R2R's Journal

Better late than never to start this. Been very busy outside of trading with this 2nd amendment bull shit.

I trade waves and enter on divergences. If the trend is very heavy I'll enter on m1 hidden divergence (especially if its one of the first retracement waves).

If not one of the first retrace waves, I'll wait until the M5 shows hidden divergence (INTRADAY PA+Momentum STRATEGY)


TOOLS I USE:

RSI (2) on all time frames.
Daily Pivot (and S+R levels)
Moving averages for visual reference of a trend and visual reference as to the general price area I should be waiting for a hidden divergence and candlesticks to validate a new entry.

NOTES:
Most gains this year are on EJ.
I like to start the year slow and with low leverage so I have a cushion to work with. As the weeks pass on, I will likely take on additional risk.
I don't hold positions over the weekend even if they are in profit.


NOTES TO SELF:



Will keep balance chart up to date at the end of each week (each day if I can remember)

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week 4 was quite a success

time to kick it up a notch

one important thing i learned this week was to always let my stop be taken out. don't just close because price returned to BE and i think it might push toward my stop. often times its just a retest and nothing more, then the real move happens.

also i learned the importance of letting a trend continue. i could have made over twice as much if i let my EJ long from 117.09, run the entire 500 pips. I only let it go to 119..

1/29/2012

Often I have a long string of small losers or break evens then a big win.

Most of my losses are under 0.10% of total equity.

1/29/2012 recap of EJ trades

M5 chart

Pretty bad day

I guess that will teach me not to counter trend even when USD is clearly oversold.

The reason being it usually takes a day or two for a market to roll over even if oversold. So it's best to just stay with trend trades until it rolls over


The importance of ONLY trading with the larger trend (daily candle as a rule of thumb). Just a few counter trend attempts cost me most of the days gains and me back to even.



P.S. I think its pretty crazy how the chart of profit and loss history looks very similar to any bullish market trend.

Not good at all lately but at least still at 3%.

I will figure it out, no worries here

I swear I do not try to do this.. it's just the nature of the universe I guess (the trendlines on profit loss history)

How is it going Rag? Have you stopped trading divergence?