Lesson in Trading

Have a method in trading, trust in your method and do not be swayed by opinions of others.

Most of experienced traders already know this, and personally, I know this too. But theory is different from practice, and one can buckle under pressure when you see price hitting some consolidation and friends are asking why you are still holding on to that position.

What actually happened
I was holding on to a long position GBPUSD (No charting for that pair provided yet because the wave counts are horribly difficult to do at this time) with a longer term target of 1.9900. I entered at around 1.9600 with a Stop loss at 1.9300, below the 12month low.

I endured the drop from 1.9600 to 1.9360, and actually entered another small position around 1.9400.

Last night, a friend was asking me why I was still holding the position when it hit one of the Fib levels. I relooked at the charts, and saw:
a) There was some resistance at that price level
b) There was a MACD negative divergence at the 15min chart (I usually look at higher timeframes for this).

So I decided to close my position, and even entered a short position at 1.9600 (a key psychological resistance level), with a SL around 1.9630, and a TP at 1.9550. Well, the trade went against me, and a positive trade turned into a profitless trade. At least no losses were made, but its a learning point.

P.S. I'm still bullish on this pair and expect it to trend up higher. I've closed all my GBPUSD Positions and will probably re-enter on the next dip.

P.P.S. Remember to check out the free Elliott Wave Theorist Issue. It is very rare for EWI to be providing free issues! What's more, its only for a limited time only. You don't want to miss out on it. :)