I made some major mistakes the last week and a half with my trading after experiencing almost two months of perfect trading. With the Swiss Franc CHF, Eurodollar EUD problem, the market turned very volatile. The volatility was affecting all the currency pairs including GBP/USD.
Prior to this week, I had been trading the range like a master. Not getting greedy, not revenge trading or trading to get my money back. I was on a roll.
But then Thursday came and the huge swings with the Cable pair. Instead of waiting on the sidelines, I decided to jump in and trade.
This would not have been a problem if I would have stuck to my fixed profit objective. The pair was declining, but would retrace for a candle and that’s when I tried to fade. If I would have closed once my profit was hit, I would be up and not writing this post. But, based on the past, I tried to get a lot more pips and then lost what I had gained. Before the volatility, you could stay in a few 10 minute candles and would continue to get more pips. But the market changed but my approach didn’t.
After a few losses I started to trade to get my money back, and lost more. So I guess the lesson learned is you can’t always let your winners run, because the market is too volatile.
Below some positive trades I had on Friday and today.