So this journal, like many others on this site, is mainly here to keep me honest. My thinking is that if I HAVE to post every day's trading for people to see, I'm less likely to do something stupid. Less...
You see, I've been trading for over a year now, but I recently managed to give back a year's profits in 3 months. It was gutting.
However, I'm determined to learn from this mistake (or series of several mistakes, really) and have made changes to how I trade. The system is still as simple as ever though;
-At the start of a new daily bar (10pm BST - usually) look for prices well above or below the EMA(5).
-Do not buy into a currency move more than ONCE. If you're LONG USD/JPY, you can't go SHORT EUR/USD.
-Set the TP at the EMA(5).
-Buy as many lots as it takes for TP to = 0.5% of the account value. If I have an account of £100, then I'm looking for 50p on the trade.
-If this is the fourth time you've had to 'buy' into a trade, you cannot open any new trades. Once a trade has existed for 4 days, it's high risk and needs to be settled ASAP. Clear margin from any other trades that are positive.
-No stop loss.
-At the end of the day, move TP and buy more lots if needed to ensure that when the price hits EMA(5), 0.5% is gained.
So, it's not perfect, as the 'no stop loss' might anger a few folks on this site. Which I understand, but what I will do is manually manage these trades and exit them if I see that they're taking too long (anything longer than a week is usually worth exiting).
So with that said, let's see how this goes!
You see, I've been trading for over a year now, but I recently managed to give back a year's profits in 3 months. It was gutting.
However, I'm determined to learn from this mistake (or series of several mistakes, really) and have made changes to how I trade. The system is still as simple as ever though;
-At the start of a new daily bar (10pm BST - usually) look for prices well above or below the EMA(5).
-Do not buy into a currency move more than ONCE. If you're LONG USD/JPY, you can't go SHORT EUR/USD.
-Set the TP at the EMA(5).
-Buy as many lots as it takes for TP to = 0.5% of the account value. If I have an account of £100, then I'm looking for 50p on the trade.
-If this is the fourth time you've had to 'buy' into a trade, you cannot open any new trades. Once a trade has existed for 4 days, it's high risk and needs to be settled ASAP. Clear margin from any other trades that are positive.
-No stop loss.
-At the end of the day, move TP and buy more lots if needed to ensure that when the price hits EMA(5), 0.5% is gained.
So, it's not perfect, as the 'no stop loss' might anger a few folks on this site. Which I understand, but what I will do is manually manage these trades and exit them if I see that they're taking too long (anything longer than a week is usually worth exiting).
So with that said, let's see how this goes!