Are you confident ?Another Forex Trading Snack.
I posted up a earlier a trade that failed me and my original setup. Sudden volatility struck fast and hard!
Ok, I will admit it, for a moment my emotions were crushed. I went from trading my setup emotionless, to just about packing it all in for the day!
What changed?
A bit of self talk changed my fear of having just lost, to playing the statistical odds of my setup again.
The first top red arrow was my failure due to increased and sudden volatility. My second attempt was the lower second red arrow by the pink trend line. Both the first and the second order was to sell AUDUSD and both orders were almost at the same price & stop zone.
Some might say why did I try it again?
Sure volatility was still in the market, but it was my original setup along with the 21 SMA ( black line ) that gave me the confidence that after almost climbing for a week straight, this one was ready for a pullback. In addition to that increased volatility didn’t break the 21 and hold it, but price action went right back to the lower channel trend line. My thought was if it breaks lower and holds the break, the 21 would bend lower and hold the buyers at bay until even the buyers of the past week would take their profits, thus adding to the down side pressure.
In early Asian trade and as I type, my trade looks fine, stops are at break even (BE) and if I got out right here and now—what once was a 30 pip loss is now a +20 pip gain if I took it off. Because my stops are at BE should they get hit there would be zero effect to the account balance as it sits now. If that happened I’d take a 30 pip daily loss on these two trades. Not a bad loss average if that happened.
Because the odds are in my favor, I’m leaving it alone till early Europe’s market open to see if it drops farther. Because if it drops farther I could take a 20, 30, 40... you get the picture. I can finish my trades with making more then I lost to begin with. That’s adding to my confidence and positive consistency in trading.
If this happened to you earlier, would you have had the confidence and or conviction to try again after getting stoped out suddenly by volatility??
Would you, or do you keep statistics on trading setups / trade plans or strategies, in order to give you more convenience and or more consistent results?
Would you have entered the trade the second time changing entry, stops, or just did as I did , same everything?
Finally do you trade Every time you see your setup as your strategies say are the best to trade, or do you second guess the setup—only to see at times the trade leave without you?
The goal is self improvement! By me posting this it drives the point home in my mind that I need reminders too.
Hope this helps in a small way in your trading journey.
In trading you either make dust or you will eat dust!
Al the best.
This is not trading advice. It is however a real experience in my trading day. Off to the next trade!
