EURUSD_How NOT to trade_Reflection of last week_2/12-16/18
Last week was not good as I was on the wrong side of USD plain and simple.
On Friday - two weeks ago I opened a short position on EURUSD during what I considered a counter trend pullback. Unfortunately EURUSD decided to resume trend and run higher Monday through Thursday. Stoploss taken (see attached.)
By Thursday I was confident I had gotten my head on straight and identified a 4 hour sell signal on cad (by shorting USDCAD I was positioning long EURUSD. So I shorted Cad about 35 pips from the low, only to watch EURUSD fall roughly .77% Friday and USDCAD ripped higher to take my second stop loss of the week (see attached.)
I ignorantly felt like could profitably trade the counter trend pullback on EURUSD, only to watch THE EXACT setup I'm suppose to be watching for, a beautiful WITH trend reversal signal perform perfectly. But in that moment I refused to trade it because of my non-faithful short side bias. Not pictured is the perfect daily 10-10-20 slow stochastic that showed extreme prejudice for trend continuation.
By the time I had gotten my head on straight and accepted EURUSD's ability to run higher the move had already been made. Price hovered at the top of the range where I should have been taking profits.
The pain is punishment for lousy mistakes. Good news is I only risked 1% on the first trade and .5% on the second per trading plan detailing hurtful losses.I hope my followers my learn from my mistake. I also want to sheepishly comment I had been testing out new indicators and charts that I was unfamiliar with. When I pulled up my old style chart with the strong fib levels it became obvious how stupid this mistake was
Not going to rattle my cage. I'm playing these markets. Not the other way around....
If you found this lesson useful or thoughtful Likes/Comments/Follows are much appreciated!
Disclaimer: Oanda data shown. Material is educational only. Trade at your own risk!
On Friday - two weeks ago I opened a short position on EURUSD during what I considered a counter trend pullback. Unfortunately EURUSD decided to resume trend and run higher Monday through Thursday. Stoploss taken (see attached.)
By Thursday I was confident I had gotten my head on straight and identified a 4 hour sell signal on cad (by shorting USDCAD I was positioning long EURUSD. So I shorted Cad about 35 pips from the low, only to watch EURUSD fall roughly .77% Friday and USDCAD ripped higher to take my second stop loss of the week (see attached.)
I ignorantly felt like could profitably trade the counter trend pullback on EURUSD, only to watch THE EXACT setup I'm suppose to be watching for, a beautiful WITH trend reversal signal perform perfectly. But in that moment I refused to trade it because of my non-faithful short side bias. Not pictured is the perfect daily 10-10-20 slow stochastic that showed extreme prejudice for trend continuation.
By the time I had gotten my head on straight and accepted EURUSD's ability to run higher the move had already been made. Price hovered at the top of the range where I should have been taking profits.
The pain is punishment for lousy mistakes. Good news is I only risked 1% on the first trade and .5% on the second per trading plan detailing hurtful losses.I hope my followers my learn from my mistake. I also want to sheepishly comment I had been testing out new indicators and charts that I was unfamiliar with. When I pulled up my old style chart with the strong fib levels it became obvious how stupid this mistake was
Not going to rattle my cage. I'm playing these markets. Not the other way around....
If you found this lesson useful or thoughtful Likes/Comments/Follows are much appreciated!
Disclaimer: Oanda data shown. Material is educational only. Trade at your own risk!
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