8.15 bst, July 18
Most trades I did yesterday were not in accordance with my system. I don’t know what happened, just had a brain freeze episode of some kind. I don’t know why early in the day, before London opened, I closed all my trades even though the system did not require me to do so. That was the first mistake. A little after I had closed my trades the market began moving, obviously in the direction that the system was placed earlier 😉 ! I then got tempted into chasing the market especially in GU, and entered long again. Second mistake. Similarly in UJ and EJ I suffered needless losses due to getting out and reversing even when the system did not say so. However, I must admit that the AU trades were as per the system. The big reversal candle in AUDUSD yesterday would have whipsawed anybody trading according to some set of rules.
Thinking back on my mind-set when these actions happened, I think it was due to the nervousness ahead of Bernanke’s testimony. The market had been extremely moribund on Monday and Tuesday ahead of this, and that made me impatient. I was also too aware of how eagerly the market was anticipating Bernanke’s testimony, hence my nervousness. I was a bad boy – I had been reading some FX blogs that discussed what to expect from Bernanke. That must have played on my mind. As of today, I am back in sync with the system: short EU, AU; long GU (I am surprised by this); long UJ and long EJ (in the past hour).
If some of you are following my trades I am sorry about this bout of temporary insanity. I will try to prevent this kind of thing happening again. 😉