I took the loong you mencioned in the context, however, I was biased towards the inventory correction, and when I saw a large number of aggressive buy orders being executed on the IBL, I closed the position and went short. Obviously, I turned a large trade into a loss. Any advice from you, since you have more experience with this?
Closing the long when you see bigger traders start to battle it out is usually a solid decision. Where it gets tricky is the flip. If you’re going to go short there, risk needs to be very tight and you have to be right almost immediately, especially with the broader context being bullish and you’re working counter-trend.
In hindsight it’s always clearer, but that IBL had already been tested once and produced a higher low. That makes the second test a bit riskier to lean short against. In any case, the loss from a tight short there should not have been larger than the win from the long.
Flipping a trade and getting stopped can be very mentally challenging. If you find yourself in that situation, take a step back and reassess. It’s easy to lose focus when you were initially right on direction, but in trading, opportunities present themselves every single session.
I got so caught up in the order flow that I lost sight of the bigger picture. Even looking back, the low of period D indicated I should have gotten out of there. The reaction right at 6790 to the tick should have warned me of the situation I was in.
That's right, the loss didn't exceed the profit from the previous long position, but it considerably reduced the gain. After that, I ended the session because I realized the decision-making process had been truly frustrating.
Thank you for pointing out and warning me about potential mistakes to consider for a similar situation in the future.
Amazing work! Thank you
Thanks buddy!
Thanks Smash!
I took the loong you mencioned in the context, however, I was biased towards the inventory correction, and when I saw a large number of aggressive buy orders being executed on the IBL, I closed the position and went short. Obviously, I turned a large trade into a loss. Any advice from you, since you have more experience with this?
Closing the long when you see bigger traders start to battle it out is usually a solid decision. Where it gets tricky is the flip. If you’re going to go short there, risk needs to be very tight and you have to be right almost immediately, especially with the broader context being bullish and you’re working counter-trend.
In hindsight it’s always clearer, but that IBL had already been tested once and produced a higher low. That makes the second test a bit riskier to lean short against. In any case, the loss from a tight short there should not have been larger than the win from the long.
Flipping a trade and getting stopped can be very mentally challenging. If you find yourself in that situation, take a step back and reassess. It’s easy to lose focus when you were initially right on direction, but in trading, opportunities present themselves every single session.
I got so caught up in the order flow that I lost sight of the bigger picture. Even looking back, the low of period D indicated I should have gotten out of there. The reaction right at 6790 to the tick should have warned me of the situation I was in.
That's right, the loss didn't exceed the profit from the previous long position, but it considerably reduced the gain. After that, I ended the session because I realized the decision-making process had been truly frustrating.
Thank you for pointing out and warning me about potential mistakes to consider for a similar situation in the future.
Thanks Smash.