Trading Mistakes-1
by sachin on July 6, 2010
An entire book can be written about my dumb mistakes.
Like the time when i always had a risk reward ratio of 0.5. Which means if i target a profit of 100 my stop loss is at 200. So for every 100 i hope to gain, my risk is always double my potential gain.
I struggle with entry points. The minute i make an entry the market seems to magically move against me.
Now i entered at the arrow point. Its legitimate, it broke the head and shoulders pattern, which is really a good reversal sign. But the market as you can see above moved against me.
Sometimes i do not position size well, this is really about discipline. Like in the instance above, i sold 3 lots immediately at that point. What i should have done is sel 1 lot and then wait for the market to move in my desired direction before shorting again.
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