What not to do (EUR/USD & CABLE)

Hey everyone. Starting up a journal as a kind of self critiquing tool for myself and to show other newbies(like myself) how not to trade. I've been trading since early January where I made some easy gains shorting the euro but have seen substantial losses since. In short, I've been learning a lot = D

I go to school part time and I have a part-time serving job. I am out of school until April and my job isn't producing any hours right now. I have savings but am trying, due to my circumstances, to make it as a trader. I can keep this up for only so long but I am upbeat that I am limiting losses and finding consistency.

My strategy mostly involves using 1 hour and 5 minute charts and taking positions with the hour trend while perfecting entries with the 5 minute. This can happen different ways. Sometimes I find myself just taking a fade at a major s/r level (betting against the breakout) and other times I find myself fading 5 min s/r lines that are against the 5 min trend but with the 1 hour trend.

My weaknesses:
1. Doubt/Hesitation - Not taking a setup at the best price because I start to doubt it.
2. Stubborn/discipline - Holding onto a losing trade and taking losses betting on it coming back, canceling stop losses etc.

Will make my first post below.

I'm a relatively new trader too. I have been impressed with the vast information here on Forex Factory. There are many professional traders who post here regularly. I would encourage you (and any other newbies) to explore all the unique threads, and follow the wise counsel.

GOOD LUCK!

Interesting day. Eurousd had a general uptrend after a small initial fakeout down. Fed announcement to start buying treasuries sent the dollar plummeting. Got 2 5 min charts and will add my hourly as well. Despite the general uptrend I was biased short for the early day but obviously changed my mind after fed announcement.

5 min charts have trades numbered for ease of use. Hour chart is a 1 week time frame.

A little explanation for each trade. The following chart shows a breakdown of each trade made and the p&l realized. I have no convenient way to show my pips because my broker(interactive brokers) can't breakdown forex trades for some reason, so I'm going to be super-tacky and put my actualized gains and losses in $$.

3/17/2009
UnderlyingSecurity TypeExpiryStrikePut/CallCurrencyActionQuantityPriceTimeDate
1EURCASHUSDSLD $20,000.00 1.3058223:38:29 $26,116.40
1EURCASHUSDBOT $(20,000.00)1.302700:28:38 $(26,054.00)
2EURCASHUSDSLD $40,000.00 1.3014400:37:09 $52,057.60
1GBPCASHUSDSLD $40,000.00 1.396900:48:46 $55,876.00
2EURCASHUSDBOT $(40,000.00)1.3001500:50:19 $(52,006.00)
3EURCASHUSDSLD $20,000.00 1.301501:02:15 $26,030.00
1GBPCASHUSDBOT $(40,000.00)1.39601:25:22 $(55,840.00)
3EURCASHUSDBOT $(20,000.00)1.3013501:35:29 $(26,027.00)
4EURCASHUSDSLD $40,000.00 1.2988502:01:18 $51,954.00
4EURCASHUSDBOT $(40,000.00)1.3027502:53:45 $(52,110.00)
5EURCASHUSDSLD $40,000.00 1.303902:58:38 $52,156.00
5EURCASHUSDBOT $(40,000.00)1.304503:03:05 $(52,180.00)
6EURCASHUSDSLD $40,000.00 1.30503:30:04 $52,200.00
6EURCASHUSDBOT $(40,000.00)1.306103:45:28 $(52,244.00)
7EURCASHUSDBOT $(20,000.00)1.3407211:32:14 $(26,814.40)
7EURCASHUSDBOT $(20,000.00)1.33811:38:54 $(26,760.00)
7EURCASHUSDBOT $(20,000.00)1.337411:41:51 $(26,748.00)
7EURCASHUSDSLD $60,000.00 1.3441712:27:47 $80,650.20
P&L $256.80

EUR/USD
1. I just became aware that the original sell order didn't show up on the chart for today because the trade was technically made yesterday PST. Went short from 1.3058 because it penetrated through the top range of the Asia session. I'm of the opinion that Asia tends to trade this pair in a fairly tight range (won't be significantly higher/lower than the US high/low) and until London opens there is a low-risk of breakout. Due to this tendency I like to take a fade off the last s/r that Asia hits before the London open. I didn't have any particular target in mind (another weakness to my strategy) so I took profit after it came up a little ... should have waited out the next support level but you can't let them all come back.

2. To be fair I drew the trendline on this trade after I opened the position. I knew the move wasn't over despite getting out of my first trade, so I did the emotional thing and fearing missing the breakout down, got in at an extremely poor price. The trend saved my ass however and I took another profit.

3. Pretty sloppy attempt at catching the pull back on this one. Not perfect but I got out even. Still, this should have been held for the subsequent move down.

4. And here's where I breakdown. This trade has much in common with #2 except this time there's the 1 hour trendline that's been going strong for a week or more to give this thing support. My strategy clearly shows that I should be going long here ... instead I take the emotional trade and try to re-short because I missed a down move. Also, I'm convinced that this fake out is actually breakout of the longer term uptrend. Extremely bad trade. Then to make it worse I hold on to the damn thing like a stubborn child for a 40 pip loss. Brilliant.

5&6. Attempts to fade minor 5min s/r lines - i.e. going against the 1hour chart. Obviously was very frustrated with myself at this point and decided I wanted to lose more money trying desperately to get back even. Decided to go sleep off the bad taste in my mouth from my last three trades.

7. Punted. Got lucky, held on with rocks of steel. First entry was at least 20 pips higher than where I hit the market order. Called the pullback and triple downed. Got out too soon and I would have liked to hold onto this overnight but alas, you can't let it come all the way back. Should have gotten out at 1.35 though but I was hungry and I needed some saltines/coffee. Again ... this probably isn't a good thing to do.

GBP/USD

1. Knew this was a big level and the breakout was going to be good for a short. I decided to lock in 10 pips (ended up 9) and just see what happened. Part of the problem was that I didn't get an optimal entry (should have been around 1.3995) thanks to my broker's software bug that queued up the wrong pair (eurusd instead of cable) entering me early and worse off on the eurusd trade I was also about to make and also worse off on the cable trade it delayed me in making. I hate to blame my broker for bad trades, but buggy software ticks me off.

Ended up for the day despite some very questionable trading. Hopefully this therapy will bring me some better decision making later tonight.