I have taken a trade yesterday, making a short trade at the support level. This decision is made based on 2 factors, primarily the overall trend going down and also the price action showing theres "heavy resistance", indicating limited upside movement. I have drawn "possible reversal areas" on chart and my stop was on the next resistance level and my profit target is set at the next support level..... I have set my entry level at the candle top (limit order) and soon it was opened.
On entering the trade, the currency (EUR/USD) rallied against my position and soon, I was stopped out... It was a huge reversal, where a pin bar candle was formed at support... I broke my own rules again, taking an opposite side of trade (long), larger position and averaging down 1 time... Though the trade turned out to be in my favor (profit) but looking from another angle, I lose to myself again...
There is a slight difference from this time as compared to last few times... Though I broke the rules again, my intention was kind of different.... I feel like I am not so "desperate" in recouping but this might be attributed to 2 reasons.. 1) The amount was not significant enough for me to act against my mind or being desperate.. 2) I don't mind losing the amount I placed for my new trade in my attempt to "recoup".. Having said that, it might be also possible that I am "confident" in my trade thus I increase my position...
I think the former is more likely because it seems that this decision was made after seeing my account depleting and also at same time, taking consecutive losses.. The main thoughts which were fleeting in my mind after seeing my trade getting stopped out so soon are as follow :
- Upset about a loss again . Not monetary but rather more of ego problem (being wrong consecutively)
- Feeling a "NEED" to be correct.... also at same time want to recoup the recent loss incurred
- Impatient.... thinking that the next trade will be more likely to turn up as a win/profit when the outcome isn't any dependent on each other..
As above, all shares a common denominator.... Desire... (Expecting a certain outcome) .. They are dangerous because if the actual result isn't aligned with my expectations, it causes a void in my mind.
It is very powerful as it will trigger greed, fear and hope.. Everything.
This will be a vicious cycle, constantly inflicting pain/unhappiness... The only way to break it is to trade on my own analysis with an empty mind (not having any expectation).. going with the flow and take each and every trades as independent from each other.
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