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.
Winner’s Edge Trading, as seen on: