i got shafted in the markets today, but i’m still 100% confident in my strategy, here’s why

i got shafted in the markets today, but i still 100% confident in my strategy, here’s why

i got fucking destroyed, lost a good chunk of capital, only trading with $100 usd though

i feel totally fine though, why?

because price ultimately hit my take profit by the end of the day, like i predicted it would

where did i mess up? i didn’t understand that if i have a shit load of price action to the left, i should probably use a wider stop loss

take a look at these pictures, these are both short positions

here is the trade i took that got stopped out: https://i.gyazo.com/91741aa281be70c39d049d5b56e9aeac.png

here is the trade that i should’ve taken: https://i.gyazo.com/7dd0b49a7d3a8349c150b440da484262.png

what does this mean?

it means that NO ONE could have predicted price action unfolding this way. it’s IMPOSSIBLE to predict

which is why the only way to avoid random big swings like this is to set a wide stop loss, even if your risk to reward is negative

notice that i would only set a wide stop loss in situations like this, where there is a lot of price action to the left. the risk of being stopped out is considerable. i honestly could have set a 0.50 risk to reward ratio in this case. i would say the main point is to ensure recent resistance/support levels are covered

if i get in at market tops or bottoms, then i can do the usual 1 to 2 risk to reward

i follow wyckoff methodology with some volume price analysis thrown in

the methodology is accurate, but the placement of stops needs to be fine tuned and understood more