I thought I should put my Stop Loss below the M5 EQZ, but I wanted my 2R target to be at Yes. High, and so decided on a tighter Stop just below the 61 Fib level. This turned out to be a bad decision for this trade, and the strength of the bearish move should have been a signal of bearish momentum which would require a larger Stop distance. I’m not sure yet whether this trade would have worked out had I done this. Allow higher timeframe key structure to dictate where to place Profit Targets and Stop Losses in order to maximise the potential for profit.
A big difference here from the bad trades I’ve taken this week. I marked this up in advance, waited patiently for the Entry, used the key structure to dictate where my Stop Loss was placed and took profits below the Inner-Fib 50 level.
Fear of missing out in play here. I could see this was a good place for RESCON and was expecting a retracement in price after abig rise in price. Rather than wait for signs that price was going to turn around and be patient for a good set-up, I took a trade and it turned out badly! Be patient for a good ABC set-up!
I should have cut the trade, as I could see it was not working. Cut trades earlier when price action suggest that it may be turning against the trade.
I really wanted to take this trade, but hesitated and missed out, I think because I had just had a loser. I shouldn’t let these emotions dictate whether I enter the trade or not. Be more decisive in taking trades after marking up a good set-ups.
You can see in this screen I’ve marked up a possible sell at point B of this set-up, and also a sell trade that is currently live at the same level. I did not enter the first trade as I was waiting for a touch of the D1 EQZ which never came. The current live trade has been executed with the new Zone Penetration sell limit order to test it out. I’m not sure the RESCON will hold, and I can see price moving up to the 1hour ema and PW Low soon.
I thought that the confluence of the 5min ema and the D1 Bear Channel would be enough resistance for price.
The context, coming off the D1 Bull Channel midline, should have been enough to warn me this trade was low probability.
After another day yesterday of ignoring my rules and letting emotions get in the way of trading, today I really need to work on sorting that out.
If I am feeling the Hungry Bear Syndrome and havent taken a trade in a while, I must recognise that feeling and take steps to avoid making silly trades.
If I am feeling boredom from sitting at the computer for too long with no trades, I must take myself away from the computer so I don’t make mistakes.
If I see price movement with a good ABC pattern set-up, I must take the trade!
Yesterday we saw price come down off 11600, down through 11300, and then retrace past the 61 Fib level to the 11500. Will price continue to be bearish and start to make Lower Lows, oe will the D1 Bear Channel at the 61 FibCon give support and send price back up towards the Daily and/or Weekly ema?
Hi Joel, I like your morning thoughts and your messages in bold text!
Particularly on the boredom thing, it happens a lot, and mixed with the (now an official term created by you) HBS or Hungry Bear Syndrome it is dangerous!
I decided to just leave my desk and take a break when I feel like that. We both know by experience that if you are not in the right mental state, you are less likely to have winner trades. Just walk away, and come back later when you feel you are ready!
Walking away from the computer is something that I need to force myself to do far more often. The problem I have are my thoughts of “but what if the next set-up is the winner? Or the next one, and the next one, and I’m not here to take the trade!”
I guess that is another kind of FOMO.
Hi Joel
Like you I was close to taking the buy trade at 9:49 but was in sell mode!!
The walk cleared my head and I was lucky enough to spot the M5 Buy MAB at the PW Low when I got home and had sat down for a coffee.
That did me good as I’d had one of those mornings where I passed on two 2R winners, got drawn into a bearish mindset and ended up chasing price at SUPCON – Crazy!!
Alex called it right and had a great buy at the low…
A classic morning of the trades I marked up but didn’t take came in and those I did take didn’t 🙂