Friday, October 12, 2012

Exited Trade At Breakeven

Date of exit : 12 Oct 2012
Title : Exited Trade At Breakeven
I exited my trade at breakeven point of 2405. It is heart breaking to see my profit down to the drain. Actually, I should not have exited. But I was nervous.
My Mistake:
1. I did not take my 100 points target. I was affected by my previous trade of closiing too early. I SHOULD STICK TO MY 100 TARGET POINTS NO MATTER WHAT.
2. There was no sell signal as long as my trading method is concerned. I was nervous and I acted (exited) emotionally. I SHOULD ALWAYS STICK TO MY TRADING SYSTEM; STOP LOSS PLACING IN THIS CASE.
3. When I realized I was wrong, I SHOULD HAVE REENTERED THE MARKET
One thing, Once I was wrong of not doing the above. At least I did not go in at all. This is one thing I achieve. Trading is not as easy as it looks. Mastering of all these; missing trades, slip page, emotion etc are the path to become a good trader. Wow! What a day!
Date of entry : 5 Oct 2012
Title : Long CPO Dec 2012
I initiate long position for CPO Dec 2012 for 1 contract at 2403. There is high chance for the rebound.
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4 comments:

  1. Kendra BingOctober 12, 2012 at 5:14 PM

    What is the psychology behind of not reaping the earlier profit?

    ReplyDelete
  2. AbelOctober 12, 2012 at 7:08 PM

    Hi Kendra Bing,

    My comment above explain it all. It is my mistake of not taking the profit.
    Thank you for your comment.


    Regards,

    Abel

    ReplyDelete
  3. DigitalOctober 13, 2012 at 5:52 PM

    You should consider trailing stop loss to protect your profit...have a target said 10points, when the market hit the 1st 10points profit, move your stop loss to breakeven. Another 10points gain, you move your stop loss another 10points too...in this way when market turns, you still got some profit rather then zero. Remember that the moving average you use is lagging...very lagging in fact. That's why you dont see the signal until it is too late.
    Another method to protect your profit is to take profit, no matter what, if the price break the previous 3 to 5 bar low. Hope this helps.

    ReplyDelete
  4. AbelOctober 13, 2012 at 7:06 PM

    Hi Digital,

    Thank you so much for your suggestion. I will do some testing on profit trailing stop and see if I can come out with a suitable level of placement.


    Thanks & Regards,

    Abel

    ReplyDelete

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