This is the situation.... 'I got married to a trade. It started off so well, we had such fun, we
went higher than we'd every been before. But then things started to get
bad. We both knew we should have ended then but we hung on, hoping that
the sparkle would return. It didn't. It got worse but still we clung on
in the hope of a return to the highs. I couldn't sleep, I was always
angry but I didn't know what to do. I was too embarrassed to end it.
What would the neighbours think? In the end the pain was too much.....'
So it takes a big man to stand up and tell us what you did so that will
help in your healing process plus making fun of it helps too. Amazing
how they turn out to be bitches after you marry them!
Well mate, you are not alone in what you did, neither are you the first and you definitely won't be the last. Remember that it is all part of the learning process. I don't know anybody who has not had to go through this. It took me a long time to learn on this one as I kept doing it over and over.
My problem was with "being right" - I always believed "I" was right and, subconsciously, the market was wrong. I believed I had got my analysis and everything right and that eventually the market would have to turn round and follow me so I kept moving my stop away to give it more room.
It wasn't until I accepted that "I" will NEVER be right and that the only one who is right is the Queen, the market. This is the case of your ego controlling your logic and common sense. Recognise it now, and let it go. From now on, don't worry about being right, in fact, stop worrying altogether. It doesn't matter who is right and who is wrong - the ONLY thing that matters is making money.
So, let's take a closer look at your trade.
First, did you have a PLAN? If not, why not?
Did you measure your risk before you placed your trade? Where would your SL go? How much risk was that? Did you accept that risk? Did you feel comfortable losing that amount? Did you know where the next level of resistance was? Did you have a target?
You entered on a break out of highs which is not really price action, it is more pattern trading, but still an OK entry. I'm not too keen on breakout trades unless they are "add ons". I like my first trade to be based on pure, solid, price action.
Right, you got filled. Then what? Were you dreaming of what you were going to do with all your lubbly jubbly? Did you enter your SL? Where did you put it?
You saw the long bullish bar on which you got filled - what were you thinking at that time? If you didn't have a target or a resistance level identified you should have AT LEAST been looking to the LEFT of where that long bullish bar closed.
Let's assume you were in la la land and missed all that. The next day, chart threw out a shooting star at 8 pips above the previously identified resistance. Did you see that? Did you know what it was telling you? Do you know what a shooting star type candle is and what it tells you? You should have protected your profits by moving your SL to a few pips below the low of the shooting star.
If you were still asleep at the switch, the next day, chart produced a candle which confirmed the previous candle as a SWING HIGH - in other words, we have now moved into a NEW, down swing - YOUR up swing is OVER! You should have at least, closed out your position on the daily close and got out with a few pips
After that, you were in pain hoping that you were right and everyone else was wrong until you could stand it no more.
There are so many things wrong with this trade logically, common sense wise and trading wise except there was nothing WISE about it.
"On the plus side, its over new, I'm ready for my next fling. But it will only be a fling, once I've had my fun I'm gone. "
If this is your attitude, then here is the root cause of your problems. You are treating it as a game, something to play with. Until you recognise this as a serious business and treat it as a business, then you will never move forward.
You have already invested a lot of time, effort and money into trading here and on the other place. Don't give up. Accept you are NOT as good as you think you are and step back a few paces and re-learn BUT this time, with your business hat on.
You can do it. Don't give in. Get back to me with your answers and let's wring the devil out of you.
Well mate, you are not alone in what you did, neither are you the first and you definitely won't be the last. Remember that it is all part of the learning process. I don't know anybody who has not had to go through this. It took me a long time to learn on this one as I kept doing it over and over.
My problem was with "being right" - I always believed "I" was right and, subconsciously, the market was wrong. I believed I had got my analysis and everything right and that eventually the market would have to turn round and follow me so I kept moving my stop away to give it more room.
It wasn't until I accepted that "I" will NEVER be right and that the only one who is right is the Queen, the market. This is the case of your ego controlling your logic and common sense. Recognise it now, and let it go. From now on, don't worry about being right, in fact, stop worrying altogether. It doesn't matter who is right and who is wrong - the ONLY thing that matters is making money.
So, let's take a closer look at your trade.
First, did you have a PLAN? If not, why not?
Did you measure your risk before you placed your trade? Where would your SL go? How much risk was that? Did you accept that risk? Did you feel comfortable losing that amount? Did you know where the next level of resistance was? Did you have a target?
You entered on a break out of highs which is not really price action, it is more pattern trading, but still an OK entry. I'm not too keen on breakout trades unless they are "add ons". I like my first trade to be based on pure, solid, price action.
Right, you got filled. Then what? Were you dreaming of what you were going to do with all your lubbly jubbly? Did you enter your SL? Where did you put it?
You saw the long bullish bar on which you got filled - what were you thinking at that time? If you didn't have a target or a resistance level identified you should have AT LEAST been looking to the LEFT of where that long bullish bar closed.
Let's assume you were in la la land and missed all that. The next day, chart threw out a shooting star at 8 pips above the previously identified resistance. Did you see that? Did you know what it was telling you? Do you know what a shooting star type candle is and what it tells you? You should have protected your profits by moving your SL to a few pips below the low of the shooting star.
If you were still asleep at the switch, the next day, chart produced a candle which confirmed the previous candle as a SWING HIGH - in other words, we have now moved into a NEW, down swing - YOUR up swing is OVER! You should have at least, closed out your position on the daily close and got out with a few pips
After that, you were in pain hoping that you were right and everyone else was wrong until you could stand it no more.
There are so many things wrong with this trade logically, common sense wise and trading wise except there was nothing WISE about it.
"On the plus side, its over new, I'm ready for my next fling. But it will only be a fling, once I've had my fun I'm gone. "
If this is your attitude, then here is the root cause of your problems. You are treating it as a game, something to play with. Until you recognise this as a serious business and treat it as a business, then you will never move forward.
You have already invested a lot of time, effort and money into trading here and on the other place. Don't give up. Accept you are NOT as good as you think you are and step back a few paces and re-learn BUT this time, with your business hat on.
You can do it. Don't give in. Get back to me with your answers and let's wring the devil out of you.
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