Had I just waited for stochastics to be in overbought conditions, I could have set myself up with a high reward / low risk trade. Also, I think I forced myself to take a trade because I missed a nice setup just minutes before. I missed out on a long opportunity at 1.3000, which lined up with the PPS2. I could have made a good 50 pips with that setup, but I hesitated a little bit.
Reminder to self - DONT BE A WUSS.
Net result - -21 pips / -$32
EURJPY
Another trade I tried to take was a fade on EURJPY. The pair shot up before the release of the German Ifo report. I wanted to take a fade on this pair. After the pair popped to as high as 1.0758, I saw a shooting star form just below 107.30. I was keeping an eye on this point, as it lined up with the upper bound DATR, PPR1 and the 38.2% Fib on a longer time frame. I set a stop above the high of the candle, and was hoping that the pair would shoot down.
Unfortunately, the pair was pretty choppy and I got stopped out right at the top of the day. The pair is now trading around my entry point. I think the mistake I made on this trade was that I missed the fade itself. I should have shorted much higher, and gone for 10 to 20 pips. This made me realize that I would have been a lot better off trading EURUSD.
End Result - -40 pips / -$42
EURUSD
Why would I have been better entering EURUSD? Well, I noticed that the pair had bounced from yesterday's high right after the Ifo report was released. A short at 1.2718, with a 10 to 15 pip stop, would have been nice. I could have aimed for 1.2700 and made a good 15 to 20 pips. Not only that, but the spread is only 2 pips!
Overall - -61 pips / - $73
I realize that in order to fade moves, it has to be quick. I can't be aiming for big pips. 10 to 20 and I should be satisfied. That's why its called a fade! In any case, I am now down for the week. Now that I'm done writing my post trade analysis, I don't feel too bad anymore. I learned something new today, and it's something I look forward to trying in the future.
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