The Secret of Successful Trading

"Successful traders have a larger edge and better money management than unsuccessful traders. Unlike popular belief however, this study shows that the smaller edge of successful traders is not the cause of their failure. Traders' failures can be explained almost exclusively by their poor money management practices."

"The Secrets of Successful Trading", Fernando Diaz

Wednesday, March 11, 2009

Potential great long entry 14:53


This long entry was initiated at the right time but got out at the wrong time. the 5 mins chart was forming a higher low and there was the confluence of support by the Lower TL in the H1 chart and also the Weekly Pivot at 1.2641. I was long at 1.2653 a few seconds after the appearence of the bullish engulfing pattern in the 5 min chart. Looking back the long was around the low of the trendline which made it a rather good entry. But the market was ranging that time and was not moving in my direction as fast. sensing that the trade might not work out right i had taken the decision to close near break even and wait for better entry. The market continued to ranged but at the same creating higher lows which might signify an uptrend in progress. Well, the fear and confidence level kept out from taking trades. the market eventually broke higher and went 100+ pips. Well, in this lesson if you know that its slowly going where you might know, jz take the trade or trade with half the risk if you are not sure.

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