Journey to to become a profitable scalper

Objectives of this journal.

1. To record my daily trade.
2. Tune and fine tune my process to become a better trader.
3. To reflect on how I trade and things I can do to improve. (Being 1% better everyday from today means I will be 38x better in 2023).
4. To hold myself accountable for all my trades.

A quote from James Clear book on "Atomic Habits"

"You do not rise to the level of your goals. You fall to the level of your systems"

Brief introduction of myself.

1. 42 years old man, worked full time with a decent paying job (slightly above average) over the past 15 years.
2. Started trading during the covid 19 induced lockdown in March 2020.
3. Lost tonnes of money since then. I am down, but I am not out. I will continue to persist, fight and eventually achieve success.
4. I will eventually become a full time trader one day and will put in the hard work required to achieve success.

Lessons Learnt over the past 1.5 years (almost going to 2 years now)

1. Trading is similar to any elite professional job/sports/etc. You need to have a mastery of the skills required and that requires time, effort and the ability to learn from mistakes. That is, no one can ever achieve success in trading without being proficient enough in the execution of strategy, mentally strong enough to embrace any uncertainties in trading and being discipline, determine and dedicated enough to work hard to achieve mastery.
2. I have learnt alot more about myself as a person and become more aware of how I react when placed in certain situation.
3. There is a difference between "knowing risk management" and thoroughly "understanding and embracing risk management". The same can be applied to the idea of "being patience". These are things that cannot be "taught". These are important skillsets and I need to have the proficiency to implement it when it matters most.
4. You can never achieve success in trading without ever backtesting it as much as you can and becoming 1000% confident in it.
5. There is a difference between "perceiving an opportunity" vs "expecting (and wanting) the market in go in certain direction". Market doesn't listen to me. I HAVE TO LISTEN TO THE MARKET"!.

Lessons that I have not yet learnt and this is costing me dearly:

1. Accepting losses gracefully. This leads to impulsive trading when I am triggered by a series of losses and blowing up my account.
2. Stop looking for trades. Instead, wait for the market to tell me "Please take this trade... please!"
3. Be patience in my quest for knowledge and skill mastery. Equity growth comes later.
4. Do not trade/stop trading when I am not in the right conditions to do so, eg., lack of sleep, fatigue, emotionally charged etc.

Trading Platform and Goals (Immediate)

1. Passed FTMO $200k Challenge and yet to begin verification. Reason being: I felt I was just lucky to pass the challenge phase. Pure luck and no skills. I will commence on the verification phase once I am confident enough about being consistent in the execution of my strategy.
2. Since passing my challenge phase, I have went back to backtest and fine tune my strategy (throughout the whole of December).
3. Purchased a $100k Challenge recently and will be using this to get back into the groove of things (especially consistency when emotions are involved).
4. I have absolutely no expectation of passing this $100k challenge. My primary reason for starting this $100k challenge is to simply ensure that I am able to execute my strategy as flawlessly and consistently as possible, rectify any mishap/errors that I may face when I start on my verification.
5. The immediate goals are thus (1) Learn from mistakes make (I will make alot), (2) Learn how to lose gracefully, (3) Follow my risk management and lastly, survive and not blow up this account and earn a free repeat. (Based on backtest results, I have absolutely no chance of blowing this account in 30 days +10 days from the FTMO dec offer).

Long term trading goals in steps:

1. To pass FTMO evaluation phase and become a $200k funded trader.
2. To compound and grow my trading capital and become a fully self funded $200k trader (All capital built from FTMO trading)
3. To achieve capital growth and consistency for 1-2 years after becoming self-funded (tgr with the FTMO funded account).
4. Become a full time trader with at least 2 years worth of life expenses assured.

Instruments and timeframes:
(ctrader trading platform)

1. XAUUSD (60 ticks chart)
2. EURUSD (50 ticks chart)
3. US30 (100 ticks chart)

Strategy:

Discretionary Price Action trading using:

1. Market structure to determine areas I need to look out for.
2. Set-ups based on a modification of Bob Volman's book on Price Action Trading.
3. ATR as a gauge on volatility and comparing relative sizes of candles with respect with market conditions.
4. 21 EMA as a filter and gauge on dominant pressure and as a dynamic support/resistance line.
5. 7 EMA as a filter and area of values in a strong trend.

Example of my strategy (from backtest)

Hi! I read your post and found it to be very open and genuine. You seem like a really good lad. Truth being said you are past your 20s and 30s, but it's all a number.
There are statements in your post that I definitely see myself in. I've learned a lot about trading in the past 15 months and will continue to do so in 2022. Trading is the best job one could have, but success is not what every trader achieves.
May the new year be a good omen to us.

Today marks the first official trading day on 2022.

Bearing in mind the need to instill discipline and having not been in a live trading environment for the past 1 month (was doing backtesting the whole of december on a simulated software), I decided that today, I will just purely analyse the chart without triggering a trade. It is part of my plan to become really more disciplined and the test myself whether I can resist the temptation to initiate a trade. I am glad to report that I have done it. Went through about 1.5 h without clicking on that buy/see button.

Today was a good exercise for me to slowly get back into the groove of things again. So here's a review on my analysis of today's session (assuming that I had traded - which I did not).
Chart- 60 ticks from cTrader

(1) Skip RB/TLB as I would prefer to have more build up at the edge of the range.
(2) Skip CHB break as I am wary of the round number magnet.
(3) Skip TLB ?? I am not too sure about this. The aggressive side in me thinks its a standard set-up. But the conservative side in me sees the long wicks bullish candles before this. When I am not sure, just skip the trade.
(4) Confirmation of resumption of bearish trend with BB and price failing to reach RN despite bulls' attempt.
(5) Prior clustering of candles forming a block (blue box from 21:47-21:54) and demoralisation of the bears with the formation of a strong bullish candle at around 21:59.Confirmation of (short term) change in trend with break of block (BB) and the ability of RN magnet to suck prices to it.
(6)Failure of price to reach RN and formation of a lower high. set-up - BB + TLB makes this a good quality trade.

What have I learnt today?

1. It much easier to analyse a chart when no money is on the line and there is so much more enjoyment in trading without the stress.
2. Sometimes, a lull period in the market can lure me into complacency and I was completely caught offguard by the initial swing from the tak1820 RN and missed out on the trade.
3. I feel I am getting better in terms of identifying areas of pain experience by fellow participants. But, when emotions come into the picture, will I remain as clear headed? We shall see tmr when I take my first trade.

Read Looking to start a small Forex trading mentoring Group!
Perhaps you could join me and Mat.

Overall market condition: Very slow moving as can be seen from the number of candles printed.

(1) Started the session with a bearish bias. This is a mistake. I discounted the triple touches on the 1800 RN and price went on a steady ascend after that. My bearish bias prevented me from looking for a buy. (There are plenty - eg., the BB at 21:38, the TLB at 21:49.
(2) Confirmation bias at work here. As much as I would like to believe that my "bearish bias" was correct, it would have been better for me to just simply be more open and objective. It is as clear as sky that market is slightly bullish and is moving towards 1810. THe BB is a mistake.
(3) Standard TLB which also represent a SHS break. Shifted SL to BE and was hit.
(4) Another standard TLB with a lower high registered. Should I have stick to 150 pips target profit? or 200 target? This is smth for me to work it out when I have more data.

What have I learnt?

1. Having a bias will sometimes blind me from watching the market and listening to it objectively.
2. How then should I remove any bias or at least, be more objective?
3. Somehow, I feel that the " need to be right" is still hindering my perception.
4. I should consistently remind myself that there is absolutely no need to be right and the market is always right!

Lessons that I have not yet learnt and this is costing me dearly:

1. Accepting losses gracefully. This leads to impulsive trading when I am triggered by a series of losses and blowing up my account. (This takes time. Accept it bro. Trading is a process. How you overcome each phase depends on how much time and effort you put in. Do you have a simple and definite process? Maybe when you start executing trades like a "robot" then you know you have a process and have come to stay. The truth; if you dont have one yet, chances of blowing up more accounts are inevitable). . A process should take care of Losses, profits, entry and stepping aside as this is what you are about in the market each day. This will improve your discipline and impulse trading and above all lead to consistency.
2. Stop looking for trades. Instead, wait for the market to tell me "Please take this trade... please!"
3. Be patience in my quest for knowledge and skill mastery. Equity growth comes later. Very true. Almost every trader starts this way. Once you put pressure on yourself to make money at this time without a verified and well tested set of processes, more chances of failure is evident. Process is very key. Knowledge - (Education and Experience). A sound and trader traits (patience, discipline,) do not take 6 months to develop. it takes a minimum of 1.5yrs or so. Its a process. We took the hard route. it might have cost me my time but be sure that ull be better off than someone who went through a mentor! Be sure that once you get the puzzle right you begin to see and ask yourself what have you been doing all these while . But dont blame yourself cos you were ignorant. it takes 4-5 yrs to become a certified Engineer. See your trading career as such. Although no definite number of yrs to become a professional. It could take A to finish up a puzzle in 5mins, B in 20 mins, C in 40 mins, D in 1Hr but the fact remains that they all completed the puzzle! Trading is a journey. Keep learning everyday. You already have GRIT! Well-done! Wish you the best in 2022.
4. Do not trade/stop trading when I am not in the right conditions to do so, eg., lack of sleep, fatigue, emotionally charged etc.