Hey everyone, I have just finished my first week of trading and wanted to share the results.
I am down about 75 dollars through 5 trades. Four out of the five trades I took moved in the direction that I expected, but I ended up losing anyway because of some foolish mistakes.
My main problem was that I moved my stops up very quickly to break even because I was excited that my trades moved in the right direction and I didn’t want to lose money. My stops would be taken out due to normal movement of the chart, and then the pair would continue to go exactly the way I had hoped. This is a mistake that I just can’t have. Not only is it causing me to lose money, but it is also extremely frustrating because I did the analysis to figure out which way the pair would move and then didn’t get rewarded for it.
On one of my trades this week, I was just plain wrong. I took a long position after the huge NZD drop against the USD because I thought it would move back up toward the 20 point average. At first it started moving back up, but it turned back around and continued to fall.
The bar circled in blue is the bullish indicator that I went long on; it’s a good bar and follows my rules. However, there are some problems with my judgment here. First, notice the tales circled in yellow. These three tales show that the price is being pushed back down each time it tries to rise and should have warned me that the price was ready to fall. Even with the mistake of not taking any profit on these tales I still should have made money and got out with the large bearish bar underlined in yellow, but I made an uneducated decision to stay in and hope it bounced back up. As you can see, it didn’t bounce back up and was a losing trade.
Obviously, with having no winning trades, I need to make some changes. I am adding one rule to my original trading plan. The new rule is that I will not move the stop loss from its original location until at least one hour candle has formed after the one I entered in on. The other thing I need to work on is taking profits when I see indicators that show a chance of the pair moving in the other direction.
Well, that is my results for this past week, I’m hoping to share some good news next week, thanks for reading and please follow me on twitter.
Latest posts by admin (see all)
- Using Simple Moving Averages to clarify the Forex Market - November 13, 2017
- The Huge Benefits of Being a Scalper - November 6, 2017
- The ADX Methodology for Analysis, the Strengths and Values - November 4, 2017
Winner’s Edge Trading, as seen on: