A Day of Mistakes

Posted by Deb | Day Trading Journey | Tuesday 7 September 2010 3:38 pm

After a long Labor weekend I finally got back to trade today. I opened the platform and graphs and so opportunity for trading: The market was trendy today, had gone down beyond the S3 line, so I was afraid to enter with a long position. But the current state really called for a long position, as it seemed the market was trying to get a correction to its deep dive.

Finally I lost my patience and entered the market with a short position when I thought I may have an opportunity for that. First mistake: Trading needs patience. The market had a bit of a struggle in the point in which I entered, but then it went up and my position started to lose. It approached a resistance line, so I put an order limit there, and went in with a second contract. Second mistake: I already have seen that adding contracts to a losing positions should be done only when there are very strong indicators that the market is going to change its direction soon.

The market continued to go up, making my position lose more. Finally I waited for it to go down a bit and quit with a loss of $112.5. After a few more minutes I entered with one more contract to a long position, but as the market was not clear in its direction I quit very quickly with one pips of profit, lowering my loss to $100 on 3 contracts.

At least I am proud of myself of quitting this position and not waiting more for my loss to become even bigger.

I am not sure if I will be have the time to trade tomorrow, as it is Erev Rosh HaShana, eve of the new Jewish year and I will be busy preparing for the long holiday (till next Sunday). So if I don’t, Shana Tova – Happy New Year to you all!

man blowing shofar

Man Blowing Shofar

P.S. As I was looking for the image of the Shofar above, the market had finally gone down and I could have made $50 of my first position. Oh Well…

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1 Comment »

  1. Comment by ptd — September 9, 2010 @ 8:57 pm

    Hmm, your site took quite a long time to load but it was worth it

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