My path to financial freedom

I couldn't think of what to call my journal so I decided to just call it the reason behind why I trade...well not the only reason, but the ultimate reason - to make money, to be financially independant and to be my own boss.

This journal will detail all my trades taken whterh intraday or long term, setups I am considering andsome slef critiscism of trades I take or miss. The latter is the reason behind this journal - somewhere where I can keep a log (pictorialy) of my trades and thoughts so I (and others if they so wish) can look back and review / analyse.

I've learnt my trading from mainly the Jacko and J16 threads and the people that make up those threads together with a few smaller threads some of which I've only just read. I would describe my trading as a mixture of the following:

1. location - looking for a confluence of S/R, TL's, roundnumbers, Fibs, divergence
2. Price action - mostly at a heavy confluenced area as mentioned above.
3. Trend trading
4. Gap trading (virtually only on Sunday open)
5. Fundamental / news trading - impulsive quck moves based on unexpected news (economic) releases.

Right can't think of anything else I need to say, so I'll share setups I took today and other potential trades I'm looking at...

Looking forward to your self observations. Wish you well on your journey.

I took this continuation BEOB today...counter trend but off a PPZ area.

I risked 3% on this trade and split it 1.5% entered on break and the other 1.5% entered on a pullback to the PPZ which was also between 50 and 61 fibs (off the bar). Stops both just above the PPZ - if price pushed above then it it is highly likely that it will continue up and above the BEOB.

Exited the trade when it hit the first trouble area (FTA) - counter trend and it might hit the TL but I wouldnt want a setup like this to turn from profit into a loss.

Entry1 - 5.4935 SL @ 5.5395
Entry2 - 5.5295 SL @ 5.5395

Target hit on both trades @ 5.4830

The only other trade I took today was on EUr / GBP. First chart so the area Iw as looking at - a heavy PPZ area with fib confluence (a PPZ in between or on a 50/61 fib is one of the things I look for - got this from Rac and others @ J16).

Was watching how price reacted at this area and a BUOB formed on the 30min timeframe with divergence. Took a break of the bar with SL below and exited @ the 50% fib which was an obvious previous support area.

In retrospect I could have taken half profit and let the other half run (moving stop to BE) and then moving SL to just under the resistance turned support area...something I need to work on.

Entry 0.8862 SL @ 0.8838 Exit @ 0.8874 (risk 3%)

The only other trade I took last week was on the weekly time frame on SGD / JPY.

BUOB over PPZ and BRN, moved to BE @ FTA and took half profit @ second target area marked and moved SL to just under the FTA.

Normally, when I see a setup like this I will scroll down the lower time frames and wait for some PA to confirm the move and thus can get in with less risk and more potential reward...but this is not a pair I look at intraday (I have a hard enough time focusing on the pairs I do without adding another one to the mix!) so happy to take the weekly setup.

Entry @ 66.25, took half profit @ 67.65 - other half SL moved to 66.60 (3% risk)

Initial Sl was @ 65.20 - just below the PPZ area rather than bottom of the BUOB - if the PPZ is broken there is a high chance price will head further south.

Total account gain so far (closed positions) - 11.13%

Been watching this triangle for a while waiting for a breakout...finally broke out today and I had a pending short order 10 pips below the TL (also had a pending long order 10pips above the upper TL) as an aggresive breakout trade.

I took profit @ the 61% fib which IMO was the first trouble area. Also Oil is @ resistance so didnt expect this breakout to follow through and will be looking to re-enter on a retracement to test the former TL support as TL resistance - PA as a confirmation would be ideal too.

Entry 0.9243, SL@ 0.9273, exit @ 0.9225 (2% risked).

(Account gain 12.46%)

This was another pair I had been watching for a breakout - missed the initial move but got in nicely on a retrace back to the area marked...scrolled down the timeframes looking for PA and found a BUOB on the 15min timeframe. Took all profit @ the RN...I was struggling to decide whether to exit or keep position open and move SL to BE...I might regret taking profit as there is some space for price to run up to 1.0650

Entry 1.0552, SL @ 1.0532 Risk 2% Exit @ 1.0600.

(Total Account Gain (TAG) - 17.86%

Yep...I sure do regret it now

Been focusing heavily on JPY pairs and EU/GU today as the trend is starting to change (or a deeper pullback) ... will explain more later. Not feeling well so haven't been looking at anything apart from checking on pair mentioned above.

The only other trade I took today was another short on AUD/CAD on a retrace to previous support area (had a pending order set yesterday) - a first retest offers a high chance of a bounce from my experience. Wasn't looking to hold this trade as I think CAD will weaken shortly as Oil is coming up against a strong resistance area, thus exited at first obvious PPZ.

Entry 0.9250, SL @ 0.9265 Exit @ 0.9230, 3% @ risk

(TAG + 22.56%)

Took a Gold trade...breakout and pullback from TL...target is a PPZ area...price took off nicely and just closed @ 1143.40 (entry 1136.10, SL @ 1132.30 - 3% risked)

(TAG: 34.22%)

In a fair few others...will post over the course of next few hours when get time...slightly disappointed we didnt have a stronger follow through down this morning on GJ, EJ, UJ, EU, GU

EUR / GBP - Pin bar off previous support turned resistance

Short @ 0.8784, SL @ 0.8815, 2% @ risk

EUR / SGD - getting into the trend...break of previous support...bit wary as all time low is just below (look @ monthly chart), but worth a little risk.

Short @ 1.8645
Short @ 1.8633

SL @ 1.8720, 0.5% @ risk on both i.e. total 1%

All trades are based on my trend trading stlye of buying / selling on breaks of peaks / valleys (S/R) on 4H / 1H.

Been waiting patitenly for the USD and JPY to strengthen and for these crosses to weaken...either a resumption in bigger trend in some cases or just pullbacks...I dont know but I have initial targets marked on charts to watch.

EU - Short @ 1.3350, SL @ 1.3412 - 1% @ risk
EJ - Short @ 124.88, SL @ 126.18 - 1% @ risk
GJ - Short @ 142.64, SL @ 143.70 - 1% @ risk
GJ - Short @ 142.02, SL @ 143.70 - 1% @ risk

C/J - break of support on 4HR - tend change - new LL / LH etc.
U/C - weekly support held, divergence, HH / HL break of PPZ
Gold - speculative on the basis breakout is 'fake'

C/J - short @ 93.43, SL @ 94.32, 0.5% @ risk
U/C - long @ 1.0023 SL @ 0.9980, 2% @ risk
Gold short @ 1145.25 SL @ 1150, 0.5% @ risk

1. GBP / CHF is a breakout of the resistance with the trend.
2. Oil - pin bar and pullback to resistance turned support
3. U/J - break of support / valley - a change of trend or a deepr pullback - looking to ride
4. A/J - looking weak , divergence, near TL resistance, JPY looking strong...but strong gold and interest rate is a niggle so only risking small amount.

GBP / CHF - long @ 1.6338, SL @ 1.6295 - 2% @ risk
Oil - long @ 86.68 Sl @ 85.72, 1% @ risk
Oil - long @ 85.98 SL @ 85.72, 1% @ risk
U/J - short @ 93.57 SL @ 94.28, 2% @ risk
A/J - short @ 86.76 Sl @ 87.40, 1% @ risk

Gold - SL hit...bit of a stupid trade really, but this was reflected in amount @ risk - 0.5%

TAG now stands at 33.55%

Oil retraced and broke the TL so both trades out for a loss as SL hit...and gold is now retracing...lol.

TAG now stands @ 30.88%

All other positions looking good...especially JPY pairs. Missed adding another entry long on U/C but have alerts set for the other JPY pairs in order to add more shorts at the next break of support / valley if/when this occurs.

DJI has broken the steep TL on daily too...if this holds then the JPY pairs should continue to weaken.

Do you keep any stats on your previous gap trading?

I've always been a big believer in Sunday gap trades but have lacked at keeping stats over the last couple of years. Curious if you had any...

Nice journal, cheers.

No I don't...Gap trading represents the lowest frequency of my trading and I haven't traded them for a while as I suffered some decent size loses as I got into the mentality that gaps virtually always close witihn say 70ish pips for USD pairs and thus got careless and threw too much money at it. I have seen a good analysis (haven't checked the analysis myself for accuracy) on a different forum...and have attached it here - I did not produce this so cannot vouch for it's accuracy.

Comments that go with the spreadsheet:

Heat lists the % of the size of the gap that the trade went against you before it filled. For example, if it was a 30 pip gap, and the heat is 100%, then you would've seen the trade go 30 pips against you, before it filled.

Notice that the most heat that we took on a trade was 341%, precisely why our stops are placed at 350%, to keep you in the trade.

I believe only the best setup was taken every week and only decent size gaps , thus if the gaps were too small none were taken. Obviously this is only up to 2008 but should provide you with some initial data (2 years worth) to start doing some analysis and add too.

Great stuff lovejoy, I appreciate it!

E/G hit my target and I've taken a reverse trade long.

JPY shorts going well, looking to add further positions...

U/C - added further positions on break above daily PPZ - a BUOB with divergence on daily too.

Missed this breakout and pullback on GBP/ZAR - just something I noticed when going through daily charts.

Gone long Gold too this morning.

E/G - closed @ 0.8759 - reversed and went long @ 0.8758, SL @ 0.8740 - 1% @ risk.

TAG now 33.0%

Notice the Dollar Index has finally convincgly broken above fib confluence...good for EU shorts...lookignat other USD crosses for possbile shorts