EUR/USD, H4, Past few days
Today I'd like to teach you a highly useful Italian phrase.
Che cazzo fai? : What the fuck are you doing? (kay ka-zzo fai)
I've been asking myself that. I entered a long position at Point A, certain that this uptrend could last because:
1) the prices were also above the EMA
2) the parabolic SAR was on a climb
3) the RSI was not near extreme ranges yet
Placed my order, set my stops, and went and played DOTA. One time when I was dead I hit alt+tab to get back to my trading screen, saw I was 22 points up, and said 'yea this is good'. So the prices kept climbing, till my trailing stop loss got triggered, and then from that point on I was guaranteed a positive return even if prices fell.
Turns out I was too stingy with my trailing stop loss; I should have set it at 55 points trailing or something on hindsight. The chart retraced, my stop loss kicked in, knocked me off the trade at Point B, and I walked off with... 3 points. At least it's still positive right? Black always better than red?
The real tragedy is that, within half a day, the uptrend resumed (having retraced and rested well), and now the EUR/USD has surged 150 points above my entry. I ask myself in horror, Che Cazzo Fai?!?!