My losing trades - 11 Feb 2025

My losing trade for this day was entirely my fault. It was a low probability set up. Let us analyse and see why.

The most important point of note is that this trade was taken in the early hours of the morning, where volume is always lower. This makes any trade entered starting on thin ice since there is no volume to support any directional move.

In terms of the trade itself there was a support line drawn to reflect an area of interest. On the hourly chart a clean candle broke and closed through support without any wicks. I entered the trade based on this. However, the candle in question was not an elephant bar in terms of size and it also had no volume behind it. There was no strong technical foundation for this trade.

This short trade did trend to the downside during the night but eventually reversed and smashed through my stop loss to leave me with a realised loss.

I must stick to my rules and one rule regardless of the trading strategy is that the trade can only be opened if there is an elephant bar and it is backed by volume.

Trade Clearly!