Newbie Factory Journal

Introduction

This is my own thread that I want to start to post all my trades, too keep track of them, to analyze trades that I take and for future reference.

So just to give you a brief background about me, please se the following link:

http://www.forexfactory.com/forexfor...eferrerid=2899

Anyway, I'm a complete newbie to forex.. With 0% knowledge of the markets or anything about trading.. Honestly, this is my first experience with trading.. So right now I'm still expecting to make a lot of mistakes..

Information Source

Basically all the knowledge I have of the moment came from a lot of reading - from books, the internet, and most specially here in FF..
As of the moment I still have a lot of books to finish.. I plan to finish all the books in Merlin's library but yet to avail most of them..

Right now, here's a list of books that I plan to read and finish:
1) New Market Wizards
2) Trade Your Way To Financial Freedom
3) Reminisces of a a Stock Operator

Aside from the said books, I read articles from the internet. Mostly from Investopedia..

Journal Objective

Maybe you're wondering why I'd start my own journal when I still have no system (Oh, I haven't informed you yet that I have no system? Well, now you know ).. Basically, I am on the process of customizing a system for me, but to be able to build one, it's my opinion that I should start trading.. In other words, learning while you trade. Please do take note that FEEDBACKS ARE VERY WELCOMED!

So with the help of this journal, I plan to :

1) Have/Build a system - I plan to create/customize/use a system that's fit for me based on what I know/learned?

1. What are the parts of a system? (Based on what I know)
   1. Entry - for entry, right now, I plan to use Jim's method
   2. Exit - (STILL STUDYING)
   3. Money Management/Position sizing - (STILL STUDYING)

Though my plans right now are still not that organized and I still don't have the time to focus on trading (I'm not a full time trader).. I think it's important for me to start...

2) To start my trading and to keep track of them - to discipline myself to follow my system

TRADING METHOD/SYSTEM

No system yet..

1. Entry - right now, I plan to use Jim's method
2. Exit - STILL STUDYING
3. Money Management/Position sizing - STILL STUDYING (Based on TYWTFF)

TRADE TIME:
Since I'm working full time, the only time I can dedicate to forex is about 2-4 hours per day.. Time is 9 PM - 1 AM (GMT + 8)..

So I only expect to have less than 10 trades per month..

ACCOUNT

As of the moment, I have a live account with a Japanese broker since in my country, I can't find a forex broker.. I found one but they don't offer mini-accounts.. So basically, right now I'm trading remotely (from Philippines to Japan) and that I won't be withdrawing money until I get back there (if ever there's money to withdraw.. hehehe.. ).. Oh shocks, I forgot, I can't trade that account since I don't have enough capital for the margin.. stupid me.. :googly:

So that leaves me no choice but to do it with a demo account.. And to be able to make it close to being realistic, I'll only have in my account about $1000...

I guess that's all for now.. Hope to get this thread of mine going soon as possible..

Acknowledgement

Even though I'm not a profitable trader yet (I'm still optimistic that I can be one), I just want to give proper acknowledge the people who have been patient and kind enough to answer my questions.. So if I fail or prosper in this venture the blame is on them! (Hehehe.. You know I'm just kiddin')..
I know that whatever I'll be doing is of my own decision, and I take responsibility for all my decisions.. But I know I won't have a single knowlege about trading without their help.. Here they are (in no particular order):

1) Merlin - for putting up this marvelous factory and gathering nice and friendly traders (and profitable at that)
2) Diallist - for sharing what you learned and having someone to look up to.. And for being an inspiration for newbies..
3) Fijitrader - for your very wise words
4) MuddBuddha - for referring me to your simple system
5) James16 - for your chart thread and sharing what you know
6) Narafa - for also being patient to answer my questions, specially the long response to my question in "What moves the markets" thread..
7) Isotonic, fxtrader, ... Gosh... I didn't realize that there's so many that have helped me.. I guess it's just wise to say that I want to thank all the people in FF.. So for all the members here, thank you..

Though I know you guys know little of me and we don't know each other personally, I just want to inform you that I appreciate all the knowledge that you've shared..

This is it, I'm again leaping into forex... <leap> .. oh darn, I tripped!..
See ya guys and again, hope to continue my learning here..

My very first trade..
I didn't use jim's entry method here... Instead, I used MB's..



Here are a list of mistakes I did for this trade:

1) I chased the trade...
2) I'm not sure if I can even watch this trade since it's on an hourly chart, implying that a bar appears every single hour.
3) No target for profit...
4) Did not do my assignment with trade position, or money management.. No computation for Risk.. In plain words, required planning was not done..
5) No target exit point.. At least, I should have an idea of how much I should/expect to get from this trade.. Though, what I think this trade should be is a "set and forget".. But then, to know when to exit, I should go back to the trade every hour... darn..

For info for this trade:
Entry: 1.2044
Limit: 1.2094
Stop: 1.1971

Damn it...

Liquidated my position @ 1.2013

Trade turned sour..
with EMA5 crossing EMA13, with the close below both EMAs.

Note: This was a good exit for me. I could have stayed and waited for the trade to recover, but if I did that, I'm completely not following the system..
Also, the time I returned to my chart was the right time..

Lesson: trade the time frame that I'm comfortable with.. A timeframe I can watch even when I'm working..

Win: 0
Loss: 1

MB suggested that this system be done on hourly charts..

Hey bro, where's the charts?

I think you're shooting for too much. Your limit is too big. Or, maybe you should use a trailing stop of 15. That way, if the trade reverses after you're more than 15 in the green, you won't lose capital. What platform you using?

Good Luck
Habeeb

Hi habeeb,

thanks for the feedback..
Honestly I just got impatient that's why I entered the trade..
I'm a newbie so I do expect to make a lot of mistakes.. And I plan to do most of those mistakes while paper trading.. I also won't take out the possibility of making mistakes with actual money, but I do plan to make the bulk of mistakes with demo money..

Well, that's one lesson down...
As for your feedback, I'll try to look into it...

I also don't know what happened to the images.. do you know of a site where I can store the images?

Thanks..

I'm using FX Online.. a java based platform I think...
I'd like to use MT4 but our firewall/proxy server blocked my access..

I won't be able to go live until Jan or Feb next year so I'm on the preparation phase right now and just use demo account for practice..

I'm learning all I could right now so by the time I go live, I'll have the confidence.. I already have the desire but still lack the confidence..

And by the time I go live, all I hope to do is learn from mistakes that I can only learn from live trading.. and not learn from mistakes that I could have learned during demo trading..

Oh was that out of your question? hehe.. Just sharing..

I've struggled with patience for a long time. Finally I'm over that.

Why don't you post the charts directly into your posts. Make a screenshot of your chart (ctrl-alt-print screen) and paste it in "MS Paint". Edit the size manually to be 600x600, and save it as a ".jpeg" file. Then just upload it.

Try this site to host your images http://www.supload.com

Hope this helps
Habeeb

I've uploaded the charts..

I thought that when you attach a picture, it was going to be viewed as an attachment.. but i was wrong.. the picture was displayed automatically.

I'm still taking it slow right now and I'm waiting for the PF's opening..
Anyway, I am still looking forward to posting again here in the future.. But as to when, I guess it depends on when all my preparations are done and when I have the confidence to trade..

Hey, don't disappear now. You just got started. You need to practice to gain confidence. Once you see your trading style working for you, you just get better and better. Even if it's a demo account for now, don't stop posting. I'm still a newbie myself, but I learn alot from greener newbies too.

Cya around
Habeeb

Nope I won't be disappearing.. It's just that in my current time limitations, if it was real money, I really won't be able to watch my trades.. If ever I do start trading, I want to give it my full effort.. Its just that I feel that if I do start trading right now, I feel that I won't be able to give my 100%..
Or maybe these are just alibis..

Anyway, right now, I just feel that there's still something lacking and that I'm not that ready to trade..

And this is one lesson I learned from reading The New Markets Wizard.. "Trade only when you have the confidence and the desire to trade."

Although it may only be demo money, I'm already imagining that it was real money.. Though that would be hard..

So don't worry about me man, I'll be posting every trade I enter and hopefully you'll be there to give your feedbacks..

It's been a long time since I posted in this thread..

Just posting little nuggets I got from FF Articles... Will fix this journal soon..

Experience by Joe Ross

"But most technical indicators wipe away the very things we do want to see. They take your focus away from what is truly happening to price.

By smoothing, they purport to remove “noise.” But it is the noise that we, as traders, and especially as day traders, most want to see. The noise is what tells us the reality of what is going on. "

"We are convinced that the best way to trade should be termed “Reality Trading™.” In fact, we are so convinced that we have trade marked the name for future use. Reality Trading views the market as an entire entity, a living, throbbing reality that includes fundamentals, technicals, and realities such as news, rumors, seasonal tendencies, common sense observations, and market conditions.
"

My Comments
Although I think he's somehow against Mechanical Trading Systems, we can't ignore the fact that there are those who are successfully trading using purely mechanical trading systems.

I have nothing against auto-trading, but it's the process of trading (knowing your stops, Take Profit, etc.) that keeps me interested and love about trading.. I just think that it's looking for that system that you understand, have confidence, and psychologically fits you that seems to be the important factor here..

We have the Market Wizards to prove that a lot of approaches to the market can lead to profits.

I also agree with him with regards to a lot of experience that will teach you the best.

Anyway, just posting my opinions.. Writing is my outlet..
There may be also some parts that I may have misunderstood, so I'm reading it again..