Why publish a loser
Losing trades taken correctly are part of the system. This one was not taken correctly, which makes it more useful than a winner.
Trade breakdown · Large-cap ETF
- Setup
- Opening range breakout, 15 minute window
- Catalyst
- No stock-specific catalyst; index follow-through only
- Entry rationale
- Price cleared the range high by two cents and I entered before the candle closed.
- Risk level
- Planned risk was one unit; actual risk taken was closer to one and a half because the stop sat below a wide range.
- Exit rationale
- Price failed back inside the range within four minutes and I exited at the planned stop.
- What worked
- The stop was honoured immediately with no hesitation and no averaging down.
- What didn't
- There was no volume expansion on the break, and the range was wider than average, which should have reduced size or cancelled the trade.
- Lesson
- Two of my five conditions were missing. Four out of five is a no — and two out of five is not a trade at all.
Educational review of a past session. Not financial advice, not a recommendation, and not an indication of future results.