A post about trade management. I did not follow my playbook with respect to the hourly charts and at this point on the charts I was sucking the air between my teeth sitting on a loss short the Nikkei. But the longer time frame aspect of the trade idea was not invalidated. The resistance at around 23400 had not been breached and the Dow was still below the 50 Day MA. I was prepared to start scaling out at a loss if that resistance was breached but a series of lower highs emerged on the hourly charts. As Mr Dante says try to open a trade as close to the point where you know your wrong as you can, which I failed to do.
fake bottoming pattern... 7 green candles in a row till slightly above previous high, with low volume... then sudden reversal... should have been clear then that something has changed... (like some large trader switching to whipsawing suckers...) and that this was likely not going anywhere anymore today...:
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. All trading involves risk.
The value of shares, ETFs and ETCs bought through a share dealing account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results.
CFD, share dealing and stocks and shares ISA accounts provided by IG Markets Ltd, spread betting provided by IG Index Ltd. IG is a trading name of IG Markets Ltd (a company registered in England and Wales under number 04008957) and IG Index Ltd (a company registered in England and Wales under number 01190902). Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. Both IG Markets Ltd (Register number 195355) and IG Index Ltd (Register number 114059) are authorised and regulated by the Financial Conduct Authority.
The information on this site is not directed at residents of the United States, Belgium or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.