So in the end my FTSE trades have been stopped out for a 227 profit and a 265 loss, resulting in a small loss. At one stage I was 100 Euro in profit, decided to leave it play out but moved my stop losses way to close. Stopped out and FTSE is now in freefall again which would have left me 150 Euro in profit.

The thing about this trade is that I didn’t trade well. I escaped unharmed but it was a bad trade. My conviction was to the downside and I should have trusted my own judgement rather than second guessing myself. This is the ultimate fear and greed battle that goes on inside the split personality of a trader. On the one side I wanted my losses to return profits (Greed) but didn’t want the losses to increase should the market continue to rally (Fear). So in the end no one won and my indecisiveness caused a bad trade. Again this isn’t because of the financial outcome but because of bad decisions. The positive is that I can learn from this.

On the plus side I have no trades open and missed my entry this morning at 5350 but I think a dead cat bounce is in order for the open of US stocks due to the heavy sell off yesterday (285 points on the DOW). If this is the case I will try and get back in around 5350. One last note about the previous trade, I should not have sold below 5338 the last resistance point. Physiologically this was a low that was going to be hard to make anything of.

Going forward I will be taking a grimmer outlook and need to start thinking of longer term sell trades for maximum profits. I’m looking for new lows on the FTSE and a breach of the 5000 level soon with a new low of 4500 before year end with year end rally to 5300.

Interesting Article: National Australia Bank Sends Shock Waves

No related posts.