Today was a total $hit show. I promised myself that I would only take trades that were in my rules, that is where one of my trading problems is. The results of the losers are shared in the separate post about todays losers.
Only had one winning trade today, see the chart below showing the entry point and how the price action played out.
There are a few problems with this trade. The first problem is that although that entry point for this short position is good, it is not a trade set up that is in my plan so I didn't follow my rules.
As you can see the trade nuked down after entry (great right?) and this is where my next mistake was. The trade had amassed a profit of over 2.5 times my risk, which means I should have taken the profit or at least half of it and take the stop loss to break even. It had been a large move down and I should have capitalised.
Instead, I let the price retrace well over 50% of the drop and sat on my hands all the way through until past when that reversal like candles came into play towards the right of the chart. I exited just above the consolidation pivot.
Despite this being a winning trade, if I am honest I am disappointed I took it and then more disappointed by not taking the profits when I should have. If I had done that I would have been break even for the day even though my trading today was poor. On the bright side I did not get rewarded for a poor performance. That is something I have always been grateful for that I have never been given huge gains for poor work.
The main thing to do next is adjust the rule consequences again. This time, going forward my new rule will be that win values from trades that I shouldn't have entered to be given away in the form of charitable contributions. I have got to continue tweaking these rules and make myself suffer.
Trade Clearly!
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