Small time relative newbie taking small steps

Our AUD/JPY (System2) trade turned against us and stopped out at a loss of 29 pips.

CLOSE (System2): AUD/JPY Long at 97.59. P/L = -29 pips

NO CHANG (System1): EUR/USD Long at 1.4428. SL = 1.4329. TP = 1.4450.
NO CHANGE (System1): USD/JPY Short at 113.33. SL = 114.23. TP = 113.15.
NO CHANGE (System1): USD/CAD Short at 1.0053. SL = 1.0166. TP = 1.0011.
LIMIT ENTER (System3): EUR/CHF Long at 1.6635. SL = 1.6548. TP = 1.6756.

Monthly running total = -9 pips.

Our USD/JPY Sysem1 trade has hit TP and closed. The two remaining System1 trades for the day are still in, and at the moment, neither is looking very good. I'll stick it out and see what happens - there have been plenty of turnarounds in the past on the System1 trades (hence the long stops).

CLOSE (System1): USD/JPY at 113.15 (TP hit). P/L = +18 pips.

NO CHANGE (System1): EUR/USD Long at 1.4428. SL = 1.4329. TP = 1.4450.
NO CHANGE (System1): USD/CAD Short at 1.0053. SL = 1.0166. TP = 1.0011.
LIMIT ENTER (System3): EUR/CHF Long at 1.6635. SL = 1.6548. TP = 1.6756.

Monthly running total = +9 pips.

Quite a see-saw day today. Two trades still in, both of which I am making adjustments to, but for the most part will let them stay in. I'm cancelling the limit order for the System3 trade identified earlier, since it really hasn't moved too much in the direction of the entry all day. So, as of the end of my trading day, here's what we have. +9 pips for the month at the moment - the two remaining trades can at worst show a combined loss of 55 pips, or at best a gain of 44 pips.

MODIFY (System1): EUR/USD Long at 1.4428. SL = 1.4395 (was 1.4329). TP = 1.4450.
MODIFY (System1): USD/CAD Short at 1.0053. SL = 10075 (was 1.0166). TP = 1.0011.
CANCEL (System3): EUR/CHF Long.

Monthly running total = +9 pips.

Since USD/CAD is now slightly in profit, I decided to close it and take the 7 pips. I may or may not be checking in on EUR/USD later tonight.

CLOSE (System1): USD/CAD Short at 1.0046. P/L = +7 pips.
NO CHANGE (System1): EUR/USD Long at 1.4428. SL = 1.4395 (was 1.4329). TP = 1.4450.

Monthly running total = +16 pips.

Just arrived at the office. Starting to look for today's trades and discovered the EUR/USD trade we left open yesterday has closed at the modifed SL, for a loss of 33 pips. So, we're back in the negative for the month. We'll aim to make that up today.

CLOSE (System1): EUR/USD Long at 1.4395. P/L = -33 pips.

Monthly running total = -17 pips.

There are no System3 trades for today. One System2 trade has been identified and entered:

ENTER (System2): CAD/JPY Long at 112.36. SL = 112.08. TP = 113.27.

Monthly running total = -17 pips.

ENTER (System1): USD/CAD Long at 1.0069. SL = 0.9948. TP = 100.86
NO CHANGE (System2): CAD/JPY Long at 112.36. SL = 112.08. TP = 113.27.

Monthly running total = -17 pips.

ENTER (System1): USD/JPY Long at 113.10. SL = 112.21. TP = 113.33
NO CHANGE (System1): USD/CAD Long at 1.0069. SL = 0.9948. TP = 100.86
NO CHANGE (System2): CAD/JPY Long at 112.36. SL = 112.08. TP = 113.27.

Monthly running total = -17 pips.

http://forexfactory.com/images/misc/progress.gif

Hi Cgrey,

I'm not a master trader either, and am small time (so far), but I'm impressed with your discipline, attitude, and success to now.

You'll get a lot of advice from people reading over your journal, but don't listen to anything anyone says on here. I don't know about you, but it only takes a tiny suggestion to bias me, then I'm not trading my game, and I lose more often than not.

Although, I guess if you followed my advice, then you'd not be following my advice since you listened to me.(!!??!!)

Keep us posted,

Rob

Hi Rob,

Thanks for your words of encouragement. I hope, in time, I will master my strategies and become at least moderately successful. One thing I've found so far, is you have to "stick to it". You're right about being biased by comments/suggestions, but on the other hand, I'm always looking for ways to improve and become a better trader. My systems have worked for me so far - I'm not trying to become rich overnight. If I can consistently show a profit (even if it's only 50 pips) month after month, I'm happy.

I do plan to continue this journal. It's more for me than anyone else (as in, I'm not in any way suggesting that anyone follow my trades, or that my "systems" will work for anyone but be). The decision to make it "public" was made in hopes that some of my "routine" (not necessarily my systems themselves) will help others, and to solicit feedback on how to become a better trader myself.

We'll see how it goes...

Again, thanks - I do appreciate the feedback. Happy trading!

Changing the SL on the CAD/JPY trade to break even

MODIFY (System2): CAD/JPY Long at 112.36. SL = 112.36 (was 112.08). TP = 113.27.
NO CHANGE (System1): USD/JPY Long at 113.10. SL = 112.21. TP = 113.33
NO CHANGE (System1): USD/CAD Long at 1.0069. SL = 0.9948. TP = 100.86


Monthly running total = -17 pips.

USD/JPY has closed for a profit of 23 pips, and I've moved the stop on CAD/JPY again to lock in a few pips profit on that one

CLOSE (System1): USD/JPY Long at 113.33. P/L = +23 pips
MODIFY (System2): CAD/JPY Long at 112.36. SL = 112.52 (was 112.08/112.36). TP = 113.27.
NO CHANGE (System1): USD/CAD Long at 1.0069. SL = 0.9948. TP = 100.86


Monthly running total = +6 pips.

Another modification to CAD/JPY. We're going to let this one run with a trailing stop. Removing the TP, and will be manually adjusting the stop periodically. We are curretly at a guaranteed 34 pips for this trade.

MODIFY (System2): CAD/JPY Long at 112.36. SL = 112.70
NO CHANGE (System1): USD/CAD Long at 1.0069. SL = 0.9948. TP = 100.86


Monthly running total = +6 pips.

Locking in 10 more pips

MODIFY (System2): CAD/JPY Long at 112.36. SL = 112.80
NO CHANGE (System1): USD/CAD Long at 1.0069. SL = 0.9948. TP = 100.86


Monthly running total = +6 pips.

CLOSE (System2): CAD/JPY Long at 112.80. P/L = +44pips.
NO CHANGE (System1): USD/CAD Long at 1.0069. SL = 0.9948. TP = 100.86


Monthly running total = +50 pips.

Our final System1 trade of the day has entered.

ENTER (System1): EUR/USD Short at 1.4369. SL = 1.4469. TP = 1.4345
NO CHANGE (System1): USD/CAD Long at 1.0069. SL = 0.9948. TP = 100.86

Monthly running total = +50 pips.

and it closed just as quickly, hitting the TP at +24 pips.

One trade remains in (currently down around 30 pips) for the day, with nothing new to be entered today. I will probably not check in on this one agian until 4pm when I "close" my trading day.

CLOSE (System1): EUR/USD Short at 1.4345. P/L = +24 pips.
NO CHANGE (System1): USD/CAD Long at 1.0069. SL = 0.9948. TP = 100.86

Monthly running total = +74 pips.

The USD/CAD trade remains in, but down. I'm going to let it run its course. I will try to check in on it at some point tonight - I am not in the office tomorrow, so there will be no trading for me. If I don't get to check in tonight, I will update this trade as part of my Friday morning daily routine.

NO CHANGE (System1): USD/CAD Long at 1.0069. SL = 0.9948. TP = 100.86

Monthly running total = +74 pips.

Finally closed yesterday's USD/CAD trade manually. Took a big pip loss (-84).

So, we're back down to being in negative pips for the month. However, the value of this journal to myself is starting to pay off. Prior to starting the journal, I was really not keeping track of "pips" at all. All I recorded / cared about was $. So why is this interesting? Well - when I place a trade (any trade, regarless of which of my three systems generate it), after I calcluate the SL in pips, I use OANDA's pip/profit calculator to convert those pips to $. What I'm looking for, is how many "units" to enter with, making sure that if I hit SL, the total loss (in $) is no more than 3% of my account balance (at the time the trade is entered). What all of this means is - on these System1 trades (which have MUCH wider stop than System2 and System3), each pip is worth far less in $ than the System2 and System3 trades. In system1, 3% of my account could be as much as 90 pips. In System2, 3% of my account can be as little as 20 pips.

The way it all comes together (and that I'm seeing for the first time), is that even with a couple of seemingly large losses (in pips), and what is right now a negative pip return for the month, in $ my account is still in profit for the month. A small profit (currently just a little over 2%), but still in the positive.

In my mind, this further validates that my money management strategy is working. My "system1" trades are my "slow and steady" trades. Comparitively, they're very low value (in $). System2 and System3 trades try to take larger "chunks" of profit at a time, and because their value in $ (but not pips) is always higher than the System1 trades, they are "riskier".

Bottom line - after not quite two weeks of maintaining this journal, it is paying off for me. This single revelation should help me adjust some things in the future that will help toward my goal of becoming a better trader.

CLOSE (System1): USD/CAD Long at 0.9985. P/L = -84 pips.

Monthly running total = -10 pips.

So, I've spent some time this afternoon thinking about my earlier post, my money management strategy, and my "system1' trades.

Until now, "system1" for me amost guarantees an entry every day for each of the three pairs I run it against. I started thinking this afternoon about how I can avoid some of the "bad" trades, and have come up with a couple of ideas. Beginning tomorrow, I will be using a filter for my system1 trades, which will probably result in fewer entries, but will hopefully increase the (already pretty high) "winning percentage" of these trades.

I will use this filter for at least a few weeks to see if there is any noticeable change in how often my System1 trades "win".