This is the journal of a trade I took yesterday and was stopped out today.
Reasons for trade entry: I was well relaxed before taking this trade. I had my mental preparedness to take the opportunities that present themselves. When I saw on the Daily chart that price had reached support, I started looking for PA signals. The first signal I saw was on the H4 chart, a pinbar, but the pinbar was not significant. So, I decided to ignore it. After the candle close, I looked again and saw that the H4 chart was showing a 2 bar reversal signal. I then looked at the H8 chart and saw a large and obvious pinbar. So, I decided to look at the market structure. This was a trend although the bars have lots of spikes showing high volatility. The trend direction was downwards but the pinbar was at a pullback. Then I saw that the pinbar was a a significant swing high. Therefore, there was every sign that the price might reverse. I looked at the direction I wanted to take the trade, a sell and decided I wouldn’t have traffic in that direction. And since the pinbar was large and significant, I decided to place a pending order. Unfortunately, it took 12 hours for the pending order to be triggered.
Trade management: When I woke up this mornig, I saw that I was at a loss of 20 pips but there was no significant sign that the price was changing direction significant but just sluggish so have to wait this out. One mistake I made was that I did not note the RR for the trade this was because I did not understand how to handle the position sizing indicator. Will have to learn it thoroughly.
Trade result remarks: The stop loss was hit. This trade I believe satisfies the requirements of the signal for a pinbar. The requirements are: 1. Must open and close within the previous bar. 2. Candle wick minimum 3 times the length of the candle body. 3. Long nose protruding from all other bars or must be sticking out obviously. On retrospect, I think this loss underscores the fact that lossing is part of trading. When you place a trade, the markets take over because the outcomes are probable. What is more significant is that you are consistent, stick to your rules, and trade with an edge. Every trade is unique and is independent of all other trades. So, the market went against me this time. No problem. I can win another time.
Thirty minutes later:
Second look: After wondering why I was wrong, I took a second look at the chart on H8 and realised that I did not analyse it very well. There was traffic on the left that I did not see. I have to be more careful next time.