Day 50. +10.7. Fear and greed.

Today I did exactly what I said didn't want to do (yesterdays post). I felt price was going down and knew it would bounce back after it broke. As expected it did exactly that. Fortunately, this time it didn't reach my predetermined exit point and I was able to ride it out and down for profit. But I said yesterday that I wanted to exit when it stalls rather than take major heat and possible huge loss. But I stayed in and I've identified why. It's because of fear and greed.

When price broke down and bounced I went from +7 pips to "only" +4 pips. I didn't like losing those paper 3pips and possibly more (fear) and wanted to hold to make them back and more (greed). I also knew that once it went further it would continue. So it broke down again so I was then +9 and it bounced again so I was only +7pips. And I held more until it retraced hard. Though price was saying it wanted to go down, which is a valid reason to hold, fear and greed spurring me on is not a valid reason. For that alone I should have exited. Looking back I can see where these two emotions have affected me in the past and it's always been something that tickled the back of my mind. Though I wanted to trade more today I'm ending my session because I really need to get a handle on this before it causes major damage.