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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