Tuesday, July 1, 2008

The Phone Rang, it's my Wife! Sell the Euro!--IFCN Wk 30 -Tue- Equity: $730.43.

I finally got stopped out of the three remaining FirstStrike entries-- the Eur/Usd, Gbp/Usd, and Usd/Chf, for a 60 pip loss each.

A total of 5 FirstStrike trades and 5 losses.  It has happened before and will happen again, many times....

These are the FirstStrike entries and exits for the week-----
Eur/Usd: short @ 1.5737, stopped out at 1.5797 for a 60 pip loss.
Gbp/Jpy: short @ 210.59, stopped out at 211.49 for a 90 pip loss.
Gbp/Usd: short @ 1.9884, stopped out at 1.9944 for a 60 pip loss.
Usd/Chf: long @ 1.0223, stopped out at 1.0163 for a 60 pip loss.
Usd/Jpy: short @ 105.53, stopped out at 106.13 for a 60 pip loss.

You might have laughed at the title for this entry and the following discussion. I would prefer you find the entire concept discussed laughable. It isn't for many.

One of the last times I had 5 quick losses in FirstStrike I remember that I had a flat tire the same day, and was forced to buy two premium tires because the tire got destroyed by my driving on it on the way to a safe zone.  In below zero weather.  I mentioned it in the post that day stating that “ losses are losses.” You have to take them when and however they happen.

Today, I had a huge rock thrown off the back of a highway maintenance truck which obliterated my back window of the same truck. Coincidence?

Yes. Just a coincidence.

It is amazing how many people, even traders who should know better, actually get superstitious about things like coincidences. Especially coincidences that happen in the market at the same time you take a sudden loss or make a huge profit.

Example: A series of unexpected phone calls from a spouse over a period of a couple days which simultaneously come after a series of “perfect” appearing trades that turn into devasting losses might set your mind up for failure if you even think about the two actions having a connection.

Next time you get a “perfect” trade setup and the phone rings, you may immediately figure its your wife (not much downside unless she is divorcing you) or your new trade is probably a loser (plenty of downside if you start thinking that way and it affects your trading in any way).

It is best not to assign any value to anything that does not have a proven causal link to your trading.

We have the possibility of some OneNightStand trades this week. The orders will go out early Friday morning. If you choose to not take the trades this weekend, I wouldn't hold it against you. I will be trading reduced size because of the holiday period.

Current equity is $730.43.

Joel Rensink

PS: To receive the FREE! trading rules for the Infiniteyield Forex Challenge ($499 value) and the semi-monthly newsletter about this challenge, send an email to: newsletter@infiniteyield.com and tell me to which address you would like it sent. Please do not use AOL, Yahoo or Hotmail addresses. Nothing personal, but they've been known to filter out more good mail than actual spam. Try a Gmail address. It's free, simple and perfect for traders!

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