However, despite the loss, I'm happy with the trade. It fit my plan, so I executed. My only regret is a slight lack of discipline on entry that cost a few basis points.
The position itself moved against me from the start, trading close to my stop within hours. Commodities were getting crushed, AUD had broken down, and it seemed only a matter of time before CAD would follow suit. Somehow it found support and kept me in the trade, but only just, and it was stressful.
Finally, late Friday, CAD rallied sharply on strong employment data, hitting T1 and halving risk from 100 to 50 basis points. I was relieved and tempted to close more than 1/3rd of the position, but stuck to the original plan. It was an expensive but correct decision. I'd weathered the draw down, and it made no sense to exit early just as the technical and fundamental picture were being realised. I understood that positive data would not necessarily translate to stronger CAD, but owed it to my analysis to let the trade play out.
Of course the pair traded higher from the post-news spike, eventually stopping me out at 1.0075. It was a gruelling trade. Although I've made progress in certain areas, I still struggle to remain emotionally detached. Yes, each position is important, especially 10% positions, but as long as it fits my trading plan I have nothing to fear, nor will any amount of fretting or hoping alter the outcome. I will not be defined by a single position. I must work on detachment to improve quality of life and ensure longevity in this profession.
