I was away in Bangkok for 3 days. Decided to take a break from forex trading after incurring some losses earlier. I spent most of my time hitting balls at 3 of Bangkok's fine golf courses. Coming back from Bangkok, I booked my flight to Bahrain to attend the Middle East Forex Traders Conference to be held on 23 - 24 April.
When I checked the charts, I was excited with the development when I was away. It looked extremely good for trade set ups. I planned to wake up early to catch the good trades. I set my alarm to go off at 5.30am but somehow overslept. When I finally woke up around 6am, the prices of EUR/USD and USD/JPY had already made substantial moves. Somehow, they moved around 5.40am.
I hurriedly entered into EUR/USD, USD/CHF and USD/JPY. I was still lucky. The prices moved in my favour. Before 6.30am, I was comfortably 60 pips ahead for all 3 trades. So, I decided to start my morning exercise. One hour later, all my trades hit the stop loss for a small loss in total.
I learned my lesson. Take profits when you are ahead.
By mid morning the USD/JPY pair was hitting the bottom of the Bollinger Band. I placed a long entry order which soon was executed. I was thinking and hoping mostly for the price to reverse. I was wiped out 70 pips. I went in and out for a total of 7 trades and managed to bring my losses to a minimum. In one trade I was way ahead that had I taken profit, I would have covered all the losses and even would register a comfortable profit. Again, Lesson 1 forgotten. I took another bitter lesson in Lesson no. 2: Never place an entry order. Wait for the market to show sign of entries.
I am still looking out for some trades before I go to bed.
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