As you saw in Trade 2, I mentioned that I needed to be more observant. Trade 3 was made on the same day as Trades 1 and 2.

In Trade 2, I was stopped out after the price failed to break above a previous high. I suspected we were in a range, which is how I made money on Trade 1.

The range was confirmed, and I now saw an opportunity to recover my losses from Trade 2 by entering a short position targeting the bottom of the range.

Price Player With My Emotions & Many Were Trapped – I Wasn’t

Before this challenge, I had been experimenting with different risk-reward ratios and running the numbers to see what worked best. I noticed that a 23-tick target was often achievable and paired well with a 12-tick stop loss. Many times, 12 ticks seemed safe enough to keep me in a trade if I had entered correctly.

This time, those 12 ticks were essential to keep me protected. Here, I took a short trade in the direction of the range. However, in the area where I traded, the price was very choppy—something I didn’t expect before entering the trade.

I noticed the price began to pull back and then rejected off the EMA. You can see a large wick on a bullish candle, which would have trapped the earlier sellers.

This was my signal to short the market.

The Market Really Does Trap People – It’s How I Win

I found a reason to enter this trade with a comfortable 2:1 risk-reward ratio—a stop loss just above the large wick, which, in my opinion, was the trap. The take profit was set at 24 ticks, right at the bottom of the zone where I bought the market in Trade 1.

Isn’t it funny? You can literally see Trade 1—my stop loss was just below the blue line in the picture above. The price went exactly to where my stop loss would have been and then reversed immediately.

Of course, my target was met, and here we banked another 24 ticks of profit.

Current Trades = 2 Wins – 1 Loss – 97 to go. Total +36 ticks.