Last Week’s Trading – 50% ITM

Hello everyone. I traded four times and ended up only 50% ITM last week, (cant win them all right?). I’m still reading my Price Action books, but its going very slow because as new topics are introduced, I have to re-read them and write down in my terms what I just read. It helps me remember topics if I write them down and visualize it. Currently I’m reading about two legged pullbacks. I won’t elaborate on that topic, it’s all over the internet at your discretion.

My first trade was on Aud/Usd. As price was dropping in a fairly recent bear trend and there were a few pullbacks that I was watching. I think my reasoning or the put was because the current bar I entered on found some rejection to a previous swing (previous support became resistance). Frankly I think it was a very poor decision to take this trade because I completely ignored the nice Pinbar right before the bar I traded on. This was a lower probability trade and it ended up OTM.

AUD_USD 5min chart 1-11-13

My second trade was on Gbp/Usd. Price was in an overall downtrend, and in the shorter term there was a bearish trend channel as you see that I outlined in the chart. I waited for price to come up and reach the trend channel resistance line, then I waited for a reversal bar to enter. As the next bar starts to drop, I waited for it to move below the previous bar’s low to enter. It was ITM.

GBP_USD 5min chart 1-11-13

My third trade was back on Aud/Usd. I should have weighed more on the fact the trend was changing because of the higher highs and the higher lows, but I guess I ignored it. I guess I had it in my mind price was going lower. One thing I recommend is to NEVER set it in concrete that price will move in a particular direction, because it can change at any moment. Follow price as it shows you where to go as the chart unfolds. I have a long way to go to get my mindset correct. It just takes time. Often I look back and ask myself “why did I do that”.

My fourth trade was on Gbp/Usd again. I noticed after my previous trade price was consolidating and not breaking out above the 20EMA, and it was gradually falling lower, so since it wasn’t breaking through the EMA or the trend line channel, I had enough reason to believe the probability of price to fall was greater than it was to rise, so I placed a Put. ITM