Hi guys welcome back to my little blog. In this article, there are 2 things I want to share with you. The first is to review the Peacock trading strategy as promised in the previous article. Second, let’s analyze the issues of “Revenge trading” and how to avoid falling into that dangerous situation. Now we will start with 5 beautiful trade that bring in $456.
Review the Peacock trading strategy
EUR/USD currency pair
Balanced capital management method.
1-minute candlestick chart with 3-minute expiration time (equivalent to the next 3 candlesticks)
Order 1: The price decreased when there were many red candlesticks in a row. At the same time, the Aroon Down indicator was above the 70 and the Parabolic indicator was located above the Japanese candlestick chart. Opened a DOWN trade with 3- minute expiration time and $200.
Order 2: The signal to open a safe DOWN order was when the Parabolic indicator was moving from above the Japanese candlestick chart and the Aroon Down indicator was above the 70.
Order 3: The price started a strong uptrend when the Aroon Up indicator was above the 70. Meanwhile, the Parabolic indicator was located below the Japanese candlestick chart. It was safe to open an UP trade.
Order 4: Entered a DOWN order when the Aroon Down indicator was above the 70 and the Parabolic indicator was above the Japanese candlestick chart.
Order 5: A long red candlestick appeared. The Aroon Down indicator was above the 70 and the Parabolic indicator was above the Japanese candlestick chart. Placed a DOWN order at the moment the red candlestick closed.
What is revenge trading?
As you can see above I made a profit with the Peacock strategy. If the prediction is correct I will make a profit. If I am wrong, I lose money. It is extremely normal.
Don’t think the market a feud that needs to be resolved immediately. It’ll make you unconscious and more deeply into the quagmire of losses by “revenge trading”.
Revenge is one of the most toxic emotions. You will feel them when you lose a Fixed Time Trade order with only 1 unit.
It is an extremely uncomfortable feeling while most of the time the order is in the safe zone. In the end there is a loss with just a sudden swing and then everything goes back to the direction you predicted. Next, you will have the mentality to regain the lost money in the next trading order with a larger volume.
It is a prime example of “revenge trading”. You will face a lot of risk when trading in such a position.
Sit back and look at your trading history. You may have done a lot of market revenge without even knowing it. Is that right?
Develop an effective trading strategy to limit revenge trading
You need to plan your trades carefully and set yourself a trading limit per day. Mentally, you are ready to accept losing a certain amount of money during the day. So that the number of losses cannot exceed the allowable limit.
You will no longer feel angry or frustrated with the market to calmly make the next decision leaning towards reason instead of negative emotions. Nothing can surprise you when everything is under control.
Let’s learn to accept the loss no matter how close we lose. That will happen every hour, every day every time you sit at your computer to trade. We can’t completely avoid it, so just accept it naturally without bitterness. As long as you don’t, you will lose more and money because of revenge trading.
To be a successful trader, you have to win yourself rather than rush into the market to only make things worse. You need to set a limit for yourself and stick to it strictly. It will avoid unnecessary losses from revenge trading.
Through this article, there are 2 things you need to know. It is a very simple and effective Peacock trading strategy for novice or experienced traders. And you know a new concept called “revenge trading”. Maybe you’re falling into that state every day without realizing it.
That invisibly affects your profit in Olymp Trade. Now that you know an effective method, know one more negative emotion to avoid. Then there is a high chance that you will not lose money when encountering similar situations again.
Remember that real money is different from virtual money. So revenge trading never appear on a Demo account. They only appear when you use real money from a Real account. Try to trade as small as possible to experience and set rules to limit negative emotions as much as you can.