Road Runner's Trading Journal

I am starting this journal to simply record my trades, post occasional charts, and hopefully share constructive dialogue with others.

I can't say that anything I've learned up to this point regarding trading methods is my own. It has all come from others that have been generous and patient enough to share there own experiences, both here on FF as well as a couple of other sites,

I am not here to turn $1,000 into $1,000,000 in record breaking time, nor am I here to boost my own ego. I simply would like to track my own progress and freely voice my own thoughts without imposing on anyone else's thread.

I have been trading Stocks, Options, and more recently Forex for over 7 years. I've blown a couple of live accounts, I have doubled a live account and then blown it. I have done extremely well trading demo, and I have had more breakthroughs and aha moments than I can remember. All of this stubbornness and persistence has cost me thousands of dollars over the years, but it slowly worked me down to the point where I was simply just tired of it all, it was just way too stressful.

Earlier this year, I re-activated my $500 account and adjusted my lot size to 2,500 from 10,000, and traded only 1 lot at a time (25 cents per pip). This was the best thing I could have done. It allowed me to calmly trade and assess every trading situation with a level head. I was trading price action on the 5M charts with decent success, logging and studying each trade, figuring out what my best probabilities were during certain hours of the day. I am in California, so I miss many of the most active trading hours. I haven't turned my account into 6 figures yet, but I have managed to not blow it, and have steadily increased the balance over the last 6-7 months.

I do want to be sure to note one thread in particular that has been truly helpful recently. It has really brought it all together for me and I am truly thankful for the wisdom and experience shown by Graeme, what he has done in the thread is priceless. Many of the entry's I now make are based on and managed with the "millipede method" he is teaching, but some also are not, so I will not attempt to outline or describe it here, as I am not qualified to do so, and would likely do it a dis-service. Below is the link, it's a bit of reading, but well worth it:

http://www.forexfactory.com/showthread.php?t=245149


So, with all this being said, at the end of the day, I have gained confidence in myself without having to be right all the time, and I've learned to trade in a style that suits me and allows me to have a level head. I hope to continue on with increased success, but without the unneeded stress.

Best Regards,

RR

Here is my trading log for today, all the closed positions were sold at breakeven. I currently have one open. I only trade EU, with a profit target of 100 pips on each trade.

Closed - Trade 1: Buy 3928
SL1: set to 21
SL2: set to BE w/ limit at +100 pips
PA/Indicator: 1H TL broken, 1H BEOB
Result: Stopped out at BE

Closed - Trade 2: Sell 3938
SL1: None
SL2: set to BE
PA/Indicator: 5M at 200 MA, IB on 5M
Result: Stopped out at BE

Closed - Trade 3: Sell 3939
SL1: 51
SL2: 45
SL3: BE w/ limit at +100 pips
PA/Indicator: IB on 5M
Result: Stopped out at BE

Open - Trade 4: Buy 3863
SL1: 56
PA/Indicator: IB on 5M

Last nights trade was stopped out for -10, unfortunately I was sleeping as it proceeded to climb back up.

I managed to get a short in first thing this morning that ran for +100.

Made an attempt at a couple of longs along the way for -10ish total.

Currently my only open position is long at 3773. If price breaks upward I will look to set my SL to break even and try to add another long position. I will also look for a short position around 3850 if I am around.

Edit: As I was writing this I was stopped out of my only open position for -9. I'll continue to look for long opportunities.

Here are today's trades, in same order as purchased:

Short at 3785 +18
Long at 3752 +10
Long at 3783 -5
Short at 3772 +100
Long at 3682 BE
Long at 3686 BE
Short at 3699 BE
Long at 3692 +98
Short at 3716 -5
Long at 3716 BE
Short at 3733 BE
Short at 3760 -10
Short at 3775 -5
Long at 3772 Open

Here's a list of today's trade, only 2 still open:

S3719 +48
B3685 -30
S3681 +13
B3663 -8
B3671 -7
B3661 BE
B3663 BE
B3642 OPEN
B3658 BE
S3663 OPEN

Both of yesterday's trades closed out at BE, placed a couple more late last night as well as a few this morning, here's the update:

B3612 +35
B3608 +44
S3724 +41
S3722 +39
B3670 +18
B3673 OPEN

I'm showing 1 minute chart today, since this is how I pinpoint most of my trades. I'll post a end of week summary a bit later.

The profit for this week is +476 pips.

I am really gaining confidence in this low-risk high reward method of trading, it has really brought it all together for me. I am finding that "stacking" my positions against trend lines and/or S/R lines works very well, especially when consolidation occurs. It allows me to build up several positions with a really tight stop loss. About half of the time I am able to move my stop to break even, the other half result in 10-20 pip losses. My goal is to get +100 pips per position, although I do take profits sooner if I feel price is not going to go further. I have two separate accounts, one for going long on EU the other short EU. This allows me to have positions open on both ends, and helps me psychologically separate each position and treat it as its own entity. The fact is, I have no idea which way price is headed, but responding to PA, Trend Lines and S/R on multiple time frames with tight stops allow me to catch any movement either way.

I've been away on a mini-vacation the last couple of days. Placed 1 trade yesterday and three today, all of which are still open.

A bit of an update on my trading. I am going to try to start leaving more details of my trades in notes. I have been doing very well, but I will be trying to limit the number of trades I make to no more than 1 short and 1 long in a given hour between 8:00am PST and 11:30 PST. I'm finding that the amount of trades I am making are really unnecessary, I would have achieved the same results, or fairly close with half the trades over the last few weeks.

Trade 1
Long: 3498 at 9:25am, Nov 16
Profit Target: 3598
Stop Loss: SL just below prior days close, will adjust to today's at the close.
Notes: First 1M PA after hours close

Trade 2
Short: 3544 at 9:16am, Nov 17
Profit Target: 3444
Stop Loss: SL TBD at end daily bar close.
Notes: 15M PA - SL TBD at end of daily bar (or at top of PA) Setting this to BE for a bit, looking very bullish if breaks out in Asian session.

Trade 3
Long: 3533 at 9:27am, Nov 17
Profit Target: 3633
Stop Loss: SL TBD at end of 4H bar. Update: set to 3505
Notes: 1M PA - Cont. trade

Trade 4
Long: 3525 at 10:09am, Nov 17
Profit Target: 3625
Stop Loss: 3505
Notes: IB on 15M

Yesterday's Results:
Trade 1: +100
Trade 2: -25
Trade 3: +100
Trade 4: +100

Today's Notes:
Since I don't start trading until after 8:00am PST, I figure it would be beneficial to start organizing my thoughts on the market before starting. I will post a couple of charts with trend lines and SR points for the day. I am looking for longs in the 3500 area depending on PA. Would be nice to catch a bounce off of the 1H trend line. Possible short opportunity at a bounce off the 15M trend line. Will also be looking for shorts at the 3821 line indicated on the 1H chart. I am also looking at yesterday's Daily high of 3564 as an SR point and an opportunity for longs.

I placed 4 trades today, 2 of which are still open and have a profit target of +100 each:

Trade 1
Long: 3594 at 8:21am, Nov 18
Profit Target: 3694
Stop Loss: BE, changed to 3613
Notes: First 5M PA after hours close, 5M IB broken, looked strong on 1M PA
Result: OPEN

Trade 2
Short: 3638 at 9:16am, Nov 18
Profit Target: 3538
Stop Loss: BE, moved to 3628
Notes: First 1M PA after hours close
Result: +10

Trade 3
Long: 3628 at 10:13am, Nov 18
Profit Target: 3728
Stop Loss: 3613
Notes: First 1M PA after hours close
Result: OPEN

Trade 4
Short: 3618 at 11:10am, Nov 18
Profit Target: 3518
Stop Loss: 3628
Notes: First 5M IB
Result: -10

Both of yesterday's open position were stopped out for about a break even average. A bit frustrating as I was barely closed out then price proceeded up to my target profit area, but, it happens. For every time I get stopped out "prematurely" there is a time I come withing a few pips of not getting stopped out, it's just the nature of the beast, I've got to draw the line in the sand somewhere.

Below are a couple of charts I am looking at for today. I most likely will not place any trades today. If I do they will be closed out by end of day.

I didn't place any trades yesterday.

My weekly results were +275 pips. I did not place as many trades, and it was much more manageable and less stressful. My account has done well the last 3 weeks, almost a 20% increase. This next week will be a short week, so we'll see what happens.

Yesterday's results:

Trade 1
Long: 3607 at 8:06 am, Nov 22
Profit Target: 3707
Stop Loss: Initially none, updated: set to BE
Notes: First 1M PA after hours close, confirmed on 5M &15M
Result: Closed BE

Trade 2
Long: 3616 at 9:05 am, Nov 22
Profit Target: 3716
Stop Loss: Initially none, updated: set to BE
Notes: First 1M PA after hours close
Result: Closed BE

Trade 3
Long: 3590 at 10:10 am, Nov 22
Profit Target: 3690
Stop Loss: Initially none, updated: set to BE
Notes: First 1M PA after hours close
Result: Closed BE

Trade 4
Short: 3607 at 3:15 pm, Nov 22
Profit Target: 3507
Stop Loss: Initially none, updated: set to BE
Notes: First 1M PA after hours close
Result: Closed +100

Trade 5
Short: 3601 at 9:15 pm, Nov 22
Profit Target: 3501
Stop Loss: Initially none, updated: set to BE
Notes: First 1M PA after hours close
Result: Closed +100

Haven't posted since before the holiday's as I was traveling most of December.

I've been spending the last few weeks getting my trading plan organized as I have funded my account with a significant amount. This has been a huge adjustment psychologically and really has forced me to be cautious with my stops and lot sizes. It's one thing risking 3% per of a $1,000 account it another when 3% is equal to a weeks wages.

I am taking "baby steps" as I get rolling with this new account. And look forward to posting more thoughts on my progress as I move forward.

As I enter into my second week trading with my newly funded account, I am working on my mindset and getting closer to having my overall plan in order. I continue to make very small entries as I was doing before, building multiple positions for short term trades.

I am finding this experience to be most valuable. Trading with "real money" has completely made this business very real to me, forcing me to really take this seriously. Not that I wasn't before, but it's a whole new ballgame now.

By using a handful of "methods/systems" for entry points on, I find it brings me a nice variety of opposing entries that act as sort of a hedge. I also continue to look for new methods of entry that I feel comfortable and confident in, this process has always been enjoyable for me.

Entering the market with small orders and building "mini" positions is really what is working for me. There are many methods for entry, but keeping my mind clear and stress-free by not risking more than I am willing is the ultimate method for me. It makes it so much easier to cut losses and let winners run when your not risking more than what your mental threshold can handle.

This was another profitable week, but not by much. I felt myself trying to prematurely predict the market turn, thus not taking and managing the trades appropriately. I also held on to winning positions longer than normal trying to catch the drop, but instead breaking even. The lesson learned this week was react to the current price movement instead of trying to predict when and where it will happen.

I also tested out a new system this week in the Systems Thread. It did well, and is a good addition to what I am currently doing, it is just requires a bit of patience as the entries are few and far between.

I am getting used to the new account size, but am still not ready to place larger trades, I'm finding placing many smaller orders keeps me in the relaxed mode I need to be in to trade.

I hope to finally outline my plan either here or under my System thread this week.

Best,

RR

This week was a big improvement for me psychologically. I felt more reactionary to market conditions versus trying to predict. I continue to use a variety methods for entry and exit and seem to have a hard time really getting it down in writing, as it seems much of it is discretionary. Making things to "cut and dry" seems to hinder me from trading fluidly, and tends to distort my view of what is really happening. I am also continuing to "tweak" certain aspects as I learn more. I really hope to get it all together soon, for my own sake, as I believe in order to move onto larger lot sizes I need to make my entries and my plan as clear as possible. I'm getting close though.

I made about 200 pips this week, and averaged about 10 pips per trade. Some of them were quick, some where multiple orders stacked across a larger time frame. About 30% were losers, and my average risk/reward ratio was 1:1.

Just taking this week at a time. Looking forward to next week.