I mentioned earlier in a post, how one of the best ways to trade is what I call the sniper-trading method, when you wait for a setup, sometimes it takes hours, sometimes days, but then when you shoot, you hit your target and you hit it big, by big I mean in pips.

For example, right now I'm waiting for a setup on EURNZD.

As you can see we've had a pretyy cool uptrend on the 4hr chart in the last 2 days. The last 5 candles however have been in a sideways trend, indicating that the market is not yet sure what it will do next, go further or retrace. 

From my experience, when there is an uptrend with good momentum(like the one a couple of days ago, followed by a sideways trend, and then followed by red candles - lower lows), a retracement is likely to happen.

As we can see from the chart, we are now at a red candle, with very high probability to go lower. However, the setup is not complete. We must wait for at least another candle that will break this candle's low in order to consider entering. Right now, there are 30 minutes left until candle close, so we'll have to wait and see. Until then, I'll go ahead and study some more for my Prices & Competition exam which I will be taking in a few hours >.<

EDIT: well, a new candle has formed, which has already made a lower low. However, as you can see, the price is near the 2.23 mark, will wait until price goes to 2.2260/50 to consider entering

Revenge trading occurs when after losing a trade, you immediately enter another trade. Most of the time the second trade you enter is not a valid trade, based on your system, but rather, it does not obey some of the rules, and you take that trade on impulse.

Why does this happen ?

This happens largely due to the fact that you have lost money on trade #1, and now are angry at the market for taking your money, and you want it back. You immediately look for another trade, one that obeys some, but most surely not all of your rules and enter it. You want your money back, and you want it as quickly as possible, that's why you e

nter another trade. However, after some time you realise that the trade is not good, and is not acting in your best interest, and you close it for another loss. 

What is the solution ?

After a losing trade, or several lost trades in a row, close your trading software and do something else besides trading, that will clear your head. Read something, watch TV, etc, but resist the temptation to trade. Call it a day, i think this would do you and your account better than looking for potential trades. There is always tomorrow.

It takes discipline to win in this forex trading game, without discipline and proper money and risk management you're account will reach margin call in no time. 

What happened today was that i lost 3 trades in a row. I obeyed my system, didn't take any loose trades, but it turned out that all 3 trades moved after a while in the opposite direction, as seen here. It happens. You can't win 'em all.

After I closed all of the 3 trades, I looked at the market for another opportunity, and took it, shorting the USDJPY at 95.62. 

                                                                                                                                                                                   

After a while however, this trade also turned a couple of pips against me, and for fear of not losing again, i closed it rather quickly for a $2 loss. 

We are human, and it's normal to have emotions, even when trading. It's important however, to control our emotions and not to impulse-trade.

I'm calling it a day. See you tomorrow :)

What are your experiences of such a behavior.