Here is a Pin Bar trade that I just took that didn't work out quite as I wanted. But that's just how trading works, it won't always be perfect.
In this Pin Bar trade analysis, I'll break down what worked, what didn't, and why I'm not stressed.
Before We Start:
- This is for educational use only, it is not trading advice.
- Just because this trade worked out, it does not mean that all trades with this strategy will work out.
- You need to backtest any technical trading method before you ever trade it with real money.
- The standard Trading Heroes risk disclaimer always applies.
Now that we have that out of the way, here’s the trade…
Here is what the Pin Bar alert on my phone via the MT4 app looked liked. If you are following along closely at home, this is not the actual signal, but what my alert indicator looks like. I accidently erased the actual signal 🙂
I traded the EURAUD on the H4 chart.
This Pin Bar was a little different than the type I usually trade, in that it is a trend continuation Pin Bar, instead of a trend reversal Pin Bar. But the price action was good, there was a strong move, followed by a pullback, ending (hopefully) with a Pin Bar.
The lines on the chart are as follows:
- Red: Stop Loss
- Blue: Entry
- Green: 1st Profit Target
The entry parameters are as follows:
- Risk: 0.5%
- 1st: 1R target, 80% of total position
- 2nd: no profit target, move stops as price moves in positive direction, 20% of total position
I put this trade on and went to sleep. There was some upcoming Australian news, but I thought that the trade would be OK.
…and here's what it looked like when I woke up:
Well, not so much.
It turns out that the spread widened and I actually got stopped out on the second position!
So price shot up, hit the first profit target, and the trade bagged 86 pips.
SEE ALSO: The Trading Books That Changed My Life
— Hugh Kimura (@TradingHeroes) May 6, 2016
…then price came back, the spread widened (or maybe vice versa), and my stop got hit. Crap.
— Hugh Kimura (@TradingHeroes) May 5, 2016
The Final Result From MyFxBook is as Follows:
It was a total gain of 0.4% on the account or $3.60 in this small trading account.
I hope that this shows you that you can trade safely, even with a small account. It’s all about using nano lots.
Post Pin Bar Trade Analysis
The results of this trade were not optimal, but I'm OK with it. I made money on balance, and I actually made the same amount that I made on the last Pin Bar trade I analyzed.
In the past, I would have obsessed over losing that second position. But I have learned how to embrace the suck and move on.
Do you have any thoughts about this trade? Could I have done something differently? Let me know in the comments below…
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