Day 31. +16.4. Battle for Middle Earth

Wow, what a day. Big losses and big wins.

The two losses were around 8 pips and 10 pips. I held on because I felt it would go where I expected. And while the 1st one did, that's irrelevant. A better play would have been to keep the max stop at 6pips which means I would only take the trades where it made sense to have a 6 pip stop. That would have kept me out of the first loss and would have had me lose only 6 pips on the second instead of 10. But I did notice that after the second loss and each of the following trades I held to that plan so that's good.

Even though I took two big losers I'm happy that I exited where I said I would exit. Meaning I kept to my stop and didn't move it around as I used to. I was wondering how I would react in those situations and now I know.

Also, I think I may have got a bit greedy during the big move down. I knew it was far away from the mean and likely to have a harder time moving down uninterrupted but I still played it like it would move down hard no problem. You never know for sure what price will do but perhaps in those specific instances I should always use a very small stop, as I do traditionally. No giving it time to move. After all, it's more likely to reverse at that point so I should trade accordingly. Position myself to make profit but also be able to get out quick in case it doesn't and lose the minimum. The reason I give room to the ones I think will pop is because it feels as those it's more likely to move hard and less likely to reverse. So in this instance it's the opposite, thus I should play it the opposite. Yes, I think that's the answer.

I'm surprised at my calmness lately when I take a loss. Especially today when I took those big losses. I felt pretty confident that I'd make it back and come out ahead, which I did by a large margin. Because of this I wonder if I should continue to trade on the days where I make a quick couple wins. I mean, if I'm so confident I can make up those losses then why not do that when I'm already ahead and have much bigger winning days? On the other hand, it does keep me in high spirit knowing that I have a quick day and can enjoy the rest of the morning. Maybe find a medium in there so I get a little more out of the day but still get to enjoy things. Ponder, ponder, ponder.