Losing trade 1 - Gold
Gold has been bullish on the daily time frame for quite some time. I was looking for an optimal pull back in which to then take a long trade. The below trade identified below was classified as a continuation trade.
This chart reflects the price action on the 1 hour time frame. As you can see from the entry point I opened a trade when there was a bullish elephant type bar that had cleared a number of candles to the left.
My interpretation at this point was that this was a rejection of these previous attempts to move the price lower. It doesn't show on the chart but there was an increase in the volume on this candle.
I had checked price action on lower and higher time frames to ensure that there was no immediate resistance ahead, for which there was none. Ultimately, as you can see, the price did start to move higher but was rejected and my stop loss was taken out.
My rules were followed so this is an acceptable losing trade of £46. This is my allowable loss when trading the 1 hour chart.
Losing trade 2 - FTSE 100
My second losing trade of the day was a trade on the FTSE index on the 15 minute chart. Check out the screenshot below.
This trade was based on the bull off 200MA strategy. As you can see there was a clear bull elephant bar that pierced through to clear the 200 period moving average. This was also done with volume.
The other time frames (5 minutes and 1 hour) were checked to see if any clear resistance ahead but the coast looked clear! As the FTSE had been really bullish on the higher time frames of daily and weekly it was always a long position bias that would be taken.
All rules had been followed but today this trade was not to work out. Losing is part of winning and I can't beat myself up if on another day, under exact circumstances, the right thing is to take a position and enter the trade.
I had moved the stop loss mid trade after there was a pull back and accordingly I didn't lose as much as I could have (£33) if I had let it run. Normally I do let trades run but if a pivot is created it would be foolish not to slightly de-risk the trade was the strategy applied.
Trade 3 - AUD/USD
I had overall bearish bias on the AUD/USD and had a price alert set which got triggered. I didn't wait for the economic news related price action to play out. See chart for what happened.
See the massive wick down. As I wasn't thinking properly and being composed I wasn't seeing clearly that there was enormous bullish pressure rejecting the price down. This was an ego based trade as I had my trade alert triggered and believed my opinion that price should go down was more important than seeing what the market was deciding.
I was disappointed with myself for this trade. I should have closed the laptop and allowed myself to reset.
Trade 4 - AUD/USD
I revenge traded. How pathetic. See chart below.
At the entry you can see what i was playing here was a bearish engulfing candle. However, my strategy only allows the use of these in a downtrend not an uptrend. I deserved this not to work out and I am glad it didn't. Looking for any reason to possibly be right is not a successful trading strategy and more importantly, not a strategy that is part of my trading plan.
Trade 5 - Meta
This was a Fab 4 down strategy play. It didnt work out though!
As noted above the price action fell out of the support of the fab 4 box but the price reversed. This play was taken correctly but what I did do wrong was not stick to my rules regarding position sizing and monetary value of the stop loss. One thing I have done following this trade is to change my rules for the future that prohibits me to take this trade where the gap down out of the fab 4 box is significant.
A very unsuccessful few trades. 3 where I followed my rules and no pay off and 2 where I made losses and gave my money to more deserving market participants because I was effectively gambling.
Transparency of these losing trades are below:
In line with my consequences I better go now and pay the value of the losses in charity for the trades that I took that lost and weren't within my rules.
Trade Clearly!
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