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.