This loss was one I should have avoided, and only after reviewing my chart did I wonder why I took the trade. My setup was correct, but my position within the market was completely wrong.

This trade follows trade 1 out of 100, where I won a 2:1 trade from the bottom of a new range. The current trade, my loss, was me trying to buy at the top of the range, which is obviously not how we trade.

Be More Observant Before Placing A Trade

Now, as you know, I’m a trap trader—a term I’m sure I didn’t invent, but one that I use.

Here in the market, I thought that perhaps the price wanted to trap the previous “high” wick, which is marked with the highest blue line—something I see the market do repeatedly. In other words, a stop hunt.

But what I didn’t notice was that, in fact, the price was already quite high and had met an area of previous resistance. And because I didn’t see that, I entered long, looking for that stop hunt, only to get stopped out and take a 12-tick loss on this trade.

Current Stats = 1 Win – 1 Loss – 98 Trades To Go

Here’s a zoomed in image with the “orange” boxes that I always go on about.