Reminder: Clean up open orders. Avoid unnecessary losses
This is one of the TOP causes of unnecessary losses for new traders!
Refresher video course: https://www.profitfarmers.com/chapter-4-part-2-cleaning-up-dormant-open-orders/
What do people typically do wrong? (avoid this)
- New signal spotted
- Standard entry selected and trade plan created
- The signal goes on to hit Target 1/2/3 without coming down to the entry price chosen >> This means the signal is now 'done/used'
- Price then begins crashing down
- Dormant/Pending orders are then triggered as the price comes down
- Stop loss is then eventually triggered as the trade should never have been taken
What should you do?
Typically once a signal has reached Target 1 or 2 we would recommend that you do not enter the trade. If your entry was missed, bad luck, and move on!
Cancel your pending/open orders that relate to that signal.
If you leave orders open after targets are already achieved on a trade you are not going to have good results. Remain vigilant to this.
Example of a winning trade that resulted in a loss for the user
As per the screenshot above, we can see the coin pair LRCBTC showed up as a ‘loss’ even though the signal was profitable.
After checking the charts, we saw that the lowest price that the coin reached before hitting T1 is 0.00001334
However, since the entry price was set to standard, the entry price was set to 0.00001333 (unlucky).
The trade wasn’t canceled so the system bought your coins when the price hit the entry price later.
The price continued its downward trend and eventually hit stop loss.
This is why it is important to clean up your dormant open orders to avoid these kinds of situations.