I put a short last friday on usdjpy at 99.3 tp at 99. Well last friday price kept on going upwards into the 99.4-99.6 region so i was mostly in the red. Weekend is coming so markets are closing i then decide maybe i should just find a way to cut my loss. I see price moving downwards it’s not really shooting downwards unlike last wednesday and thursday where price shoot up like 30+ pips and i think downwards too giving ppl some easy wins. No on friday towards the final hours of market close price doesn’t even go beyond 99.6 region and starts to slowly come downwards to 99.5-99.4 region. Now at this point in time you would be thinking price is moving upwards and the 99.5 and 99.4 regions are just retracements after all for most of friday usdjpy has been moving upwards from 99.1 to 99.6. If i didn’t close out my short at 99.3 i would have broke even and made a profit.
Anyway i just decide to close off my trade with a loss and then i decided to come in with a buy. So my buy is around the 99.4 region but what do you know price shoots downwards instead after actviating my trade. So it seems that the upwards movement from 99 to 99.6 was going into reversal instead of retracement. So here i am now it’s the 3rd day into the following week and the usdjpy is still below 99 so i am in the red.
This might sound a bit silly but i just have a feeling that it’s supernatural that someone out there is watching my trade and if i decide to close my long like i did when i closed my short last friday with a loss somehow price is going to shoot upwards.
Honestly have any of you ever faced this before? Price moves against your trade you decide to close it to cut your losses and when you do it suddenly moves in your favor so you wouldn’t have made a loss.
Yes, plenty of times. This is one of the most frustrating scenarios I’ve ever experienced, actually. As they say though, your best teacher is your biggest mistake so this pushed me to make adjustments in my trade strategy. Sometimes it does feel like the market is plotting against you, haha.
[QUOTE=snake24;540040]went in favor of your trade?
This is really a case of bad luck i think for me.
Not really, trades go against traders all the time. It isn’t a matter of luck, just right and wrong analysis.
Honestly have any of you ever faced this before? Price moves against your trade you decide to close it to cut your losses and when you do it suddenly moves in your favor so you wouldn’t have made a loss.
Yea many times. This happens once in a while.
This might sound a bit silly but i just have a feeling that it’s supernatural that someone out there is watching my trade and if i decide to close my long like i did when i closed my short last friday with a loss somehow price is going to shoot upwards.
No one is watching your trades except you! Just have your stops in place and let the market do the rest. This isn’t a resignation to fate, but rather a call to ensure that your system is well tweaked for profitability and all you have to do is identify the setups.
Absolutely agree to that. Why would you let the price to reach your “red zone”? Have you ever heard about LS or money management? You need to fill that space in your knowledge
Every trader has losing trades that would even eventually have turned back in their favor had they not closed them. However, the important thing to consider is if the risk justifies the potential rewards. If you don’t think in terms of risk and reward, you open yourself up to the possibility of taking a huge loss on a single trade.
What stood out to me about your story is that you mentioned a profit target, but you didn’t mention a stop loss. You said you shorted USD/JPY at 99.30 with a take profit order at 99.00. That means you were targeting a potential profit of 30 pips. However, you also let the trade go 30 pips against you when the price went up to 99.60.
Many traders aim for a risk/reward ratio of at least 2 to 1. That means they seek at least double the amount of reward as they are willing to risk. Using your USD/JPY trade as an example, if they shorted at 99.30 with a take profit order at 99.00 then they might set their stop loss 15 pips higher at 99.45.
You may find that a stop of 15 pips is too tight, so another way to look at it is that if you’re willing to risk 30 pips on the trade with a stop at 99.60, then if you seek double the reward, your take profit order could be at 98.70. Of course, take profit orders and stop losses should also take into account the support and resistance levels you see on a chart.
If you enter a short trade, then your stop loss should be placed above a key resistance level. If you enter a long trade, then your stop loss should be placed below a key support level. And if you don’t see potential in the market to give you at least double the reward compared to what you have to risk, then you might want to reconsider placing the trade at all.
I many times suffer from bad trade specially at very start of real trading that make me disappointed too. I think of leaving this market .After some days I collect my energy and start practice on demo to make me more experienced with less mistakes.
This might sound a bit silly but i just have a feeling that it’s supernatural that someone out there is watching my trade and if i decide to close my long like i did when i closed my short last friday with a loss somehow price is going to shoot upwards.
Honestly have any of you ever faced this before? Price moves against your trade you decide to close it to cut your losses and when you do it suddenly moves in your favor so you wouldn’t have made a loss.
PLEASE NOTE: YOUR COMMENTS ARE NOT UNFOUNDED. UNFORTUNATELY, THERE ARE TRADERS OUT THERE IN THE GLOBAL ECONOMY THAT CAN ANTICIPATE THE TRADES THAT YOU ARE TALKING ABOUT. THE PROBLEM THAT YOU ENCOUNTERED WAS PROBABLY DUE TO VOLATILITY. BY SHEER COINCIDENCE, EVERY TRADE YOU MADE WENT WRONG. THAT HAPPENED TO ME TODAY ON THE VERY SAME PAIR. I LOST $1,800. BUT, AFTER READING ONE OF THE SUGGESTED BOOKS THAT HAS BEEN MENTIONED HERE IN THE BABYPIPS.COM TEAM, “The Disciplined Trader,” YOU WILL REALIZE THAT YOU HAVE TO WALK AWAY WITH YOUR LOSSES AND NOT TAKE IT PERSONALLY. LASTLY, IN THE TRADE I MADE YESTERDAY AND TODAY, MARKET VOLITILATIY WAS ACTUALLY MENTIONED IN THE JAPANESE NATIONWIDE PAPER AND THAT THE TEETERING ABENOMICS CAUSED TERRIBLE VOLATILITY IN THE MARKET.
I WILL GIVE YOU ONE CLUE TO THE USD/JPY MARKET, TRADE WITH THE ECONOMY AND WITH EACH MARKET. WHEN THE US MARKETS OPEN, THE DOLLAR WILL STENGTHEN. WHEN THE TOKYO MARKET OPENS, THE YEN WILL STRENGTHEN. IT IS THE NATURAL VALENCE OF EACH MARKET. IF THE MARKET IS BAD, THEN THERE ARE A LOT OF PROBLEMS WITH PREDICTING THE DIRECTION OF THE MARKET AND MAKE IT QUITE DIFFICULT. VOLATILITY IS YOUR ENEMY, NOT SOMEONE LIKE THE WIZARD OF OZ CHANGING THE DIRECTION OF THE MARKET. OH, AND BY THE WAY, I SCALP TRADES BETWEEN 10 AND 15 PIPS AND MAKE $200 TO $800 PER DAY. BUT, GIVEN THE NATURE OF THE MARKET, THERE ARE ONLY 3 REAL DAYS TO TRADE IN THE WEEK. FRIDAYS ARE UNPREDICTABLE, AND SUNDAY/MONDAY MORNINGS ARE HARD TO PREDICT TOO. THE MIDDLE OF THE WEEK PUTS THE MARKET IN ITS NATURAL “CADENCE” (RHYTHM) AND ALLOWS FOR MORE PREDICTABLE TRADING. I HOPE THIS HELPS! GOOD LUCK TRADING - FIND YOUR ZONE AND SUCCEED!