THE GREED EFFECT (FX)
Starting from last Friday when I did my USD35 deposit , and a nice time I gave myself to perform a USDCAD analysis (you can find the article from the previous posts).Before I took the entries I made a calculated guess, which was accompanied with a certain amount of pips I was affording to lose by pointing out my stop loss (sl) and take profit (tp). This I did it inordr to sustain my equity that is because this I take it as a Game of PROBABILITY .Since I have said to myself that having a calculated risk is the great way to take trades.
FEAR OF MISSING OUT
Later to realize that my entry was not just based on the fact of analysis but the fear of missing out incase it was a big turning point , then this happened I later took my trendlines to the daily timeframe where I saw that the was another turning point which was being respected by the market where there may be a area where USDCAD might retest going up.
The problem is I did not wait for enough confirmation or confluence inorder to take the trade . So I went to forget my main reason and rules I set for myself , where by 5pm I entered mutlple trades , this is something I am trying to improve and get rid of it.
So I entered multiple trades both with the same stop hoping the market would go my direction of prediction in an instance of which it is not correct because the market is always right.
PROPER RISK MANAGEMENT
If I had stick to my one trade I have told myself I would not have lost much , I would have lost $2.89 (sl) so due to the multiple orders x5 , I had taken I had lost more then I was anticipating to lose. All this being caused by greed and bad risk management , early entry ,fear of missing out.
Then came Monday , I entered another trade XAUUSD because of revenge (alongside emotions) , I ented inorder to recover my losses but the worst part is that I did no analysis on this order , and by that I placed no stoploss because I had no reason to due to unplanned trade , this is something which you guys should not do , to enter a trade with no analysis backing that trade,
Ladies and gentlemen who have made it this far PLEASE LEARN FROM MY MISTAKED NOT TO FOLLOW THEM, AND NEVER BE TEMPTED TO DO THE SAME. So I wish you the best trading journey.
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