My losing trades - 18 Jan 2025

Losing on a trade doesn't have to be a negative. In fact, if you treat losing trades as a negative it will impact your future trades. The question is whether you should have taken the trade or not. This is what I analyse below on my SUI trade.

SUI had been a very strong uptrend. On the 4 hour chart the price action had been firmly hanging around the 200 period moving average for quite some time. After a pull back the price not only moved back to the 200 SMA but also the 20 SMA.

One of my trading strategies is the narrow state strategy. Effectively, if there is a bullish (if in uptrend) elephant bar that happens off a narrow state then I am to take that trade and set the stop below the bullish candle.

In this case I took the trade because the candle was printed off a price point that was previously resistance. If you look to the left you can see previous times where at this entry point price was actually rejected. This was a good set up.

Unfortunately the price ultimately took off and quickly got sold off and took out my stop and the results are below.

Of course, when you lose it can be disappointing. However, this trade made me happy because if this set up presented itself to me again I would take it. That is the key question to ask yourself after each trade.

Trade Clearly!