Losing trades aren't always bad. It's when you don't manage the trade before you lose that can make losing trades bad.
Let me walk you through 4 positions that I stacked week and show you how I avoided losing thousands of dollars and kept the loss to under 1%.
Firstly, it's important to understand that I am a swing trader which means I observe a variety of higher timeframes.
Secondly, I use my own strategy called TMP. It's based around every pullback within the trend cycles so I can trade the continuation of the trend.
Thirdly, This analysis was mostly done on the weekly, daily, 4 hour, and 2 hour timeframe.
Lastly, I aim for more than 2:1 reward to risk trades and for these trades I was sure to keep my losses below $500 a trade.
Trade 1
s3.tradingview.com/snapshots/i/ip2YkQIh.png
This trade was based on the weekly timeframe. The reward to risk was around 4.50 and I knew I'd be in this trade long term. Probably around a month or so, maybe longer.
I risked 0.50% in the trade because I needed to build the analysis and I knew I wanted to stack more trades in case price went my way which you will see me begin to build in the new few trades.
Trade 2
s3.tradingview.com/snapshots/r/RpG2yGOI.png
This trade was based on the 4 hour timeframe. Price made a new higher high on the 4 hour. I set a pending order so when price pulled back it would trigger me into the trade.
This trade was a 8:1 reward to risk ratio. I risked 0.50% on this trade.
Price began to go my way. I felt good about the trade.
Trade 3- Trailing the stop begins
s3.tradingview.com/snapshots/m/mtg3hiR9.png
Price made a new higher high. I had to drop down to the 2 hour timeframe to get a good view of this trade. My feelings on this trade was neutral. I reminded my self that no matter what I'd follow my rules. So I set another pending order and went about my day.
The Reward to risk on this trade was a 16:1.
I risked 0.25% on this trade.
Now at this time I'm sitting at 1.25% of risk in 3 trades.
This was when I decided to move my stop loss on both trades underneath the third trades higher low.
I had just a little risk left on both of these trades but nothing heart stopping.
I was stoped out of the third position for a for around -0.27%. But my first two trades continued to run.
Trade 4- The last stand
s3.tradingview.com/snapshots/m/mtg3hiR9.png
Then price went my way. I realized I wanted to be long again and the entry sat right where I'd just entered my precious losing trade.
The reward to risk was 19:1. Whew! This was the opportunity of opportunities for me this week and I couldn't avoid entering.
So I set another pending order to buy. It triggered and a few hours later, I lost the trade. and my other trades were taken out as well.
I lost a total of $761.
This was only 0.76% loss in my account because of how I managed my trades as price went up in profit.
Had I kept my trades at the same risk(1%) and never moved my stop loss I could have lost $4000 this week.
The key to losing small is to build out your positions each time price makes a new high or low depending on the direction of the trade.
I built 4 positions and I have to say I would do it again. The potential for big rewards to risk got me, and I knew risk 1% on each trade would have meant I'd lose my funded account due to their drawdown rules. I cannot lose 3% in one day. Thats very manageable when you decrease your risk per trade.
Thats what had to be done.
If you don't think you can pass a challenge by decreasing you risk, your rewards aren't big enough.
If you learn anything from the trades I entered this week, the previous statement above is how can lose small while trading big.
Do I still believe NZDCAD can go up? Yes!
As long as price stays above the weekly higher low. I'll build out this scenario again.
Well, I really do pray you enjoyed this recap from my trading this week. I had no other trades on my other currency pair so it was a smooth trading week.
Be sure to like this article if you enjoyed it and found it intriguing. If you have any questions do ask them below.
Much love and blessing❤️
Shaquan
Let me walk you through 4 positions that I stacked week and show you how I avoided losing thousands of dollars and kept the loss to under 1%.
Firstly, it's important to understand that I am a swing trader which means I observe a variety of higher timeframes.
Secondly, I use my own strategy called TMP. It's based around every pullback within the trend cycles so I can trade the continuation of the trend.
Thirdly, This analysis was mostly done on the weekly, daily, 4 hour, and 2 hour timeframe.
Lastly, I aim for more than 2:1 reward to risk trades and for these trades I was sure to keep my losses below $500 a trade.
Trade 1
s3.tradingview.com/snapshots/i/ip2YkQIh.png
This trade was based on the weekly timeframe. The reward to risk was around 4.50 and I knew I'd be in this trade long term. Probably around a month or so, maybe longer.
I risked 0.50% in the trade because I needed to build the analysis and I knew I wanted to stack more trades in case price went my way which you will see me begin to build in the new few trades.
Trade 2
s3.tradingview.com/snapshots/r/RpG2yGOI.png
This trade was based on the 4 hour timeframe. Price made a new higher high on the 4 hour. I set a pending order so when price pulled back it would trigger me into the trade.
This trade was a 8:1 reward to risk ratio. I risked 0.50% on this trade.
Price began to go my way. I felt good about the trade.
Trade 3- Trailing the stop begins
s3.tradingview.com/snapshots/m/mtg3hiR9.png
Price made a new higher high. I had to drop down to the 2 hour timeframe to get a good view of this trade. My feelings on this trade was neutral. I reminded my self that no matter what I'd follow my rules. So I set another pending order and went about my day.
The Reward to risk on this trade was a 16:1.
I risked 0.25% on this trade.
Now at this time I'm sitting at 1.25% of risk in 3 trades.
This was when I decided to move my stop loss on both trades underneath the third trades higher low.
I had just a little risk left on both of these trades but nothing heart stopping.
I was stoped out of the third position for a for around -0.27%. But my first two trades continued to run.
Trade 4- The last stand
s3.tradingview.com/snapshots/m/mtg3hiR9.png
Then price went my way. I realized I wanted to be long again and the entry sat right where I'd just entered my precious losing trade.
The reward to risk was 19:1. Whew! This was the opportunity of opportunities for me this week and I couldn't avoid entering.
So I set another pending order to buy. It triggered and a few hours later, I lost the trade. and my other trades were taken out as well.
I lost a total of $761.
This was only 0.76% loss in my account because of how I managed my trades as price went up in profit.
Had I kept my trades at the same risk(1%) and never moved my stop loss I could have lost $4000 this week.
The key to losing small is to build out your positions each time price makes a new high or low depending on the direction of the trade.
I built 4 positions and I have to say I would do it again. The potential for big rewards to risk got me, and I knew risk 1% on each trade would have meant I'd lose my funded account due to their drawdown rules. I cannot lose 3% in one day. Thats very manageable when you decrease your risk per trade.
Thats what had to be done.
If you don't think you can pass a challenge by decreasing you risk, your rewards aren't big enough.
If you learn anything from the trades I entered this week, the previous statement above is how can lose small while trading big.
Do I still believe NZDCAD can go up? Yes!
As long as price stays above the weekly higher low. I'll build out this scenario again.
Well, I really do pray you enjoyed this recap from my trading this week. I had no other trades on my other currency pair so it was a smooth trading week.
Be sure to like this article if you enjoyed it and found it intriguing. If you have any questions do ask them below.
Much love and blessing❤️
Shaquan
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Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.
Pubblicazioni correlate
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.