Logiktrader's Fibonacci Trading Journal

Forex Trading Plan
About Me
I have been trading on and off for the past two years. I want to get back into again, but this time I want to be more disciplined than what I was before. I have been successful, but I also have been unsuccessful when it comes to trading. I got out the last time because my account balance was turning in to an emotional roller-coaster, up big one day, down big the next.

Why do I want to be a Trader?
I want to become a successful trader because I want to achieve financial freedom. My primary objective is to make enough from trading on Forex to supplement my current income at my career. My secondary objective is to continue to learn more and educate others about Forex on ForexFactory.com. Achieving these objectives will help me become more independent and confident in myself, and be able to do what I want in life. I will achieve my objectives because I am a constantly driven learner that will take the time needed to learn as much as possible about Forex.

Trading Style
I am an aggressive intraday trader. I am tolerable of long-screen time to watch for developing trades. However, due to my career, my screen time will be limited. Due to the aggressive nature, I will need to adhere strictly to my trading plan to ensure that I maximize profits and minimize losses.

Strengths & Weaknesses
I have the tendency to force trades mainly due to hope and greed. I want to be able to prove a lot, quickly, and this leads to over-trading. I also have the tendency to try new strategies without proper testing or research. I am very strategic and believe that with a good trading plan and discipline will help me overcome these psychological weaknesses. I get excited by the thought of trading. This can lead me to force trades to be “in the excitement”. I do not have any personal conflicts other than it is difficult to trade while I am at work. I do not have any emotional issues other than sometimes becoming upset after a loss. I do get tense from time to time but nothing that I lose sleep over.

What do I trade
I am going to be trading Bobokus' Fibonacci System. This requires using four different Fibonacci lines. The daily, the daily retracement, the intraday (4HR), and the swing (1HR). I will then trade based of the 1HR charts.

Currencies
I will follow the GBP/USD, EUR/USD, and USD/JPY. I will have a limit of one open order.

When do I trade
Using the Fibonacci lines, I will wait for price to move within the Long/Short Zone, which lies between the 61.8 and the 38.2 retracement levels. If price moves into this level I will wait for the next hourly bar close outside beyond the long/short levels to enter a trade in the appropriate direction. My Stop Loss will be 10% of the range between the Short and the Long, and subtracting this amount of pips from the Short for Long Positions, and vise versa for Short Positions.

Example:
Swing Long = 1.500
Swing Short = 1.450
10% of Range = 5 Pips.

If going Long, the Stop Loss will be set to 1.445
If going Short, the Stop Loss will be set to 1.505

The take profit will be the 1.382 level - 10% of range for Long positions and -0.382 level + 10% of range for Short positions.

What time of Day will I trade
Due to my career, most of my trading time will happen in-between 4PM-1AM EST. I will try to see if I can work looking in to charts when I am at work

Broker
I will be using Interbank FX as my broker and using a $10,000 paper account.

Risk Management
Most of the risk management is dealt by using the Fibonacci levels.

Money Management
I will risk no more than 3% of my account in one trade.

Goals
Learn from my mistakes
Learn from the ForexFactory.com Community
Teach the ForexFactory.com Community
10% Profit every month

What to expect from this Journal
I will be posting on a regular basis what I am seeing on my charts and will give you a forecast for what the day will look like and when I will likely enter my trades. I will also post when I place a trade with a summary when the trade closes. I look forward to all of your feedback and thoughts on this system.

EUR/USD

Price just below Swing Zone, seems to be entering a range. No trade at this time.

USD/JPY 3/11/08

Just under Swing zone. Favoring Short, no trade at this time.

GBP/USD 3/11/08

Hang on tight, no trade at this time, seems to be entering range. Movement likely to happen soon.

USDJPY has retraced into the Intraday zone. As long as it stays above the Intraday Pivot, and if it moves back above the Intraday Long, I will go long on a candlestick open..

I have drawn my estimations as to where the price will go, but will not place a trade until it has breached the long on a candlestick open.

Screen shot of first trade. Used hourly charts and intraday zone on the USD/JPY. Made 107 Pips.

I am using a $10,000 account but am using a standard lot size and traded 1 lot. I had $1,688 profit, but I broke one of my rules (on accident) because I thought I was working with mini lots, and ended up risking more than 3% of my account. Because of this. I am not going to focus this thread on how much money I made, but rather how many pips were gained/lost by each trade and will continue to trade 1 lot using standard lot sizes.

This is what the above trade looked like on an houly chart when I decided to enter.

Looks like I could have had my Take Profit way lower, it has dropped another 30 pips in the last hour!

Broke one of my rules but I noticed this nice setup on a cross pair. Let's see what happens. Sold EURCHF on Intraday Short.

I got stopped out quickly on the EUR CHF . Lost 64 Pips.

Attachment shows the the trade close info.

Sold GBP/USD. See attached

I seemed to enter this trade at the worst time.

Loss 50 Pips

So here is a summary of I feel the last three trades have gone.

I am glad I gained alot of pips on my first trade because I am still positive in pips even though I have had 2 losing trades afterwards.

I might need to make my stop loss a bit wider, the third trade just barley got stoped out and then turned in my direction.

Also, I broke one of my rules and traded a cross currency, never to do that again.

I am shorting the USDJPY, entered it a few hours ago. Again, it appears that once I entered it moved immediately in the other direction. It does appear to be forming a double top so this could start coming back down.

Unfortunate trade. Right when my SL was hit, price went soaring down. I might have to expand my SL level.

pls i like to know if this logik really works well on 4hrs than 1hr?

thanks

hey could i ask you about how you trade....currently i am reading bobokus thread.... but its too long now....would it be possible if i ask you questions...here....thats if you dont mind??

bump..yet another fib journal abandonment by the op..