Heavily Shorting USDJPY since last week friday and stopped!

johnkirstenn

johnkirstenn

USDJPY
upload_2022-10-5_0-35-40.png


Can somebody please tell me how to avoid these unnecessary wicks? I've been shorting USDJPY since last week Friday 'cause I was thinking that my position is already the top yet this happened.

My speculation on a bigger picture is correct, however I got stopped anyway..

DXY
upload_2022-10-5_0-37-46.png


(I've been bearish on DXY since and when it reached the higher median line I thought there's no way on heavens it will still top that)

So back to the story I'm bearish on DXY still last Friday and went to check on JXY..

JXY
upload_2022-10-5_0-41-38.png


And since JXY hit exactly on the median line in the middle and it was support level, I knew it is valid and it must bounce at least for a while even tho it is bearish..

So here's the thing, I'm bearish on DXY and bullish on JXY for at least a week; therefore USDJPY - SHORT.

Sure it was kinda satisfying to see that I'm right overall, but I didn't benefit on it because I was stopped and couldn't re-enter 'cause I got liquidated unfortunately with the wick..

I went all in with my lot size thinking of capitalizing the opportunity, then once again I remember that this isn't poker that I can go all in.

The capital is low anyway the reason why I kinda didn't care to lose it, but I know this isn't the way and please don't scold me for the poor risk management..

I want to understand how to avoid these unnecessary wicks.

Thanks.
 

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You cannot avoid these spikes, as there are in the market (not broker only ones), so the only way is to reduce your size, lower your leverage and allow more room for market breathe. The only other way would be to perfection your market timing and go in into smaller time frames, the very hard way to avoid this mess. Sorry, but I do not see better options right now. As markets are actually like crazy with very high volatility even in majors FX. And it does not look it will stop this behavior tomorrow.
 
After getting liquidated, I was ranting to my friend around 10:30am.
 

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TrAndy2022 said:
You cannot avoid these spikes, as there are in the market (not broker only ones), so the only way is to reduce your size, lower your leverage and allow more room for market breathe. The only other way would be to perfection your market timing and go in into smaller time frames, the very hard way to avoid this mess. Sorry, but I do not see better options right now. As markets are actually like crazy with very high volatility even in majors FX. And it does not look it will stop this behavior tomorrow.
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Yea I was liquidated before this just last month (not sure, i lost track of days) when DXY performed in a way that I think no one with inside info ever thought would do.

So I guess I just have to be patient, as a retailer. How I wish I can learn beyond the fundamentals like how these insiders do to avoid what should be avoided.
 
It seems like there are multiple mistakes


1. It seems like your entry timing was wrong / no good

2. and you did not check the economic calendar.

3. and you were trading in the death zone where there was no oxygen;
jpy has been moving in a tiny range of 0.5%.
and you stretched your Y axis far too much.



Please indicate on the chart when you shorted jpy.
 
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