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Reminds me of my worst trading nightmare. I once traded FOMC news, it was a bullish report and i immediately went long Market order of 2 YM contracts with a 15 pt stop, I got a horrible fill and on a quick retrace got stopped out. Once it reversed i went long market again, got a horrible fill and got stopped out again. Seeing weakness and a desire to get "revenge" i went short the market and you know the rest.... 3 trades in 5 minutes, 45 pt loss on 2 YM contacts or 450 dollars in 5 minutes. disgusted with myself, i stopped trading, walked away and of course came back right before the close to see the market base and run up 100 points into the close with barely any heat. I have not traded news since. I do trade market reaction to the news after the volatility settles down and i see a clear trend if it occurs, that works well. So, expensive lesson learned. By the way, i "punished" myself for breaking my trading plan and doing everything i knew not to do. I went back to the SIM, practiced my setups and didnt trade for about 9 trading days until i thought i was ready again. Started trading 1 contract until i knew my head was screwed on right. lesson learned... |
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That sounds horrible. Hopefully that will not happen to me. Oh...nevermind. It did. LOL. It was NMX a few weeks ago when there was a report that they were being bought...turned out to be a rumor and I got stuck with the stock and held on to it thinking that it would rebound, and lost alot of money. Classic newbie mistake. You read about these things in books, but they don't make as much sense until you actually make the mistake. Later when I reread some of the advice I read before in other books it made perfect sense.