Trade 1 of 3
Throughout the morning, it looked as though the UK100 was correcting back up to a 1hr Major Swing which I suspected would act as resistance.
The nature of the price action looked good to me, and upon reaching the major swing, two rejection bars were formed. The bars themselves seemed fairly small and so I waited for a little more confirmation. Immediately after, a strong bearish solid bar was formed and I got in short.
Unfortunately, I was stopped out almost immediately (this was actually the precursor to a very strong bull run).
I don't think my analysis of the market structure was particularly wrong. A less aggressive trader may argue that I should have waited for the trendline to be fully broken before entering, and they would not have been stopped out.
For me though, I'm content with my analysis and reasoning here and am chalking this up as a "normal loss".
Trade 2 of 3
There was a plethora of significant US economic reports and news releases today. It seems that the 15:00 releases are those that did the damage, and price sold off sharply below a week-long resistance that had been respected up to 6 times previously (depending on whether or not you count the retests).
There was a sharp and sudden retest of the support, culminating in what I would term an "Exhaustion Bar" (the big solid deceptively bullish bar). Immediately
after this Exhaustion Bar we had a nice solid bearish bar suggesting a continuation of the sell-off, and I used this to get in.
My price target was the next suspected support, and this gained me a 1.5RR. At my PT, price decided it would be fun to tease me, letting my PT sit inside the spread (Bid was below PT, Ask was above) before seemingly starting to reject. The trade was ultimately closed for 1.35RR.
If I had held my nerve, my original PT would have been hit…and then some. There's no chance I would have held for the entire 2.5RR that the market offered (strategy would have compelled me to close earlier), but I wonder if I would have been so quick to manually close had I not suffered the earlier loss.
Trade 3 of 3
This trade has left me bitter - I closed for Break Even too early when, had I left it alone, it would have been another winner.
I know exactly why I closed early. After suffering the loss with the first trade of the day, I was so relieved for the second trade to be a winner that recouped my losses and put money in the bank. But it was a slim profit, and a loss on this third trade would have meant a losing day, despite all of my efforts and my perceived "comeback".
This is a terrible way to approach the markets and day trading. Each trade should be taken and managed on its own merit, regardless of what the day, week, month, last trade, last two trades etc. have brought you.
The setup for the trade itself was very nice indeed. You can see how an inverse Head and Shoulders was formed at the same support that I used for my earlier trade's
profit target. At the right shoulder, price consolidated for little over an hour before popping up nicely and giving us a higher high, strengthening the possibility of a market reversal. I set a Buy Limit at the top of the consolidation with my Stop Loss below it. The price target was a modest 1:1 as the market was closing soon and
it was very late in the evening for me.
Despite falling much deeper into the consolidation than was comfortable, price began to rise again. However, at the swing high, we saw a lot of buying pressure, with the 5m candle engulfing the previous candle and whipsawing about. I got spooked and closed for Break Even.
The very next f***ing candle took price to my PT.
I would like to say "lesson learned - I'll never let my emotions dictate my trading ever again". I think everyone here can attest to just how much more easily that
is said than done.