MISS on USD/JPY, Feb 17 2011

by Eva
(from Forex Trading Beginner)

To be honest, I'm a little ticked off. I lots 11 pips on this trade, and I got sucked into the "market swings away to stop you out before going in the direction you want it to go in" thing.

Firstly, I noted on the daily chart that the candle was giving me a reversal signal, telling me that there would be a change in trend from bullish to bearish.

THEN, I noted that this trend reversal was beginning to take place on the hourly chart.

So I waited for a bearish signal, which I got in the form of an inverted mallet that bounced off the trend time.

I entered the market at 83.538, with my stop at 83.635 and limit at 83.455.

I entered the market with a "sell" order as my position depended on the market going downwards, after which time I would "buy" the currency.

However, the market came back up and took out my stop, which cost me 11 pips.

To add insult to injury, the market then went back down to my limit and in the direction I knew it would.