The original breakout system and trading it…GBPUSD forex trading
As I mentioned in previous posts about the breakout system that I had been trading and losing faith in it. I have to distinguish between them as they are both breakout systems.. I’ll call them the 4 – 7 trading system and the 9 to 9 breakout system to signify the time range for drawing the upper and lower lines.
So, I’m talking about the 4 – 7 trading system. As previously mentioned, I was losing faith in the system and didn’t trade it yesterday. This proved to be a mistake as the system did yield a profit.. this always happens. Today, I thought to myself, that I would trade it. However, when you’re not 100% confident with a system, you tweak things and this is so dangerous. Unfortunately, this is what happened today. Ugh! So annoying! I only have myself to blame!
So the range is 14601 and 14545. I had set these correctly but was also conscious about the recent high which was set yesterday at 16:00 (14608). So my entry for the trade was 14614 to ensure when it broke, it was way above that peak. I also set the stop for 40 pips which was 14574.
The break wasn’t clean as you can see, the initial push above the the previous peak reached 14619 and retraced.. unfortunately stop got hit pretty quickly. However, the stop set should be below the lower line and if I had done this, although it was a rocky ride, it would have made me 30 pips!
The lesson is that one really needs to stick to the system no matter what should one commit to trading it. It is always difficult to do so when one has lost some confidence in the system. They do say that the big battle with trading successfully is the battle that you have with yourself conquering your feelings of fear and greed. This isn’t the first time that I have made this mistake of tweaking the system nor do I, annoyingly, expect that it will be the last.
Anyway, I ended up with a 40 pip loss today for what should have been a winner! I have no one to blame but myself.
On a positive note, I am trading the 9 to 9 system also, post to follow, and so far that is doing well!
