21/12 -Incompetent trading example

Today’s trading session (thus far at least) was quite a contrast to Thursday’s session in terms of preparation and execution:

  • I completed my 15 minute visualization but also had my mind on an important personal conversation I had yesterday – so my focus wasn’t 100% on the financial markets
  • Following that, I did a small amount of prep work – but nowhere near as much as I did on Thursday – I would not have considered myself to be “in the zone”
  • Market conditions: What didn’t help is that I was trading into quiet market conditions (a mix of being Monday, festive season and distinct absence of Tier-1 or Tier-2 data, nor any fundamentals driving the market) – this significantly increased the odds of muted price movements
  • My first trade was a short on Cable, a reasonable setup.  However within the space of 60 minutes I added four further positions, all except one of them betting on the same principle (dollar strength) as I shorted EURUSD, AUDUSD and longed USDCHF.
  • All of these trades, plus a long on the DAX, turned into losing and partially losing trades.
  • Normally in this type of situation I would kick an empty storage box – however since we got rid off it last week – I had to resort to slamming my fist on the desk.
  • Looking back over things it seems silly that I traded like that.
  • This in turn gets me (us) into the realm of trading psychology – why did I trade knowing that I had not done adequate preparations? Why did I add more and more trades when price was not moving?  Why did I deliberately act in a way that I believe in the long run will not help me achieve consistently profitable results?
  • Was this an example of self-sabotage?
  • If so, was the self-sabotage caused my a lack of confidence in my trading abilities?  Thus allowing my real trading results to line up with a deep-rooted belief that I cannot trade profitably – and turn into a self-fulfilling prophecy.  [Do remember that I am actively working to increase my self-confidence in the trading area.]
  • What were the emotions at the forefront of my brain when I added all these trades? Greed, needing to get even, anxiousness?


And here are some trading statistics covering the period from 7th to 21st December, in which I completed 68 trades.

Trading Statistics Dec21




This entry was posted in Psychology, Risk & Money Management. Bookmark the permalink.

One Response to 21/12 -Incompetent trading example

  1. Pingback: 29/1 -Risk/Money Management Introduction | George's FX trading blog

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