Starting this journal to document my trades and trading ideas, both discretionary and mechanical.
Charts used are almost indicator free, with only RSI.
Will use candlesticks, S & R, Fibs and price action.
Mechanical idea:
1 Hr or 4 Hr charts
RSI(7)
Long Setup:
1. Look for Bullish engulfing candlestick, particularly after the end of a Down move.
2. RSI within last 2 periods should have hit <= 30
3. At close of candle, place 2 pending long entries:
(a) 1 pip above the entire candlestick (include wicks)
(b) 50% retracement level of the entire candlestick
Stoploss is 1 pip below the candlestick.
Short Setup:
1. Look for Bearish engulfing candlestick, particularly after the end of a Up move.
2. RSI within last 2 periods should have hit => 70
3. At close of candle, place 2 pending short entries:
(a) 1 pip below the entire candlestick (include wicks)
(b) 50% retracement level of the entire candlestick
Stoploss is 1 pip below the candlestick.
Cancel orders if not opened after 2 periods.
Trade Mgt:
TP1: => 1.5 times SL, or immediate resistance/support
Move SL to BE when TP1 is hit, using trailing stop of 1.5 times SL
Money Mgt:
Max 2% per trade
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Inspirational Quotes:
Quotes from: Art of the Trade, Jason Janovsky:
"You must become a student of yourself. Forget the markets. Study you. When you understand yourself and how you personally create your actions, you will be able to control your executions."
"You will never trade for consistent profits until you know why you do what you do and why everyone else does what they do, because both of you cannot be right in this game. Until you are thinking (and therefore acting) correctly against price action, you will never know why price action is what it is. You cannot know that until you know yourself better than the other market participant knows himself. To win at trading you must know why everyone else is losing. You must know why you lose to understand how everyone else loses. When you know how losing happens, then, and only then, can you execute against the loser to win. Trading is not about markets; it’s about thinking. Since most of the participants aren’t thinking, that is your edge. Never trade until you are there. Otherwise, I will take your money. Believe me, I am out there looking for you and I know how you think."
Quotes from: Trading Rules That Work, Jason Janovsky:
"We must rise above the average thinking process coming from an unregenerate mind. We must study our own thinking and behavior to recognize when it is destructive or profitable. When we see the herd choosing to behave destructively we have the opportunity to behave profitably. Because the market is a crowd, a group, and a herd, it will never function from anything except the sum total of the individuals’ behavior—and that is always at the lower end of the spectrum as long as the group is made of people who can’t see they are destructive. Most traders have net losses because they think and behave very similarly to every other member of the group. When a trader chooses to think and behave differently, he is the only one available for new information about the structure of the group. This difference comes from self-analyzing your thinking and dissecting your behavior until you see clearly how you are performing exactly like the crowd or in some other unique manner. Once you know this difference, and it doesn’t have to be by a wide margin, you will finally buy weakness and sell strength often enough to win."
Charts used are almost indicator free, with only RSI.
Will use candlesticks, S & R, Fibs and price action.
Mechanical idea:
1 Hr or 4 Hr charts
RSI(7)
Long Setup:
1. Look for Bullish engulfing candlestick, particularly after the end of a Down move.
2. RSI within last 2 periods should have hit <= 30
3. At close of candle, place 2 pending long entries:
(a) 1 pip above the entire candlestick (include wicks)
(b) 50% retracement level of the entire candlestick
Stoploss is 1 pip below the candlestick.
Short Setup:
1. Look for Bearish engulfing candlestick, particularly after the end of a Up move.
2. RSI within last 2 periods should have hit => 70
3. At close of candle, place 2 pending short entries:
(a) 1 pip below the entire candlestick (include wicks)
(b) 50% retracement level of the entire candlestick
Stoploss is 1 pip below the candlestick.
Cancel orders if not opened after 2 periods.
Trade Mgt:
TP1: => 1.5 times SL, or immediate resistance/support
Move SL to BE when TP1 is hit, using trailing stop of 1.5 times SL
Money Mgt:
Max 2% per trade
-------------------------------------------------------------------------
Inspirational Quotes:
Quotes from: Art of the Trade, Jason Janovsky:
"You must become a student of yourself. Forget the markets. Study you. When you understand yourself and how you personally create your actions, you will be able to control your executions."
"You will never trade for consistent profits until you know why you do what you do and why everyone else does what they do, because both of you cannot be right in this game. Until you are thinking (and therefore acting) correctly against price action, you will never know why price action is what it is. You cannot know that until you know yourself better than the other market participant knows himself. To win at trading you must know why everyone else is losing. You must know why you lose to understand how everyone else loses. When you know how losing happens, then, and only then, can you execute against the loser to win. Trading is not about markets; it’s about thinking. Since most of the participants aren’t thinking, that is your edge. Never trade until you are there. Otherwise, I will take your money. Believe me, I am out there looking for you and I know how you think."
Quotes from: Trading Rules That Work, Jason Janovsky:
"We must rise above the average thinking process coming from an unregenerate mind. We must study our own thinking and behavior to recognize when it is destructive or profitable. When we see the herd choosing to behave destructively we have the opportunity to behave profitably. Because the market is a crowd, a group, and a herd, it will never function from anything except the sum total of the individuals’ behavior—and that is always at the lower end of the spectrum as long as the group is made of people who can’t see they are destructive. Most traders have net losses because they think and behave very similarly to every other member of the group. When a trader chooses to think and behave differently, he is the only one available for new information about the structure of the group. This difference comes from self-analyzing your thinking and dissecting your behavior until you see clearly how you are performing exactly like the crowd or in some other unique manner. Once you know this difference, and it doesn’t have to be by a wide margin, you will finally buy weakness and sell strength often enough to win."