It’s been a while since I’ve actively demo traded.
GBPCAD. 'Continue reading' to see the result.
This post is all about two failures I’ve been pretending to ignore since the end of September.
The first I would put down as a c’est la vie philosophical moment, the other a bloody fool infraction.
First the unlucky one: On September 29 I saw a nice looking pin bar on the GBPCAD (see thumbnail at right).
Simple set up: Bearish pin bar, in line with the bearish longer term weekly and monthly trends, with a tail dangling up into plenty of space. The pin had rejected a 61.8 Fibonacci retracement level and the 1.63 round number.
Pretty good I thought. Placed a sell order about 10 pips below the low of the pin bar and a stop about 10 pip above the tail.
Targeted the recent (bullish) daily trend line, which roughly coincided with the Fib 50. Might have pulled stop to breakeven at 1.62 and perhaps taken profit on half my position at 1.61.
My best laid plans didn’t come to pass.
As can be seen on the full-size chart, the pair did end up where I envisioned it, but not before taking out my stop on the way to creating a large bearish outside bar (engulfing candle) on September 30.
Another loss to chalk up then, and another 158 pips down.
GBPCAD. The bearish outside bar would have been better. Tough luck.
CONTEXT PLEASE!
The damn fool trade can only be put down to a rush of blood to the head.
See the thumb at left. Nice looking pin bar on the GBPAUD, right? In isolation, sure. Actually it was against the dominant bearish trend.
Suffice to say I should have passed it up as soon as looked at it.
What I did do was set a buy a few pips above and a stop a few pips below.
End result: -186 pips down and another black mark in the loss column.
Still got a lot of work to do before risking real money in this game.
Disclaimer: Nothing in this post or anywhere on this website should be construed as “advice” in any legal sense of the word. (I am not “qualified”!) You make your own decisions.
