First off I wanna let everyone know, there was no planning or strategy behind this… it was just a simple matter of do something and see what happens.
I entered a trade at a random place and set random T/P & S/L. Honestly, I have no idea what I was doing. I was hoping that if I posted the screen shots, maybe some of you more experienced guys could point out what should have been done and what to avoid. I figured it would be better to learn from an example I’m actually in the middle of instead of one you guys conjur up to help us newbies lol.
If I recall correctly, people have in the past shown that you should at least break even based on random short-term market entries if your risk management is disciplined.
For one thing, you don’t have to select a position and therefore direction to learn and and develop this strategy - you could set two one-cancels-the-other orders, one to go long, the other short, each with a SL and TP. So whichever direction the market takes strongly enough and first, you will be riding that move. The TP’s may not even need to be wider than the SL’s.
I think this can be made to work, the only question is - Why?
Well; lets concentrate on technical and fundamental analysis! There have so many technical tools in your chart; make your technical strategy based on the suitable trading indicators! Besides, start your fundamental analysis from the basics! You may get so many useful threads here on news trading! So, spend more and more time in this forum for your education.
News trading is an advance level in Forex trading; yes there are lots of threads and suggestion in this forum about news trading but these are not enough to make certain profit during news. Need a long term analyzing trading experience. Otherwise it is better to avoid news trading for avoiding unfortunate loses and risk.
I appreciate all the responses, however I don’t think we’re all on the same page lol.
I had no clue what I was doing with this trade, so I was wondering if it were you what would you have done differently and what should I have done (if at all anything was done wrong or if you’re able to tell from the screen shots).
Well, I didn’t get a chance to close it out before the market closed for the weekend because my phone took a crap on me so it’s at $33.75 profit at the moment so it worked out, however that was sheer luck lol
Well there’s still acouple of learning experiences to be had here George;
a) Markets go up and down ! - I have deliberately not looked at the chart of your bet, since it was taken, but ftom the chart you showed and no knowledge of a higher time frame, The bet looked fair, but perhaps a little early. (Can you see from that chart, why I would say that ? )
b) What was clearly a trending (Upwards) market has stopped going up. Perhaps temporarily, Perhaps not - who knows ? Most people would be frightened to “Sell” a market trending like that.
b-i) Examine that trade in detail - zoom in to small time frame, zoom out to large time frame, see if you can work out a decent reason why the market would “Turn” where it apparently did ! - The ability to anticipate turns or at least see what could happen, is very important imo.
c) “Luck” operates both ways ! In another thread I mentioned that I was trading a demo day-trading account and wondering whether to stop out of a trade where I was around $12 down, when I blinked, looked at the screen and was something like $350 UP ! - that was in a matter of 1 second or less ! and given a situation like that, you need to be able to make snap decisions - or to hold your nerve.
d) Nobody else gave you advice on this trade - If they had, most would have said “Buy” or at least “Close it and wait” - Probably one of the biggest things you can learn here is taht teh opinions of others is largely irrelevant - remember 95% - LOSE money - the only real reason you would want the “Consensus” opinion might be to bet against it ! [Note this is a particularly hard lesson to learn as it is emotionally VERY uncomfortable. ]
e) Often losing positions will turn around and come back into profit, given time. (But not always)
f) Position size - Your -$7 ish to +$ 33 - seem to indicate that you have a good grasp of the sort of position size which you may be comfortable with.
The one “downside” i can see is that you seem to have let the bet run, without watching it. This can be ok when the position is long term, but you do need to check it at least daily, to make sure it has not gone “Wappy” - I know the tendency to “Bury your head in the sand” very well - but like “Unopend brown envelopes” - you cannot avoid teh truth and matters are likely to get worse if you ignore them.
I’m not sure whether any of this will be helpful, but at least it is meant to be !
News trading is very sensitive issue in here and this is not for everyone. The traders who are expert on candlestick pattern only they are able to make profit with consistency by news trading.
