Stopped Out Like Yesterday

See yesterdays frustration post! I went short on the GBP/USD with my stop at 1.8951.  The bid high reached 1.8951 this morning before doing the exact same thing as yesterday and declining.  My profit targets would have been hit.  2 days in a row.  The good news is that at least I lost less on this trade than yesterday's.   The bad news is it looks like this trade would have been more profitable than yesterday's.  Right now it would be a 130 pipper. 

Is my stop loss too narrow? Do I need to increase my risk by widening the stop loss? I think I have to re-think my stop loss strategy.  Things could be worse I guess.  My strategy was "narrowly off" in what could have been two profitable trades.  I know it's easy to say "what could have been" but I did get the direction right.  

Popularity: 3%

Trading Can Be Frustrating Sometimes

I don't know if the so called "professional traders" let a losing trade go to their head but it bothers me because after all I am human. 

During the European session this morning, I had a signal to go short.  I placed my stop at 1.9008.  A little after 4am, my stop at 1.9008 was taken out.  The price did not go any higher than 1.9008 and preceded to go back down where it would have hit my profit targets.  There is nothing more frustrating than having your stop at exactly the wrong place!  If I had placed my stop at 1.9009, I would have profited at least 100 pips.  Instead, I lost 87 pips.  This is an $1800 swing against me.

Like I said, I'm human and even if I do eventually trade full-time, I don't see how things like this won't ever bother me.  I also have a hard time believing those who say that a losing trade never bothers them no matter how professional you are.  I'm also not one to dwell on blaming others for my losses.  Someone might say, "the broker took my stop out!" This would be something beyond my control so I don't even think about it.  If I never wanted to get stopped out then either I shouldn't use stops (not a good idea) or I shouldn't trade.  No broker is perfect and I'm not about to blame any unless it is blatantly obvious.  It doesn't mean I won't question their tactics but I won't blame them when I lose.

Even though this trade loss is bothering me, I am not going to let it sabotage my trading.  I am disciplined enough to not just jump into another trade because I have to make this money back.  I think this is more important than anything.  If a losing trade is going to bother you, don't let it carry its negativity to your next trade. 

So this is really a journal entry because I'm entering it while I'm still a bit frustrated by this loss.  This is probably a better time than ever for my feelings on this trade to be recorded.

Popularity: 5%

Trade Journal for USD/CHF Trade

I have created a trade journal video for my latest Forex discretionary trade that closed today with a 92 pip profit.  If you feel like being bored for a couple of minutes, take a look.

Swissie Trade

Popularity: 3%