The 9% Lesson

Last week on the Tuesday, I entered long GBP/USD and GBP/JPY just before the UK session. Then during the UK session, at the Treasury Select Committee hearing, the BOE Governor Mervyn King said the MPC is considering lowering the remuneration on banks' reserve. This means the central bank will even lesser interest on the bank reserve, thus increasing the money supply. I had closed the GBP/USD with small losses but left the other position open. And the news was detrimental to my position and I adjusted my SL to 5% from initial of 3%. The price swiftly moved towards my re-adjusted SL and I was contemplating my position of whether to let it hit SL or make another adjustment. I was making progress on my portfolio for the past two weeks and do not want to end up with loss, so i make another adjustment to my SL to 15% hoping it would rebound later in the US session. It proved to be a stupid mistake as the price never recover but keep plunging. I closed it with a 9% loss thus erasing all gains i made since the start of the month.

Learn to accept small losses and celebrate winning.