My time zone is GMT +8 therefore when i make a trade in the morning it’s the sydney market time. Anyway i entered a trade at 1.25809, TP at 1.25854 and for the entire morning till only the last hour it was almost around the region of 1.256- 1.257.
I was actually pretty patient in waiting but then i kept on closing my stop loss and making it smaller. What occured was that once i set it up to 1.25700 the price crossed that and of course i made a loss.
Only the last hour did the price start shooting up to the 1.259 region and even hit 1.26 which would mean that i would have made a profit but only if i had waited the entire day and night.
Do you guys think i was just a bit too reckless in changing my stop loss?
Would you guys have waited more than 1 day? So far i have not held my trades longer than a day perhaps like half a day around 12 hours.
This is what a trading plan is for. You should be askig yourself these questions BEFORE entering a trade. My advice would be to write down before entering a trade at what point, if any, you want to make adjustments. If your emotions get the better of you and you can not stick to the plan then you need to develop a set ad forget strategy where you turn the computer off and just let your trade ride. If this doesnt work then you need to develop the mental discipline to not adjust trades. If this is not possible then trading may not be for you.
No i think that u waited too long for the price to go against you…Seriously it doesn’t make sense(why did u move your stop loss)…Always properly manage your trades and be ready for any loss i mean don’t give yourself any excuses by moving the stop loss!
Im not going to look @ price now or anything but im just going to say hind sight is easy but if your money manager in your head is screaming to GTFO you GTFO no matter what someone says.
Agree that you should always have a trading plan before taking a trade, stick with it, and not shift your SL unless there are extraordinary reasons for doing so.
Here’s the other thing. You entered the trade at 1.25809, set TP at 1.25854, and your original SL was below 1.257 (since you kept making your SL smaller until it became 1.257). Which means your TP was 4.5 pips and SL was at least 10.9 pips. Not a good trade at all in terms of risk:reward. A trading plan could have made this obvious to you.
Yes now that you mention it you are correct. Did you know i actually didn’t even bother to calculate what my stop loss and take profit numbers were in terms of pips and see that the sl and tp were not in a good proportion and just merely put in some random numbers due to gut feel but that was yesterday and i have already changed this and now i put in a 1:3 risk profit ration with sl at 20 pips and tp at 60 pips.