My Journal Of Beginning Again.
12/28/05 Anyone is welcome to contribute to this journal.
This is the beginning of what may have been the end for some. My refusal to give up, and encouraging words from FF members gave birth to this journal. I'm especially grateful to SterlingTDR for suggesting that I start the journal.
February of 2006 will be two years that I've been in Forex, trading live for about 8 months. I'm not looking back. Yesterday's gone and only today matters. To look ahead would mean I need to have goals, a destination for my journey. Goals can and will change, so I'll do my best to update the results.
My first goal of this journal is to set my trading rules. So I'll spend time thinking of my rules and post them as they come about. Another goal would be how many pips per day/month I expect to gain on a consistent basis. I'll look at the math on that and post the results.
Okay, let's make some pips here Good luck and good trading for you
I would wish you luck, but you don't need it. You have something far, far more important. You have bulldog determination, and a rock solid belief that you will succeed at forex, and I admire you for having both of those.
Good luck.. having determination is a big part of the battle won...
If you have trouble setting pips target, try working forwards...
try to estimate how much your system can produce on a daily/weekly/monthly basis ...
make sure your targets are in tune with your system.
for me, although i trade from daily charts, but rarely hold positions overnight. so therefore i would have a trade target which would be the 80% of the average daily range of the pair.
if you scalp, you should be able to set daily targets..
if you hold positions into weeks/months, ... it gets difficult to set daily targets.
why not consider basing it on the trade potential?
just some ramblings ..
hope that helps..
Thanks for pointing out "gold", James 16. I'm a novice trader. I read something recently, however, that caught my attention. It was a comment that it was common for openings in a market to be at the daily high or low. I don't know if that applies to Forex, and with 24 trading, I'm not sure how to study it (?treat every market opening, e.g. London, Asian, NY as a seperate "day?") The comment of daily range brought that to mind. Any comments?
Not sure what you mean by "staggered" and "stacked." Any other notable differences between futures and forex worth noting?
i agree with that - i think its much easier to plan and trade off dailies rather than smaller timeframes.
Thanks for all the kind words guys. It means a lot to me. Trading begins in January.
**Goal #1: To gain 20 pips per trade for the first 20 trades. No more than 15 pip loss per trade. Should the trade exceed my 20 pip goal, then my stop moves along with the trade. Should the trade hit my stop, that's it for the day.
**Trading rule #1: I am a trend trader. I will always trade the trend, not the movement of one candle. This is where I lost most of my money, entering trades on the excitement of candle movement. Then I'd lose more waiting for the candle to move back for me.
I like the idea presented to trade daily charts. Short term charts, IMO, are for the pros who have plenty of trading capital and can afford to lose 50-70 pips a trade. I'll watch the daily charts the rest of this week to get a feel for them. I feel better already.
One significant point to note:
the larger the time frame the price action occurred, the more powerful its 'meaning'.
eg pinbar on daily (read james16 thread about pinbar) is a much stronger indication of a trend reversal than a pinbar you see on the 15min chart.
A few more trading rules I thunk up.
**Trading Rule #2: Trade one currency pair at a time. Too often I traded two or three pairs, trying to make the pips flow.
**Trading Rule #3: There should be at least two reasons for entering the trade. Whether it be technicals, fundamentals, or just because the chart looked too good to resist, I need to have information to back up my entry. Help me out with this one guys, should there also be a reason to exit? Should the exit be predetermined?
**Trading rule #4: Once a trade has been placed, stop and limit in place, that's it. Have you ever had the price getting close to your stop and you move the stop "just a little?" Man, what a way to lose!
Just trying to clarify your plan
You can only make, in terms of "pips", what the market is willing give on any given day, regardless of your goal. Having an idea of what your return is one thing, but makeing it a goal is setting yourself up for failure because you cannot force the market to yield what it doesn't what to, without straying from your strategy.
Surely you'd be better served by setting daily goals which you had control over?
e.g. Flawless execution of you trading strategy or only taking high probability trades, things like that. The result will be regular and consistent profits. On some days you'll make alot and on others you may lose a little but on balance, you'll be ahead.
Just a thought.
Good to see you doing this journal BTW.
Thanks for asking Alan,
The direction I was looking with my pip goal was to place my trade, hit my goal, and stop trading until the next opportunity. This is where a lot of my problem is, the inability to walk away from the chart after gaining or losing in a trade. I would always enter another trade instantly, looking to recover losses. So a pip goal simply gives me the security of being able to walk away knowing that I made a good trade, closed with a gain, and didn't lose by trying to gain more.
I really appreciate the maturity on this forum, people helping people. Howtotrade...i really admire your courage to continue with this journal. I too am now going 'live' again (an old futures trader). I have always had just a "general" trading plan. It was so general, i always had "excuses" to do something different and forget the rules.
Right now i am finalizing my plan. I am trying to really be "Ruthless" with myself in making the plan totally objective and not giving my selfany opportunity to change the rules in the middle of the trade. FIREHORSE'S comments are so important. For one, how do you define trend. When you say higher High's and lower lows, that is a start (at least for me), but i always struggeled when in a trading range, and this gets all goofed up. SO i have to define something that tells me not just what the trend is, but also when there isn't one on my trading timeframe! So somehow, an objective definition must be made.
Other things I'm trying to do:
1. Keep the plan very simple and clear. Even when and when i can't use discretion! I want to be able to unemotionally backtest it.
2. Clear entry, initial and trailing stops, and exit criteria.
3. Maintain clear trade record. Don't cheat in demo mode.
4. Clear % of capital that i wll risk. Too much, and i get nervous!
Best of luck this year to you as you continue. Look forward to seeing great results for you
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