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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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    • Hey,  I completely understand your frustration and I will pass it onto our senior team as well as the exposure desk.  The decisions has been made but I'm so sorry for how it's impacting your trading. With exceptional client demand in the equity space, we have reviewed our 12000 leveraged markets and decided to withdraw less than 1000 small cap equities, after a review of associated returns on these markets. We will continue to support these markets for Share Dealing, where that product is available. Sorry again for this inconvenience.  All the best 
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