Vladimir RibakovOwner, Chief Trader at Home Trader Club (Former Traders Academy Club), Owner, Chief Trader at Home Trader Club (Former Traders Academy Club) · Owner, Chief Trader at Home Trader Club (Former Traders Academy Club)

EURCAD buy trading accepting a loss fully explained - 24 April 2024 #forex #trading #loss #shorts

24 Apr 2024 · 1 min

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In this short commentary, Vladimir Ribakov walks through a recent EUR/CAD trade he entered on the 1‑hour chart. He describes the initial bullish setup—a break above a falling resistance line, bullish divergence, and a bullish convergence where price made higher highs while the MACD histogram also rose. His trading plan was to stay long as long as two key support zones held. However, the market reversed, breaking those zones, producing three consecutive lower highs and a lower low, invalidating the bullish thesis. Ribakov emphasizes that when such technical signals fail, the trader must cut the position and accept the loss, highlighting this as a crucial risk‑management practice.

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Here is an example when to cut out and accept a loss in trading. This example is the EUR/CAD buy I was following. Here is a quick recap: 1-hour chart broke above the falling resistance line. After making bullish divergence, it completed a bullish convergence— higher highs on the chart versus higher highs on the MACD histogram indicator. My plan was simple: as long as these 2 key supportive zones hold, I'm after buys. But the market doesn't care what I want, and it didn't respect the zones and broke to the downside. It made 3 lower highs, lower low against me, which means the bullish view failed. It's time to cut out and accept a loss, which is a very important part in trading.