Loss making week
The feeling of ending the week with small loss is not so good indeed. Though it does not make me nervous, it is enough to make me hold my breath and review stop loss strategy. Is it too far away or just too near?
After loss in corn trade 2 days ago, today I made another loss in HangSeng trading. Sell order was triggered after market dropped to a low just crossed my order. It was a signal generated by my system. But, too bad, it appears to be the low of the day. Stop loss order was placed.
10 minutes before market closed, i have decided to cover the short with small loss instead of taking the risk of gap up next week or gap down with potential profit. After all, i prefer to sleep well and accompany my girlfriend with peace of mind. I have yet to have a totally relaxed mind when having a open position across weekend.
It make sense to me to close the position earlier than stop loss point. (am i just consoling myself? i hope not) Why? From weekly chart, HangSeng is in strong uptrend. Advantage is with Long site. I expected a pull back and in conjuction of my system signal. I put a Short order. Yep, order got filled, but appeared to be a day low. HangSeng refused to dip further.
It hits me with a lesson. Only trade in the direction of major direction. Maybe I should just ignore Sell signal during strong uptrend. I might miss the chance of market turning point, but , guess what, most of the time, I would be able to avoid a situation like this.
Swin
