An undisciplined trade: Shorted EUR/USD @ 1.499, stopped 1.505 (-62 pips)

I started to doubt this move mere minutes after placing it, which rarely happens. And not because of the price action. It was solely for my reasoning for this trade. On a quick mental review of this entry, I noticed that they sounded more like excuses than reasons. First sign of it was that I laid in a 100% position to fade a strong trend on the daily on the basis of my 3-hour chart. My strategy is to not risk more than 50% (preferably 25% - 33%) to fade a trend on the daily. Lack of discipline #1. Next, I already had six 50% positions open at the time. That would roughly translate to 3% of my account, without even taking into account the high correlations (working on a spreadsheet for this). By adding this 7th position, I've broken my fundamental rule of risk management to not risk more than 3% of the totals funds at any single moment. Lastly, it was the end of the trading day on Friday. Carrying trades over the weekend is well known be even more risky than usual because so much could happen over the two days. To add a low probability trade on a loaded to the neck account into the weekend is practically suicidal. I'm just glad that I had a hard stop to limit my risk. At least I did something right here. In terms of the dollar amount lost, the loss for this trade is \$44.17 on paper. And after this stupid move, I have given up all my +500 pips gain (also on paper) from the week before. Much work remains to be done to improve my trading performance. A last note to self from this what-not-to-do lesson. All trades should be taken with logic and reasons. I failed to do that in this trade by convincing myself that USD should reverse over the weekend. On top of it, I took as big of a position as my system allows to gamble on this intuition. These are two breaches of trading rules that could ruin an account. It's good that I'm stopped out with a loss in this trade because if this became profitable, it could boost my ego and this problem would only get worse. Another silver lining in this is that I am beginning to trade forex with paper trading instead of diving in with real money first. In addition to testing my forex strategies (which I haven't followed as diligently as I should), I'm learning much about my weaknesses in trading in general by keeping a detailed journal and statistics of my trades. Update: EUR/USD cratered to 1.4844 today. Another shortcoming with an undisciplined trade is the opportunity cost. If I weren't so preoccupied with the stop loss from this morning, I would have followed my setup and shorted EUR/USD today as it went spiraling down.

[caption id="" align="aligncenter" width="580" caption="EUR/USD"][EUR/USD]EUR/USD[/caption] [caption id="" align="aligncenter" width="580" caption="EUR/USD, 3-hour"][EUR/USD,
3-hour]EUR/USD, 3-hour[/caption]