Thursday, August 28, 2008

8-27 MINDSET VS REALITY


Ok, I have looked at several trades this week, and even saw more set ups than I posted here in the journal that all paid. Not one losing trade set up, yet I am scared to pull the trigger for the ones that do. I realize that I am letting the mindset of fear become part of my trading instead of viewing the reality of the market. I have been listening to Chris on PTC and know that he is correct in being very careful in approaching trades in this market. Still yet, there have been several high probability set ups that adhered to my approach and technical parameters that I did not take. I look back and wonder why it is sometimes we battle this type of fear. I know that losing is part of the game so I must realize that I will lose from time to time. I try to trade on the extremes of the range which has lent itselft to some good trades over the last two weeks. I know the market is making new lows but waiting on confirming patterns when the market is stretched out will win much more than lose. Another thing I must consider is the flows and sentiment. The GBP/USD had a very good rally to a key low that would have paid well and it was going with the general flows. A look on the 15 minute chart at the key low of 8400 where support becomes resistance. A small pattern around this level (BBB) where the lows are getting lower and the highs are as well, with one last attempt at that high was a perfect entry. When you let your mind play games, you lose site of what is taking place right in front of your eyes. Of course, some traders catch moves like these because they trade what they see instead of what they think. Hmmm, reality vs mindset. Seeing is believing.