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Importance of not to forget the big picture


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Dead obvious for you experienced folks on here but updating my trade notes from yesterday, I realised what a silly mistake I was make .

I was trying to test a trade off the open, I noticed from the screeners  on PRT that the  QQQ was down from previous day's close. I saw 3 big Red bars on 2 min time frame with large volume so I thought I'd test a quick SHORT trade. In and out in 5 minutes at £1 a point got me £25, cool. 

However looking at the bigger picture this morning, that is looking at the 2m, 15m and 1 hour chart  I realised it was a foolish trade to take for a few reasons

  • Spreads too wide for a short trade, 
  • I only was looking at the 2min time frame (right 1/3rd window of attachment) 
  • Most important, a very strong Bull trend has been going on 

I got luckily this  but it highlighted the need for 

  • reviewing trades and seeing what happens after trades close out 
  • Top down approach
  • when doing short trades like that , you don't have time to think so perhaps a checklist is in order

Anyway hope it helps other less experience people like myself 

PS: if I let that run all day following the MA and trailing stop it could've been a very profitable trade

  

 

QQQ.jpg

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