Ok - Take a look at this recent winning trade on 1H view - all info is displayed to the top right, in my opinion this was good - but the risk was too high and overall i could have doubled my profits and slashed my risk, but i didn’t know a better entry/exit time according to the data i had upon entry. Remember - all that existed was info up to the first green dot, the rest had not been written.
See the top and bottom trend lines i’d drawn for this pair, which the market had been respecting for 2 months, those lines for me seemed like a sensible place to enter and exit - retrospectively they weren’t the best - but i don’t understand how i’m supposed to know any better at the time?
Look around the first green dot, this is my entry, i saw the market tops, pull back - double tops and then pull back again, this was all the signal i needed to enter, at the time. It seemed like a done deal. it’s peaked now lets enter and watch as it drops - according to hitory it doesn’t hang around the top too long so get in quick while price is still up there.
That didn’t happen initiallty, it was consolidating along the top trend line for quite some time, and eventually it broke out of it to the topside which made me nervous - it began to rise higher and even used this trend line i’d drawn to create a new resistance for further highs, i had increased my SL to about £100 now - i know given my £65 return on this it was stupid, I was asking myself what am i doing? but i still belived it would go back down, it ended up peaking at teh red arrow - about minus £60 - almost the same as i was set to make, i now was at a crossroads, do i pull out here and take the loss and prevent further losses or do i wait? I waited, and thankfully it dropped and i was extremely relieved. had i kept a tighter stop of anywhere sensible between £20-£40 i would have lost it, and with a £900 it was still a lot to lose.
Now - you see my exit, the second green dot. it hit the support line i’d drawn and pulled back - for me this was the signal to exit, so i did. Took my profit and i was very happy, 11% is a big gain for 1 trade. but look then, it dropped a lot further, so if i entered at the actual top of the trend and exited at the actual bottom, i would have made double - is that something you just can’t get hung up on? or is it something you analise to improve your game in future?
I see easily how i could have done better but that’s because i have information now that i didn’t at the time. How was i supposed to do any better?
Side note - total profit for this market move was about £110 since i entered another trade when i saw the clear decline in price action - Smart move or stupid since i could be doubling my risk?
Let me know your thoughts - Would love to hear!