Tag Archives: tradingmistakes

USD Forex Trading Mistakes of The Day

USD Forex Trading Mistakes of The Day

Another day, another mistake and more learning.

I took a trades based on 2618 shorting style. I made 3 trading mistakes today:

USD Forex Trading Mistake of the Day
USD Forex Trading Mistake of the Day
  1. First Trading Mistake was that there was psychological price 1.3200 level just above which I should have included in my stop loss calculations. That would have meant bigger stop which leads me to second trading mistake.
  2. The second trading mistake was to wait for a confirmation in the zone to take an entry as stop levels were supposed to be high.
  3. Third mistake is the one which caused all this mess to start with. I missed/ignored the fact that there was a news expected on USD today.
    FriOct 23 9:45am USD Flash Manufacturing PMI

All these are there in my trading plan so moral of the story again is remember to remember your trading rules. One deviation from it can be costly.

-TradeYodha

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Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
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Why Rules and Trading Psychology Matter – AUDUSD Example

Why Rules and Trading Psychology Matter – AUDUSD Example

I wanted to post a review of my previous AUDUSD trade but I thought it will be a good post to record my experience on that trade. EURUSD trade last week humbled me and reminded me of my mistakes which I am glad that I did not do in this AUDUSD trade.

I initially planned for this trade as below:

AUDUSD Bat Gartley Patterns for Long Short Forex Trade
AUDUSD Bat Gartley Patterns for Long Short Forex Trade

But it turned out as below:

Why Trading Rules and Trading Psychology Matter - AUDUSD Example
Why Trading Rules and Trading Psychology Matter – AUDUSD Example

Soon after entry, the market started showing bearish signs but my stops were in place with acceptable losses so it was ok. The market then turned in my favor. And then again turned bearish. It was going completely against me.

It was quite a roller coaster in its behaviour. Honestly at several times, thoughts of cutting my losses and getting out of market for a little profits came to me. But then last week’s lessons reminded me to stick to my plan and rules. Once a trade is in, it is in. There is nothing I can do to control the market. I can only work with it. So I stuck to my plan and accepted that it will probably hit my preplanned acceptable stop loss.

I guess for my patience and discipline luck also favored me by few pips. The market came very close to hit my stops but due to spread it did not.

The out come was great. It hit my first target making this overall trade a break even now and is still going strong in my favor.

Trading Psychology is the biggest factor and that is what differentiates Winning Traders from Losing Traders.
-TradeYodha

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Leave a comment: I would love to hear your thoughts, suggestions on this topic. Please leave a comment.
---------------------------------------------------------------------------------
Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
---------------------------------------------------------------------------------

Today’s Forex Trading Mistakes Journal

20-October-2015: Today has not been a profitable day however it has been productive. I was lost and today’s Forex market humbled me once again and reminded me of few trading mistakes that I made on my way.

For some reason I have been interpreting market signals in contradictory ways. Instead of following rules and patterns I was all over the place. Tried to take 5 positions on NZDJPY, AUDCAD, GBPUSD and AUDUSD. All of them were either cancelled or failed. So a lost a total of 122 pips loss. So approximately a total of 86 pips. This has set back my profit that I made last week by a bit. I am back to 350 pips of profit so far in October so far.

Reviewing today’s actions I found my trading mistakes:

  1. Several of my positions today were based on Advanced Patterns. Every time they were complete and I took a position, they started to go against me. I should have followed the plan and rule to let the market play. But I closed them prematurely only to see that that I was right and pattern did work.
  2. SMAs where all tangled up in few trades. I kept on confusing them with patterns and structures. Instead of following just one thing I tried to mix them.
  3. Did not use RSI as it should be used. Must use them for to read them overbought, oversold and divergences correctly.
  4. Paralysis by analysis created biases. Switched between time frames to justify biases. Must stick to one Trading time frame.
  5. Too much of screen time created emotions causing moving stops. Once trades are in, there should be minimal screen time.

Another day of mistakes and position losses but another day of great learning! Nothing lost only gained!

-TradeYodha

 

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Leave a comment: I would love to hear your thoughts, suggestions on this topic. Please leave a comment.
---------------------------------------------------------------------------------
Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
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