How To Lose Small When Trading BigLosing trades aren't always bad. It's when you don't manage the trade before you lose that can make losing trades bad.
Let me walk you through 4 positions that I stacked week and show you how I avoided losing thousands of dollars and kept the loss to under 1%.
Firstly, it's important to understand that I am a swing trader which means I observe a variety of higher timeframes.
Secondly, I use my own strategy called TMP. It's based around every pullback within the trend cycles so I can trade the continuation of the trend.
Thirdly, This analysis was mostly done on the weekly, daily, 4 hour, and 2 hour timeframe.
Lastly, I aim for more than 2:1 reward to risk trades and for these trades I was sure to keep my losses below $500 a trade.
Trade 1
s3.tradingview.com
This trade was based on the weekly timeframe. The reward to risk was around 4.50 and I knew I'd be in this trade long term. Probably around a month or so, maybe longer.
I risked 0.50% in the trade because I needed to build the analysis and I knew I wanted to stack more trades in case price went my way which you will see me begin to build in the new few trades.
Trade 2
s3.tradingview.com
This trade was based on the 4 hour timeframe. Price made a new higher high on the 4 hour. I set a pending order so when price pulled back it would trigger me into the trade.
This trade was a 8:1 reward to risk ratio. I risked 0.50% on this trade.
Price began to go my way. I felt good about the trade.
Trade 3- Trailing the stop begins
s3.tradingview.com
Price made a new higher high. I had to drop down to the 2 hour timeframe to get a good view of this trade. My feelings on this trade was neutral. I reminded my self that no matter what I'd follow my rules. So I set another pending order and went about my day.
The Reward to risk on this trade was a 16:1.
I risked 0.25% on this trade.
Now at this time I'm sitting at 1.25% of risk in 3 trades.
This was when I decided to move my stop loss on both trades underneath the third trades higher low.
I had just a little risk left on both of these trades but nothing heart stopping.
I was stoped out of the third position for a for around -0.27%. But my first two trades continued to run.
Trade 4- The last stand
s3.tradingview.com
Then price went my way. I realized I wanted to be long again and the entry sat right where I'd just entered my precious losing trade.
The reward to risk was 19:1. Whew! This was the opportunity of opportunities for me this week and I couldn't avoid entering.
So I set another pending order to buy. It triggered and a few hours later, I lost the trade. and my other trades were taken out as well.
I lost a total of $761.
This was only 0.76% loss in my account because of how I managed my trades as price went up in profit.
Had I kept my trades at the same risk(1%) and never moved my stop loss I could have lost $4000 this week.
The key to losing small is to build out your positions each time price makes a new high or low depending on the direction of the trade.
I built 4 positions and I have to say I would do it again. The potential for big rewards to risk got me, and I knew risk 1% on each trade would have meant I'd lose my funded account due to their drawdown rules. I cannot lose 3% in one day. Thats very manageable when you decrease your risk per trade.
Thats what had to be done.
If you don't think you can pass a challenge by decreasing you risk, your rewards aren't big enough.
If you learn anything from the trades I entered this week, the previous statement above is how can lose small while trading big.
Do I still believe NZDCAD can go up? Yes!
As long as price stays above the weekly higher low. I'll build out this scenario again.
Well, I really do pray you enjoyed this recap from my trading this week. I had no other trades on my other currency pair so it was a smooth trading week.
Be sure to like this article if you enjoyed it and found it intriguing. If you have any questions do ask them below.
Much love and blessing❤️
Shaquan
Stacktrade
2023.6.1 Will the stock price of C3.ai weaken in three weeks?2023.6.1 Will the stock price of C3.ai weaken in three weeks?
This chart shows the weekly candle chart of C3. ai's stock from its listing at the end of 2020 until now. The graph overlays the lines between the highs and lows of the past two years, the lines between the lows and lows, and the horizontal line of the strongest pressure level closest to the current stock price! As shown in the figure, the stock price of C3.ai began to rise in early May 2023 and has been closing positive for 5 consecutive weeks. After breaking through multiple pressure levels, it showed a standard form of releasing momentum by jumping short and opening high this week! In the next three weeks, there is a high probability that the rise of C3.ai will come to an end, retreat from the starting position of bearish positions in early April of this year, and then choose a new direction to break through!
AUDUSD - Bearish Shark It might be too early to share the potential Bearish Shark Pattern that is currently in my data, but here you go. If you are looking for some combo, to jump in on the Bearish Flag Pattern on the Daily Chart or to be adventurous on the Bullish Butterfly on the 4-hourly chart, this is probably one of the better setup that give give you a ride downtown.
EURJPY - Bearish Deep Crab HOP LevelA Bearish Deep Crab pattern has touched the D-Point completion at 132.45. Counter Trend traders can consider engaging in the trade.
Conservative traders can wait for
1) Further consolidation and make sure it didn't break and close above 132.77 for a shorting opportunity.
2) Wait for consolidation to happen at 133.60 for a shorting opportunity as a second chance entry for a shorting opportunity. That level coincides with the daily chart bearish bat pattern.
GBPAUD - Another Bullish SharkHowever, this is my prefered bullish shark to engage and there are 2 reasons for that.
1. At this moment, the bearish movement is still strong, it seems like it can go a bit lower before any reversal happens
2. The Shark Pattern that forms at this level coincide with the completion of the Bullish Bat, or better known as Fib3 Bat or Alt Bat Pattern at the 4-hourly chart.
3. The current Shark Pattern is the last level of possibility for a buying opportunity.
Shark Pattern can be a tricky and crafty one so if you are not familiar with it or do not have a coach who are well-versed with it, stay out of this pattern.
AUDCAD - Bullish Deep Gartley, StackI've engaged the AUDCAD trade on the M15 chart 0.9157 on a Bullish Gartley or a Bullish Deep Gartley Pattern to some who differentiate the two setups.
The Gartley Pattern gives me a second entry opportunity of the 4-hourly chart's Bat Pattern for a buying opportunity on the Bullish Bat.
That's why is ok to miss the trade and just be patient and wait for a second chance entry.
If you like this, share the analysis with your friends and community.
EURJPY - Bearish FlagEURJPY has a Bearish Flag setup, even if this play out, this could be a weak setup as it doesn't land on the previous support level.
Nevertheless, it is a great shorting opportunity for trend traders and if you remember that's partly because of the Bearish Shark Pattern setup that I had shared on 15 March 2021 based on the Weekly chart.
If you are still in this trade at least a 290pips run which in fact if you traded it well it should be a 489pips run. This depend on your knowledge on the Shark Pattern.
CADJPY - Head and ShouldersA confirmed Head and Shoulders formation on the 4-hourly chart with an RSI Divergence gives an opportunity for trend reversal traders to engage in a counter-trend trade.
The 1-hourly chart trendline has greatly improved our entry price by 63pips and I've engaged the trade at 87.13 when the candle touches the trendline and has a 3-bar reversal with a bullish engulfing candle.
EURJPY - Bullish Gartley PatternThe Deep Bullish Gartley Pattern on the 4-hourly chart happens to complete at the same level as the Deep Gartley Pattern on the daily chart. If you had missed the 1st trading opportunity, this might be a second chance to engage in the trade on this counter-trend setup.
For trend traders, there is a red slanted line, and that is known as the trendline. It was the same trendline you can see from the link within the tradingview post below, resulting after the market has broken and closed below the sideways consolidation.
CADJPY - Bullish SharkAn emerging Harmonic Pattern could form upon the CADJPY and if it did, it will be quite similar to the trade ideas I've just posted(check the link in TradingView related link segment).
Both have a Head and Shoulders trading opportunity within it, the only difference is that this is closer, provided the Bullish Shark Pattern form up at 87.19 as a trend trading trade.
This setup could be a trend continuation setup when the head and shoulders setup take off.
EURJPY - TrendlineIt's a high chance that this emerging Bearish Shark Pattern won't be happening. So why do I still post this? The key is in the trendline, if you have not read my previous post on EURJPY, there's a Bearish Shark Pattern on the Weekly Chart and I will take all opportunity to short this pair.
USDCAD - Head and ShouldersA head and shoulders formation coupled with RSI Divergence give a strong call for me to engage another shorting trade. A long shadow candle would help me to make that tough decision. On top of that, I still have my existing shorting trade on bearish shark and bearish crab harmonic patterns engaged. Shark Pattern and Crab Pattern are the harmonic patterns that potentially drives lots of profit and at this moment it is at a risk-free zone(I'd shifted my stops to entry).
Which means every pip the market move towards my target(down) I earn double and if the market move against me i lose single.
Trade Ideas Position: EURUSD BatA bullish bat setup with confirmation, trade has already engaged for this amazing setup as a trend trading trade.
I will extend my second target as on the longer term it is a bullish setup. Check the link below on my previous analysis.
If you love to get those level check out link(3)
Trade Ideas Analysis: NZDJPY SidewaysA sideway bounce set up for a perfect shorting opportunity. This will not just be a trend trading trade for me but also a trend-following trade.
Trade has engaged and if you really want to get into our community, check out the link(3) on my signature below.
Don't miss this great trading idea.
Trade Ideas Educator: CADJPY SharkAnother bearish shark set up at 83.81, on this setup, it is potentially a stack trade setup for the higher timeframe for a longer-term trend trading opportunity.
If the market dip further, this bearish shark pattern may fail, however, a bullish ABCD pattern may form 81.70. A candle confirmation is required to engage the trade.