Originally Posted by
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I think you answered your own query. You said you marketed to the drop/retrace. What was telling you the EUR/USD will retrace at any given moment? An indior? Some automated system? Because it had worked before, no, just instinct. But of course that in no way garuantee's it will work or in varying market conditions. Retrace action is one of the most dangerous practices on the market.
My account grew substantially faster when I ignored the temptation to grab the retrace and just flat out followed my system. What works twice, may not work a third....as you've seen today.
Given the effect of Bernacke's address, you were playing with a loaded gun....and regrettably, it went away.
Learn from this and analyse why it's dangerous to dismiss systems/indiors/fundamentals and play by the gut.
I will not offer any words of consolation, cause you do not need them....you have to realize what you did was dangerous and you paid the price. It's anger and dissappointment that forces us to analyse ourselves.
Please do not take this in the wrong tone, I have made the specific same error. I built up my account quite well often practicing the exact same mentality, adn then in one fail swoop, gave it all back when the EUR/USD dropped to 1.1698. DAY, I WILL NEVER FORGET THAT! It altered my trading life forever because it made me think of why I did that and what I should have done instead. My defect: trading against the trend even though the trend was sitting there slapping me in the face!
I have not played with the retrace activity because and my account has resisted me since.