Click above to enlarge
Well, after the last trade, I was looking to come back and make up for that loss.
The Monday Trade failed, but it did set up a Counter Trend Trade in this pair. I immediately jumped on it after it bounced at S3. My stack of trades covered a pretty wide area, but if it worked, it would more than make up for the last trade.
As you can see in the picture, price moved up sharply, executed a few of my buy orders, then proceeded to drop. I got to the point where I was pretty sure that price would drop more, so I decided to bail on the trade.
This resulted in a -23% loss on the account, my biggest losing trade to date. In fact, my account balance is less than my initial deposit. It shows how volatile this trading strategy can be. This was not a good feeling. It is even hard to write about the trade, but it has to be done in order to learn from the mistake.
I should have closed the trade out when my total profit/loss on the trade was near breakeven, I let it go too far. These are tough trades to handle, but I feel that I am getting good experience in how to manage these trades.
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