I had previously shared a trade that I took on Oil on the 4 hour chart on the 25 April. The original link to the disclosed trade can be found here.
Well, it was a losing trade as you can see from the screenshot below which shows that it surged through my stop loss.
On having a losing trade it is good to review the original trade again to see if there were any actual mistakes and whether there was anything missed or if there are new learnings that can be used to tweak the trade plan.
On looking at the trade again I can see that I believe that this was a correct entry as per my rules so the real question is whether I should have exited the trade before it had hit my stop loss. Although the price action to the left of the trade entry was bearish, this was looking like a pull back because even further left, out of screen there had been a lengthy run up in price.
I think that the moment there was a wide range bearish engulfing candle at the 200MA I actually should have exited the trade and realised that the probability of this continuing the bullish trend was now a lot lower. Not making excuses here but as a part time trader I am not at the screen all the time so I tend to let my trades run regardless of direction, knowing my stop loss is in place to protect me if it all goes wrong.
If I was a full time trader, would I or should I have exited there? That is the main question, what do others think.
As I explained in my previous post about my turning to becoming profitable I said how I would disclose my full trading account results. In that post it showed that my account balance was £8,419. My account balance, after this losing trade is £8,332 as evidenced below.
My loss for this trade was £87. This is within my acceptable risk for a trade on the 4 hour time frame. I do have a few other trades lined up which I have orders in for. If any of these trigger, let us hope that we get some winners.
The main thing is that I am posting about a losing trade that simply just lost. Not a losing trade on a trade that I should not have executed in the first place.
Clear Trading!
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