Psychology of The Losing Trader, 24 Apr 09

Just in case you been wondering what I have done for the past 2 weeks, well, I have been losing consistently the past 2 weeks. And its been consistent losses in 3hr trades and Intraday trades. So very frustrating. Let's take a look at the misses!


21 Apr 09. Theme seemingly CAD strength. USDCAD spiked in due to news announcement and total loss for this trade. Same thing happened for my CADJPY trade below.

22 Apr 09. GBP weakness was in the air, commentaries were talking about it. Went in to short GBPUSD with good technical entry. However market condition was pretty volatile. I was profitable at one time 50pips before market reversed 100 pips against me within 3-30min candles. At that point I was half-loss. I "panicked" and close the trade. During New York session, theme was fulfilled and moved down to my TP1.

I missed 2 nice USDCHF technical setups the past 2 weeks. One was a channel breakout. The second was the range breakout. For the second trade, I was in the trade but guess what, I lost partial position again because of a false break on the 22 Apr 09 and decided not to setup again. Poor poor attitude led to not catching the move.


And finally this morning when I was sleeping. The USDJPY decided to move and dejected me totally did not see the descending wedge until the move was completed ... Terrible!

What's More IMPORTANT!
But you know what? All this is not as important as acknowledging that I have dropped into a shit-hole and how I am going to dig myself out of it. This is probably what Seth Godin calls The Dip (hopefully I am at the bottom now). Actually I am pretty happy that I have been losing; else I won't understand how it is like to lose and then work it back profitable again.
Chinese got this saying, the deeper shit you r in, if you can get out of the shit-hole you will be stronger and in this case a more profitable trader!
So I am just going to keep on searching, keep on trading until all this turns around.