Lesson #5 -I made 40 USD with my first trade but I am not happy￼
Let’s go back yesterday. After a quick setup, we took the decision to open LONG (means BUYING) in USD/CHF with a clear trend in H4 « replicated » in H1. TakeProfit was set to 66 pips, StopLoss, 100
Seeing that we had a resistance during the forecast journey, we decided to look at the trend when we will be close of the resistance.
It’s what I did. But i was not able to be a front of my computer waiting for the crossover of the resistance then I decide to move down my take profit just a little before the resistance.
I hit my take profit at 38 USD of gain. (+38, first trade), +0.3% of gain in one day. OK
But the USD/CHF continues to raise and my initial take profit would have been reached too in any case. I have the feeling to have lost around 30 USD additional gain.
Nice, you are facing the first et permanent feeling you will have trading.
You will never exit right. Too soon and Too late, never at the right time.
You will be always frustrated. You will be then a lone wolf frustrated. Nice ?
It’s why you can’t play a lot after gaining 0.3% in one day, you need only to rest.
Being a front of the computer, the temptation would have been to place a new order « LONG » after the resistance was passed. It’s not a good way to proceed.
You took a decision « yesterday » : to mitigate the risk around the resistance and you did it. Basta. It’s over. You would not have mitigated the risk by opening a new position then playing a second time in a 24 hours period while you did not have planned it.
You don’t do what it’s not planned to do. This has a name : discipline.
Today I have been disciplined and I got my 38 USD gain back. +0.3% it’s good….if I able to make 0.3% by day during all the year, I will be happy no?
Your only concern now it’s to find a new opportunity respecting exactly the same pattern :
– A clear trend in H4
– An opportunity to enter in H1 in the same trend
– TakeProfit : 66, StopLoss : 100
This time we will add a new check: you will choose an instrument with no news tomorrow.
Indeed, we have an economic calendar which tells us that tomorrow we will have news about some financial data. We don’t care about this data, really don’t care. Don’t go reading something about it, we don’t care. The only concern is the impact to the instrument.
If we have a news tomorrow around one instrument, we don’t play with it. That’s enough clear?
Then watch for the opportunity and watch the economic calendar. One time again, don’t try to understand the economic calendar, it’s only time lost. You could do a PhD on it later to be seen as a smart guy but for the moment it will only lose you. You don’t have to understand why one instrument has a trend: you look at the price and you see the trend, don’t think beyond. You are an animal trying to eat not a biologist trying to understand why.
You can find the economic calendar going here : https://www.mql5.com/en/economic-calendar
This calendar is only here to tell you to avoid to play this instrument this day when it’s major events. On the 18th of April, it’s the CAD the more impacted, then you will avoid to play with CAD in any crosspair. Simple no ?
For the next trade, i see with AUD/NZD a good opportunity in BEARISH (SHORT) then SELLING respecting our trading plan.
We sell at 1.05836
We place a StopLoss at 1.06027 then a very low one just above the last peak at left. Indeed if the new summit is reached with a bullish trend in the next(s) hour(s) it means that we are more or less dead then it’s better to close with few pips of loses.
The takeprofit will be divided in 2 trades : I open 2 trades of 0.10 each, with stoploss – the same – 1.6027 and TakeProfit : 1.0544 and 1.05035
My risk is 1.06027 – 1.05836 = 43 pips x 2 (0.20) = 84 pips then i am little less than the 100 pips we need max
My hope of gain is 1.05836 – 1.05440 = 39 pips and 1.05836-1.05035 = 80 pips then 119 pips !
I am risking 84 pips to gain 119 pips.
Tomorrow, i won’t watch the screen . I let now the TakeProfit and/or StopLoss been hit. I don’t see any point to look at from now.