I’ve been reflecting a lot on how and why I lost my mental balance the past 2 days and on my trading decisions. I will do a detailed post-mortem analysis later, but one conclusion was that, of course, I had thrown my rules out of the window. And one clear conclusion from the recent experience, in addition to many other lessons learnt, is that as long as I follow my rules religiously I will do well. So, I’ve decided to keep on trading but follow the rules and keep trading sizes strictly within my limits.
GBPUSD has thrown up a clear sell signal, with a stop at just above 1.5155. My trade size rules allow me to sell upto 12 lots, so I am going short with 10 lots.
Short $100/pip GBPUSD at 1.5110. SL at 1.5159.