My winning trades consisted of a trade on the NASDAQ and a trade on Alibaba. The NASDAQ trade was as follows:
This trade did work out well yielding me a profit of $220. However, the reason why it was profitable is because I moved my stop loss higher mid trade. The original stop loss was placed above the top of the M pattern that sits between the two lines.
Rightly or wrongly, after the trade started to reverse to the upside I contemplated as to whether I had actually given this trade enough room. The way the market works I knew there was quite a high probability that it would probably take out my stop, which was likely positioned around the same place as a vast number of traders. Therefore I moved it up to a previous area where the price was trying to hold.
Despite this being a good trade financially the clear lesson to learn here was that I really must change my stop loss positioning on the very small time frames. This trade actually should never really have been taken. Technically it was a successful trade but my rule is not to go short when on the high time frames the price is in an uptrend. Maybe after I achieve mastery I might be in a better position to take such trades but I don't want to at this time.
The other trade I took was on Alibaba on the 2 minute chart, which was successful but not as successful as it should have been!
I entered on a clear breakdown from the support and placed my stop loss above the pivot high. After some time the trade retraced and after the retracement I moved the stop loss to above the new pivot high. I was squeezed out later as indicated on the chart. This resulted in my loss being only $20 where my profits would have been well over $100 had I let the trade run.
As noted today I had 2 trades and the errors on both were related to stop loss position. The first trade I should have taken a smaller position size and had a more sensible stop loss to allow movement. The Alibaba trade taught me that my rule of not moving stop losses at all until after some profit taking punished me. Even on winning trades I am breaking my trade management rules and I have to work on this.
Trade Clearly!
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