Wednesday, January 19, 2011

Lessons Learned

-31 pips on the day.

It took me a long time to establish criteria that keeps me out of the market...it's worthless if I don't utilize that criteria.

Only trade on a cross of the 60/50/40...and thats it.  Both 5M and 10M must mesh together, and the stop loss will be the most recent swing high on the 5M chart (usually a semafor) My Take profit will be @ 50 pips, but I will move my SL to BE as soon as the 10M chart has breached a significant level on the Strength Indicator.

I need to analyze quickly, yet throughly and follow the above guidelines for every trade.
Since you are just now getting back into a routine of trading it's normal to experience that apprehension and fear of being stopped out, but if you use the correct stoploss and SL-BE tactics you will win more trades than you lose.  Today, that fear stopped me from experiencing a 60+ pip win after going -31 in the hole.  It's my inability to be consistent that hurts me, and if I traded without emotion I would be better off, hell if I traded with less emotion and stuck to a strict mechanical approach to setting/moving my SL I'd be better off.


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