Dislikedjust curious what triggered you to close the longs. i think its still going up.Ignored
So I guess it's just being able to take advantage of the coming "short" trade, even though I expect it to be a small retracement, it is still a retracement, and I have the belief that if you know something in advance, like that something is going to happen, etc., or "your current position is going to retrace from here, for the next 'x' hours"... then why should you subject yourself to that short-term pain?
That is my thought process. Of course, should the position move against me, I will not hesitate to terminate it immediately and shift the money into a vehicle or FX pair that is better suited for short-term (ie: immediate) profits. In fact, as I am writing this, it seems AUDNZD is looking bullish again, and the "correction" I am speaking of may have actually been nothing more than a very small range... Hey, that's trading (daytrading) for ya, right?!
It's not always about being right, though. In my opinion, what is more important is learning how to realize WHEN it is appropriate to spend 100% of your leverage, and that should only happen when you are 100% confident about a position (or 99% is ok too).
Most of the mistakes in my trading are not from being "wrong" versus "right". It's more about "how I managed my money and the trade when I was right, and also when I was wrong" that really determines your success as a trader. Basically, money management is KEY, and it took me years to learn this. But perhaps, what is possibly and in my opinion, even more important still, is selecting the right vehicle or FX pair to trade in the first place. I am an aggressive trader by nature but I only take so much risk because I have a very high degree of confidence in my trades to begin with.
I can also tell you that if you look at my recent TE, the big "dip" in my profits/% gain came from ONE position that I was completely correct about, but mismanaged. I went to bed a few nights ago without checking my position before I went to bed (a golden sin!), and guess what? I woke up to a big loss... So, that explains that.
AUD/NZD is eventually going to hit 1.1290 as we've both said, and probably sooner than later! However, that does NOT mean price will be a straight line (or 45 degree diagonal line) up. There WILL be corrections along the way, and my goal is simply to be a little bit greedy, not feel bad about it, and make a few pips to the short side, before I go long again...
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