Another losing Trade, this time on the DOW – so close to being a winner!
When you suffer a loss trading, your confidence takes a beating and this can cause you to make a mistake and lose. However, in hindsight, the below trade I placed on the DOW was a great entry but my stop was way too tight and I felt that this was probably because of the previous loss on USDCAD which made me more nervous than usual and I put the stop way too close to the previous resistance level at 10915. My stop was at 10920 and ideally at least should be at least 20 points away from the previous high… the price action went to 11924 and kicked me out of my trade as you can see below.
You can see a nice double top pattern which is where I had entered my trade. I had a target of 11820 which, as I write, has been shit which would have yielded enough profit to have undone the previous USDCAD trade and some more.
Still, trading is trading and these things happen… no point crying over spilt milk as they say and I have to move on and keep my eyes open for the next trade… still annoying when this happens though.. ugh!
I feel your pain man! Been there so many times in the past and once even a few weeks ago. Nothing worse then watching a loser turn into a winner and not being involved. I say to print out the chart, hang it somewhere where you’ll see it so the next time you think about doing the same thing you’ll have a great reminder.
I was involved in that very same trade the other day! They are heart breakers!!! Thankfully though the markets always provide for more opportunities, and by the looks of it, this trade might even be setting up for an even more powerful buying opportunity pretty soon, all we gotta do is wait it out!!
i see your trade but there is a some misteke your trade a horizontal band but your trade is breakout. This stop is called fishing. You have to trade breakout and you have to wait close of a candle.
Guys, firstly thanks for the comments..
That’s the way I look at it.. losses are ok so long as you learn from them! They are really annoying if you just get clipped out though..
ForexFox, I also can get a sense of the momentum so strictly you’re correct but at the time, there was a lot of downward pressure compared with upward so I felt it was a good trade… it would have been awesome if it wasn’t for me being pipped out. You have to take a chance with trading sometime and I’ve developed a hunch feel for quite a lot of my trades also but back myself up with the technicals too.