I reviewed my trade, and found a mistake that I have made. Basically, I have ignored my own trend evaluation system as I have mentioned in my earlier post “Defining a trend“. So this post just serves as a note to myself.
Looking at longer time frame of NQ futures (I call it trend chart) where I evaluate a trend. It is obvious uptrend was getting weaker and it was trying to test resistance in the Friday morning. The best decision would have been staying away and wait for the resistance to be broken or a reversal to kick in.
So, the dumb trader like me, went long in shorter time frame (I call this Trade Chart) when a Long dummy setup appeared. I was well deserved to be stopped out. Another weakness of impatient and being ignorant.
Not only I’ve made a mistake by going to the wrong direction. Around 11am of Friday, there was a short call shouting at me. And yet, I was too caught up with the loss, and did not bother to look at trend chart again. So, opportunity again flied.
Well, there is always a reason behind a losing trade. It is more than “I am just unlucky”.