Trading Journals

4ow4ow · #1 (**permalink**) 12-11-2007, 03:46 AM

Whole Journal Edited: Removing unnecessary quotes that were in a line.

Migraine. I must stop my full-hours trading. These 2 years, I had tested many indicators. All complicated structure of system gave me a headache. None works reliably as Pivot S/R lines. So, my suggestion is, go for it, use the Pivot S/R line.

A horizontal line Pivot S/R line is a reliable indicator you can depend on.

Before I go with Long term, I wish to share something to you about intraday or short-term scalping idea:

1. Learn the price behavior once it arrives to the line. This is the most important part that you must buy with your time to gain the experience. Nick will guide you, he had explained them in "Nick's Trading" section.

2. Calculate the risk management and money management. This is the vital point that everyone must always apply in their trading plan. Without it, you will never be a stable one, a profitable one, nor a survivor. Never underestimate this beast market because of its high leverage-trading, this ain't a stock trading nor a physic-buying where you can Hold in a huge drawdown/losses.

If you're out of the market, let it go. Don't blame anyone or any system. Stop thinking "every trade I take shall be a winner trade -or- every day I shall be a winner."
You may stop this: "by not getting inside" as a position, should if you have a doubtful thought about it.

Another possible cause was from your risk management which was in a dangerous state, you threw almost whole of the margin into the market, in hoping to double-size the margin. This ain't a quick-rich scheme. If you often did this, stop this behavior before it hurts you. You must realize that your left-margin capacity is not adequate, to shoulder the market's breath of swing, even it's for a small swing one.

3. Keep it Simple, technically.

4. Read the value of candle based on bigger Time Frame. 4H and above is better.

5. Most important: Consistency and Loyalty.

Use as minimum stuff as you can, adding one line is tolerable if it does not influence your profit ratio. But if it did damaged your profit session, dump it and never use it.
It may suit for some traders, but hence if it's damaging your profit, better to not add that line.
Adding a line will add more psychological effect in technician's reading.

Before you start to multiply the lot size, mark your margin level for this occasion. Example, you will start to double the bet after you reach certain margin amount, started with 1K - double after you have 5K. If it's down, below the margin number (5K), retry back to use the former lot size.
//This is for an example - Part of money and risk management.//

Do not multiply for each winning in a row.
Remember, not every ticket is a winner. Because if you did, by one at a time, you need only one ticket that will sweep "them all" (=the small hard earned of earlier profits).
-OR-
You may stick for the consistency-in-position-sizing, and compounding whole from step-by-step profit (including lose tickets which were limited by the risk management.) with same usage of margin per ticket. This will pour you into a discipline trade, along you may find out how good/bad of your monthly performance.

6. Leverage sizing.
1:100. Never use more than that. It's already too big for me.

Thanks to Nick's method. I found Pivot Line is steady (discipline).

4ow4ow · #2 (**permalink**) 12-15-2007, 01:29 AM

7. Mark the news.
Each agenda of important news may ruin your "virgin" trading ticket (the new ticket without enough ratio of pips coverage). In other word, it may touch immediately your SL or Trailing Stop point once the swing begins.

If you don't want to be disturbed by news, avoid entry nearby the ETA. You may check forexfactory or bloomberg economic calender for this. Precaution for news impact earlier, is better. ---For not damaging your profit, -or worst- damaging your base margin.

Basically, it's not the news movement that kills you, but the broker's widening spread is or their self-protecting schematic in news hour. This is bad for their client, but they mention they have no choice. (Tips: Use ECN broker)
It's bad for traders who like to bet for double-sizing the margin, in the news hour. It works the same for those who uses high leverage above 1:100 with inadequate margin coverage.
This Shall cause a severe margin-wound, and may easily trigger the Margin Called button in a brief time.

8. Have a written-journal.
Every trader has its own journal. Thus, every technician does own it. A written-journal is an important essence
that may help you to recognize "where the problem is."
It's a clue or a map, but not the treasure. Because the real treasure is You!

The journal will reflect who you are, what you write inside will reveal most part of yourself. The more you write inside, the better you comprehend the market -and much more better on how you deal with Yourself later-.

9. Use the money you eager to lose -aka- spare money.
Never loan or lend the money from someone to play this. Never use the money for bills. Never pull out whole saving-money to play this. A few major trader may have the success in earlier trade, but don't have such a thought or bet-of-chance.

10. Live your life.
Making 50 tikets in a day -versus- 2 or 3 tickets with a plan, will not guarantee the first option will win the streak in a year. The more frequent you enter the market, the more "psychologically" you're going to multiply the lot size.
Furthermore, the tired you are, the more later trades will become "flushy". Consistency is always the key. Scalping isn't not-to-be allowed, but you must consider about spending your life-time, in front of PC by 24/7, -is worth to this or not-.

Prioritize your health, your main job, your family, your friends, and your religion/faith.

aowaow

demonjin · #3 (**permalink**) 12-18-2007, 03:14 AM

Interesting strategy.

I am looking forward for more trade entries and would like you to include the fib and pivot lines that factored into your decisions

Btw, thanks for sharing. It is people like you who makes forex so interesting to new bees like me

4ow4ow · #4 (**permalink**) 12-22-2007, 03:23 AM

Edited: Removed my FX-open trading in 1 quote.

Early Deposit 29.70$ + Welcome bonus 25$.

Year 2007
Total margin = $82.03

Year 2008
3/01 = $173.03
4/01 = $175.03
7/01 = $253.40
8/01 = $281.09
9/01 = $470.09
10/01 = $656.32 " I gave my friend $10.00 to his account."
11/01 = $1017.32
14/01 = $2041.32 (Withdrawing = $500)
15/01 = $2297.32

Most of you had seen my proof before.