- The distance of 3rd touch from 2nd touch was much larger than that of 2nd touch from 1st touch, and that was completely ignored (this type of scenario generally invalidates my "3rd Touch" setup, since price, more often than not, will punch right through trendline on 4th touch, after having formed a partial rise on 3rd touch)
- Stop loss was excessively and unnecessarily generous. While a max of 3-point stop would have sufficed to tell me if my setup has been invalidated, I had set it at major support at 940 (that was the original stop, before I moved it up to 942). Reason that I was generous: 1) I was trading JUST 1 contract 2) I was too tired to execute my typical sniper style plan and decided to "swing" (which brings me to mistake number 3 below) my trade for a 4-point profit instead. And since I didn't want to be shaken out before price hit my target, I decided to give the trade LOTS of room to work.
- I had set a profit target of 4 points, and a stop loss (orginal) of 10 points. That's without a doubt a rotten risk-to-reward ratio, even for me. The fact that I took the trade showed just how desperate and stubborn I was.
- I hadn't been generous enough. I should have set my stop at 935 and avoided all the "NOISE". 942 and 940 are absolutely the worst levels to place a stop for a mini-swing trade. Ok, I'm not serious (though I'm dead serious about 942 being a TERRIBLE choice of stop). There is no way I'm taking a trade where I have to risk 14 points to get 4 points.
The heart of the issue: I was unwilling to take a 2.5 to 3-point loss on a day that I had already been stopped out once. I had missed out a good many 6E trades (my "imaginary" trades always hit my targets...one wonders why....), and that frustrates me to the point where I simply REFUSED to shift my focus away from my PROFIT target to managing risk (which should ALWAYS be a trader's primary consideration) instead.