trade

Taking a LOSS on USDCAD: Full Trade Breakdown, and an Important Lesson!

hey everybody welcome back to another

video here gonna be doing a little bit

of a trading journal trade breakdown

recap this one actually being one of my

losing trades and I wanted to kind of

share my thoughts and recap it with you

I like to do this on trades occasionally

it makes for good content I think for

people who are newer to this stuff but

it also just is good for me personally

to kind of internalize as cliche as that

sounds but kind of just internalize my

losses and understand either what I did

wrong if I made a mistake or just

accepting when a trade just doesn't work

scrap it and move on so what I'm going

to do today is I'm going to talk about a

trade that I took here on dollar

Canadian this is usd/cad we're going to

talk a little bit about why I entered

the trade and how I ended up taking a

loss on this position

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so what I actually did is I ended up

getting long and I'm going to show you

exactly where I got long and I'm going

to show you why so we saw dollar

Canadian forming these nice higher low

so you can see we came down here we

formed a low and then we kind of made a

push off of that level we saw the retest

and I really liked that we saw a lot of

buy pressure here off of this next low

okay so we've got two lows here we saw

price starting to form this reversal

then we shoot to the upside off of this

lots of bullishness but a lot of

strength here we consolidate a little

bit and sure enough we put in what I was

really looking for right here which is a

higher low a pretty significant higher

low too so we saw a price come back

retest this line and this is where I

drew my trendline so this is not where I

got in but this is what was leading up

to me deciding to take a buy trade on

usd/cad and we'll talk a little bit

about it in just a second how it

actually turned out so what we were

looking for here is I saw price making a

move and holding this level of

resistance my idea here basically on the

retest of this trendline again I wanted

to get long looking to see if we could

just go back up to this point again and

maybe even kind of move past it now the

reason you might say well Nick it's got

double top resistance why don't you take

a buy here it's got to be you know not

gonna work out right well it's easier in

hindsight than in actual real time as

many of you know anybody can talk about

stuff in hindsight like they're a genius

but it's not as easy when you're

actually in the moment so what I liked

about this is the fact that we had these

higher lows the the fact that we had

science of bullishness here to me looked

like we were going to be able to head

back to this level if not even break

past it to continue this trend that we

were seeing forming on the 4-hour chart

okay so as price starts to pull back

this is where I basically was looking to

actually get long on the retest of this

trendline once more I wanted to look for

bullish continuation in favor of this

higher low forming uptrend market with

the idea that we could break through

this consolidation and break to the

upside see if we can get a nice

continuation trade there and for

starters it actually worked out really

nice our entry was actually

pretty dang spot-on I got into the

market right around here and for the

next what is that five bars or so we saw

some nice continuation so I was actually

in profit here on USD cat I didn't move

stops I didn't do anything with my trade

I just let it keep going and sure enough

we actually came back to retest this

moment right here which this is where

the trade actually started to go south

started to not do its thing so we

started to see price making its move

back underneath this trendline and this

is where things were starting to to look

weak to me because we can take a look at

this objectively and notice that okay

yes we did bounce off of this support

level and my entry again was right

around here so I was entered into this

market pretty good

we saw the rally and that was great but

then when we failed to keep going higher

that was a very bearish indication the

fact that we couldn't keep going and

hold it like we did here notice how when

price comes down to the trendline here

we saw an immediate rally so a lot of

strength as buyer stepped in we did not

see the same scenario play out this time

when I had gotten into the market and a

lot of times people will get caught up

on this I'll say all the market always

does this to me it looks like it's gonna

do something and it looks really good

historically and then as soon as I try

and do it the market goes against me and

it doesn't work and we can do that as

traders or we can accept that the market

doesn't really care about us we're such

small money in this market it really is

not trying to hunt us or do anything

like that they don't really care about

the tiny money that you and I have

compared to the broader trillions and

trillions of dollars being traded in the

foreign exchange market every day so as

price bounced off of this again started

out good but then it did not work out

and failed we saw this price start to

roll over and when we started to close

underneath this trendline that's where I

really stopped liking this trade and

ended up closing this trade for a loss

so I closed around somewhere in here

taking a loss on this trade basically

just didn't like it I didn't like the

fact that it wasn't and I actually sent

that notification out to members I sent

out you know I'm closing this trade for

below broke breakeven I think it took a

small loss on this trade something like

that

and got out of this position now again I

didn't like the the way the trade was

playing out so how did I decide to get

out of a trade which ultimately actually

has gone now lower notice something kind

of cool about this to that trendline I

didn't catch this trade but now would

have actually been a great short because

of this failure because of the same

reasons that I got out of the trade

purely just reading the price action

seeing the way this market was reacting

to this failure of buyers to step up and

push this price higher that's actually a

really bearish signal to me now and

especially now that we've seen the

retest head back to that trendline and

look at this failure really quick

disrespect from the Bears who said nope

this trendline is ours now we basically

control this sending the price back

lower so this is kind of interesting

because you know I'm glad that I got out

of the trade and I did take a loss but

at least I closed out when I did moving

on from this trade and looking for new

opportunities I think that a lot of

times what happens to a lot of traders

is we marry our positions we think that

this market has to do what we want

otherwise it's gonna make us feel like

an idiot and we don't want to be wrong I

don't know about you guys but I struggle

with that personally too we all kind of

have this ego to us that tells us we

want to be right no matter what you know

we can't view things objectively

sometimes because we want to be right so

bad

and so in this case I was purely

incorrect about my my trade it just

didn't work out and that's where it

brings me to my next point a lot of

times when you analyze a loser it's

important to ask yourself was it a bad

decision for me to take this trade or

did it just not work out and in this

case I actually still like this trade

setup I think that it was a pretty

decent one especially considering for

the for the beginning of the trade it

was going really well so I think it was

not a mistake to take this trade and I

think that a lot of times when I post up

these videos about losing you'll see in

the comments a lot of times any time I

post a loser you get people who tell me

in hindsight well you shouldn't have

taken a buy trade because of the double

top because of look at this trend or

look at this indicator or look at that

at any given time though in hindsight

you can tell someone what's go

to happen because you already know

what's happening right it's very hard to

call things in real time and everybody

always has there's always one indicator

that says bye and always one indicator

that says sell so if you just cherry

pick which one you're looking at in

hindsight it's never good for you so

it's important when you analyze your own

losers when you guys are looking at your

losers which I encourage you to do

understand and accept that there is such

thing as a trade that you take that met

your rules that was all good the risk

management seems solid and it just

didn't work out there's a difference

between taking a stupid trade like

chasing a price that's clearly you know

just an emotional you know trade for you

and you put too much position sign those

in my opinion are trading mistakes so

again big positions positions are bad

those are mistakes chasing right and

there's a whole list of things that you

can do that are mistakes so if you're

chasing prices if you're putting on way

too much size on your trade those are

mistakes but it's different than just a

trade that didn't work out and in this

case that's what this is this was not a

mistake to take this trade and I know

that people again in comments section

trust me the life of a youtuber sharing

this stuff a lot of times I get comments

that are like all Nick you you idiot you

should have done this and you should

have done that and living in like that

hindsight land does not make me a better

trader and so honestly I actually kind

of avoid the comment sections on these

sort of videos purely because as a

trader I don't want it to let it get to

my head and you know feel lower you know

confidence on my trading right so it's

important you'll hear that from other

people if you are in communities if

you're in chat rooms if you have friends

that trade sometimes people will tell

you in hindsight what you should have

done and it's important to kind of ask

yourself was this a trading mistake or

was it just a trade that didn't work out

in this case I did take a negative trade

I lost money on this trade but it was

not the end of the world and it was not

a trading mistake it was actually just a

trade that did not work out and in fact

I find it really interesting with my

analysis as I mentioned that the same

trend line that I had drawn basically

ended up becoming a strong level of

resistance

and I wish I had caught that trade

because now would have been beautiful

but we can't live in the world of wish

or should've or Kotov or if or all those

sort of words that actually don't do you

a dang thing when it comes to actually

trading your own financial money can't

look hindsight can't say I wish I should

have I could have doesn't do you any

good at the end of the day it's very

important to analyze your losses

objectively as well as your wins

objectively did you stick to your plan

did you do your thing do it again

go find better setups don't worry too

much about losses and that's what I'm

gonna do so guys have a great rest of

your day thanks so much for watching do

leave a comment if you would like to

about what you think about my trade feel

free to disagree with my opinion like I

said I'm confident in my trades here and

I took a loss and that is what it is I

don't think I made any trading mistakes

but I'm sure that there will be people

who disagree with that and that's okay

so thank you guys very much for watching

I hope you have a great rest of your day

and we will see you back in the next

video

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