Semplang Trade 

GBPUSD

I actually really don't know what I was thinking when I entered this trade. Plus, I got super upset with this trade that I printscreen'd a different timeframe. 

Breaking it down

This was a complete mess of a trade. I recognized early on the trade that I made a mistake with the analysis and execution. 

First Mistake

There's the confusion of the Timeframe (TF) I used to analyse the pair and the TF when/where I executed the trade. I studied the D1 chart so this was where I drew my trendlines for support, resistance, and channels. Then, used H1 to execute the trade. This should have been a red flag already, and I should have closed the trade. But when you have a bias you kinda wanna stick with it until it no longer serves its purpose of being your bias. 

Looking at the chart above we can say that the current price action is clearly on the bullish side. Supported below by other indicators like bollinger bands and MA 90, this pair was a strong candidate of long trade. 

Second Mistake

I was hoping for a breakout which made me buy at the resistance level. There was a high risk with breakout setup. I should have remembered to never execute any trade on the current moving candlestick (unless you are really really sure about the action of the next candlestick).  I'm still familiarizing myself in reading candlesticks and their patterns. 

Third Mistake

I got caught on the correction which is totally fine in and of itself. The problem was, I panicked. Why did I panicked? No one wants to see their money go down the drain  and I guess the panick came from not getting it right.  

Fourth Mistake

I thought I would regain my losses if I did a counter action of selling the pair. This, again, is a complete NO. It just became an additional loss. I had just recently learned the term revenge trade which is what I exactly did with my fourth mistake. 

Feeling defeated, I just closed all my existing GBPUSD trade. This was close to midnight and I was sleepy as hell. 

Reflections

This was my analysis after closing the trade as written in my physical trading journal. 

Mukhang nabulag ako sa uptrend reading at hindi ko namalayan na meron akong USDJPY pair long trade. Kung saan I was betting on the USD to strengthen tapos naka buy din ako sa GBPUSD which is the complete opposite of the USDJPY. With the GBPUSD long trade I was betting na lumakas ang GBP. 

Hope this makes sense to my readers. Please e-mail me if I need to further explain myself. 

This was a weak trade, I manage to lose a total of $ 7.82. Looking at the charts at the different TF there could have been a better entry. Abandon

I must always remember to be careful and double check all setups, and triple check my bias. For a cautious risk taker, this was a careless play. 

Additional Note

Looking at the current chart at H1 TF GBPUSD was on downtrend. I was completely wrong with my bias and did not really analyze the pair at a larger picture.

Kating-kati ako pumasok, ayun napaso.

- isya2021

But then again, I'm glad that I made this mistake, because this will remind me of what I should never do again. This semplang trade is definitely a bruising lesson (OA ko ba?). Some would say that it's only $7. But this could also have been $14, $28, $56, $112, and so on to the point of losing it all. For me, it is better to address this at this early stage than make the mistakes again and again.  

I will continue trading even after this defeat. I took the leap and this has got to be worth it. I'll continue practicing and trading at the same time. I'll just remind myself the words of a Pinoy boy band's mentor:

Practice will never betray you.

- SB19's mentor

-o)-