You can’t succeed on Forex without sharpening your professional skills constantly. To improve your qualification, keep a trading diary analyzing your deals. The diary could be a simple notebook, a text document in your computer or a print screen with notes saved in any graphic editor.
For example, let’s analyze an entry in EURJPY made on Tuesday. A Wolfe Wave was formed on the H1 time frame:
The entry was made when the price exited the sweet zone. Let’s take a look at the picture below to see how the pattern worked:
As you can see, a short stop would have led to losses, while a breakeven would have left us beyond the market (like it happened with my order). We are going to analyze this situation to make our future trading more lucrative:
- the entry was made correctly;
- a shift to breakeven was made at a cross of points 2 and 4 according to the rules of a trading system;
- if not for the breakeven, the deal would have closed at a short stop;
- the price hit tp_1 and tp_2 without touching sl_2.
If a similar situation occurs in other patterns, it will be wise to split one order into two (general risk per deal will be the same). The first entry will be made according to the current rules; and the second one, with a stop placed at sl_2 and without a shift to breakeven. Opening a second account to master changed rules is also possible.