Forex and CFD Trades 29 May to 2 Jun 2017
I completed 8 trades this week. 2 were winning trades and 6 were losing trades. Overall I lost -1.848% of my account size for the week.
There were a few lessons for me from this week trading:
1. I made two sloppy trades. One on GBPCHF and one on GBPCAD. I was too eager on these two trades that I did not follow my rules on entering at support/resistance area. I entered too early and forced me to place my stop loss at inappropriate location in order to make the trade had an acceptable reward/risk ratio. In short I was forcing the trades. I would have avoided -0.988R loss and possibly made money. I need to work on my self-discipline in order to avoid making the same mistakes.
2. I believe I would do better to concentrate only on trend continuation pullback trades since most of the reversal and breakout trades I made either did not work out or resulted only in modest gain.
3. There is opportunity to improve my trade setup reward/risk ratio by tweaking my entry, which I will need to weigh against the potential trade-off of missing trades.
GBPCHF (-0.511%)
GBPCHF was in bear trend on H4 chart when I entered this trade. It was a pullback trade in a bear trend. I was too eager to put in this trade that I entered too early on 30 May at 1.2550. My initial stop loss was placed at 1.2590 but it was not the appropriate place since it was within the resistance area. I was forcing it to make the trade had an acceptable reward/risk ratio. My trade bias was correct but I was stopped out before GBPCHF declined. I lost -0.511% on this trade.
I was sloppy with this trade. I had not followed my rule of entering trade at support/resistance area. If I had I would have been able to place my stop loss higher and made money on this trade.
AUDUSD (-1.0%)
I was expecting AUDUSD to breakdown below its support line after completing a double top reversal pattern on the H4 chart at the time when I put on this trade. I entered short on 30 May at 0.7430 with an initial stop loss at 0.7470. My trade bias was correct but AUDUSD rallied to take out my stop loss before declining. I lost -1.0% on this trade.
XAUUSD (+1.89%)
XAUUSD broke above the upper line of its ascending triangle then pulled back toward the breakout level when I entered the trade. It was a pullback trade to a role reversal level after a bullish breakout. I entered on 30 May at 1262.007 with a stop loss at 1256.60 and take profit at 1272.80. The trade worked out to reach my take profit and it was executed at 1272.814 on 31 May. I netted +1.89%.
This was not a bad trade but I could have improved the trade reward/risk ratio had I entered at the second support level below the support level I used to enter the trade.
EURJPY (-0.78%)
This was a pullback trade in a bear trend on the H4 chart. EURJPY broke below the support line of a small consolidation pattern and was pulling back toward the broken support line, which I had expected to become resistance. I entered on 30 May at 124.25 as I had expected the support became resistance level to hold. There were signs of rejection of the level at the beginning but later it became clear that the level was not holding that I manually closed the trade on 1 Jun at 124.659. I lost -0.78%.
EURGBP (-0.97%)
This was potential double top reversal trade. EURGBP was forming a potential double top on its H4 chart. I entered the trade on 31 May at 0.87249 as EURGBP was forming a bearish evening star candle pattern creating a potential 2nd top. The expected double top did not materialise and I was stopped out at 0.87551 for a -0.97% loss.
WTICOUSD (+1.007%)
This was a breakout trade in a bear trend. I entered the trade on 1 Jun at 48.148 as I was expecting the support line to hold. I had placed a generous initial stop at 48.95 and it was good choice since WTICOUSD rallied before it declined. I was almost stopped out!
As the trade progressed, I lowered my stop to 47.14 and was eventually stopped out on 2 Jun at 47.141. I netted +1.007%.
Although I made money on this trade on hindsight if I have gone for my bread and butter pullback trade, I would have entered at a better price and netted me more gain. Looking at the chart you can see WTICOUSD rallying up to a S/R area before declining. I think I was too eager to enter the trade.
GBPCAD (-0.477%)
This was a sloppy trade. I was expecting a continuation of the GBPCAD bullish momentum after the bullish hammer candle at the breakout role reversal level. However my entry was sloppy at 1.74144 and my stop loss placement at 1.7375 was very tight. I lost -0.477% on this trade.
This trade was like the GBPCHF trade I made early in the week. It could have been my previous success with GBPCAD when I netted +3.79R that made me did this trade! There is not much more to comment about this trade other than I need to stop making the same mistake!!
NZDUSD (-1.0%)
This was a potential reversal trade that did not work out. NZDUSD formed a bearish shooting star at the previous high on the daily chart on 31 May. I entered short on 31 May at 0.7087 with a stop loss at 0.7127 expecting a bearish outcome since NZDUSD was in a trading range within a bear trend. I had expected the top of the trading range to hold then declined toward the bottom. It was not to be and I was stopped out for a -1.0% loss.
Disclaimer:
Trading and investment involves risk, including possible loss of principal and other losses. I shall not be responsible for any losses or loss profit resulting from trading or investment decision based on my posting and any information presented in this blog.
There were a few lessons for me from this week trading:
1. I made two sloppy trades. One on GBPCHF and one on GBPCAD. I was too eager on these two trades that I did not follow my rules on entering at support/resistance area. I entered too early and forced me to place my stop loss at inappropriate location in order to make the trade had an acceptable reward/risk ratio. In short I was forcing the trades. I would have avoided -0.988R loss and possibly made money. I need to work on my self-discipline in order to avoid making the same mistakes.
2. I believe I would do better to concentrate only on trend continuation pullback trades since most of the reversal and breakout trades I made either did not work out or resulted only in modest gain.
3. There is opportunity to improve my trade setup reward/risk ratio by tweaking my entry, which I will need to weigh against the potential trade-off of missing trades.
GBPCHF (-0.511%)
GBPCHF was in bear trend on H4 chart when I entered this trade. It was a pullback trade in a bear trend. I was too eager to put in this trade that I entered too early on 30 May at 1.2550. My initial stop loss was placed at 1.2590 but it was not the appropriate place since it was within the resistance area. I was forcing it to make the trade had an acceptable reward/risk ratio. My trade bias was correct but I was stopped out before GBPCHF declined. I lost -0.511% on this trade.
I was sloppy with this trade. I had not followed my rule of entering trade at support/resistance area. If I had I would have been able to place my stop loss higher and made money on this trade.
 |
| GBPCHF H4 Chart |
I was expecting AUDUSD to breakdown below its support line after completing a double top reversal pattern on the H4 chart at the time when I put on this trade. I entered short on 30 May at 0.7430 with an initial stop loss at 0.7470. My trade bias was correct but AUDUSD rallied to take out my stop loss before declining. I lost -1.0% on this trade.
 |
| AUDUSD H4 Chart |
XAUUSD (+1.89%)
XAUUSD broke above the upper line of its ascending triangle then pulled back toward the breakout level when I entered the trade. It was a pullback trade to a role reversal level after a bullish breakout. I entered on 30 May at 1262.007 with a stop loss at 1256.60 and take profit at 1272.80. The trade worked out to reach my take profit and it was executed at 1272.814 on 31 May. I netted +1.89%.
This was not a bad trade but I could have improved the trade reward/risk ratio had I entered at the second support level below the support level I used to enter the trade.
 |
| XAUUSD H4 Chart |
This was a pullback trade in a bear trend on the H4 chart. EURJPY broke below the support line of a small consolidation pattern and was pulling back toward the broken support line, which I had expected to become resistance. I entered on 30 May at 124.25 as I had expected the support became resistance level to hold. There were signs of rejection of the level at the beginning but later it became clear that the level was not holding that I manually closed the trade on 1 Jun at 124.659. I lost -0.78%.
 |
| EURJPY H4 Chart |
This was potential double top reversal trade. EURGBP was forming a potential double top on its H4 chart. I entered the trade on 31 May at 0.87249 as EURGBP was forming a bearish evening star candle pattern creating a potential 2nd top. The expected double top did not materialise and I was stopped out at 0.87551 for a -0.97% loss.
 |
| EURGBP H4 Chart |
WTICOUSD (+1.007%)
This was a breakout trade in a bear trend. I entered the trade on 1 Jun at 48.148 as I was expecting the support line to hold. I had placed a generous initial stop at 48.95 and it was good choice since WTICOUSD rallied before it declined. I was almost stopped out!
As the trade progressed, I lowered my stop to 47.14 and was eventually stopped out on 2 Jun at 47.141. I netted +1.007%.
Although I made money on this trade on hindsight if I have gone for my bread and butter pullback trade, I would have entered at a better price and netted me more gain. Looking at the chart you can see WTICOUSD rallying up to a S/R area before declining. I think I was too eager to enter the trade.
 |
| WTICOUSD H4 Chart |
GBPCAD (-0.477%)
This was a sloppy trade. I was expecting a continuation of the GBPCAD bullish momentum after the bullish hammer candle at the breakout role reversal level. However my entry was sloppy at 1.74144 and my stop loss placement at 1.7375 was very tight. I lost -0.477% on this trade.
This trade was like the GBPCHF trade I made early in the week. It could have been my previous success with GBPCAD when I netted +3.79R that made me did this trade! There is not much more to comment about this trade other than I need to stop making the same mistake!!
 |
| GBPCAD H4 Chart |
NZDUSD (-1.0%)
This was a potential reversal trade that did not work out. NZDUSD formed a bearish shooting star at the previous high on the daily chart on 31 May. I entered short on 31 May at 0.7087 with a stop loss at 0.7127 expecting a bearish outcome since NZDUSD was in a trading range within a bear trend. I had expected the top of the trading range to hold then declined toward the bottom. It was not to be and I was stopped out for a -1.0% loss.
 |
| NZDUSD H4 Chart |
Disclaimer:
Trading and investment involves risk, including possible loss of principal and other losses. I shall not be responsible for any losses or loss profit resulting from trading or investment decision based on my posting and any information presented in this blog.
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