Tuesday, February 24, 2009

analyzing mistake

looking back at today's costly mistake with FAZ:

why I made such a stupid mistake:
  1. technical wise, there was no reason for me to be in this trade other than trying to be in the action..while trying to play a possible bounce. I should have been more patient by getting an actual reversal signal before jumping in.
  2. I knew that a short squeeze on the general market was coming. Everyone was talking about it, so why was I going in front of a moving train and getting ran over??
  3. I was too focused on 1min chart, when 5 and 20 min were very bullish on SPY. Basically, i was going against the general market when entering this trade...feeling I was so smart by betting against the herd.
  4. subsequent trades on FAZ were based on revenge mentality - the thinking that "i will get this right!"....yea right you idiot!
so after going back and looking at the charts again...I am now clearer and level headed to know that I shouldn't have been in that trade in the first place..by going against the general market that's in a surging uptrend without confirmation of a breakdown. Lessons learnt.

No comments: