Trade Mindfully: Achieve Your Optimum Trading Performance With Mindfulness and Cutting Edge Psychology by Gary Dayton

Author:Gary Dayton [Dayton, Gary]
Language: eng
Format: epub
Tags: E-Commerce, Online Trading, Business & Economics, General
ISBN: 9781118991039
Google: 5LwkBQAAQBAJ
Publisher: John Wiley & Sons
Published: 2014-10-31T20:44:08+00:00

Figure 7.1 shows a combination of the 60-minute and 5-minute Japanese yen market as Steph had viewed it. She had seen that the 60-minute uptrend was mature and showing signs of weakness as it came into resistance. On the 5-minute chart (right-hand side), yesterday's high is marked, along with the location Steph entered her short sale trade as the market tested that key level.

FIGURE 7.1 Steph's Trade Entry

Source: TradeStation Technologies, Inc.

Steph continues,

So everything was looking good. I actually felt pretty calm, knowing that I was trading my plan. I felt really good. The market started to fall, just as I anticipated. But then it started. I think I noticed tension first. My body became tight, muscles tense. My leg started twitching like a sewing machine, you know, moving up and down on its own. I felt very uncomfortable. I was scared, really. I didn't want to have another loss. My trade was in profit, and I started thinking, “What if this goes against me? I mean, how many times have I been wrong and lost money? Here I'm in profit, why not book it and take it to the bank?” This is what I was telling myself. I can still hear the words my mind was telling me, “Steph, you are going to have a loss if you aren't careful. Do the right thing, take your profits. Don't be a fool and let them slip away.” That's what I was thinking.

Then it got worse, really bad. The yen started to rally a bit. All I could see was price going against me. My stomach felt queasy. I really felt the fear. It was pretty strong. My mind was screaming at me by this point. “Take the trade off! Take the profits you've got! Hurry up, before it's too late!” So I closed the trade.

The yen moved up a few pips higher and I started to feel good. In fact, I was relieved to have saved my profits. My mind was telling me, “Nice job!” All the tension was draining away. My legs stopped twitching, my stomach felt better, and the fear was gone. I felt good. But then it happened. The market started falling, and it fell with a vengeance. My trade was unfolding as I had planned, but I was no longer in it. The market fell, and fell, and fell. It closed on the low for the day and continued falling the next day. I was depressed; I mean now I felt really bad. I became very self-critical. My mind now told me that “I'll never be a good trader,” that I was “stupid for taking the trade off; this is what I had planned for. Why did I do that?” it said. “Can't I ever learn to trade my plan? I'm a failure when it comes to trading, I ought to just give it up and go back to my old job.” That's what my mind was telling me.

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