I started trading 1 year ago as a way of taking more control of my finances. I wanted to earn money on my own terms, free myself from my 9 to 5, an open up some new opportunities for myself. I went through babypips.com, got myself a practice account and a mentor. But since I opened my live account I haven't been doing well at all. I haven't lost it all just yet, but of the $300 I started with, I now have $250. So I need to figure out what I'm doing wrong and fix it.
So my plan now is to keep this trading journal as a way to improve. The idea is to record my set ups, my justification, and the results of my trades. I'll share wins and losses. I'm still pretty much a novice so there may be more losses than wins.
My Trading System
Theory:
So my plan now is to keep this trading journal as a way to improve. The idea is to record my set ups, my justification, and the results of my trades. I'll share wins and losses. I'm still pretty much a novice so there may be more losses than wins.
My Trading System
Theory:
- Quarter Theory
- Price Action/Support Resistance
Signals
- SMA 7 (green)
- SMA 14 (red)
- Stochastics (14,3,3)
Time
- Daily
- 4 Hours
Method
- Use Quarters theory to identify significant price points.
- Highlight those areas where major price movements occurred to identify support and resistance line
- Evaluate price action at those points
- Look for reversal candlestick and chart signals that occur at support/resistance
- Enter on the open of the next daily candle during Japan, British or NY open, preferrably British/NY open
The best price signals will also cross one or both of the moving averages
Highest likelihood also involves a cross of the moving averages while stochastics confirm price movement
Buy when
- Price reaches major support
- Price shows buy signal at major support lines
- Price crosses above one or both SMAs (ideal)
- MAs converge or cross up (confirmation)
- Stochastics crosses up and is above the 50 mid-point (confirmation)
Sell when
- Price reaches major resistance
- Price shows sell signal at major resistance line
- Price crosses below one or both SMAs (ideal)
- MAs converge or cross down (confirmation)
- Stochastics crosses down and is below the 50 mid-point (confirmation)
On top of this journal you'll see the statistical results of the trades I've executed using this approach on my MT4 account.
Below is an example of my most recent trade. I held this trade for 3 days and currently made 150 pips. I noticed that price had gapped up and made an engulfing bullish candle at a support line, which closed above the SMA 7 while the stochastic crossed up, though still below 50.
https://www.tradingview.com/x/I9mPXAIp