I had my eye on this all week, but by the time it hit (Friday afternoon) I was already long AUDUSD, and taking this trade would double my long AUD exposure. I had never held two open positions, let alone correlated ones, so naturally I was concerned.
Unsure of what to do, I consulted my trading plan. The setup fit the entry requirements, so I put my fears to one side and got short. I was now basically 20% long AUD...a meaningful stake, my biggest to date.
There was a slight lack of discipline on entry, entering 10 minutes before London open...a minor breach that did not effect the entry price 118.35, but disapointing nonetheless.
Once the trade was on I closed my platform and started drinking...heavily. The outcome of these positions would have a huge impact on my account, but watching would not change the outcome, plus, I wanted to have a good night out, so resolved not to check until after the market closed.
But I wasn't confident. At the time of entry my long AUDUSD was getting hammered. I basically spent the night preparing for bad news, and that's exactly what I got on Saturday morning. AUDUSD had been stopped out, while EURAUD was at the money. Despite expecting the worst I was still shattered. My mentor and I have a rule "no tears" but I tell you, they were close. I still have this lump in my throat and knot in my stomach.
On Monday EURAUD traded lower, down to 1.7775 (1R), just enough to give me hope before a powerful rally took out my stop 118.90. Can't say I was surprised.
As with AUDUSD, the trade behaved well initially and moved to 1R. Had I scaled out as before, the damage from these two trades would have been far less, but that's the risk I took. Hero or zero, in this case...zero.
So that's it really. Horrific month with three losses totalling approximately 30%. It will be tough from here, but my immediate goal is two consecutive wins.
