Just to let every one know that it hit my Stop on 10485 tonight, Looks like the yanks want to push it up again, Lost £2.3K And yes very very upset. Thanks to everyone again for the help that has been handed out, It does mean alot to me to turn to people like yourselves when you do get yourself in a pickle. All the best CRICKET.
stevespray
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Cricket - If I maybe so bold as to comment.....
The biggest mistake you made was to average the position. From a psychological point of view when you made your first average (ie the second trade) you were admitting to yourself that the trade was not going as prehaps its was planned. Thats the point you should have cut it. Also to bear in mind is the type of trade you wee calling. You were trying to predict a change in trend. Human nature seems to make us want to catch tops and bottoms and therefore we seem to get squeezed into a strategy of trading counter-trend. In my opinion trading counter-trend followed up by averaging a position is going to cause you problems unless you are a very experienced player. I've done exactly the same thing myself in the past so I'm speaking from direct experience. The thing to do now is to sit down and review the whole set of trades. What you are trying to establish is why you first made the trade and then try and work out at exactly which point the trade went wrong.
Of course from a psychological point of view you need to reflect on what would have happened if the trade would have gone your way. Would you have averaged in to your winner ? Or would you have closed it and taken £75 / £100 / £200 / £400 ? In other words, would you have ever had the mental strength to allow your winner to reach the £2,500 that it went against you ?
I hope this helps - I'm not trying to rub salt in the wound, You've had an expensive lesson, we've all been there.
Good luck,
Steve.
The biggest mistake you made was to average the position. From a psychological point of view when you made your first average (ie the second trade) you were admitting to yourself that the trade was not going as prehaps its was planned. Thats the point you should have cut it. Also to bear in mind is the type of trade you wee calling. You were trying to predict a change in trend. Human nature seems to make us want to catch tops and bottoms and therefore we seem to get squeezed into a strategy of trading counter-trend. In my opinion trading counter-trend followed up by averaging a position is going to cause you problems unless you are a very experienced player. I've done exactly the same thing myself in the past so I'm speaking from direct experience. The thing to do now is to sit down and review the whole set of trades. What you are trying to establish is why you first made the trade and then try and work out at exactly which point the trade went wrong.
Of course from a psychological point of view you need to reflect on what would have happened if the trade would have gone your way. Would you have averaged in to your winner ? Or would you have closed it and taken £75 / £100 / £200 / £400 ? In other words, would you have ever had the mental strength to allow your winner to reach the £2,500 that it went against you ?
I hope this helps - I'm not trying to rub salt in the wound, You've had an expensive lesson, we've all been there.
Good luck,
Steve.
Thanks steve, You are right of course, Would i have waited to get £2.5k if it was a winner, Well the answer to that is NO!, I look to pick up £100, £200 at a time and get out, But this one went wrong, I Had the same problem back in October, I was betting up that time, So the tread was with me so moved stops away and it came back, Tried the same thing again, But did not work, I guess I now know why. Thank again
Cricket, and others, if you follow my Dow posts, there is invaluable information as to how to maximise gains from a winning position, instead of cashing out at the firt sign of weakness. Takes bottle, mental strength and great belief in your analysis, but it can be done as proven by other traders on this BB. There are also other traders that do cash in at the first sign of weakness, or at least 50% of their stake. It works for them. There is no one answer that suits all.
