My losing trades on this day consisted of a failed trade on both Ethereum and Worldcoin. I have managed good momentum of winning trades recently but the losers come as part of the process and I document these trades on the basis that these are just as important as winning trades, if not more!
Let us dive into the details of these losing trades.
Ethereum had been consolidating in a range after having moved down after some pumpy crypto action. Market structure overall was still bullish so I was looking to enter a trade when an entry signal was given to me based on my trading strategies and rules. In this particular case I was using my Heikin Ashi trading strategy.
The price action printed an indecision Doji candle followed by 2 consecutive candles, where there was no bottom wick. The price after entering did actually continue moving to the upside but I was ultimately stopped out at my stop loss exit.
If I had to take this trade again based on this set up I would. That is the most important fact about assessing the success or not of this trade. Ultimately my result was as follows.
The next losing trade was on Worldcoin. The set up was as follows, as shown below.
For the Worldcoin trade I could see that price action overall was bullish and I decided to enter a long trade when there was a bullish engulfing candle of a previous bearish candle at or near the 20 period moving average.
You can see from the marked stop loss that this trade failed and realised a loss for the amount I had set my risk at. I don't think this was the cleanest trade because there were prior candles that showed the entry level I took was resistant to bulls pushing the price higher. I took the trade because it was a trending market.
Thinking this through in cold light of day I will tweak my rules to show that when the price is temporarily going sideways then a bullish engulfing candle shouldn't be taken. The results were as follows.
Trade Clearly!
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