USDCHF trading loss and my thoughts

I put on a trade today, the USDCHF short. I have a trading channel as drawn and then I went out with my stop in place. I expected the market to fall and it did fall sharply at one point. If I were around I would have probably closed the position early after it bounced off the bottom of the trading channel. It rose from this and broke above the high of the channel triggering my stop for -50.

It is extremely annoying when this happens as at one stage, this trade was +50 up when it reached the bottom of the channel.

The obvious thing here is to think that perhaps I should always watch what the market is doing.. however, I want to be able to trade by setting the stops and limits, I dont want to become the type of trader that has to watch the screen 24/7…

In the past I have set up ‘fire and forget’ trades with a definative stop and limit. I had my stop in place but not a limit.. I didn’t even have a trailing stop to lock in profits. I thought that the market would actually fall a few hundred points from here which is why I did this…

I keep having to remind myself of the trading adage, ‘trade what you see, not what you think’

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Category: Forex trading, Make Me Some Money Ideas, money, Spreadbetting, Trading