This is an example of disastrous entry on H1 TF
GU H1 TF
Trade was entered at the Yellow arrow. The reason the trade was entered was I was already holding an AU in profit and AU started shooting higher during the Asian session.
So I broke two of my basic rules. ( Happens often )
First Rule. One trade at a time. ( this was cause of greed )
Second Rule. Dont Think. Dont assume. ( this was cause of lack of discipline )
So I ASSUMED its a Asian Session mover today and because I was blinded by greed, I THOUGHT that USD pairs will move higher together.
So I was blinded to all the candlesticks prior to my entry point that was clearly showing that prices have stalled.
So I took the trade and it went against me.
Holding 80 pips minus on 10% risk, with AU that was at 40 plus pips but now at BE is not a feeling that I would recommend.
But the thing that helped me to hold is bias. Market Bias and Correlation showed that it was going to be an upper. So sit tight and hold. U can atleast expect a break even trade.
This is the D TF chart for reading bias.
This below is the AU Chart on DTF that confirmed Correlation. Sorry I didnt take a shot of the EU DTF chart showing the same. Or I might have it somewhere but not sure where it is. Either way,
Anyway this went to about 40 ++ pips and the AU recovered to 70 ++ pips and I was happy to TP on both at the same time.
The ideal candle to have entered a buy on that chart on H1 TF should have been the 6th, 7th or the 10th candle from the candle marked with the yellow arrow. Either way, it was a hard ride as GU tends to do.
So what was the loss on this trade?. Well firstly I was a quarter of a hairs breath away from telling myself that this trade was a goner when it hit - 80 + pips and it was touching yesterdays LL. AU was also dropping and it had crossed my BE point. I nearly convinced myself that if I hold any longer I am going to loose more on both GU and AU.
Somehow I just convinced myself to hold on for another H1 candle.
Secondly the GU trade was a great loss because it went against me by 80 pips and gave me about 40. Imagine if I had waited for a better price and entered lower. I would have had atleast 60 or 70 pips on this trade minus the worried sick moments.
I hope this makes good reading.