Alifari's Trading Journal

Hi honeybadger,

Thanks for dropping by, both trading and life going well. Will keep in touch. Regards.....

Charles E. Kirk has been involved in the investment world for over 20 years. He is best known as the author of The Kirk Report, an analytical service that also curates important writings in the finance media. In recent years, he has also run an active mentorship program for developing traders and investors. Here is something he shared about his observations and perspectives from his mentorship perch.

Those who have become successful in my experience always have a high level of tenacity. Those who fail, in my experience, do not. It is the one universal element that I have discovered when mentoring others as well as in my own personal experience.

Tenacity is the ability to not give up in spite of difficulty and results from any activity that are not desired. It is the ability to persist with determination toward something tirelessly and with absolute perseverance to the point that failure is not an option. It is the ability live through intense struggle, to see consistently poor results for long periods of time, and in spite of that, still keep learning and improving on working on your trading with tremendous enthusiasm in spite of those results.

A trader needs "patience, self reliance.. tolerance for pain, open mindedness, detachment, persistence.." Peter Lynch

"One of the best tests of a trader is what they do when markets are closed..." Brett Steenbarger

"Speculation is too exciting. Most so engrossed with minor ups and downs they miss the big movements" Jesse Livermore

"The market is always right." Ed Seykota

"When you know what not to do not to lose money, you begin to learn what to do in order to win.” Jesse Livermore

"You have to know your setups and their probabilities. Then, once you see them you must act with conviction and without hesitation"

EURUSD M30 DEMAND ZONE

Buy Entry: 1.1233 - SL 1.1219 (14) - TP 1.1256 (23)

Trade Result + 1.64R

Chart 1 - M5 chart and screenshot at the time of entry, it was not a buy limit order instead entered as market order.

Chart 2 - M30 chart show clear demand zone with overall price action indicating bulls in control.

"We cannot achieve more in life than what we believe in our heart of hearts we deserve to have"

Inspired by the idea from following thread http://www.forexfactory.com/showthread.php?t=444377 I posted my point of view a while back in that thread. Re-posting the same here, as I am planning to experiment similar risk management strategy in coming days. May be a little tweak here and there, but overall idea remain same. Initial fund set aside for this project is around $3,300. Final Target $50,000/- by year end.

I have read numerous risk management style to achieve high returns. Here is one I would be experimenting. Starting capital $1000 Target $64,800 IN 5 Steps.

Step 1 - Starting Capital $1000 - That means I would have 20 attempts to complete step 1 ($50 x 20 = $1000)
Will start with $50 on first trade and looking for 4 winning trades in a row with 100% risk on each trade and average 2R in profit. If I complete step 1 it would give me a equity of $4000.

Step 2 - Starting Capital $4000 - That means I would have 40 attempts to complete step 2 ($100 x 40 = $4000)
Will start with $100 risk on first trade and looking for 4 winning trades in a row with 100% risk on each trade and average 2R in profit. If I complete step 2 it would give me a equity of $8000.

STEP 3 - Starting Capital $8000 - That means I would have 40 attempts to complete step 3 ($200 x 40 = $8000)
Will start with $200 risk on first trade and I would be looking for 4 winning trades in a row with 100% risk on each trade and average 2R in profit. If I complete step 3 it would give me a equity of $16200.

STEP 4 - Starting Capital $16200 - That means I would have 40 attempts to complete step 4 ($400 x 40 = $16000)
Will start with $400 risk on first trade and looking for 4 winning trades in a row with 100% risk on each trade and average 2R in profit. If I complete step 4 it would give me a equity of $32400.

STEP 5 - Starting Capital $32400 - That means I would have 40 attempts to complete step 4 ($800 x 40 = $32000)
Will start with $800 risk on first trade and I would be looking for 4 winning trades in a row with 100% risk on each trade and average 2R in profit. If I complete step 4 it would give me a equity of $64800.
So the question is why looking for only 4 winning trades in a row for each step. Well it is based on my trading history and back testing that based on my trading style I have achieved 2R on 4 consecutive winning trades many a times, as compare to 5 winners or 6 winners in a row.

Moreover, another advantage of trading this style is for every step I would have around 40 attempts to complete that step and go to next level. So again based on my trading history, back testing and my trading style, I know that there is high probability that I would get 4 winners in a row in the next 40 trades.

Plus with above steps I am not even taking into account the left over amount after completing each step. For example I get 4 winners in a row on 10th attempt on step 1 that means my actual equity for step 2 would be $4500 (initial capital $1000 - 500 + 4000= 4500). I achieve step 2 on 30th attempt that means my actual equity would be (4500 - 3000 + 8000 = 9500) and so on. So in reality my attempts would much more than 40 for each step and that would increase the probability of achieving each step.

NZDUSD M15 SR FTB sell limit trade. Two orders were placed, one below the SR level and another within the zone, but only one order triggered.

TRADE RESULT +1.50R

GBPJPY Sell order at Daily Supply Zone and M15 Price Action.

Potential 6R trade. Sometimes you have to come out of your comfort zone and let the trade run longer than usual. It's either +6R or -1R / breakeven trade from here on.

It's not all about posting winning trades, you have to post losers too, to keep yourself grounded. Here is one:

AUDUSD M15 Demand Zone

Trade Result -1R

The trade was hit overnight and wasn't managing trade live, but looking at it now, there were couple of opportunities to close the trade with some profit or at least break even.

You win some, you lose some as long as you have the edge you are moving forward.

Re-assessed overall price action, with GBPUSD approaching demand and USDJPY failed to break resistance. Closed trade with +5R.

EURUSD Sell limit at M15 SR Zone.

Trade Result +2R

Some chart patterns I trade, posting it here for future reference:

Quote:

"I am in competition with no one. I run my own race. I have no desire to play the game of being better than anyone, in any way, shape, or form. I just aim to improve, to be better than I was before. That's me and I'm free.

Hi. I took a trade yesterday and thought to share it here.
The price did a FB of a few swing highs then touched fresh supply at the top and moved down. That is when I entered the trade and price went to my tp.
I enclose the pic.
Thanks
Esther

Nice trade, well done

Thanks!

Quick Zig Zag Indicator (Average Zig Zag Length) ..... Thanks to Hayseed