GBP/CHF Pair - Lessons Learnt

I lost about 33 pips - entered short by selling 100 units based on RSI oversold (below 20% criteria). It was also within the lower Bollinger Band.

Mistake:

1. It was not well outside Bollinger band. Also the there was no rising candlestick which
cuts upwards through the Bollinger band.
LESSON: Strictly use Limit Entry only to ensure that entry point is exactly where the
candlestick traverses the Bollinger band.

2. I shorted when there was just a series of panic selling - this could have been a breakout
from ranging
LESSON: Do not enter after a series of panic selling or manic buying.

3. I put a large stop - more than 30 pips from my entry point and but not lower than the lowest
low. I should have put at least 10 pips below the lowest low. After 1 hr 40 mins the price surpassed my entrypoint. If i had put large stops, i would have been profitable.
LESSON: Put at least 20 pips below the lowest low - since the trading started. The lowest low may be 50 pips away from your opening position - so be it. Have Guts! A ranging market will always come your way eventually - be Patient!


Other Lessons Learnt (From Other Pairs)
LESSON: Make sure the pair is ranging.
LESSON: Preferably choose low-risk pairs (lower interest rate differentials)

Happy Trading