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ALMOST a good trade! I remember Dr. Pipslow talking about how not all losing trades are bad trades. In this case, the trade would’ve been a good losing trade if not for a newbie mistake. D’oh!

Original Forex Trade Idea: Shallow Retracement on EUR/USD

EUR/USD 1-Hour Forex Chart
EUR/USD 1-Hour Forex Chart

In my original trade idea, I mentioned that I entered at market on a possible shallow retracement. Unfortunately for my trade, the euro bulls found support at around my entry level. Heck, price had even missed my original stop loss by 1 PIP!

Imagine my relief when EUR/USD fell to 100 pips below my entry level and I had a chance to manually adjust my stop loss. Unfortunately, I made a newbie mistake of not being thorough with my positions. You see, I broke my 0.5% risk to two 0.25% positions. As it turned out, I was only able to adjust the stop loss on one 0.25% position. D’oh!

Position 1 (0.25%): +12 pips
Position 2 (0.25%): -102 pips
TOTAL: -90 pips, -0.23%

A couple of things I could have done better. For one thing, I could have closed the position as soon as I saw that EUR/USD had stopped (or at least paused) its downtrend. I could have also been more patient and waited for a better entry level. Last but not the least, I could have double checked my positions, especially since I’m making changes.

There shouldn’t be room for newbie mistakes like these! Hopefully I won’t make these kinds of mistakes again in my next trades. 🙂

XOXO,

Huck

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This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.