Wednesday, October 28, 2009

Hardest lesson to learn

So far, I think the hardest lesson to learn is when I make a good trading call, however play the trade poorly, and even though I made the correct call/assumption the way the trade was handled means I am either out at a loss or breakeven.  Take my BGZ long for example.  I was stopped out of that trade when I was on my way to work yesterday morning.

My thought on the trade was to place a stop in there to "at least protect my winnings" to make sure if the market made a re-test, I would still be in the green.  Well the market did make a re-test, however stopped me out, than continued exactly the direction I had anticipated.  Now I am stuck with a market going down, when I want to find a good entry with good risk to reward, which I am not sure when that will happen.

I would gladly take a loss simply because I was wrong over this type of mistake, now I am stuck wondering "what if" and I also am tempted to jump on board the impending drop in prices.  I will stay on the sidelines the best I can - I think the market can still surprise some weak bears and cause some short covering to leg the market back up a few bars.  I just hope I didn't miss my mid term entry short.

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