It's 2:47 and my mind is abuzz. I should be doing Probability, but instead find myself being bombarded by trading concepts left, right and center. I believe I may have finally found a way to get my entries nailed down, just to my liking.
It's quite funny when these things hit you, and then you wonder why you never thought of it before. For my entries all along, I've been identifying a region where I thought would be good to place a trade, and have for the past few months been placing trades at a specific price, ignoring the flexibility which the region can give me.
My new entry approach involves scaling in over this region, and although I know this is not a revolutionary practice by any means, it simply makes great sense to me now, and I believe I have found constructive ways to employ its use. Scaling in differs from averaging down, as I will have a set point at which I will say enough is enough.
I trade a market, and if I were to buy at a given price, then if price dips lower, measures should be in place so that I may profit from these bargain prices as well, up until a point where I deem the trade no longer valid.
Coupled with some simple position sizing to give me flexibility in altering my exposures, I think this will take my trading to new heights.
It's not something I take lightly, and will see my risk per trade going from a constant 4% to a figure ranging between 2%-5%, but I think the pay-offs will be worth it. Risking potentially 5%/trade also has the benefit of making sure you sit on your hands and trade only when you have great confidence that you have a grasp of what's going on, and in my opinion will curb any potential desire to overtrade or place sloppy entries. I understand that such a high level of risk is unorthodox, even ridiculous by standard trading dogma, but with standard trading dogma, I would be nowhere close to where I am today.
I have an edge and I'm not afraid to use it...
Regarding trading ideas, I'm thinking that a large defeat of the Spanish Socialists coupled with Italy's debt rating being put on negative watch, should be able to bring about a gap down, which would put the interest behind 1.2400 in EUR/CHF in easy grasps - especially in the liquidity-thin Asian Session. Should price retrace, I plan to enter another short position as things play out.
I also recently learned the hard way why it is difficult to keep the AUD/USD down - the negative interest rate differential on the pairing prohibits shorts from maintaining positions in the pairing unless it is moving down sharply. If AUD/USD were to range, it is likely that with each passing day, mounting costs on these shorts would slowly begin to accumulate, until they are forced to take off their positions. On this basis alone, I'm viewing high interest rate differential paris in a new light, and will be looking to pay more attention to them in the coming weeks.
Regards,
xXTrizzleXx
It's quite funny when these things hit you, and then you wonder why you never thought of it before. For my entries all along, I've been identifying a region where I thought would be good to place a trade, and have for the past few months been placing trades at a specific price, ignoring the flexibility which the region can give me.
My new entry approach involves scaling in over this region, and although I know this is not a revolutionary practice by any means, it simply makes great sense to me now, and I believe I have found constructive ways to employ its use. Scaling in differs from averaging down, as I will have a set point at which I will say enough is enough.
I trade a market, and if I were to buy at a given price, then if price dips lower, measures should be in place so that I may profit from these bargain prices as well, up until a point where I deem the trade no longer valid.
Coupled with some simple position sizing to give me flexibility in altering my exposures, I think this will take my trading to new heights. It's not something I take lightly, and will see my risk per trade going from a constant 4% to a figure ranging between 2%-5%, but I think the pay-offs will be worth it. Risking potentially 5%/trade also has the benefit of making sure you sit on your hands and trade only when you have great confidence that you have a grasp of what's going on, and in my opinion will curb any potential desire to overtrade or place sloppy entries. I understand that such a high level of risk is unorthodox, even ridiculous by standard trading dogma, but with standard trading dogma, I would be nowhere close to where I am today.
I have an edge and I'm not afraid to use it...
Regarding trading ideas, I'm thinking that a large defeat of the Spanish Socialists coupled with Italy's debt rating being put on negative watch, should be able to bring about a gap down, which would put the interest behind 1.2400 in EUR/CHF in easy grasps - especially in the liquidity-thin Asian Session. Should price retrace, I plan to enter another short position as things play out.
I also recently learned the hard way why it is difficult to keep the AUD/USD down - the negative interest rate differential on the pairing prohibits shorts from maintaining positions in the pairing unless it is moving down sharply. If AUD/USD were to range, it is likely that with each passing day, mounting costs on these shorts would slowly begin to accumulate, until they are forced to take off their positions. On this basis alone, I'm viewing high interest rate differential paris in a new light, and will be looking to pay more attention to them in the coming weeks.
Regards,
xXTrizzleXx
Not good at keeping journals. 
My mistake!
Keep up the great work!
Working + Trading is a wee bit difficult. The work is demanding + my boss is a nosey prick. If I open the account page for even a second and he sees me...he will deduce I am not working my ass off.
That one turned out to be my favourite one since I could get so many legs on it. You should pat yourself on the back for a great trade! 
