Today it started to go down, than up. I shorted it, I thought that highs of 635 will hold and that it will head lower like it started.
There were not much action so I hit the shower, when I got back position was 20 pips in the red. I reshorted. I trade with smaller position now calculating in my habit of averaging.
Yes it's trending up, but those moves don't look like nice regular trends that I'm used to see, It's funny movements now.
In the end when it broke barriers at 650 and stalled I got wise (or stupid) and doubled down with break even point at 643.
I planed to hold it if it went down really fast. But it didn't. Eur/usd was the slowest pair in that reaction. So I got out.
Another one of risk a lot break even trades.
My fault is that I don't trade technically oriented but intuitive or better to say reversal fight the trend style.
This look like ideal setup for long 6 candles after my first entry for my hindsight learning.
It's my fault that I don't look bigger picture.
It's pretty embarrassing to show all this, but it can just help me learn to trade better.
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2 comments:
hair pulling day, huh? well, i gotta say, if i'd been in the same situation, i wouldn't have come out of it with my pants still on.
i just started reading your posts and i find your strategy interesting -- where you may get into a losing position, then you'll buy/sell more in order to save some of your losses (evident today). for me, with the use of stop-loss, a day like your's would'a killed me. what you did today, has that ever killed you? the doubling down? would you go into why's/how's of it?
also, i'm curious why you've chosen the ema and wma you use? have you chosen it specifically for the 1M?
Averaging or doubling down for sure can kill you, it killed me many times. I don't like that in my style of trading, but I'm so inclined to reversal type setups and it's so easy to save yourself even to make money with that kind of trading. I got to say that I don't do that always. First when I started trading I was religious about getting out on my stop, I got killed by taking so many stops and moving stop loss level and averaging was born.
Sometimes I use it because I believe that I can gain something with that, sometimes it's pure bad emotion driven trading. Today market movement and up movements just didn't feel like it's strong up trend day. It didn't look like it's slow up trend day. Than by my experience averaging can work because reversal will come.
With reversal kind of trading through time you get the feel where is ok to enter expecting reversal. Some kind of reversal usually occurs but question is are they big enough in size.
I personally would like to trade trend plays also but psychology of them is hard for me to implement.
Regarding MA-s, they are just part of my screen that I always use on all time frames, 20 is very useful as support resistance indicator and 65 is here after I read a long time ago about it in Alan Farley book Master Swing Trader.
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