My Trading Mistake Today

Every day I make trading mistakes, I do however try to learn from them and stop the mistakes because the way I look at it the less mistakes I make the better trader I will become. As I make less mistakes I will become a better trader and  I will make more profits as well. Today I made a mistake that cost me alot of money and as I was thinking about it getting depressed I realized that I should write about it so that others on this blog can learn about it.

I fell for something today which I have heard people call a head fake, when the market tries to fake you out.  So today I was short on the Eur/Chf and the price dropped with news early this morning about 5:30 am est. I was in a very large profit and my instinct as a trader is to take profits when I have them and that is what I usually do…..

However this morning instead of taking profit I saw a very bearish 4 hr candle and a bearish 1 hr candle and I decided to not take the profit. That decision came back to haunt me because the price bounced and kept going right back up to the top of the channel.  So the result is that I lost out because I didnt follow my normal rules which is to take profit when it is there.

I know what I saw and why I changed my rules but in the end I paid the price. So from now I will try to remember this event when I am making trading decisions. This post will serve as a reminder to me and hopefully to many others as well. I am posting the video below to describe the event so you can see how things when down.  If you have any comments please do not hesitate to ask or respond in anyway I enjoy getting feedback from you. Also if you want to get trading updates follow me on twitter for up to the minute information.

The Video Below will have more detail as to what exactly happened today.

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Casey Stubbs is the founder of Winners Edge Trading, which is one of the most widely read forex sites on the web. Winners Edge Trading has trained thousands of people to trade the Forex markets.

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  • Fillup

    Oh how I know the feeling ,thanks for sharing this ,5 o/o 5 for making me able to forgive myself

  • Yes I do use trendlines but like I said I acted out of my normal guidelines and that is what hurt me.

  • Alex

    Thanks a lot for this video. Don’t you use trend lines? If you take a look at 12 previous hours, you can build upward trend line under two dips. The price had met it and bounced back. For me it would be the great opprtunity to buy at the third dip. The price also was supported by the candle 8 hours ago. You know, clever people learn from their own mistakes and wise people learn from other’s ,mistakes. So again, thanks a lot for making us wiser.)) With a lot of respect, Alex from Israel.

  • Yes, I come to realize your article to help me avoid this mistake in the future.

  • Zen,

    You are 100% right thanks for speaking the truth on that. The market has a way of being a great teacher doesnt it?

    Casey

  • Everyone Makes Mistakes, It is the great traders that bounce back in a hurry.

  • You are welcome Roberto

  • Sayed, yes unfortunately we cant be awake 24 hours a day. Trading with limits and stop losses is for our safety but sometimes if comes back to hurt us.

    thanks

    casey

  • I am cheered up now David, Yes you are right emotional trading will kill you.

    Thanks

    Casey

  • Tom, you are welcome and thank you for your constant participation.

    Thanks

    Casey

  • That is a good idea Grasshopper and you are right that would have worked thanks for passing it on.

    Casey

  • Thanks for the follow dont hesitate to post to me there I am very active on Twitter.

  • That is fantastic Thanks for sharing, Hey My mistake was your gain, that is how it goes with trading!

    Casey

  • Stephane

    Today I had (lucky me) the exact opposite situation : I entered a trade I thought stupid (long eu just after NY opened) because my trading plan gave me a signal. It was indeed obvious from the chart that eu was rather bearish at that moment. But a plan is a plan, even though I thought this trade had not a single chance to work. It ended with +93 pips and + 5 % on my account. A good reminder for me to stick to the plan no matter what.