My losing trades today were both in Alibaba on the 2 minute chart. Disappointing day for which I am determined to learn from, particularly trade 2.
Losing trade 1:
The trade entry above was a bearish engulfing candle at a point where the price action had failed to regain it's opening price. The price had been consolidating but the entry was at the point where this was the second bearish engulfing candle.
The price did actually move down subsequent to this but then the price reversed and sliced through the stop loss that I had put on entry. This was not a particularly bad trade but what should have done is waited for a clear break of the obvious support with volume.
Losing trade 2:
There are a few problems with this trade:
I took the trade while I was on the phone, absolutely unacceptable
There was a break of support but this was on a 2 minute chart so doesn't count on my trading rules
This set up isn't even in my list of trading strategies
I took a bigger position than I should have
The entry candle or the candle beforehand were not an elephant type igniting bar
Naturally this trade failed. What is annoying, and why I am disappointed with myself is because I shouldn't have taken the second trade. There is no shame in a losing trade if it follows your rules and it is in your trade plan. This is unacceptable. I am committing to myself for the rest of the month to consciously not take any trades that aren't in my plan.
My losses on the two trades are detailed below.
Trade Clearly!
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