Cypher Trading Journal

i did consider buying a dairy and hand writing into it but with my track record id probably spend more time trying to find it than trading as id lose it so often like everything eles thats not in my pocket.

quick background info i came across forex about yeah and half ago after being introduced to it by friend spent well over year learning for past 5 or so months ive sat studying the M5 chart after i came across niceguys thread which i think has helped cause the M5 is fast moving anyway over the weekend i have been looking at daily charts and thinking something i read back in early days of learning forex and that was K.I.S.S (keep it simple stupid) it was on some forex dvd a friend gave me where mentor said it.

So base on that im going to keep it so simple i went back over the daily charts saw it could be good strategy trading daily chart with candle patterns after starring at M5 for months candle patterns can work and one of NG saying was if there not selling then must be buying if a setup failed i think the bonus of the daily charts is higher the time frame the strongerthe pattern will be or so i have read.

Anyway enough of my typing kak im not really using a tp but have a mental tp in my head which is 2x the pip size of the sl unless i feel the need to close the trade early, the first 8 trades from tuesday are below will also post screenshot to justify them im not going to explain the ins or outs of why i took the 8 trades as this is just log book i can keep and look back over but it should be pretty easy to see why i took them.

http://i51.tinypic.com/1176b7d.jpg

Closed Trades

LONG EURUSD 1.36916 sl ~ 1.35933 tp ~ N/A closed ~ 1.35933 (-98.30 pips) (eg)
LONG GBPUSD 1.57326 sl ~ 1.56547 tp ~ N/A closed ~ 1.56547 (-77.90 pips) (eg)
LONG USDCHF 0.88771 sl ~ 0.87887 tp ~ N/A cosed ~ 0.91240 (+270.60 pips) (eg)
LONG GBPCHF 1.39654 sl ~ 1.38180 tp ~ N/A closed ~ 1.40866 (+132.53 pips) (eg)
SHORT EURUSD 1.35869 sl ~ 1.40133 tp ~ N/A closed ~ 1.34603 (+126.60 pips) (eg)
SHORT GBPUSD 1.55098 sl ~ 1.57417 tp ~ N/A closed ~ 1.54218 (+88 pips) (eg)
SHORT AUDUSD 1.00498 sl ~ 1.02909 tp ~ N/A closed ~ 0.98317 (+218.10 pips) (eg)
LONG EURGBP 0.87600 sl ~ 0.86865 tp ~ N/A closed ~ 0.87257 (-52.94 pips) (eg)
LONG EURUSD 1.35206 sl ~ 1.35216 tp ~ N/A closed ~ 1.36267 (+106.10 pips) (h)
LONG AUDUSD 0.98193 sl ~ 0.98203 tp ~ N/A closed ~ 0.99519 (+132.60pips) (h)
LONG GBPUSD 1.54700 sl ~ 1.53396 tp ~ N/A closed ~ 1.53396 (-130.40pips) (h)
LONG EURUSD 1.33379 sl ~ 1.33379 tp ~ N/A closed ~ 1.32948 (-43.10pips) (rr/pl)
LONG AUDUSD 0.95540 sl ~ 0.95640 tp ~ N/A closed ~ 0.96764 (+122.40pips) (h)
SHORT AUDUSD 1.01680 sl ~ 1.03710 tp ~ N/A closed ~ 1.02994 (rr) (-131.40 pips)
LONG USDCAD 1.02325 sl ~ 1.00435 tp ~ N/A closed ~ 1.01246 (pl) (-106.57 pips)
SHORT EURUSD 1.36372 sl ~ 1.39141 tp ~ N/A closed ~ 1.38174 (eg) (-81.20 pips)
SHORT GBPUSD 1.57444 sl ~ 1.58472 tp ~ N/A closed ~ 1.57291 (eg) (+15.30 pips)


Open Trades

im not that keen on trying to pick tops and bottoms as im not that skill yet but i will play the hammer tonight

LONG EURUSD 1.35206 SL ~ 1.33623 (h)
LONG AUDUSD 0.98193 SL ~ 0.96215 (h)

also my video of the day is this just saw it on max keiser website as i dont really watch bbc news anymore i only watch russia today and bloomy and sky news on rare occasions if something has happen in the world

have moved both SL to BE +1

closed @ 1.36267 will let the audusd trade run

closed @ 0.99519

LONG EURUSD 1.33379 sl ~ 1.33379 (rr/pl)
LONG GBPUSD 1.54700 sl ~ 1.53396 (h)
LONG AUDUSD 0.95540 sl ~ 0.93864 (h)

moved sl to 0.95640 left other two running during asia will check again in case i fell i need to close them before ecb

closed @ 1.53396 got caught out


closed @ 1.32948


closed @ 0.96764

looking back over today i think my downfall was over sleeping which lead to me getting stop out and then hitting the abort button as i kind of panic but all is not lost i learnt 2 lesson today

1 is to accept a loss and just move on
2 is not to over sleep during the first week of every month

i still think the piecering line or railroad track entry i took on the eur is good but i expect it to be a pullback before carrying on its move down so i wont be trying to get in again long, i was tempted to enter aud again last night as it had form a bullish morning star on close of yesterdays candle but left it as it was close to a pervious support level around 9710

had to hang around a while sat on my hands while the last trades played out that i panic and closed early, im going to get back in the action after what the german finance minster said today causing the eurusd to fall over 170 pips im going to take the counter candle patterns tonight

SHORT EURUSD 1.36372 SL ~ 1.39141 (eg)
SHORT GBPUSD 1.57444 SL ~ 1.58472 (eg)
SHORT AUDUSD 1.01680 SL ~ 1.03710 (rr)
LONG USDCAD 1.02325 SL ~ 1.00435 (pl)

the 4 trades tried to make greens pips today but too many rumors played in to the bulls favor today currently running down at minus 132pips, i still think the candle patterns are vaild my only concern is im trying to pick tops and bottoms and go against the flow

closed @ 1.02994

closed @ 1.01246

closed @ 1.38174

closed @ 1.57291


i have pulled the plug on trades looking at aud trade i took the pattern at the top of the down channel looking at it to start making its next leg down but looks like it wants to re-test the roof again which is close to my stop loss so i have closed also my piercing line trade on the cad was counter by a bearish dark cloud cover on close of yesterday candle i should of really closed that last night but let it run

since the last lot of loser i have been paper trading and have come to the conclusion that trading just daily candle patterns by them self is going to maybe not be enough, i have been reading up on supply and demand and will paper trade to see if i can take candle patterns inside supply and demands areas if it improves

been well over month since i lasted updated my diary, was just going over my candlestick pattern trades i took, i think i got lucky, my risk reward wasn't balanced as i was just sticking sl at the high or low of previous candle

one good thing i took from this is i removed break even completely from my trading plan for trading the M5 , i found it was winkie blocking me a lot of the time, also the lesson i learnt here to just accept a loss helped get rid of it as well when i panic and closed the trade too early.

as for supply and demand i have been studying price on the M5, how it acts in supply and demand area.

news trading is also a area i have been looking at for the past month, since i got a average news source i have been studying the M5 chart after london close each day, marking down the time the market turns, then going back over the news log to see if there was any news around same time that could have influenced the move, then i make a note in my note book so i can build a general idea of what type of news can move the market, one area i'm struggling with is live press conference, like a ecb event, as they can move the market many pips either way during a live event, i think the solution is just more time soaking up screen time and learning trigger words.

i think news trading is a key area i need to study and develop a strategy for going forward into 2012, reason being i came across a chart from saxo bank the other week, it stated that in 2010 45% of the market was traded by algo's which made me think if they are like the stock market hft's they will be trading events, news, announcements etc, so with nearly half the market trading these event i think it's something i can't ignore.

http://www.forexfactory.com/attachme...7&d=1322853160