This is what would happened had I took a short on this stock as well. That is, I would be in a loss due to the stop loss being taken out.
So, you can see that the BBs knew most (90%) retail traders would place their SL slightly above the highest candle; (9 Nov 20 at 2230 hours) and take all their money.
Then, you wanted to follow through for a 2nd short but the market is just too fierce, tumbling down so hard and fast without a correction.....
In trading, you win some and you lose some. The important thing is your wins must be more than your losses so at end of day, you are still profitable. It is not about winning at EVERY trade just like this one.
Say you lost 50 bucks here , your next trade you have to find some good quality trades with high risk reward ratios that allow you to make 80-100 bucks or more to cover your first loss.
Hope this post-analysis is helpful to those who are still learning about shorting. I welcome any comments you may have.
So, you can see that the BBs knew most (90%) retail traders would place their SL slightly above the highest candle; (9 Nov 20 at 2230 hours) and take all their money.
Then, you wanted to follow through for a 2nd short but the market is just too fierce, tumbling down so hard and fast without a correction.....
In trading, you win some and you lose some. The important thing is your wins must be more than your losses so at end of day, you are still profitable. It is not about winning at EVERY trade just like this one.
Say you lost 50 bucks here , your next trade you have to find some good quality trades with high risk reward ratios that allow you to make 80-100 bucks or more to cover your first loss.
Hope this post-analysis is helpful to those who are still learning about shorting. I welcome any comments you may have.
Comment:
This post is so relevant for those who made money on paper but failed to take it out. The market shocked you with a gap up the next day and half of your profits are now gone..........