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Thursday, May 26, 2005

Pulling the trigger

Many traders fear to enter a market. They have made a good plan, backtested it but hesitate to pull the trigger. Even though they realize that the probabilities based on past performance are that they will win. They are like parachutists just before jumping out of a plane. Well trained, equipped, and 15,000 feet up in a plane with the door removed, yet unable to take the last step in the process. Fear of entry is one of the biggest problems facing a trader. Unfortunately, there is no easy, comfortable way to overcome this obstacle; one must simply decide to take the next signal.

Trading is about risks. This morning I came in Long without any doubt and got my points

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Wednesday, May 25, 2005

Today insecurities

Today I felt so insecure about taking a position. I dont know why. Maybe because I felt sick this morning. Probably it has to do with the markets too. The FDAX in a congestion zone this morning and at an import Moving Average (50 hoour EMA) finding support. I had the feeling it would go up because what dont comes down must go up eh? I took a long with only a few points win. I got out when I saw in the 60 min charts the FDAX at resistance of last days and today.

Monday, May 23, 2005

Blocked

Today i traded unsuccesfully. I had the idea that I am totally blocked after last weeks stong uptrend. I didnot get a grip on the markets today. No "flow". The first trade was long after a gap. Strong trend up. The FDAX at 4400 almost the highest level in the year. We were in a nowwhere zone. The gap was closed. This happens.

How do I deal with losses? I think It is important to overlook your trades and try to rethink why I went in and how I went out.