My losing trades consisted of 3 trades, 2 of which were not meeting my rules. Each of the losing trades are visualised below in screenshots and the analysis.
Trade 1 - Coinbase
This trade was taken when a bullish engulfing bar was printed for the second time in a row. Technically, this did meet my entry requirements and the trade did move up into being profitable for a brief time before collapsing as part of the wider market sell off. This relative strength disappeared.
I am comfortable that I was right to make the trade, the result is irrelevant.
Trade 2 - NASDAQ
Price had broken what was support on the 2 minute chart. However, at entry I did not wait for the candle to finish and my rules on this are to wait for the candle that closes to be a wide range bar. There was increased volume on the bar but that volume was not translating to bearish price movement.
Although trade 1 was fine what I should have done is got up from my seat and returned and reset my mind before considering entering another trade. I ended up cutting this trade half way through as I realised I had made a mistake in taking it in the first place.
Trade 3 - US Russell 2000
This was definitely a better set up than the previous trade. In my mind I was thinking this is a good continuation trade. One of my rules for a short continuation trade is 2 consecutive lower highs and lower lows. In the chart above this wasn't the case as the latest price action only confirmed 2 lower lows but only 1 lower high. This trade should not have therefore been taken.
The results of my traders were as follows:
We live and learn but I can see that I am very vulnerable to takling trades that are not in line with my trading plan once I have a loser, whether that being a good loser (correct entry) or a bad loser.
The one thing that I did do right was cease trading as I was aware that I was not feeling reset so I walked away from the screen and placed no further trades.
Trade Clearly!
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