You were caught in a “bull trap” by the large traders. That was their intention, to sucker you into a sell, then push the market up & hit many of the trader’s stops. Then they took their profits all the way down.
If you read the book
[B][U]
How the market makers extract millions of dollars a day & How to grab your share [/U][/B] by Martin Cole
It is under $10.00 at Amazon. It should take between 2 & 3 hours to read.
It will give you a better understanding of how this market works.
Talking about market makers. Today 2 minutes before the close i had gbp/usd short , i wanted to close the trade, but i got angry at the broker. Within that period the spread went as high as 12 pips. So i thought, later for this , i’ll wait until next week. I will not pay that spread on that pair. If i would have had a tight s/l i would’ve been taken out. That is another trick the market makers have, i know better.
But you said it’s 100% supply and demand. You in fact corrected someone else that called them “Technicals”.
;)[/QUOTE]
It is 100% supply and demand, nothing else moves the market except for supply and demand, fundamentals only create supply and demand, technical setups only create supply and demand, if every trader and algorithm had the day off on a NFP Friday and results came in double what consensus said the market would not move because of a complete lack of supply and demand!
[QUOTE=“Minotaur;513300”]
Entering a cash out zone in range conditions is a sure recipe for disaster.
They are running the range top and bottom for stops so they can get their offers/bids filled and the clueless holding the bag in the cash out zone - YOU!
As a rule of thumb - if you want to trade under range conditions - you need to identify the range top and bottom.
You enter long at the bottom and you enter short at the top.
Your stops are placed OUTSIDE the range.
You cash out in the middle.
Translation:
Top of the range c9410
Bottom of the range c9330
Range 80 pips
Cash out zone c9370
Check WHERE you entered…bang on in the cash out zone.[/QUOTE]
This often happens with me also, I am struggling in getting this ratio straight where I like it to be good for me. Currently I keep on adjusting both TP and SL with every move of the market.
SL/TP ratios is something that I have given a lot thought - this is MY take, it applies only to me and how I like to trade.
Back 13 years ago I was investing in stocks, I worked without SL and was heavily in the market during the Nasdaq crash - so I know well the value of a SL.
My trading since those days has been ok, but I often felt it was being held back, instances such as described by the op were common, my analysis was often correct, I was well aware of the tech levels etc, yet my sl would get hit, then price would cheerfully go where I had anticipated - I was often right yet lost.
After much thought I finally recognized what was wrong - those two demons that confront many traders - fear and greed.
Fear, I felt was being represented by my sl, the greater the fear then the tighter the sl.
Greed was being represented by my tp, the greater the greed then the wider was my tp, indeed often no tp.
The teaching of rr being at least 2:1 was gospel, any thought of departing from this was heresy in my book.
Then I thought long and hard about that too, what if I could achieve a win rate that made that mantra meaningless, what if I focussed on each individual trade, had a smaller tp, put the sl out of reach of any manipulation and forget about rr, let the win rate take care of that.
Now I have conquered fear and greed.
