An expensive mistake!

I made a drastic mistake yesterday night in my live account. I had one position opened for carry trade. Seeing the downtrend, I wanted to short the market. But when I placed my Short trade, I forgot to hedge it. Due to the nature of this trading platform, my carry trade was closed. As a result, I lost not only all my previous profit, but also dipped into my principle amount. All due to a pure human error! On top of that I had 2 consecutive losing trades from entering the wrong time using Strategy 1.

Under my kind of emotions yesterday, there was no way I can make a right judgement. So I made a correct decision to off the PC and went to sleep. It was a good decision. I woke up this morning and realised that if I had entered the market again, there is a huge possiblity that I could lose another one.

I am back to my normal self today. After checking with my trainer, I realised that I had missed a few good trades for Strategy 2 by focusing too much on catching Strategy 1. It was an expensive but good lesson learnt.

What my trainer said was right. When it's going to stop (referring to the downtrend yesterday night), nobody knows for sure. Just trade as the system and see. Losses are inevitable in Forex. They serve as good lessons for us to reflect upon our mistakes and make us grow, hopefully, into a better trader. The important thing is not to lose your direction after losses and to move on from there.