28/11/2022
NU Trade That Went Wrong
Have you ever seen a trader posting a wrong trading set up or analysis? Well, here it is.
NZDUSD was actually my top SWAB pair with NZD the strongest currency and USD the weakest. So I was expecting a bounce play from an assumed strong support zone (blue horizontal bar). This is also confirmed by a bounce from an oversold momentum. In sum, I had 3 reasons for a buy trade: 1) swab trade call, 2) support and resistance level, and 3) momentum's overvalue condition.
And what happened at the open of Monday trading? My stop loss level was hit! What went wrong? Did I miss something?
Here's the postmortem and lessons learned.
1. I think I missed that buying impulse that need to be filled (maybe that's the reason why it gap down)
2. Should have moved my SL to breakeven last Friday
3. Stick to finding divergence play rather than a mere momentum overvalue setup
4. Do away from weekend trading position, unless the asset at play is crypto
Am still grateful with this mistake for the lessons learned are more than reasons for trade, and SL once again proved that accounts are protected from disaster if the setup (assumption) is wrong.