My losing trades - 2 Feb 2025

I don't often trade the daily chart but there was, what looked like a great opportunity on the Netherlands 25 Indices. Let's look at the trade set up and this losing trade in detail.

The price action in the build up to the day of entry was making higher highs and higher lows and was appearing bullish.

The daily candle I took the trade on had taken out and closed above the previous pivot high. This candle was strong and volume had been slightly higher than the prior days. Looked good right?

The only downside I had noted from the set up was the fact, that if you look to the left there was a lot of resistance.

The very next day it gapped down, below the open price of the day I took the trade and I was stopped out. Had I been aggressive and not had a suitable position size, the loss could have been catastrophic. I was not deterred by this, the gap down was due to non technical reasons but because of mentions of trade tariffs by the US president. Such things are not predictable. It does show the importance of not having any uncomfortable positions open overnight!

Trade Clearly!