quiet, and I just finished my readings.
Finally another chance came when GBP/USD tested the new historical low again, like last time, I decided to scalp few pips here and there.
This time i did it better, but still not as good as I’d like.
I scalped few times with 1 or 2 pips only, no loss, and no re-entry on the same levels, could have gotten more but that also means i had to monitor the screen deliberately…which i was really tired and just wanted to wrap up the day.
Last trade came with the GDT price for NZD, very simple trade, negative for short and positive for long, again, only aim for 30 pips best.
The result was negative, i shorted, but no reaction, gave it 5 minutes then just got out at breakeven.
The thing about the market is that you always have to treat it like an organism because it is, in fact, composed by many human players inside. So no matter how good your plan is, how convicted you are, you can never be too stubborn.
You have to know when to fold and when to hold - and of course, it’s always easy said then done.
It takes time to practice,, and just like i said, at the end of the day, win or lose is really depended on your trading psychology - or psychology in life in general.
ok hope tomorrow will have a more excited session.