So I’ve got some bad trades in my bigger account. They’ve been bothering me (see below).
Today I want to explain what I did about it.
First thing: I got into the office early. If I want to plan my way out of bad trades, best idea: be first in the parking lot.
Next, I gotta realize that the money I’ll make to “wash” my bad trades, might not come from the same currency pairs that are the problem.
In other words, sometimes the best way to get out of a bad trade is a new trade on a diff. currency pair. I call this “washing trades”.
After NFP, I sometimes like to look at non-USD pairs. I chose CAD/JPY because it was “overdone”.
I shorted it at 90.20, and because I’m a dummy, I also shorted the EUR/JPY, which didn’t look half as good.
This is what I like to call “making a bad situation worse.” Haha.
The CAD/JPY trade at one point was up over $700. Because I’m greedy, I didn’t take it. (commence second-guessing)
When the CAD/JPY went from +$700 to +$400, I finally just took the money. And then closed the EUR/JPY too, with a loss of -$176.54.
Incidentally, if I had just waited for the EUR/JPY to hit the trendline here, I would have made money. Growl.
But I wasn’t done with the CAD/JPY. I waited for the 1m chart to go overbought and break the highs (aka stop out all the short-timers).
Then, because I am a dummy, I totally forgot I took this trade and went to Starbucks. I go to Starbucks 400 times a day.
Upon returning from Starbucks, pumpkin scone in hand, I thought, “Oh crap, I traded 2,000,000 units without a stop, I should check it.”
This was my cue to get out: Once again, luckier than I deserve to be, with enough profit to pay off some of those bad trades.
Of course I haven’t “washed” those bad trades – the entire point of doing this in the first place. Greed set in again, and I thought:
“… Those trades will probably come back on their own, and I’ll just sit on my sweet profit and not spend it on bad trades.” LOL.
Anyway, thanks for joining me on another installment of “Rob’s Bad Decisions in Trading”.
Have the best day ever,
P.S. You can get all the robots I use in my trading right here: