Journal Entry (8/1/)- Manage My Emotions and Risk

Went long #Aussie as it came off session lows ahead of RBA’s rate decision. It took off. Set a stop loss slightly below break even n went to bed. However, the Aussie failed a resistance n backed off. I was overoptimistic on the Aussie reaching yesterday’s levels prior to news. Forgot that currencies movements are more graceful than the monumental movements of commodity oil and silver. I could’ve set a sell stop to take some profits off the table just below that resistance.

Crude Oil: Earlier today, after I had a nice ride on the Euro, someone tweeted about crude falling.  Went to the chart saw an obvious downside trend. Open a short and immediately got stopped out. I forgot to confirm with other signals, indicators (RSI), and check for key levels. It was only afterwards that I noticed that crude bounced off a R2 pivot point and the bottom channel line. But I checked for seller exhaustion and erased loss on a long position.

Emotions and Risks: Be most careful when you’re highly optimistic. Be discipline to know when not to trade. High probability trades. Choppy moves are designed to chop out both the bulls and bears. We are emotional when we’re winning or losing. Remember not to rush into anything, you won’t miss out, get in on the counter-moves.  It is better to miss out on profits than to take a loss.

Look for established trends starting from the daily chart down to the 15 mins. I feel greedy everyday looking for more even when the trend is not there!!!

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