Sometimes I find that when the market is trending, price gets close to the 6ema but doesn't quite touch it, before moving away again. Therefore, you sometimes end up missing opportunities if you look for a 6ema touch trade. Therefore, you can set an order to jump in when price retraces at the halfway point of the previous days bar instead of waiting for it to touch the 6ema. This way the price you enter isn't as good, but it means you miss less opportunities. That's what I did here. I entered long at 1.5775. Now for this trade, price looked to be in a nice uptrend and was respecting the 6ema (yellow line on my chart). That was my reasoning for going long. I was targeting the 1.6000 BRN. Risk was 2%
Here is my entry chart (click to enlarge)
Now here is what happened
I was up 100 pips. This was a trouble area, as if you look at the pink horizontal line on my chart, you'll see it was a previous support area. Instead of taking profit or moving to break even, I just waited. The following day we had a big BEOB. It was at that point that I moved my stop up to cut my losses short. I did get stopped out in the end for a loss of 1.2%
This was really bad trade management. To be up a 100 pips and still go on to make a 1.2% loss? unacceptable! Not the first time I've made this mistake either. Should have taken profit in hindsight.
and that's the thing with trading. After a while, spotting opportunities becomes fairly easy. Knowing what to do when you're in a trade is a whole different ball game. Somebody else who entered this trade might have made good profit. They might have taken the money at 100 pips. I made it turn into a loss. It's just experience that is the difference here. I'm in my first year as a trader. Somebody who's been trading say four or five years would not have made the mistake I did.
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