This was my biggest loss of this month, and it happens to be 100% due to human error.
On the morning of July 16th, I was preparing to trade the CAD ADP Non-Farm Employment Change news release for 8:30 am EST. The actual figures were better than the previous figures for that news release. So I assumed the CAD would gain strength in the short term against the GBP, which resulted in my shorting of the GBPCAD.
Here was my trade...
My Entry: 1.70113
My Stop-Loss: 1.70572
My Take-Profit: 1.69750
Price rose aggressively towards my stop loss and ended up stopping me out (which I'm grateful for)...
Looking back on this trade with clear eyes, I can now see that had I been paying attention I would have never taken this trade. I typically trade in the direction of the 4-hour 200 period EMA which you can clearly see price is trading above at the time of my trade.
Taking a look at the daily chart I noticed that price is trading under the daily 200 period EMA, which is most likely the chart I was looking at, which is against my personal trading rules. I should have immediately reviewed this trade after the fact and noticed such a long Take-Profit target of more than 60 pips. My TP targets are rarely that large and had I simply reviewed my trade after I would have caught that.
It's all good. I'm grateful for my losses. I ended off last week with a profit despite taking my biggest loss and I can't complain with all things considered.
On the morning of July 16th, I was preparing to trade the CAD ADP Non-Farm Employment Change news release for 8:30 am EST. The actual figures were better than the previous figures for that news release. So I assumed the CAD would gain strength in the short term against the GBP, which resulted in my shorting of the GBPCAD.
Here was my trade...
My Entry: 1.70113
My Stop-Loss: 1.70572
My Take-Profit: 1.69750
Price rose aggressively towards my stop loss and ended up stopping me out (which I'm grateful for)...
Looking back on this trade with clear eyes, I can now see that had I been paying attention I would have never taken this trade. I typically trade in the direction of the 4-hour 200 period EMA which you can clearly see price is trading above at the time of my trade.
Taking a look at the daily chart I noticed that price is trading under the daily 200 period EMA, which is most likely the chart I was looking at, which is against my personal trading rules. I should have immediately reviewed this trade after the fact and noticed such a long Take-Profit target of more than 60 pips. My TP targets are rarely that large and had I simply reviewed my trade after I would have caught that.
It's all good. I'm grateful for my losses. I ended off last week with a profit despite taking my biggest loss and I can't complain with all things considered.