Learning from mistakes (or trades I would rather forget)

barjon

Legendary member
10,705 1,809
Whilst busy doing other things I like to keep an eye open for opportunities in RBS.

I got interested at (1)when RBS failed to break through fib50 for the second time and with a nice bearish engulfing candlestick. Six days later I noticed that it had broken below the engulfing candlestick low so I went short @ 1604. Only then did I realise that the natural stop was miles away at the top of the engulfing candle @ 1668 - still target was around 1540, but even then risk:reward was only 1:1.

:eek: oh dear stopped out for - 69 :cry:

Exceeding miffed was I, but at (2) I saw the long candlestick as bullish and (again in between other things) went long @ 1710, the natural stop at the mid-point of the long candle around 1690. The target, oh *$%**$*%* a look at a longer term chart showed I had just gone long up against resistance provided by a long bearish candlestick. A greater risk than reward :eek: . Never mind stopped out again for - 24.

And I'd been doing ok with RBS up til then!!

The moral of this story - if you're going to do it plan it properly and don't let the previous trade influence the next one.
 

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