On Monday 29/02/16 morning, I took 3 trades and all failed. The first one was stop out very fast within a day and I shared it here. On the weekly chart it was obviously a weekly bullish reversal but something happened to USD, some news or what which I didnt know caused the 2 pairs i long to reverse back down again. As mentioned in my failed long EURZAR trade, I placed my stop loss quite big as I dont want to get stop out unnecessary and doesnt think it will get hit as the weekly TF should have a more reliable price action.
These 3 trades really caused me to lose back all my profits earned from the previous trades and shaken my confidence. (-580 pips) and (-130 pips i manual cut loss early) :( . Consolation is that lucky i cut loss early. if i didnt cut loss, the 3 trades went against me even more and will lose even more!
i am going to risk 100 pips for each trade from now on!
Trading Plan:
1. Trade with the trend
2. Trade when there is a price action reversal with the trend continuation
3. Place SL on previous high/low candle or 100 pips max (Limit my loss)
4. No TP. Let market decide when to exit (Let my profit run)
Jimmy,
ReplyDeleteMake it hard for the market to take back our winnings ;)
It's not your exotic currency pairs. Its risk on sentiments and USD weakened against emerging and G10 currencies.
You are trading USD.
You would have similar results if you had shorted AUD/USD, GBP/USD, EUR/USD - if that's any consolation.
Markets sometimes focus on interest rate differentials carry trades, sometimes switch to Risk on Risk off plays.
Stay nimble.
if stop loss we put it as a fixed amt say 100pips that we can afford to lose vs put stop loss at low/high of the trough/peak. sometimes we cannot see the trade develop if we fixed it at 100pips and we will incur high loss if we put it at the trough/peak
Deleteso how ah?