Enter correctly and cut losses correctly. Then wait for the next opportunity and win correctly! 【虎視眈々】
Wow! Stop loss!Even though the direction was correct (;´Д｀)
There are people like that, right?
Yes, that was me yesterday.笑
In yesterday’s pound-dollar trade, the entry direction was correct,
but I got stopped out on a pullback (;^_^A
I think anyone can experience this phenomenon,
there are several causes
I think the three major ones are these.
・The stop loss point was too close
・The entry timing wasn't good
・Market conditions were unfavorable and not compatible with my method
In my case this time,
I entered according to my usual rules, and set the take-profit according to my usual rules,
so the entry and exit were fine.
Therefore, this time it means market conditions didn’t align with my method.
Yesterday’s pound-dollar pair,
up until around 17:00 Japan time, had high volatility and good movement, but
after that volatility dropped and it moved in an unpredictable up-and-down way.
Normally it would be the other way around (;^ω^)
Theoretically, volatility should increase after 17:00,
and the trend should extend!
But sometimes the theory doesn’t apply, which is the market, so
there's nothing you can do about it.
In such times,
you should bravely cut losses,
and wait for the next opportunity!
If you wait, the market conditions will surely align
and your method will work more easily.
Market conditions are cyclical,
so there are times when it’s easier to win and times when it’s easier to lose.
So, if you start losing repeatedly,
take a short break,
readjust your mindset and capital,
and prepare for the next potential market environment♪
In my case this time,
I also had a position in EUR/USD,
so there was still a prospect there,
and afterward I was able to close with a profit without issues,
so mentally and financially it ended without damage♪
So,
I will share the winning EUR/USD trade!
By the way,
showing the losing trade chart to everyone would cause your brain to unconsciously imitate the losing trade, so I won’t do that.
Only the winning trade patternsburn them into your mind,
and use them in your daily trading!
EUR/USD Trade Commentary
First, please look at the 1-hour chart
After confirming a breakout on the 1-hour chart like this, I switched to lower timeframes and narrowed down the entry points.
Then I made the first entry on the 1-minute chart.
While this position was stopped out in the pound-dollar,
I was carrying a drawdown however,
since the stop order was placed far away,
it did not get stopped out.笑
The stop-loss point is here
And the second entry is here
By the way, a selling signal also appeared on the 5-minute chart,
but on this day I was head-down writing the blog, so I didn’t want to think more, so I refrained from entering.笑
Since I had already entered twice, if I could take two profits it would be break-even, which is enough♪
By the way,
when your head is tired,
mentally you have little room,
it’s better to refrain from trading!
There is a higher risk of making odd mistakes or trading emotionally.
And I was able to take profits safely.
By the way, this time I traded only looking at 1 hour to 1 minute charts, but
when you look at the 4-hour chart, it looked like this
Thus, when using the long-term chart to time entries,
it’s better used as a supplementary tool for environmental recognition rather than for timing entries!
(If you trade on weekly or daily charts you can also use the 4-hour chart for entries!)
And this time there was a reason why you didn’t need to look at charts higher than the 1-hour chart.
That reason is here
If you have this much justification within the 1-hour chart,
even if higher-timeframes are a bit questionable, you can manage it somehow♪
So,
I’ve written a lot, but
the most important thing is to wait!
Clearly and predictably,
wait for a rock-solid chart pattern to form!
Like a tiger seeking prey,
watchful and patient.
I just wanted to use this image.笑
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