Another lesson learned...DARN IT!

The great part about doing something you enjoy (trading) is that you still want to learn. Since January my overall accounts have done very well (long time readers have seen a gain of over 110%.) But, I just learned another lesson from Bob Iaccino:

Yesterday, I got out of the balance of my Eur/Sterling trade with an overall profit of around $750 @0.8717 in the Bob Iaccino account. I started this separate account because I wanted to mimic his trades as close as I could. Well...I was spooked. I didn't like the action in the pair and I expected a selloff, so I got out, even though I doubted he got out...and he didn't!

The problem was, like most pairs after a big move, selloffs will occur...but then there is a retracement. That's what has occurred here as the pair is now at 0.8758. (Clicking on the chart gives you a clearer view):

Take a look at the Melody ADX indicator underneath. When I got out of the trade, the value was only at 48.07. Bob teaches that a big move is usually not exhausted until 60 (reading is now at 58). So, even though I listen to every seminar he does (for peanuts,) and even though I made a good profit, I cost myself AGAIN, just like in the post from the other day when I talked about position size.