EUR/AUD has been weak, and I’ve traded it a couple of times over the past couple of weeks. Today was no different as price had pushed through a support level that held yesterday and back in April. All signs are pointing to short
Looking at the 5 min. chart, price was on a mini-rally but was in a base at the top of that rally. Again, it’s not a low-base, but it’s a base I want to trade on a break of the lows. It just happens to be at the top of a rally… I’ve lost a couple of these (I’ve won some, too), so I’m not sure if it’s an actual smart strategy — one that others employ successfully.. It’s kind of, to me, akin to taking a bear rally trade on a longer time-frame, just with better entries and a tighter stop. I don’t know, Maybe I should put it on a list of questions to ask if I ever get to talk with a real, successful trader.
Entry – 1.4328
Target – 1.431
Stop – 1.434
R:R – 1.5
Entry – 1.4328
Exit – 1.4334
Anyway, after triggering into the trade, Price pushed fairly strongly in my favor, reaching roughly .5R, but just as quickly rallied. That rally was enough to hit my trailing stop, and stop me out for ~half of a position size, though price rocketed back down after that, crushing my take-profit.
On one hand, if my stop wasn’t trailing, I would’ve captured some profits, but on the other hand, I feel like not trailing my stop has led to less-than-favorable results, too. I’m not sure what to think about this. I followed my rules, I was right about the direction and distance and time, it’s just one stupid fucking spike to stop me out. How can one not feel like brokers hunt stop-losses when shit like this happens?
IDK, just keep swimming. Maybe, if I’m sitting at the computer actively monitoring and adjusting my trades as they happen, I don’t need to trail my stop, but I feel like knowing me, that’s not the best idea (I get distracted easily — cleaning, bathroom, distractions etc.) so it helps to have something do the heavy lifting. If/when I get to a place where I’m locked in, I’ll adjust my order types
