If my predictions of the chart going wrong?

Beginner Questions
1

let assume one scenario:

  1. i go long for eurousd pair, and the prediction is wrong and hit my SL.

should i watch again the pair and wait the price action to enter the trade again or should i watch other pair?

2

If your strategy says you should enter, then you enter. If it doesn’t, then don’t throw good money after bad.

2 Likes
3

What should happen is if you are strongly bullish and you expect the EUR/USD to rise but your first attempt to enter long failed then most definately you should watch that pair. There is always the risk of entering too early and if the price action moves in the direction you perceive then you need to be ready to re-enter the trade. But be mindful that your risk reward is such that you will still have a positive traders equation. IE; approximately 2:1.

Having said that you should also be open minded to the fact that maybe your analysis was wrong and that price action is bearish rather than bullish.

Hope this helps

Cheers

Blackduck

4

thanks for helping @Blackduck. i am still new in trading, my thought before this, trading is only buy and sell. but, the more i study, trading is more just buy and sell.

5

Depends on what you are watching , if the plan for the trade is still the same then yes stick with it , I would not be hopping from 1 pair to another just because the trade did not work out , this is the same as jumping from 1 strategy to another and will damage your account, have a plan and stick to the rules and you will be fine

6

thanks @Lang15. will try to stick to my plan. Actually, i am still struggling to build proper plan. still learning.

7

thanks @chesterjohn

8

Taking a position again immediately appears to me like revenge trading.I think the best thing to do is to identify why the stop loss was hit.Thereafter, you can feel free to enter the trade again.

9

If this happens frequently ( your prediction is always wrong and your SL is hit) I would search for a better plan, because your plan doesn’t work.

10

We can’t say certainly if first option is better that the second. Basically one of the key features of my strategy is focusing on one ore several key pairs what implies that I’m more likely to continue exploring opportunities to entry even after a failed signal or series of wrong signals. But it can be different for other traders.

11

Cut your losses