Working on a weakness
Just putting a spotlight into an issue I used to have (and still naturally do which I try to suppress) and what I've done do improve.
I don't know about others, but I have a tendency to want to reverse trade because my brain says..."that's gone too far", especially when I see the price has done 1.5x or even 2x of the ATR.
I've realised I have this and have stopped trying to do this.
On some days like yesterday, GBPAUD - it has gone one way one - and my brain just couldn't wait to go Short.
I mean seriously look at that bastard...just tempts you every time.
Anyways I stood on the side lines, but I soooooooo wanted to short this...and boy am I glad I did not.
I used to do this before quite frequently and doing my arse most of the time.
I couldn't keep doing this and it was just utter stupidity, so I approached the situation like this:
Problem - wanting to reverse the crap out of (what I perceive) to be over extended moves)
Result of the trades - get my arse handed handed to me 80% of the time
How will I improve this - I will stop taking blind reversal trades when it's not off a level or structure.
Firstly this type of setup is not in my playbook anymore - this sounds more dramatic than it is. My playbook consists of 3 setups.
T1 - Trend Continuation
T2 - Trend Reversal
T3 - Range Reversal
My T2 - Trend reversal trades now have a specific structure I look for, nothing exciting, but it simply means I stay away from majority of the fakeouts.
PS - look at how the candle closed yesterday. it did actually end up doing slightly over 2x ATR. And I said to myself I bet when the market closes 10pm London time, it will close near its highs. I think I've got a better feel for these things, because I fought the market so many times.
Anywho, just thought I'd share that.
That's one of my weaknesses that I've tried to address.
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Markets can stay irrational than you can stay liquid.
I am sure it is a rational move based on fundamentals - but its a reminder to Not fight the markets.