Friday, June 4, 2010

A 15% Lesson: Congruence

Two days ago...suffered 4 consecutive losses in a single day. For the past few weeks, there has been a spike in price before it break out to the opposite direction. I have been careful to avoid being caught in the false signals but were fooled this time by the late spike in EUR/USD. It was about an hour later than usual. And GBP/USD were also moving in the different direction from the four major pairs I followed. The other two were in a ranging trend. First trade was a early bird trade which did not turn out to be correct and ended up with 50 pips loss. While GBP/USD were closed with 20 pips loss although the indicators were still intact. Made a wrong judgement call there.

After closed both early trades, longed EUR/USD and shorted USD/CHF to recoup the earlier losses. But has not noticed that the day's signal were later than usual. Exited both trades with full stop loss in less than 2 hours later. This lesson cost me 15% of my portfolio.

No comments:

Economic Calender

BBC News | Business | Economy | World Edition