Hi to all good people here!
3 days ago I opened 2 short position (2 different pairs). I was very confident and I followed all my rules, like always.
Today, at some point I noticed fast prices movement against me. I checked 1h and 15min charts and I saw how both prices are breaking the 1. resistance and very soon after that 2. resistance with a big momentum. And I decide to wait for pullbacks and exit the trades. I took 1/2 profit from 1. trade and 1/2 loss from 2. trade. I closed my laptop.
But, in my head I was still bearish because there were no reason for those prices go up.
And I checked charts later, guess what? Price got back to continue short.
I don’t have problems with any decision, but this one today totally crushed me and I really feel bad. This is not about money, I didn’t suffered any loss.
Sorry, I don’t have anyone to talk about trading and, hopefully, I’ll feel a little bit better.
One bad decision doesn’t mean your strategy’s wrong and it doesn’t mean you can’t trade.
Going back to when price started going up, are you sure you had the resistance lines in the right place - what were they based on?
If the second resistance level had been broken, why dd you not exit the trade there? What made you think price would pull back downwards again if it had already gone up through two resistance levels with strong momentum?
You don’t mention a stop-loss - did you have a stop-loss? Why there? Why did you not wait for price to hit your stop-loss (or not hit it)?
sometimes we do mistake in spite of having most powerful analyzing trade knowledge and experience , its a general issue and that means of your approach was completely wrong.
I always have a stop loss and I know how to determine supports and resistance properly. I didn’t wait to price hit the stop loss and that actually bothers me the most. I feel i was going against myself not the price.
Its good you have a stop, but you have to trust it. In this case, you beat yourself. But that’s OK, because you can control what you do. Trust your stop-loss.
You’re right, thanks!
Hi ililli, I agree with tommor. I have just been revising “the 20 habits of successful traders”, and one of them was “Be patient with winning trades and impatient with losers”. Given that you have explained you set a stop loss and your S/R values were logical, there was nothing wrong with your decision. I suffered a lot from this last time I was actively trading four years ago and the only method I had to counter it was to also set static take profit levels too, and to try not to screen-watch 24x7. If in a live session where you wished to reset levels (take profit and stop loss), then your trade plan was not specific enough. If you followed your trade plan to the letter, and the plan documented the actions to take at each milestone, then nothing wrong with your plan, and reuse it. However, if this experience highlighted any missing element of your trade plan, then the plan can be improved and that is the benefit of maintaining detailed and accurate diary of trades. Best of luck next time.
Thanks for your comment.
It was a typical beginner emotional reaction which set me back a couple of months.
I thought I passed that phase but, obviously, I didn’t. I’ll work on it.