Nikkei falls off the cliff this morning, so before I went for my Guo Da Li or Chinese Engagement, I sold Wilmar off at 6.49. I bought at 6.47. To re-cap, last week, Wilmar reached a high of $7. In the past I would have felt very stupid. But I have gotten used to it. The market likes to make fools out of us once in a while.
Two things made me exit:
1) Nikkei falls off 10200 support into open space. Like falling off a cliff.
2) My rule to not let my profit turn into a loss. This profit must be >2R to be counted. So once it is > 2R, it is counted. Another rule is a trailing stop to preserve 80% of the profits once my profit is >20%. Well it has not kicked in, so I did not took profit earlier. Anyway, Wilmar dropped from $7 to $6.5 in 2 days, which is pretty fast.
Discipline is there to keep us in the game. Discipline can sometimes feel stupid, but it is necessary to long term, consistent profits. I will do a review of my approach after 20 trades. I am still learning, so feel free to share and discuss. Thank you for your readership.
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