Swings and scalps

Nice resistance spot. The trick is not to take full profit as it goes down. With this breakout I will be cautious.

Retrospect I got stopped out by this spike. Why did I underestimate it and why didn't I enter at resistance?

I should have been able to ride this spike up. Stocks do this a lot to especially at the open. No pullback. Rocket.

To hold it or scalp. There is support ahead, but on the 6 hour I put take profit at 1000 pips.

Stoploss triggered. I am maxed out on margin otherwise I would re-enter. I think resistance will hold.

Money management wise right now I have just a little draw down on most of my trades. Perhaps I can post the financial and position size on here too. I have traded with a somewhat larger account but I wanted to grow this one from a really small account. I've seen these people all over youtube that have done trading challenges or just started as kids with tiny accounts and made them into fortunes. This is high enough risk for me that I don't see the need adding any more principal.

When I first started trading Forex I had FXCM but left after the new leverage law. I traded real money and even though it was high risk I figured I could loose a few thousand and not hurt. It got to me a little psychologically though when my account dropped 50% one day, I scalped back the loss the same day. Broke even. Whew.

I was making good money from my part time job back then, I figured 5k was a good starting point. Then increase to 25k when I double my account and have consistent days. Nowadays I have less income because I don't work for any boss whatsoever and wont, but it is passive so I can focus on learning and trading and living.

I scaled back to a $100 account and practiced off and on for a while, kind of lost focus on Forex just as I was getting good at it actually. I then put 1k and got consistent profits, then another. These people online were turning less than that into hundreds of thousands so I thought I could be up for the challenge. I don't know that Forex pays out like other investments like stocks on margin or options or futures. I am comparing them as I go. I have some stocks and day trade but am keeping this to forex to stay organized.

I've never really had a real job, I've been fortunate. I have my bread and butter kind of like retirement, if I loose it a check shows up again. So my career for the long term is investor. No matter how much I fail at first. I have actually been successful just not rich from it. Yet.

I figured this would happen. Stalling at the fib.

Transparency

I max out my margin at all times when I have the computer around. When I do swings sometimes I set and forget. Last year I was checking every few days on the weekly. Then I leave more leeway. Gotta get good at money management, that is my main problem, especially with scalps. I want to document scalps closely and see how maxed out I can get with the position entry, and how small a loss with a tiny stop, only on the pairs with good spreads of course.

With my older strategy, not scalping at all, one I would like to code on an EA in fact, I just have to learn how to code first, My first entry on a pair would often close in the negative or break even, but it was a small position. I would scale in and the position would increase in size as it moved to an extreme averaging the trade. I hear the rant don't average your losses. Well with this strategy I kinda did but was really consistent. It was just too laborious to do manually. Entries and orders can be made automatically every 10 pips or so long or short depending on the trend, it was a trend is your friend strategy. It needs tweaking with stops when it takes on a heavy load of risk and how much to enter at an extreme.

There are casinos around here. If I walk into one and ask to play roulette, I could bet black or red. The house has 2 greens in the circle, but majority black or red. I could wait for the red to reduntantly repeat and then place a bet on black, or vice versa. If is red again I loose my money. I bet on black again, only with twice the position. Red again, loose all. Bet on black doubling my loss again. This is exponetial as you see, it can win you a few hundred bucks if you have enough capital to begin with, you may have quite a draw down, but how many reds in a row can there be before it hits black? Chances are pretty good that if you double up you get all of your money back and then some. However depending on the first bet this can only go on so far, basically where the stoploss should be.

Stopped out at breakeven. Eased up some margin. I may get in again in a bit so far it isn't spiking as a bull flag can but is forming one perhaps.

I would love to learn to write an algorithm to trade spikes. They seem the easiest. A spike hits a major resistance or support on the weekly. Scale in, scale out. Heavy position if the stop is really tight. Easy. I'm sure a computer could do it across thousands of markets.

Letter of the law or spirit. If the trading system rules are too strict it is like not being able to talk yourself out of a ticket, or win in court. At least in the US, laws that don't fit with the flow of what is really happening get changed by a judge or people. Laws to me are general guidelines, when they don't work, break them, as long as you have a good reason. I jaywalked the other day. I buy pot stocks, still illegal you know. I didn't want to wait for the stupid crosswalk. I looked both ways manually, instead of just go with the computer. I move stops around and scale in and out based on what price is doing, not some mathematical ratio, although those are good guidelines.

Sell triggered. Stacking the risk up as it decides what direction. Basically stack it then it begins to build momentum to spike or curve to an extreme, then exit, possibly leaving a runner for if it goes more.

spike

NZD news.

Confluence of resistance.

The tricky part.

See if it ping pongs around the fib levels.

Almost at max I am willing to let drawdown before I start freeing up margin closing trades. I need to cut losses quicker and every trade scaled in is a separate trade with it's own risk. I have sub accounts for scalping specific pairs where I put all the margin on one position. Specific risk. I haven't been trading this account long, and if I loose this much I am still at a profit.

Analyzing the worst trade. I got in just going along with the weekly downtrend. It may be spiking through the trendline and reversing if the top doesn't hold. I could stop out. But I'm going to go with the original hold until it bottoms plan for now.