On Monday last (January 29) the market took a correction down. This happens of course from time to time. If you stay on top of world events you might prepare for it. But the sad truth is, after all these years of hobby trading it has happened before, and it will happen again.
So over the next two days I could not do anything right. I have had probably 4-5 losing trades in a row, and a couple of wins. All in all a disappointing 3 days. I used all my research tricks, made trades I was confident about and most stopped out.
Of course, I read in the news that “the market is unstable” right now. No kidding! What to do?
Well, thanks to tight stops I am not down much. But after a pretty good run for months I guess my ego is hurt. However, this is normal. Because of the relative small trading lots and tight stops I live to trade again.
Here’s the take-away from this: I admit to trying to “make up” the losses by over-trading. That, my friends is a huge challenge to overcome. On Monday night I should have taken a couple of days off and let the market stabilize.
Here it is Thursday morning. New day, new opportunities. After my analysis described in my last post I am now determined to trade CFD stock first, then commodities. No more FX, which is hard to do because it is so fast and exiting. Maybe I will set aside some “play money” on an account just to get it out of my system.