Made 3 trades today which end in the red. 2 were forex : AudJpy. and 1 was Whitehaven coal.
Talk about WHC : Whitehaven coal first : I start with confidence level of this trade. What was the confidence level ? I would say Hopeful. Do I have to justify or did it jumped out at me ? Bigcharts on Iphone during lunch. Pattern interpretation : consolidation for another leg up. Could I name the wave ? No. But it did look like a consolidation in a up trend. Confirmed with trend line. Checked hourly chart, nothing sinister like O/B. checked candlesticks on Daily chart. Set a stop and specified a limit. The selling factor was the up trend line. Any doubts ? Well I thought it could be a end of B wave, if that was the case it could be a C wave following suit. Another thing was that prices were trapped within the upper and lower moving averages. At the trade prices was stuck on the upper moving averages. So the thinking was an imminent breakout is possible. However prices fell the 12 cents, 1 cts shy of the stop level. The compelling reason for the trade is really I do not want to walk away on an opportunity. Fear that if I dont take this trade, I lose time to build my my account equity. So becasue I do not want to lose an opportunity I risk or I dont mind losing. Its a losing proposition. No matter how good the risk reward is, the setup was never there or the timing is wrong. The thinking should be changed to, market is illusive it pays to pay with time than money. Always trade with confidence which means confirmation. Dont pre-empt which is a losing proposition. The fear of losing an opportunity will eventually lead to a loss. Let the opportunity prove itself. Dont chase it.