Had an interesting thing happen the other day that taught me a lot about trading psychology. The event requires a little build up.
I chart from an overseas broker and trade with a US broker. This is so there is access to NY close charts. So there is a semi constant juggling act to keep things in order. S/R on NY close charts corresponding with the S/R lines on the other. Then if I have a trade running on the US charts, it is marked out on the other charts. It works for me now….So I thought.
Now comes the “Incident”
I don’t know if this happened do to a windows update, loss of power, or just a stupid glitch. But I lost all of my NY close charts. 16 currency pairs for the daily trading and 10 or so for the 5m. All the S/R, Strat Shadow, entries and exits laid out, all gone. Even tried to recover it with chatting with the brokerage gurus. No luck.
So sitting down to the arduous task of setting up charts. The first step was to get all the currency pairs loaded with the Strat shadow on the daily charts. So one by one, open a chart, put on the Strat Shadow template, convert to daily, then on to the next. I probably had coffee in hand, because was also leaned back in my chair and was just clicking buttons. Figured I’d put the S/R on once all the charts were set up.
Then I came across a pair that needed to be shorted. I couldn’t read which pair so grabbing the reading glasses saw it was the AUDUSD. BUT I WAS LONG already. My first temptation was to leave the trade. Then thought “no that’s stupid”. Capital preservation is #1 rule. The next thing that flew through my mind is what Strat has on every chart he posts. IF TRADE IS WRONG – GET OUT. I took the profit.
Now the psychology. Would I have seen the short if the trade was laid out on the chart? I doubt it. Probably would have held it to run its course.
It was a very vivid incident to me. Our bias no matter how subtle or insignificant can never enter into our observation of the chart. Somehow every evening when sitting down to the days closing bar, I need to see the chart as if it is the first time seeing it. With a position in play, this time a long, the tendency is to see only longs. Or see things to only support your thinking that the long is the right move.
One of my favorite quotes by Anais Nin
“We don’t see things as they are, we see them as we are.”
Fresh eyes on the chart.
For what it’s worth for you guys. The incident taught me a lot about my brain cell.
On a side note. I know nothing about Soccer, but I felt the intensity through social media of England advancing to the quarter finals today. I was constantly checking in, I could tell that there was a lot of stress eating and alcohol consumption. Congrats to England. I was pulling for you. Maybe soccer will find its way to my TV when England plays again.
Take care all
Illegitimi non carborundum – Noli pati a scelestis opprimi.