In this article, we will analyze two trades on the NASDAQ 100. We will discuss the maximum drawdown, risk per trade, and the strategy used. The trades are executed with a maximum risk of $25 per trade. However, one of the trades had a risk of $26 to balance the overall risk. The goal is to keep the risk per trade below $25. The strategy is mechanical and aims to achieve more success by trading strategically.
The first trade was a buy trade, and the second trade was a sell trade. Both trades had a risk of around $25. Unfortunately, the first trade resulted in a loss of $50, while the second trade resulted in a loss of $23. The stop loss was the reason for the losses. The trades could have been profitable if the stop loss was not hit.
It is important to note that the daily candles were considered for these trades. The first trade was entered on the buy side, but it got stopped out due to the stop loss. The second trade was entered on the sell side and also got stopped out. The losses were $26 and $23, respectively.
Currently, there is a bullish trade based on the recent bullish close. Despite the bearish sentiment in the market, the trade is being executed with a bullish bias. The trader will continue to trade it bullish until a reversal is observed.
In conclusion, analyzing trades on the NASDAQ 100 requires risk management and discipline. By following a mechanical strategy and managing risk per trade, traders can increase their chances of profitability. It is important to stay disciplined and adapt to market conditions. Success in trading comes from a combination of strategy and discipline.
