Previous candle closed over the 8ema and over the downward trend line but under the 50sma, so I gave it another day. Today it had a strong day and was closing over the 50sma, so I had to exit the short position. If it comes back down into the wedge I'll re-short it.
I've heard a quote from a famous successful trader saying that the secret to his success is that he is willing to take many small losses in pursuit of bigger wins. This QIHU trade is an example of being willing and disciplined enough to exit a trade at a loss if it doesn't develop as expected. And before it turns into a big loss. This was a great short setup and I don't think I did anything wrong. This is just one of the trades that didn't work out.
Every methodology I've ever learned came with the caveat that no strategy has 100% success rate. The trick to trading is finding a system that makes more than it loses, then follow the system.
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