Why do traders lose

Why do traders lose? (Continued)

A very interesting question, and let’s try to figure it out (continue the theme – https://www.mql5.com/ru/blogs/post/69 and https://www.mql5.com/ru/blogs/post/126) .

Let us consider a typical example, analyzing the schedule, e.g. GBPUSD H12:

Why do traders lose

On the chart the general trend is down, but as long as pullback – turn ind.4 and blue ind.3.

Our last action – profit for the fastest indicator (on the schedule – is turning blue ind.3).

Further analysis should show the future scenario of possible actions. This two options:

1. After the rollback downward trend will continue.

2. Rollback can develop into a general trend reversal.

The best option – to wait for a reversal trend upward as open a position in the continuation of the trend is very dangerous.

The second option – to wait for a reversal of all the one-way indicator. This is the correct version, but still dangerous enough, because of the possible situation with a sharp tug at the end of a trend and a very sharp reversal of the trend. There need a safety net in the intraday trend, for example 2:00 graph, for a very quick closing position to avoid a big disadvantage in the transaction – https://www.mql5.com/ru/blogs/post/707.

Conclusions: The main difficulties begin at the end of a trend, or at the transition when changing the direction of the trend. And here it is best to play it safe and not take any action on the opening of a new transaction, and wait for complete clarity in the analysis.

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