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Analyzing a Loser
I jumped the gun on a trade today in that I went w/ a 3 minute chart instead of the 5 min I should be trading. Had I waited for the 5 min trigger it would have put me in a winner, and as it was I took a loser. Not only did I jump on the 3 minute but I was slow to exit also. I marked the chart w/ an "S" for my sell and a "C" for my cover. I also took the trade even though the 15 minute was telling me to wait. I suppose it was worth it to get nicked like that to remind me that the 3 minute chart is not in my trading plan. I'm always fascinated when I find a way to fudge the rules like that. I used to get angry but finally realized that it's a learning process. Kind of like getting mad at a grade school kid for subtracting instead of adding. I remember a couple of years ago I was at a Bill Williams tutorial and one of the students was asking Bill about a trade he was in, and Bill said "Yes, I've go a nice lead on that trade...unless I find a way to mess it up", and then he laughed, and it was so refreshing to hear a pro talk like that. The trade overall was a trend-trade, and it was my anticipation that cost me. Strange how just sharing this experience -- writing it down like this helps to cheer me up. It really is funny me messin' w/ a 3 min, instead of sticking w/ the 5 & 15 as I've been trained. It really clicked w/ me the other day on how to use a higher time frame chart to filter the trigger on a shorter-term time frame, i.e.: the 5 & 15. There's an art form in that, made all the more clear when not followed. Patience, patience, patience... Jay Norris 800-971-2154 [url]www.brewerfx.com/jnorris/[/url] DISCLAIMER: Forex (off-exchange foreign currency futures and options or FX) trading involves substantial risk of loss and is not suitable for every investor. The value of currencies may fluctuate and investors may lose all or more than their original investments. Risks also include, but are not limited to, the potential for changing political and/or economic conditions that may substantially affect the price and/or liquidity of a currency. The impact of seasonal and geopolitical events is already factored into market prices. Prices in the underlying cash or physical markets do not necessarily move in tandem with futures and options prices. The leveraged nature of FX trading means that any market movement will have an equally proportional effect on your deposited funds and such may work against you as well as for you. In no event should the content of this correspondence be construed as an express or implied promise or guarantee B.I.G. Forex, LLC and Brewer Investment Group, LLC or its subsidiaries and/or affiliates that you will profit or that losses can or will be limited in any manner whatsoever. Loss-limiting strategies such as stop loss orders may not be effective because market conditions or technology issues may make it impossible to execute such orders. Likewise, strategies using combinations of positions such as “spread” or “straddle” trades may be just as risky as simple long and short positions. Past results are no indication of future performance. Information contained in this correspondence is intended for informational purposes only and was obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.
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