I took a nap ahead of US Non-Farm Payroll release w/o setting an alarm. Despite weak stops shaking me out of CAD/JPY and NZD/USD shorts, I woke up late to see my trading acct. slightly jumped. This led me to believe that ALL my positions are working. A trusted trader tweeted about adding to his CHF longs. The sum of which and greed led me to added to a few positions myself, including re-loading CAD/JPY and NZD/USD shorts WITHOUT LOOKING @ THE CHART (FEAR OF MISSING OUT). Rule: It’s okay to pyramid positions but do not add more than your initial lots.
#CHF reached an intra-day top during the frenzy news release of U.S. NFP and sold off since on profit-taking. The hourly chart then showed a Spring Reversal with an 81-pips tail, making up 65% of the entire candle. There was at least 2 candles with complete bodies closing outside the BB prior. RSI flashes oversold condition for 4+ hours.
There were a few times throughout the day in which I didn’t care if I had gave up 50% of my overnight gains. But this isn’t the way to trade. Rule: must keep an elite frame of mind in which one will do everything possible to not give up gains.
Bottom line: An elite trader does everything possible to not give up gains. Trade what I see, not what I think. A lot could’ve happened within an hour of not being at the computer that will show up on the charts first. Even if my PnL increased, it doesn’t mean that ALL my positions are profitable. Must still go by the charts before adding positions. Pyramid positions, NOT add more than your initial lots. Fight the greed!