Forex trading: a trade went wrong
It happened to me, more than once trading forex: a trade went wrong.
A good forex trading set up develops and after my entry ‘it’ happens. Trading forex isn’t much fun on the days when a good trade goes wrong but what happens when a forex pair price moves against you?
I’ll only trade winners
Let’s start with the fact that you can never trade 100% winners. Losing is part of the game in forex trading because you can never predict the market right a 100% of the time.
That is one reason for trades to go down the drain. But there’s more to trading forex and a trade that simply goes wrong.
Forex rumor has it
Sometimes a rumor sends the price of a forex pair higher or lower, for instants a trade war possibility or a interest rate decision. News is also an important reason for trades to suddenly go wrong.
The news releases are often at the same time for countries like Canada and the USA, this results in forex prices being very volatile for about 30 minutes and then (most of the time) settling back in to the old price movement. But in those 30 minutes a trade might just have gone wrong and hit your stoploss.
Low volume forex trading
In a way you can compare the forex market to a football that is not inflated properly. If you kick that ball, it will just move unexpectedly because of the lack of air inside the ball.
It’s about the same with forex trading. If you trade on a very low volume day, weird things might happen. A high-volume forex market moves a little bit more predictably and a low volume forex market might just come back and bite you in the ass aka trading forex: a trade went wrong. And in some cases it happens that you where right on the trade but don't get your share in the pips: Trading forex: missed my entry (and 150 pips profit)
Trading forex: sometimes there isn’t a reason
Like the caption says: sometimes you just lose and there isn’t a reason for your trade to going the wrong way. It sucks but luckily traders have their psychology part all figured out and we know how to handle these losing days!