Bad EUR/CAD Trade | Forex Factory

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Bad EUR/CAD Trade

  • #1
  • First Post: Jun 30, 2012 3:54pm Jun 30, 2012 3:54pm
Here's another one. Please feel free to give comments on my mistakes.

I looked at the daily chart for EUR/CAD (Pic # 2 below). After 18 summits from EUR with no positive outcome, I decided to to take a short position.

2 mistakes I did make were

1) I got greedy
2) a little scared that trade wasn't going in the direction I suspected.

Placed the first trade at 1.27808. When it went to 1.28327, I placed the second order. I created an entry order for the third lot at 1.28903 as I didn't expect it to go to as high.

My stop loss was at 1.2950.

Well, here you have it. I lost
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  • #2
  • Jul 1, 2012 7:41am Jul 1, 2012 7:41am
I hope you don't mind me commenting on your trade.

The first entry looked reasonable.
By the second candle, the bull candle, alarm bells should have gone off for the follwing reasons :
-the bull candle closed above yesterdays high
-It was much larger than the bear candle the day before

In a situation like this, it would have been better to cut your loss and wait for a confirmation of up trend or continuation of down trend.

Alternatively you could have added another short order at the top of the trendline.
  • #3
  • Jul 2, 2012 7:36am Jul 2, 2012 7:36am
Thanks a lot. Comments are what I'm looking for.

Just because the previous candle was bigger, how's that a sign. In fact if the previous candle was a big bull, that might be a sign that its coming down now becuase it might've been over bought.




Quoting V00d00trader
I hope you don't mind me commenting on your trade.

The first entry looked reasonable.
By the second candle, the bull candle, alarm bells should have gone off for the follwing reasons :
-the bull candle closed above yesterdays high
-It was much larger than the bear candle the day before

In a situation like this, it would have been better to cut your loss and wait for a confirmation of up trend or continuation of down trend.

Alternatively you could have added another short order at the top of the trendline.
  • #4
  • Jul 2, 2012 8:20am Jul 2, 2012 8:20am
When you placed a short at 1.27808, what was your TP? There is a low of around 1.2730 around May 30, 2012. You mentioned that your SL was set at 1.2950, for me, based on the charts, your trade does not have a good reward to risk ratio, I wouldn't take that trade if I were you.
Fear prevent possibilities, and so does Greed
  • #5
  • Jul 2, 2012 8:37am Jul 2, 2012 8:37am
I looked at my charts and my charts told me to short around 1.287 , if i had seen that trade i would of had shorted too . But in my trading system i never open another trade if i lose on a particular pair that day , except loses and deal with them .
  • #6
  • Jul 2, 2012 8:48am Jul 2, 2012 8:48am
How much did you lose in percentage?
  • #7
  • Jul 3, 2012 7:07am Jul 3, 2012 7:07am
My TP was around 1.2650. What's the ideal Risk/Reward Ratio?

Quoting xtrader101
When you placed a short at 1.27808, what was your TP? There is a low of around 1.2730 around May 30, 2012. You mentioned that your SL was set at 1.2950, for me, based on the charts, your trade does not have a good reward to risk ratio, I wouldn't take that trade if I were you.
  • #8
  • Last Post: Jul 3, 2012 7:45am Jul 3, 2012 7:45am
Quoting Svm
My TP was around 1.2650. What's the ideal Risk/Reward Ratio?
Why 1.2650? What is the reasoning behind it? You should place your SL and TP at support and resistance (Previous high or low) depending on the timeframe your trading.
Fear prevent possibilities, and so does Greed
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