Tuesday, June 24, 2008

23.06.2008 - trading against the trend

Today I had the strong conviction to trade conservatively and protect my capital after the last Friday 2.5 mio trade in Sterling/Yen.
No matter I started testing the market with only 100k positions the 3 consequtive attempts to long the bottom in EURUSD & GBPUSD with tight 30 pips stops proved to be expensive.
Also it was my impatience to wait for confirmation that those trades were advancing properly and I added leverage too soon which weighted additionally to the testing cost.
However I traded strictly with stops and adjusted them for the position size and location.
Given the average trading ranges I got very confident that I must see some reaction from the lows -- that is why I entered in my last attempt a considerably sizeable position from the outset:
400k in EURUSD & even riskier
500k in GBPUSD
I had a sore realization that while I am incessantly looking for trends and constantly convince myself that I am on my steady way to spot and manage trend following trading style I seem to be going for contra/reactionary style.
I found myself today trying to pick the bottom instead of getting on the trend and just riding it...
Well, after I see these weak spots in recent times much more clearer I feel I am at least a step closer.

No comments:

Post a Comment