took short based on 1h momo, doesn't look like it will end up good:
I'm not the best at this yet, so I'm not sure if my suggestions are worth anything, but I have been making money trading this live for a few weeks now.
And I can see your making the same mistakes I made when I first started. In my opinion you are trying to rush things, instead of having patience and waiting for the perfect setups. I'll tell you how I managed to start making money with it and maybe you will get something from it.
Its kinda hard to explain, es/pip is right in that it just kinda hits you, but I do know a few of the biggest things that I did change to go from losing to profit.
First thing you have to do is determine the overall direction based on the H4 and the CLOSED candles, as MightyOne said the current candle is illusion, and only look for trades that direction. So there was basically no reason for you to try and go short when the GBP is clearly going up. And I'm not saying you can't, but just saying as a starting point, until your actually making money and seeing it, you shouldn't be trying to short on an uptrend. I think this is what dragon is always getting at in his posts as well.
Second is to forget that the M5 chart even exists, at least to start with. The first few weeks trading this I would try and enter off the M5 and had tons of losses. Once I stopped and started only trading M15, M30, H1, or H4, not only did I start making money, but I also just started to see it, and can now even trade the M5 with success. Just have to have patience with it, there are tons of entries all day long even without the M5.
It really is as simple as it looks, there is no secret, just have some patience. Don't take any trade your unsure of, even if that means you get 1 trade a week, start by only taking the ones you see, before you know it you will see them everywhere.
That is just my experience with it, I don't know if its right, I just know it worked for me.