How could I have traded this better

#1

Hi, my name is Bill and I am very new to this and would like some thoughts on how I could have played this better.

First off let me just state that today was the first day I had Ninja Trader working as I am Mac based and Ninja does not support Mac.

So I was playing around with the charts and this trade popped out to me AUD/USD>.9000 (7pm). I noticed on the chart that is was not even close to .9000 all day and with about two hours left I was pretty confident it was not going to make it. So just being pumped that I was able to see the trade I Sold 10 contracts (Demo Account) @ $9.50. I put a original Buy order in @$4, but changed it to $6 as not to be greedy. My questions are as follows:

  1. Did I play this right? What would you have done?

  2. I had a total of $18 in fees and I thought it was capped at $9?

Here is a copy of the trade:

Sell 03/05/14 16:54:47 10 AUD/USD >.9000 (7PM) @ 9.5 $-905.00 Fee Payment 03/05/14 16:54:47 10 AUD/USD >.9000 (7PM) @ 9.5 $-9.00 Buy to Close 03/05/14 18:05:48 2 AUD/USD >.9000 (7PM) @ 6 $188.00 Fee Payment 03/05/14 18:05:48 2 AUD/USD >.9000 (7PM) @ 6 $-1.80 Buy to Close 03/05/14 18:06:06 2 AUD/USD >.9000 (7PM) @ 6 $188.00 Fee Payment 03/05/14 18:06:06 2 AUD/USD >.9000 (7PM) @ 6 $-1.80 Buy to Close 03/05/14 18:07:07 2 AUD/USD >.9000 (7PM) @ 6 $188.00 Fee Payment 03/05/14 18:07:07 2 AUD/USD >.9000 (7PM) @ 6 $-1.80 Buy to Close 03/05/14 18:08:06 2 AUD/USD >.9000 (7PM) @ 6 $188.00 Fee Payment 03/05/14 18:08:06 2 AUD/USD >.9000 (7PM) @ 6 $-1.80 Buy to Close 03/05/14 18:09:06 2 AUD/USD >.9000 (7PM) @ 6 $188.00 Fee Payment 03/05/14 18:09:06 2 AUD/USD >.9000 (7PM) @ 6 $-1.80

Any thoughts would be appreciated.

Thanks,

Bill

#2

Sold at 9.50 - Bought at $6.00 profit $3.50 less fees of $1.80 a trade net profit $1.70 a contract on a risk of 90.5+.90 (fee) -$91.40

Issues:

  1. One loss would wipe out over 50 wins so it will work great and often till it doesn’t… So Risk/Reward is way way off

  2. You did not mention a risk management plan for exit. Nor what % was at risk on the trade of account. This is essential before you ever enter a trade. Are you using the stop trigger plugin on the scanner to help you follow a plan?

  3. Far away is great till its not what gave you the reason to think it was far away? Subjective or? Personally I agree that was the perfect strike to sell. But it was for two little. Also why did you not buy one equally far away to butterfly it. But either way it was for to little of $$ to make it a trade that will work out in the averages and its all about the averages.

See below how the expected range indicator lined up well with your chosen 7 PM strike. and would have a good chunck of the day. But without risk management (and if you did not pay attention to news) you would have been wiped out at 8 PM.

If you did say 15 sell and 85 buy all day and got out at 50 when strike was hit - the averages (so long as filled - even without a lot of the fills) would have worked out fine.

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