Sophia Todorova— Sophia is the trading room host during the London Session for Winners Edge Trading. She trains traders to find setups like this every day during the trading sessions. Try a trial of our trading service to trade live with Sophia.
I had been watching the euraud for a while to catch a daily bullish reversal that I had seen setting up. The daily down trendline got broken, and the market made a dip to retest that line.
On Thursday, April 15th, I bought after a 4hr candle bounce at a price of 1.4544. This was not the best price. The market rallied up to the 1.4570 area overnight while I slept and the following morning it fell once more. When trading daily reversals it is likely that there will be a few tests before it finally moves on to its new destination. I did not make allowance for this, and so, as the market got closer and closer to my stop, I realized that with its current momentum, as well as the angle of the trendline, it would have just been a matter of time before my stop loss got hit. Added to that, I broke my rule of not taking other factors in consideration, outside of my general guidelines for taking and managing a trade. These generally include fundamental announcements, as well as price gaps. There is a gap on the daily chart just below my entry, and with all the talk of gaps closing, I allowed that to influence my decision.
With this in mind, I made the decision to close the trade at a 30-pip loss. So imagine my consternation when the market went down to nine pips before my stop, and turned around with a huge bullish candle! Closing price was 1.4604, just beneath some serious resistance. I have learned from it and let it go, but just thought I would share the experience so it may help someone else too. With hindsight, I realize that I should have waited for another test of the trendline. I hope this helps you other traders in making the decision to delay pulling the trigger, when necessary, in order to maximize their trade entries.
‘Till Next Time, Happy and Successful Trading
You can also check out the review of the Eur/Usd at thegeekeknows.com
Latest posts by admin (see all)
- Money Management in Forex: More Than Just Trading - February 17, 2018
- Identifying Trends through Synchronization - February 17, 2018
- Using Multiple Trendlines to Identify Better Trades - February 15, 2018
Winner’s Edge Trading, as seen on: