Trading is the game of Probabilities. Lot of retailers are being dragged into markets without proper understanding of RISK MANAGEMENT.
It is NOT as simple as just about clicking that "Buy/sell button"
I am here to share the importance of STOP LOSS and the purpose of writing this up is to share that part where maket tells you that it's above you.
Irrespective of how good your analysis is, Irrespective of how great you're at interpreting the price action. You can still Lose.
Let me explain this trade -
So many cues influenced me to put on this trade.
Starting off with the head and shoulders on the top left corner.
Constant selling pressure + EMA 9 going below EMA 21 + Breaking that neckline - were add-ons.
Missed my entry there. By the time I got back to the screen, Price was straight down to $0.6763.
I Interpretted looking at wide red candle on 18th Jan, that the sellig presure was still intact. Which was even confirmed by looking at the indicators.
As soon as the support left the play, I thought it was a good entry and I went short.
1 Hour later my SL was hit.
Post-mortem-
I think it was not a good entry from the swing prespective. However, would've made a couple of bucks on a shorter time frame.
Where did I go wrong ?
May be I didn't capture the bullishness that was being built, backed by decent volumes at 11:30 PM.
PLEASE RESPECT YOUR STOP LOSS.
It is NOT as simple as just about clicking that "Buy/sell button"
I am here to share the importance of STOP LOSS and the purpose of writing this up is to share that part where maket tells you that it's above you.
Irrespective of how good your analysis is, Irrespective of how great you're at interpreting the price action. You can still Lose.
Let me explain this trade -
So many cues influenced me to put on this trade.
Starting off with the head and shoulders on the top left corner.
Constant selling pressure + EMA 9 going below EMA 21 + Breaking that neckline - were add-ons.
Missed my entry there. By the time I got back to the screen, Price was straight down to $0.6763.
I Interpretted looking at wide red candle on 18th Jan, that the sellig presure was still intact. Which was even confirmed by looking at the indicators.
As soon as the support left the play, I thought it was a good entry and I went short.
1 Hour later my SL was hit.
Post-mortem-
I think it was not a good entry from the swing prespective. However, would've made a couple of bucks on a shorter time frame.
Where did I go wrong ?
May be I didn't capture the bullishness that was being built, backed by decent volumes at 11:30 PM.
PLEASE RESPECT YOUR STOP LOSS.