My losing trades today consisted of 2 trades on the USD/JPY on the 1 minute time frame. The first trade was a long trade and the second losing trade was a short. I did have a third trade that more than covered these losses. Click here to see the details or read on for the losing analysis.
The first losing trade is shown below:
Overall the USD/JPY is in a very strong uptrend. The day before there had been a significant sell off but nothing that broke any structure and technically the trend is still long.
This trade above was an attempt at a continuation trend after a big move up. However, this was a bad time to take a trade because the galactic bull elephant bar was a volatile move and I should have waited more time before considering opening a trade.
I broke my rules. Although the pull back looked like it was ending with a hammer candle followed by a strong bullish bar (my entry), I was not taking into account the significant previous price rejections above and a 200 period moving average. Price took a tumble to the downside, as you will see in the chart showing the details of my second losing trade. I broke the rules and I deserved the loss. Simple.
The second losing trade is shown below:
For this trade I flipped my bias on the basis that I would take a scalp trade because as stated in trade 1 the long term bias is an uptrend.
The trade set up is actually decent because a support level was not only broken albeit without significant force but it did get retested wth 2 subsequent candles, an indecision candle and then a shooting start type candle which closed.
The entry was actually fine but what happened was that price then started to reverse after my entry and went back to retest the support area and I had foolishly been spooked and moved my stop loss lower and I got stopped out. Naturally, as you would expect the price then starting ripping to the downside again. I broke the cardinal rule of moving my stop loss too early.
To be honest, this trade again was not considered as any of my trading strategies and I actually shouldn't have taken it.
Trade clearly!
Comments