Lusan's trade Journal

I am a Forex beginner. By that I mean, that I have no set mind about the right way to do forex. I played with indicators for several months and I found them unfit for my evolving trading style -Do I have any?

Lately I joined the fti's thread and it seems that his methods work for me. I was coming to the realization that indicators were deficients. He showed me that indeed I did not need them. Thanks fti.

To avoid posting my trades in his thread, I will post my daily trades in this journal. Maybe somebody could help me when I am lost or call me crazy when they see that I am really insane. Maybe other beginners will learn one or two things...Oh well...We need to help each others against the CB.

My approach:
1) Define main trend with the 15M by its relationship to SMA(48)
2) Enter as per main trend. If in doubt, stay out
3) Observed 5M and 1M. Trade the 5M. Time mostly with 1M.
4) Adjust profit target as per the trend risk.

General
1) No stop losses nor indicators
2) Attack sequence: 1-2-3
3) Rescue sequence: 3-9
3a) Trade timing: 5M and 1M
5) Total troops: 32 -equivalent to 25 % of equity.
6) Profit trade target: maybe 15 pips
6a) Profit daily target: 50 pips/session or 0.50+ % ROE
7) Real money.
8) 7 to noon trading. Never trading during the news
9) End war with +50 pips/session
10) Never away from the computer while trading.
11) Trade for the book not for individual trades.

Bank:
1) Scout: 2 % of leveraged account - use for overnight small single trade
2) Max unit/troops= None...3 waves attack with 1:2:3 ratio for the wave attack

If you understand all this great. If do not, go to fti's thread and learn about his methods. I found them very good for me but you have to decide on your own...You could ask question here too.

Wish me luck.

WARNING: (1) This strategy is very dangerous and you could be burned. If you like it, do not use money that you not readily dispose. (2) I keep changing and fine tunning my strategy, so the lastest posts are a better reflection of my current actions.

Important: My methods are still evolving as I learn. To preserve the historical integrity of this journal , I will not make changes to this post again but I will add below the post numbers for the the updated stragegy.

Current strategy:

Post # 230
Post # 251
Post # 256
Post # 294
Post # 321

Typically, my trade might look like the graph below. Simple? Yes, but it is a lot of work. I keep a hawk eye on the market and I make trades to blend to PA. So far so good, I am able to meet my target and end the campaign sucessfully. Although I feel that I could do much better....Oh well... I am just a beginner.

I am very proud of this trade because it met all my plans. (1) 1-2-3 attack, (2) 1 Hour trade with minimum risk, and (3) full exit with a bunch of pips coming home...Could I be consistent? Should I improve or just keep as is and increase the bet size? That are the big questions...We will see...


http://www.forexfactory.com/attachme...1&d=1203119658

A tough fight brings 96 pips home within 45 min.

How?
1- 1 troop in and losing. Enter to rescue mode
2- 3 troops in - trouble still
4- 9 troops pumping - capture 10
5- 9 troops in - and both 3 and 9 troops to R/R - Another 30 pips for the book
6- 3 troops to scout rescue- a lot of trouble- a big fight- book back to +10
7 - 2 set of 9 troops out -expected trend change
8 -trend change- all but scout with profit taking triggered
9 - bring scout home to celebrate.

I traded all but one of the 5M bar within 45 min. The dealer made a lot so did I.

Emotional state: a lot of fear after seeing the first red bar. Fear of a fighting the trend, but confidence that I have enough troops to survive.

Since today I remained home, I tested my fast trading technique in a more relaxed manner through the day. I used a demo account and I gained 1 % for the day. I am not happy with this result: (1) I fought the trend until end of day, and (2) I was over-extended: I did not gave much consideration to protection of equity.

Learned:
(1) Full day trading will required a different mindset with a closer look to the 15M versus the 5M
(2) A heck of lot of patience -for which I have little. Probably it would better to play the 5M for 1 hr, take a break, and do it again.
(3) Lunch time a waste? It seems that the market died when everyone when to lunch.
(4) Margin is a killer. The more the better. I was unable to capitalize on the hammer @ 11:20 am because I did not have enough money.

Still I did not hurt the bank and I ended up with the 1 % profit magic number.
Why is 1 % a magic? Because otherwise there will be no food!

The trades look as below. Although this is 5M I was watching the 30S chart all the time.

Entropy attack!
I lost the war today.
(1) Entries errors
(2) Caught against the trend
(3) Oanda froze. Missed 2 bars and lost focus. I was winning and greedy.
(4) More entry errors
(5) Troops tired. Abandon ships.
Tomorrow will be another day.

Learning
(1) If things do not look right exit and fight another day.
(2) A couple missing bars will really hurt.
(3) Low volatility environment are very explosive and dangerous

I was furious all day about my morning loss. Why? I hate to have a losing hand and lack of time to save it because of other commitment. I returned from work and saw that I could have ended the day fine if I have just time but ...I got to work.

I practiced my trading with anger...I need to recover my self confidence. Here you have it. Another ~0.4 % return on equity for 40 min trades. Not really bad...I play the demo account. What I did different? nothing at all. I just played my style.

Something to remember: Use an EMA(68) in the 15M as a pair center of gravity. If PA is falling into it, go short, otherwise go long. Of course as long as you are not really overextended and therefore you have a potential reversal. Then we must wait to confirm it. I will create a check list about it.\

Ok. This is the trading plan... Morning real money...evening demo practice...

My demo trade is... How come I knew that a reversal was on-going on the 5M? I do not know but that is the case. So I got out. -The alternating color bars at the bottom are very suspicious. This something to remember.

Thank you for your Journal..... hopefully, from your journal, I will learn more about Fti method... Good Pipping to you..

I post to keep myself honest. I mean: I really want to learn to trade. Have you visit fit's thread? It is a long read but worthy. He is a real master trader. My dance is only an interpretation of what I read there. Other people interpretations are somewhat different. Some people dance slowly accross the whole day, some make calculations, etc.

As I said a the beginning, I want to end the war as soon as possible because I think the market is too dangerous.

Thanks for you visit and enjoy.

A solid day. 3 simple trade returning home and throwing a party

Bias long because of PA attracted by E(68)
Scout out
3 troops for rescue at -10 pips
3 troops for rescue at 30S rest

Learning
(1) Patience
(2) Patience
(3) Patience

Very quite market is hard to crack. It takes a lot of pacience.

Here it is another crack to the 5M chart with 0.4 % return to equity in less than 1 hour. Clock work.

Nothing new here.
(1) Scout out and climbing
(2) 3 troops out
(3) All troops returned home
(4) 3 troops out
(5) Enemy attack - withdrawl to the valley
(6) Attack with 6 troops - Go, go, go, end the battle soon. Heavy resistance ahead at the 15M, even though a good 1 H candle..-Do I really care?-
(7) Bring everybody home and have a party.

Learning
So a low volatility with EUR/US. Should we consider JPY/US or AUD/JPY as a better practice trade during the evening? Maybe, but the lack of volatility make the market less dangerous...not really, if we find ourselve on the run bus it mgiht take a long time to recover.

Why do I take profit so soon?
Because I am a coward!
Money in the bank make happy.
You know, there is a saying,
"Better a bird on hand than 2 birds flying."

Why do I set limit to my wins?

More than 0.5 % day profit is real greed.
Oops! That rate is really impossible as many indicators followers tell us.
Nobody can consistenly do it....Oh well...I have done for more than 20 sections

Found PA at a top. It felt as a reversal more than anything else but 1H tells of more upside moves. Took a chance. A bad one, although patience saved the day. At least I was following the main trend.

(1) long scout - 10 pips but did not take -wrong. I should have take it and reverse
(2) 3 troops out - on wrong direction - sweat the pain
(3) 3 troops and pump - 10 pips to the bank - Another opportunity to close the trade 2 - fti probably would said to close it and reverse
Now wait and wait
(4) Valley form at 5M - 3 troops out - 10 pips to the bank - Note that there is a reversal -
(5) 3 troops in for solid profit
(6) Bring scout home with 8 pips because of war won and potential reversal.
Total = 51 pips - I think

Learning.
(1) Rememeber that a quick up side set of bars will probably be followed by a trend reversal. Its length could depends on the general trend.
(2) I feel that I am not yet ready for big money. This was too risky of a war. I must learn a lot more..I mean practice, practice, practice!

Nice dansing, lusan. You are right practice and practice again and you will be OK. I like your avatar, is that your son?
Alex

He is the son of my niece. thanks.

A very short session today. I increase bet: 1000u/troop because I met my first training target. Close the day with 20 pips gain.
Bias: Undefined 15M and failed top and breaking out in 5M - short
(1) 1 scout out -
(2) 3 troops out - on confirmed break out an reversal on 30S
(3) Bring everybody home on next fall - The market is too quiet.

confused start because of unclear trend. Should I really care about an hour trend when the 5M is so fast? That is a big question. I should be willing to enter either way and fight it out. This is good example.

(1) Scout out - short - but clearly wrong entry
(2) 3 troops out - short and rescue
(3) 3 troops out - long - 1 for rescue and 2 for reversal
(4) Everybody home for bed- Profit and profit

34.1 pips for this campaign in a 35 min war.

I am noticing that my campaigns are getting shorter and shorter...Notice that I played everysingle bar...this method could be used for hours...

Hi, luSan! You went short yesteday and made some pips. I played long for the whole day and made about 150 pips for 8-10 hours. I play with EU, as you do.
Still need to learn how to dance better, and how to become invincible.
Alex

Sure. Although notice that I made my pips in less than ONE hr. I cannot dance much longer because I have another job, and I want to minimize my exposure in the market. I mean, the least time I am, in the better.

When I originally got into Forex my pip target was 10 pips/day. Now I would be very satisfy with 25 pips/day. -after fti' lessons- Why? Because with 3 lots, then we have 3 lot * $10 pips/lot * 25 pips/day= $750/day... I mean almost $200k/year... That is my humble target.... from 1-2 hours trading sessions....

I am a dreamer.

Thansk for visiting.

Hi Lusan,
read your journal, you seem to be ok.
The mindset seems good.
Well, the time you spent in market seems short,
but nevertheless it should best be to your convenience.

Watch your size, find your comfort size and stay there for at least a year.
This is to give yourself a chance to be really tested in mindset and mo.
More important , is that your mindset will change as your size changes.
Be assured that you shall be tested by a million possibilities.
You need to see how you fare in different scenarios.

KISS (keep it simple, strong) and relaxed.
Steady as she goes. Know that you are doing the ants job and is by leaps, probably out performing manywho are losing.
Try not to spend your foreign capital in one place.

Your gathering frame of mind is correct, but watch out for the curve ball that
auxesis mentioned will come one day, You need to know how you will deal with that when it happens.( a few may come in a year) Remember to remain nimble to change if required.
No stop loss order does not mean no stop loss.
Try to find your own threshold for pain. Let that be within your zone of accumulated profits and you will be fine.
Never lose your composure and respect for market.
It is always right, even when traders think that its wrong.

I shall visit your journal from time to time, if suits
Good Fortune.

regards

PS: I shall discuss with you about your 48sma when the time is right. For now steady as she goes.

Hi Lusan,

does this mean, at full exposure you are likely risking 50% of your equity?