Hasenmann Trading: How NOT to trade a Short-Trade :-)
Good morning,
as you can see from my other posts I started to blog about my trades.
So there were some profitable trades.
But -everyone knows- there are also the loosing trades..
And so I´m gonna show you a trade I did, where I simply burnt money due to dumbness :-)
Here´s the screenshot from Wednesday.
I was on the hunt for a new short trade. However, I thought the market will go down and was so fixed on that idea that I forgot about the rules and all the discipline...
So the price was not really moving up or down that day.
I was waiting for the price to move to place my short bet.
Suddenly at 14:30 CET the Inflation report for the US was released.
And just look what the market did:
A HUGE red candle that finally did, what I waited for.
It drew the market down!
Now the next short trade would be a hit due to the falling price and I hoped to get some more profit out of the trade.
So without thinking I bought the short more or less where you can see the left yellow arrow.
And what did the market?
The only thing it could do: It kicked me right in the balls!
Every candle is a 5-minute candle.
So you could see how the trade got worse and worse...
Finally after bruning 80€ in a couple of minutes I sold the certificate and gained a loss of 80€.
On the right side you can see the second yellow arrow.
Good job YOU IDIOT!
So what to learn about those things?
- have a plan
I had one --> wanted a short trade - WAIT for your chance
I was impatient - Do not enter the market after a big move in order to follow that direction
The rebound will come and will eat a lot of your profits
But most important:
- Keep on trading and follow your rules
- Take notes about such errors in order to avoid them in the future
- Smile
Sticking to your trading ideas and being patient is the most difficult thing in trading. Gets me every time too ...
You´re right.
Stick to it until the end. Or just try to avoid more damage. But you have to believe.
I have been trying my have at the short trade also and it is not easy. Because I do my trading at night time if I find it is taking too low I just up my bet to something more safe and go to bed hoping for a nice morning surprise. I am only practicing at the moment but I have locked myself up a bit at times still.
Thank you for your comment and your vote.
You have a new follower :-)
Practicing is important to get experience with your tools and all the stuff.
Keep it on until you think you´re ready to hit the market.
Exactly at that point, things get serious.
It´s a whole new game, when you´re the first time out in the markets with YOUR OWN money.
But it´s worth the experience!
I love it! :-)
@hasenmann
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