I took two losing trades Today, they ended up making to their original targets, but with a lot of hesitation and hitting my stops. I think the bottom line is that we did not have enough momentum in the markets this morning. I wanted to blog as soon as possible because I want to capture my thinking while it is hot..
There is still plenty of room for improvement in managing the stops. The new feature (or lack thereof) in the FXCM platform is making me trade a bit worse than before when it comes to managing to stop trades. My goal is to get out of the position once price breaches the previous candle's extreme (high if I'm selling, Low if I'm buying), however, with an entry order just a few pips above it, I hesitate and don't exit when price is hovering the exit. Before I could easily close the trade, now I have to close and cancel the stop entry order. I will keep on working on it this week...
a) Stop Management: C
b) Trade set-up: B
1) Short GBP/USD: We had a break with volume, a retracement and then the continuation. I took the continuation but prices went into a zig-zag consolidation.. Exit at the stop, not at the best level, but at the original stop. The best level to exit would have been right above the red candle that got me into the trade. -1.03% ROI
2) Short AUD/USD: This was really a sub-par trade, notice how the approach was full of hesitation.. Price was not moving with any force. Bad set up to begin with, and the stop was not properly managed. -1.15% ROI
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