Stopped out on this trade for -38 pips. Highly anticipated trade but things did not go my way. Had my stops above the X point of the bat AND also the 3.618 extension of the crab. Both taken out. Oh we.. Again, it's just a trade with a relatively small loss.
I just want to point out AGAIN how important being PATIENT and waiting for some good PA before jumping into a trade just because some pattern (whether it be a harmonic pattern, traditional pattern, wave pattern, etc., etc.) completed. Although the PA did not work out this time, I did not jump in when the butterfly completed. I did not jump in when the crab completed. I did not jump in when the bat completed. I did not jump in when the ending diagonal completed. All of which if I had jumped in when those patterns completed would've cost me so much more pips! I waited and waited and waited for some bearish PA before I jumped in after the bat completed. Again, even having bearish PA does not insure that the trade will work out. Nothing is 100%. But it saved me A LOT of pips.
Don't try to jump back into this trade on a "revenge" trade. Cool down. Relax. Re-analyze. Wait for another good opportunity. Even if this pair does "look" like it will finally drop, just wait. Losing a trade is never the end of the world as long as you stuck by your trading pan and used sound money management.
I can tell you that I'm not out of this trade yet, because my SL is at 1.1510. I am involved in a bullish Gartley on the USDCAD and a bullish Bat on the USDJPY as well (a little bit too much of exposure, but all trades according to my plan), and USDJPY is showing bullish momentum, finally, so I will wait to see how it unfolds. ;)
EverythingForex
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HUGE stop losses! Are you using 1.1510 because of round number? If so, I think it's a dangerous game you're playing. I know it's HARD to psychologically to let go of a trade but you got to do it! It was DAMN hard for me to close my EUR sell trade as well since I had put SO MUCH work into analyzing it and thought I had nailed it! Keep your losses to a minimum. I just hope you aren't holding on because of hope. Hope in trading is dangerous and can blind you to the obvious. And what is obvious right now is that this pair is now in a strong trend trading inside a channel. It's also obvious that it has broken MAJOR resistance. If you are looking at a correlation between EUR and USD, thinking EUR should fall because USD looks bullish, again I would caution you against that. To me, that sounds like justification for staying with the trade. You're looking at USD to save your EUR trade. Personally, I think USD is about to break out into a massive down move after a slight retrace back up. But that's just how I see it. If having such a large SL is within your trading plan, then fine. And good luck. But just make sure to check yourself and be sure you are not trading on hope. Just my 2 cents......
Koryphaeen
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Yes, you are right, but this trade was made based on my analysis and ROE were set as well. I am now 15 pips away from SL and I really do not want to brake my rules. And yes, it's damn hard to let go a trade after a serious time spent with analysis. But that is just not my case here, emotions are not affecting me rather my will to not break my set of rules. This is it, a losing trade is not the end of the world, you said.. :) let's see what happens next.
EverythingForex
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Cool. Not breaking your rules is important. Good luck! If it does break back below that structure, then you might be looking good. If it does do that, I might be getting back into a sell as well. But I'll wait......
Koryphaeen
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Yes, a little double top with RSI divergence...gives hope :) although not as much as I hoped for
Koryphaeen
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I broke my rules though...with this little drawback I quit this trade on break even... :) and it was a good decision instead of a losing one.
EverythingForex
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Glad you got out B/E. Now watch it drop....LOL!
Koryphaeen
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yes, would be a heartbreaking experience...:) I managed to get out exactly at the bottom of that drop and taking into consideration that I was stopped out by a massive drop on the USDJPY and USDCAD as well, I think it was the right decision. Now let's look after other good opportunities :)
PuffingFX
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Thanks a lot, it really helpful.
Waver1
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Thanks for your post. I love analyzing loosing trades as they teach many lessons.
Can you share what bearish price action were you looking at when you took this trade?