Hasenmann Trading: How NOT to trade a Short-Trade :-)

in #trading7 years ago (edited)

Good morning,

as you can see from my other posts I started to blog about my trades.

So there were some profitable trades.
But -everyone knows- there are also the loosing trades..
And so I´m gonna show you a trade I did, where I simply burnt money due to dumbness :-)

Here´s the screenshot from Wednesday.

I was on the hunt for a new short trade. However, I thought the market will go down and was so fixed on that idea that I forgot about the rules and all the discipline...

So the price was not really moving up or down that day.
I was waiting for the price to move to place my short bet.

Suddenly at 14:30 CET the Inflation report for the US was released.

And just look what the market did:

A HUGE red candle that finally did, what I waited for.
It drew the market down!
Now the next short trade would be a hit due to the falling price and I hoped to get some more profit out of the trade.

So without thinking I bought the short more or less where you can see the left yellow arrow.

And what did the market?
The only thing it could do: It kicked me right in the balls!

Every candle is a 5-minute candle.
So you could see how the trade got worse and worse...
Finally after bruning 80€ in a couple of minutes I sold the certificate and gained a loss of 80€.
On the right side you can see the second yellow arrow.

Good job YOU IDIOT!

So what to learn about those things?

  1. have a plan
    I had one --> wanted a short trade
  2. WAIT for your chance
    I was impatient
  3. Do not enter the market after a big move in order to follow that direction
    The rebound will come and will eat a lot of your profits

But most important:

  • Keep on trading and follow your rules
  • Take notes about such errors in order to avoid them in the future
  • Smile
Sort:  

Sticking to your trading ideas and being patient is the most difficult thing in trading. Gets me every time too ...

You´re right.
Stick to it until the end. Or just try to avoid more damage. But you have to believe.

I have been trying my have at the short trade also and it is not easy. Because I do my trading at night time if I find it is taking too low I just up my bet to something more safe and go to bed hoping for a nice morning surprise. I am only practicing at the moment but I have locked myself up a bit at times still.

Thank you for your comment and your vote.
You have a new follower :-)

Practicing is important to get experience with your tools and all the stuff.
Keep it on until you think you´re ready to hit the market.

Exactly at that point, things get serious.
It´s a whole new game, when you´re the first time out in the markets with YOUR OWN money.

But it´s worth the experience!

I love it! :-)

@hasenmann
This post had received reesteem +3500 followers + 0.6SBD impulse. Thanks for to use reesteemiter service
SEND Between 0.1SBD and 1SBD with your post in the memo to receive reesteem + impulse, you will receive guaranteed minimun 1x of what you send + reesteem to +3500 users.