"What counts is not necessarily the size of the dog in the fight - it's the size of the fight in the dog." ...Dwight D. Eisenhower
For the last week and a half, I have been having some pretty strange trading days. It's been a roller-coaster ride with break-even days and loss days.
Notice I didn't say win-days.
Amidst the crazy market rides and my not-so happy looking trading account, I was good at following these 2 rules:
- Risk/reward of 2:1 or more
- Reducing the trade size after a loss
Come to think of it, I should include a third - that would be to not give up.
Well, if you hold on to 1 and 2 above, then naturally, you would have something left in your account to trade. No matter how small...you just have to find a broker that would allow you to trade smaller lot sizes.
No kidding and don't laugh too hard because I am down to micro-lots now. Yes - self-imposed punishment. I'm in the penalty box this week or until I can stop making crazy random trades.
EURUSD Bossilator Trend Sell 1M
On the 1M Chart
- Bossilator was just before 187 not quite 200.
- Break of EMA 62 line on the M1 chart. (Point 1 in the chart above)
- Stochastics was at overbought and crossed and coming down
- MACD at the top and RST had been holding below 50.
On the 5M Chart
- Candle closing below the 20SMA. ( This time I really waited until the candle closed)
- RSI below 50.
Because I was running on a 1:1.5 R/R. Right after the SELL entry at 3699, it spiked up -17pips - point (2) on the 1M chart.
Ordinarily, I would have taken myself out of this trade in a panic but I still had some "fight" left in me. Plus, I quickly re-checked the charts on my entry and it was a good entry. Both the 1M and 5M charts confirmed the setups. So I had to hold on until it stopped me out.
Then $EURUSD just pushed down and it quickly went through the 3700 level like it never existed. This time I was hanging on for dear life, and managed to hold it until the 2:1 target. Along the way, of course, I moved it to break-even after +20pips. This time, I was on steam-roller instead of a roller-coaster. It was a suh-weet exit at +38pips.
As always, the market is always right.
This time I was along for a ride in the right direction.