Last night, I was feeling pretty good about my strategy. One of my programmers came back with one of my indicators so I just haaaad to try it out. I was breaking my rules before I took the trade. The following are the rules I broke:
1. Check ALL news announcements before any trade
That’s it. Whew! I think I will check them next time. When a news announcement comes out, many times you don’t even have time to react. I got stopped out on my first order for 43.8 pips. My stop was at 35 pips so this means I took a hit of almost 9 pips of slippage! Dang!
Ok I didn’t stop there. After I took that hit, I always remembered the old saying about the news, ” Fade the first move.” So when price spiked down and then started to rise again, I thought, “Ok That sucker is going up now!” and I hopped on board.
Well it wasn’t even 10 frikken minutes before I just closed the second trade in a pissed off manner. So here is a second rule I broke.
2. When you get stopped out of a trade, don’t trade that currency pair again for a few hours.
I am going to call it a revenge trade.
So what did I learn about this whole debacle? Well now that my trades are live, for all the world to see, I am more apt to explaining my losses and why they happened rather than covering them up. My equity curve will begin to rise again so I am not worried. I just need to continue to strive to follow the rules every day.
below is a picture of what happened.