Affected by what happened on my first trade (see below), and conscious of the profit I left on the table for taking my 2R quickly despite what it was a huge rally, I was observing how price wanted to retrace and therefore took some sell trades. When it comes to risky trades like those ones, as soon as I am in profit (+0.5R or more) I move my stop loss to breakeven to make sure that I am not risking anything.
The firs two trades (left side of the chart) were bad trades, taken at levels that didn’t reflect what was going on and therefore I closed them as soon as I could.
The third trade, risky as it was (it involved moving the stop loss above the bullish channel – not recommended), offered me +2.5R that I didn’t take, having in mind that earlier on the day I had closed a trade too fast, it then went right to my stop loss (at the breakeven level to avoid losses), took me out and resumed the downtrend reaching aprox 3.5R of profit in just 5 minutes..
Honestly, that last movement I didn’t even see it, as I turned off my laptop as soon as it let me out of the trade for -0.02R!
To be fair, and this is the lesson of the day, if you are not taking your 2R at least risk a little bit and place your stop loss above the mid channel and the 1 and 5 minute moving averages that were crossing at that moment, ensuring that there was some resistance between your stop loss and the current price.
Great way to start the day!
Right after the London open, I was waiting for price to touch the M5 moving average before continuing the uptrend shown since the beginning of the session. As soons as it approached that level, I entered into a trade that went more than half the way towards my stop loss but quickly turned into a great trade.
I was expecting the day to be bullish, but I also expected a retracement once it crossed my 2R, and as the trendline that I added beforehand shows exactly how price respected it for a couple of minutes, I decided to sell in order to buy again if it was going to get closer to my original entry level. Guess what? It never did.. The last candle you see on the screen turned bullish in those 47 seconds left, and after that it was all upside, so much so that I could have done 10R on that trade without significative retracements!
Hi Alex,
Great first trade!!
The daily chart over the last 2 days had been suggesting a bullish day back up into the Daily EQZ, had I been home I’d have also taken the M5 Buy MAB.
I dream of riding these type of trades for +10R, one day soon it will happen 🙂
The 3 sell trades as you note were low value with no real retrace (B-C leg) so you were vulnerable to being stopped out before they went in your favour. Well done on controlling your losses.