We have to talk about the losses to. Let's talk about it. From now on I am going to try not to be so claustrophobic with my stop losses. I've managed to cut my loss short with
GBPJPY
. Even though it was less than one hundred dollars, we are learning not to risk more than one percent, with that being said, we are going to cut our losses if we reach a tenth of a percent. But wait, do you happen to hear how this sounds? Quite stingy? We have to allow currency to flow. Why it's called liquidity? This four-hour order block is an area of "liquidity", and price loves to ride the waves here. So now we know price likes to flow in this river, why set a stop loss inside this area at all? With a 1:3 risk-reward ratio. If you lose three trades and win one, you break even. In my case, I made six total trades. I am 3-3 for the week. My first trade was this trade, I tripled down on my work, but one tiny, minuscule, detrimental problem, I set my sell stop at the wrong time. I only trade London for my Forex pair. I'm a night owl sometimes. Unfortunately, I also set my stop loss too tight. As a part of my risk management plan. I must set an actual stop loss for my trades upon entry. It is a psychological reason why I do this, so I do not get lazy, and "forget" to use it. It is a tool, in the toolbox, use it. While all of that is great, I encourage you to set stop loses above the four-hour (or wherever) order, so the river of "liquidity" can flow into the ocean.
In conclusion, I'd like to share my trading journal entry...
DID I FOLLOW MY PLAN?
No, although stuck to my 1:3 risk-reward ratio, and maintained a 0.25 lot size,
I set my sell stop in the wrong session. (Tokyo)
You must ONLY trade London. (According to the trading plan.)
WHAT DID I DO WELL?
1. Identified 4H Orderblock
2. Set A Stop Loss
WHAT CAN I DO BETTER NEXT TIME?
Set A Wider Stop Loss Outside of Orderblock.
Set My Sell Stops, in the correct session, that is suited for my trading plan.
WHAT DID I LEARN?
DO NOT BE STINGY WITH YOUR CURRENCY
DID I PREPARE PROPERLY?
NO, my job is to buy and sell pairs at a certain time, efficiently.
I entered the market too early, and it cost me -0.3%, making today's earnings only 0.75%.
WHY DID I TAKE THIS TRADE?
I see a potential Order block being filled.
GIVE ME A BRIEF SUMMARY IN 1-2 SENTENCES:
I'd rather be on a surfboard, than a cyack when the wave comes. Allow yourself to stretch your arms with the waves freely, and Ride it to the shore.
GBPJPY
. Even though it was less than one hundred dollars, we are learning not to risk more than one percent, with that being said, we are going to cut our losses if we reach a tenth of a percent. But wait, do you happen to hear how this sounds? Quite stingy? We have to allow currency to flow. Why it's called liquidity? This four-hour order block is an area of "liquidity", and price loves to ride the waves here. So now we know price likes to flow in this river, why set a stop loss inside this area at all? With a 1:3 risk-reward ratio. If you lose three trades and win one, you break even. In my case, I made six total trades. I am 3-3 for the week. My first trade was this trade, I tripled down on my work, but one tiny, minuscule, detrimental problem, I set my sell stop at the wrong time. I only trade London for my Forex pair. I'm a night owl sometimes. Unfortunately, I also set my stop loss too tight. As a part of my risk management plan. I must set an actual stop loss for my trades upon entry. It is a psychological reason why I do this, so I do not get lazy, and "forget" to use it. It is a tool, in the toolbox, use it. While all of that is great, I encourage you to set stop loses above the four-hour (or wherever) order, so the river of "liquidity" can flow into the ocean. In conclusion, I'd like to share my trading journal entry...
DID I FOLLOW MY PLAN?
No, although stuck to my 1:3 risk-reward ratio, and maintained a 0.25 lot size,
I set my sell stop in the wrong session. (Tokyo)
You must ONLY trade London. (According to the trading plan.)
WHAT DID I DO WELL?
1. Identified 4H Orderblock
2. Set A Stop Loss
WHAT CAN I DO BETTER NEXT TIME?
Set A Wider Stop Loss Outside of Orderblock.
Set My Sell Stops, in the correct session, that is suited for my trading plan.
WHAT DID I LEARN?
DO NOT BE STINGY WITH YOUR CURRENCY
DID I PREPARE PROPERLY?
NO, my job is to buy and sell pairs at a certain time, efficiently.
I entered the market too early, and it cost me -0.3%, making today's earnings only 0.75%.
WHY DID I TAKE THIS TRADE?
I see a potential Order block being filled.
GIVE ME A BRIEF SUMMARY IN 1-2 SENTENCES:
I'd rather be on a surfboard, than a cyack when the wave comes. Allow yourself to stretch your arms with the waves freely, and Ride it to the shore.