btw, didn t posted that thread hoping u ll sucscribe etc, i don t need followers lol…i try and help as much as i can who wants to be helped, as i had no1 helping me and had to go thro all the hurdles alone. so i know the hustle. but sure, feel free to check the charts in there, whenever i post i tend to also explain why i took the trade, bias and whatknot. cheers
Solid move on your part. I see more USD bullishness today you can definitely still reap more rewards IMO.
Making money is not the important thing. Being consistently profitable is the most important thing and that involves having an edge. When you make money now and lose out in the game, what use is it entering the fight? You are still not using risk management.
When one discovers he or she has developed bad habits in trading such as revenge trading or chasing trades due to FOMO, it is time to start making changes. But change is not always easy. In fact, some people internalize the bad habit as a problem that it impedes the ability to make changes. But it is not a problem but a challenge.
To make change simple, this is what one can do.
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Pattern recognition. Recognize that a bad behavioral pattern has been formed. This will help you know when it manifests itself again. Write it down in your journal when you recognize that this bad behavior pattern has appeared in your trading.
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Pattern interruption. Tell yourself about the consequences of repeating that pattern when they appear. Make it your enemy. Decide that you will not be defeated by not repeating the pattern.
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Pattern substitution. Start doing something else. If it is the urge to revenge trade, take deep breathes. Do something to take your mind off that behavioral pattern. You could even decide to watch some funny videos that would help you relax.
If you repeat this three step process anytime a bad behavioral habit in trading is developing, you will have success in arresting that habit.
Great thread, keep it up @Emekadavid. I am also enjoying the contributions made by others, it certainly keeps things interesting.
Loss. AUDUSD. H4. Short
Reason for trade: The market is in a range and about to start a new trend or so it seems. I see a bearish engulfing at resistance although the pullback is not very strong. This indicates that price is likely to go down. The bearish engulfing pattern satisfies the criteria for engulfing patterns. The market control is not counter to what I want to trade but in its direction. I think this is not too significant because this is not a rejection pattern but a momentum pattern, so market control is good. The size of the pattern is good. But one thing is that the trade is counter trend to the daily, so I don’t expect much price movement. Will have to be watching it. I have placed a pending order.
Trade management: Sell stop triggered. I should have closed the position when I saw a bullish harami, but because I was so confident in the engulfing bar that it would turn out profitable, I left it. Then, this morning my stop was hunted by a tiny candle. Really disappointed. Took about thirty minutes when I saw it on the mobile app before I took the courage to come and record this. I always tell myself to cut losses short but never knew why I failed in this instance. Have to be reminding myself that regularly. Think first of losses before profits. I was thinking of profits that is why I got a bigger loss.
Trade Result Remarks: Loss. 60 pips Loss.
After today’s loss, I reflected on the fact that forex trading is hard work. Forget about Instagram and Twitter accounts that flash luxurious cars, houses and jewelry. You need to put in the hard work, screen time and persevere despite the stress to succeed in forex trading. There is no true hype. This is a business and all businesses involve putting in the hard work that gives experience.
Many traders don’t want to do this so they opt for trading signals. It only makes me laugh. How can they verify those signals? How do they know the risk management involved in those signals? How would they understand what is behind the signal? This is why that alternative fails.
So, to make any money in forex, you have to be ready to put in the hard work. Period.
If your greedy urges are not restrained after taking losses in trading, I really don’t know what was learned. I always do risk management and position sizing but all the time there is a lurking urge to take higher positions so as to make more profits. You have to control that urge. You have to restrain that greed. It takes time to succeed. So, you have to be patient. Nothing good comes easy.
That’s it. Moving forward from this loss. Thinking about the process and not the outcome.
i do agree with u about the hard work, stay disciplined, follow ur plan etc… looking at ur setup, i wouldn t have considered that as resistance to be honest. and looking at ur other charts, i think this is where u need to work on, ur support and resistance. u don t choose obvious levels, ur going for hidden 1s, that might or might not work. i for 1 would t have chosen that as resist, from the 4hr perspective or 1hr. that was a swing where market turned on 4hr, so i d call that support. it s just an observation. now u can say i m wrong and u know better and keep at it as u ve done till now, ur u might wanna take a look at that and try and pick obvious levels or turning points and see if ur results improve
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so i d say u sold at support, and as u also know, support and resistance are areas, not a line in the sand.
hopr u can see the chart.
cheers
Thanks. I thought so too. I thought I sold at support. I was thinking price had broken through the support and had gone upwards to make that level resistance but my thinking was faulted after looking at the chart. That was before you indicated it. The upward move in price by two candles was not enough to call that a swing high.
Initially I didn’t consider that setup. But it was when someone posted on tradingview that he was selling audusd that I thought of trying it out. Now I know what it means to stick to your rules and never be influenced by others because their rules are different from mine.
Thanks @1odi, I appreciate your bringing that up. Actually I was somewhat greedy too. Decided not to trade today so as to calm my emotions.
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Need to remind myself of that. Always.
never look at what others post in terms of social media, u have to follow ur gut and ur analisys. there s so much misinformation outhere it s crazy. this is just an observation of mine by looking at several charts of yours, and that popped up as a common nominator. hope it helps. oh, and also u might wanna draw support and resist over the pins(wicks) and treat that as an area. i find it so muc easier to have that predetermined area rather then lines all over the place.and go for the obvious, don t over complicate things like i used to do few years back. cheers
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Excellent advice.
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One trader looks at an engulfing pattern and sees opportunity. Another trader looks at the same pattern and becomes scared of taking a trade. What differentiates both traders is perception. The trader who sees opportunity has good memories of taking profits with that pattern. The trader who is anxious and hesitates has had some losing trades with engulfing patterns in the past. Yes, perception and interpretation of the pattern creates different responses in different traders. But that perception is shaped by belief. Belief that engulfing patterns are high probability versus the belief that they always get stopped out.
After realizing the function of beliefs and experience on our perception and eventually our trading, I have resolved not to take advice from just any trader or so called mentor. Everybody has an opinion but few have the truth. I would stick to the advice of traders who have been successful in the trade. Yes, I watch my beliefs as much as I watch my strategies.
The moment we can change our beliefs and attitudes, our perception will change and so will our response to the opportunities the market presents each day.
Lessons learned for the Week of May 11 – 15.
I took only two trades this week. This is because I had lesser time on the charts due to some external commitments. Next week might be even worse. Below are some of the lessons and objectives I learned from the two trades which I am resolved to implement in the future.
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I don’t usually set take profits (TP) points, but I am beginning to think this should be done for counter trend moves because counter trend trades should be expected to be only small price movements. I will implement using TP for counter trend moves in future trades and see what effect it will have on my trading.
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I have resolved to imbibe the practice of thinking first of the risks and losses inherent in a trade before taking it rather than thinking first of the profits and rewards. I would be better off not taking a trade even if it eventually becomes profitable than taking a trade and losing money.
Hoping that next week’s trade will improve although I have some external commitments that would take me off the charts for some days.
Loss. Gold. H6. Short.
Reason for trade entry: The market bias for gold is uptrend and it seems like this is a reversal in trend because the signal is big. But taken with the uptrend, this is a counter trend move. Gold is breaking new highs, so the pattern serves as a resistance in the market structure. The pattern is a three bar reversal pattern which satisfies all the criteria except that it is going counter trend. The uptrend is very strong and the pattern is very large which are good signs. The daily is in a range that is why I really think the counter trend move is not that significant. There is exhaustion on the part of the bulls. I checked and there is traffic in the direction I want to take the trade but I have to watch it around the region of traffic. I have set a sell stop pending order.
Trade management: Order triggered. When a pin bar appeared, I figured it was not strong enough to be a strong rejection of low prices, therefore I allowed price to move further. Now, price has shown that it would go northwards further. So, I have decided to close the position for a loss. Not really happy with what happened but have to accept it.
Trade Result Remarks: Loss. 147 pips. But it doesn’t hurt much because I used good money management.
It was best to stick with the longer trend. It looked like a simple retrace IMO and that red candle with the long wick would’ve made me question that the bears can’t push it any lower basically respecting that 1730 region. Looks like a clean retrace is forming at the moment.
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Yeah, if I had respected that red candle, I would have closed with lesser loss, or even with a profit. I was thinking that the three bar reversal would be significant since the momentum of the third candle in the pattern was very high. Well, this was not to be my trade. If I had taken it as a simple retrace, I would have gone into profit. My bad. I was anticipating gold to do a reversal. Lesson learned. Thanks.
Profit. AUDJPY. Daily. Long.
Reason for trade entry: The market is in an uptrend and pattern is at a swing low. The pattern is confluent with support and an upward trendline. Pattern is bullish engulfing bar which satisfies the criteria for engulfing candles. It is reversing a correction to the uptrend. The engulfing bar is large. There is no evidence of exhaustion on the correction but the engulfing bar looks capable of sufficiently reversing it. There is some traffic just some 70 pips away. There is nothing suggesting I should not take this although the RR is very low. I have set buy stop pending order.
Trade management: Buy stop triggered. Position is on course. Because of previous experience, I decided that after the rejection candle appeared at yesterday’s close, it was wise to close the position for any profit I could get. I also saw on the 4Hr candle that a bearish engulfing pattern has developed and price was just a little above a gap of some days ago. That gave all the more reason for the c**losure. **
Trade Result Remarks: Closed in profit. 42 pips profit.
