Tuesday, 8 July 2014

Painful Lesson: -865.5 pips

Hi All ..

It was a pretty painful 2 week for me. I let a very good profitable trade go against me very badly. I had 3 chance to exit it profitable, instead I allow it go go against me 3 times, the last was really badly. The position crashed because AUD crashed and caused GBPAUD to rocket twice.. Damn!

Anyway I was down (floating) close to $5000 / -865.5 pips due to AUD retail sales news..

Here is the lesson, always protect your position. I learn that if only I had created a SL protecting my position and creating a free trade. I might have end up losing a good trade entry but not being in an unnecessary drawdown is always a key to ensuring that there is a tomorrow for the account balance. Also the draw down did hold me back from being able to take up 6 different profitable trade that I would normally take if I had the sufficient capital.

In short, protect all profitable trade by adding a SL above the price for a small profit in case it turn around and bite you.



Oh in case anyone is wondering what happened? I was luckily able to turn a $5000 lost into a $800 cut off. Small price to pay for an excellent lesson.

*Cheers..

-DC

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