This is what Rahul says: I would like to share a sad incident of one of my trader friends.
Last Sunday, he was looking at his forex charts and when analyzing he found a good setup on USD/CHF currency pair and he decided to place a trade on a 30 min chart. He opened a long trade, placed a stop loss 36 pips away from the opening price…But, by MISTAKE, he placed 10 lots on the trade instead of 1 lot!!
And sure enough, the trade moved in the other direction (I know why!) and he lost 360 pips instead of usual 36 pips! It was sad to know. But there are few takeaways for everyone who came to know of this incident (And that is the reason I am sharing this incident with you)!
http://www.ninjatraderblog.com/
1. There are some days/times on which traders should stay away from the market. One of them is on Sundays. That’s because on Sundays, the volatility of the market is extremely low. The banks are closed and so there is not enough movement.
2. This was an impulse trade by my friend. And he didn't review his trade after placing it.
Basically he didn't have a plan for the trade. Never do that! Each trade of yours should be as per a plan and always make sure that you review your trade before you place it!
http://www.ninjatraderblog.com/
3. This again highlights the importance of placing stop loss. Now sure this trade ended in 360 pips loss, but can you imagine what would have happened had there been no stop loss?
So, make sure that each of your trades are reviewed before you place them and stay away from markets on Sunday.
http://www.ninjatraderblog.com/
