I was asked by a member of another board where I sometimes post "K__ how you doing so far with the trading?"

I didn't end the week well. My bad habbits crept back in and had the better of me. I went short EURUSD as a quick trade. Was profitable net 25 pips. Had a tgt close and take profit @ 30 pips. It reversed at 25 pips. I had 3 Short USDEUR positions and 1 EURGBP to hedge. Generally this trade works but on Thursday the GBP rallied harder than the EUR. I got a GBPUSD as additional hedge but cut eventually when it was moving too slow upwards. What I should have cut was the EURGBP but it had a huge loss at the time and for some reason I had a problem cutting losers thursday.

Friday during the European session open the EURUSD continued to rally. I was down net 400+ pips and pretty much overleveraged. I lost the 86% growth to the account I had accumilated since April 1st. I decided to close all postions and reversed to the long side as I should have done Thursday. I did then it moved against me. I closed for 2 pip loss. I reversed back to the short side and closed for a 17 pip loss on 2 positions.

I decided at that point to rethink my strategy because I knew better and my analysis was right but I just was not trading with my analysis. I was looking at the trend seeing that it was up but yet remained short hoping instead of trading what I say. I was clearly sabotaging my wealth. I knew that's what I was doing but remained paralyzed in stopping. It was totally an emotional thing. The bad thing is during the trades that I lost money on they were net successful between 10 - 25 pips at some point but something kept prevented me from taking the profit.

I took a break went to sleep got up and made a couple small trades and net 30 pips.

So while analysis can be very important, it is more important to have proper trade and account management. Make a set of rules and stick to them. Don't change a short term strategy to long term mid trade without making sure you've done the account risk management analysis first. Should be done before the trade is put on. That way I have a plan to cut back on the position size to make sure I am able to withstand the potential drawdown.