Last week, I had a technical analysis with descending channel for possible sell range.
It is not valid, and my account are 20% Loss right now.
- I sold at 1.1360, and not move stop loss to break even or block in profit when price was at 1.1350.
- I should close my trade because of big News today: FOMC Statement, FOMC Economic Projection, Fed Interest Rate Decision.
- I should not risk too much even though the trading plan is very good.
- I should not trade during Big News to avoid Big Loss, Volatile.
---> Lesson are learned by the hard way.
It is time to review my 3 trading Rules, which save me many times for the last 10 years of trading:
Rule 1: Do not trade during Big News to avoid Big Loss, Volatile - Do not even look the chart. Do something else (Gym, Fishing, Work, Read Book.)
Rule 2: Apply Money Management: I may be right 1000 times, but wrong 1 time can blow up my account. Therefore, do not overtrade, trade oversize. There are always risk and anything can happen in Forex.
Rule 3: Apply Trade Management: Set Stop Loss and Profit Target for every Trade, Move stop loss to break even or block in some profit.
There is no time to regret what I did! Let's get back to work.
"Technical Analysis is an art and science."
Traders have different opinions of market, and can draw different patterns which can make sense at the time.
I have to accept it and anything can happen with Forex.
|Break up channel or false break out?|
Typos: RSI 70, Stochastic: 80 ---> overbought ---> should sell
Using different Time Frame, I can identify the eurusd right now
- Weekly Chart: Bearish
- Daily Chart: 1. Recovery or Range 1.15 - 1.12
- H4, H1 Chart: Bullish
With the same chart, different technical analysis:
- Price is above trend line.
- Buy If price is above 1.1380 - 1.140?
|Next Resistance: 1.15?|