Unfortunately, the signal that I encountered from my previous post is a fake-ish bearish signal and the market continues to go bullish.
This was a roller coaster trade as 2 of the 3 trades almost hit the SL then the market plunge few hundred pips, I think it was 30 more pips until they hit my TP the market decided to reverse its direction upwards.
Total Loss: $30 (2%)
Fortunately I had a profitable trade from USDJPY at least I only lost USD 15 this week.
There’s a funny story behind this trade. Today morning when I woke up and checked MT5 through my phone half-asleep, I notice USDJPY daily candle (4th Jan) closed with an epic bullish marubozu candle, while the previous day (3rd Jan) we had a bullish pin bar around 130.50.
I thought to myself this must be a great opportunity to buy! Since we had a bullish reversal candle and a marubozu candle that confirms the reversal signal.
So I placed a buy limit 0.01 lot at 131.700 with 100 pips stop loss and 200 pips take profit.
After placing the buy limit, I checked the chart again “thoroughly” and noticed that the market is actually downtrending and kinda regretted my impulsive decision for placing a trade against the trend. This is what traders call catching a falling knife.
But since I’m just risking like less than 1% of my account, I was like whatever and kinda forget the trade throughout the day.
When I look back at all my trades, surprise surprise my USDJPY order limit got triggered and actually the market when bullish. A few hours later it managed to hit my TP so I bagged USD 15 profit from the trade!
To be honest I kinda surprised this worked out better than I expected. I’m glad I didn’t cancel my buy limit order and just ignore my trades throughout the day.
I’m just lucky to take this trade on a whim even though this trade is not a by product of my actual strategy.
Lesson learned here:-
Don’t think too much about a trade setup and just stick with your gut feeling.
Risk:Ratio is important.
Risk only a small percentage of your account so you won’t get emotional.
Don’t mess up with your trades that you have planned and let the market to do its job.
You might also notice I had a lost trade. That is the result of my previous post. I will cover the results once all the trades are closed.
Date: 3 January 2023 Pair: GBPUSD Buy Stop at: 1.21150 Stop Loss: 1.11950 (60 pips) (-$12) (-0.8%) Take Profit: 1.23550 (120 pips) ($24) (1.6%) Reason: Buy stop few pips above mother bar, candles are above EMA 50 (uptrend). If today candle closed below the mother bar, then I’ll be looking for sell opportunity and cancel this trade.
It’s been 5 years since I maintained this blog to the point the domain name had expired. I’ve been not trading forex for the past years trying to focus on my career.
Previously, I was desperate to make a sustainable income from trading forex. Obviously this won’t work since trading forex is all about keeping a strong mindset which I didn’t have back then due to desperation to make money.
Since I’m financially stable now, maybe this is a good time to give forex another go?