After lurking for weeks, I have decided to start a journal. The reasons are that I really need to keep track of my trading to find out something and currently just watching what I did for the afternoon is not providing that insight. Besides, I'd love to get other people's remarks, in the event they know something I don't. With this thought, I will post charts of my trades.
About me
I am a 30 year-old guy. I've been trading demo and reading stuff about trading for decades now but never had the courage to attempt at this. I lost my job and decided to give a go to this thing. I have set up an account with 500 euro I mean to exchange until I eventually become profitable. In the event this account loses too much capital, I will establish a new 500 euro account, and so forth. If at any point I start getting profits, I shall increase the account to one day be able to stay off of it. I really like trading, so I will dedie myself to the learning procedure. I hope achieving my goals does not take long, but I won't give up any time soon. There are traders in this forum that have shown to me that it is possible, so I feel like becoming profitable is merely an issue of time and expertise.
My trading:
Of all the stuff I've seen everywhere, the most convincing method I've seen so far is trading breakouts, therefore that is what I will do. I won't be using indiors to this, as I don't really believe in completely repaired principles to enter or exit trades. I think it is experience that will tell you whether you need to enter or exit and not some indior. I will use nevertheless support and resistance lines on the chart (obviously, because I'll be trading breakouts)
Broadly speaking, this is the egy:
- I will exchange only forex, all pairs that result from the combination of USD, EUR, GBP, JPY, AUD and CAD.
- nightly on a 1H chart, draw support and resistance lines on each of the charts, to get them prepared.
- Setup audio alarms right above and below the traces that might be broken.
- Every morning, await the price to cross among the lines and trigger one of the alarms. After this occurs I'll switch to some 5M chart.
- When the crossover happens in the direction of this trend (the trend will be determined subjectively), await verifiion (a pullback or a rise in momentum) enter the trade.
- When the trade is going well and not losing momentum, re-enter the trade every time a new maximum/minimum is reached.
- All open positions will have a stop loss and a take profit. The stop loss will be just behind support/resistance along with the take profit just before support/resistance. The idea is that the price must break support/resistance to hit the stop loss but does not have to to hit on the take profit.
- Since the commerce grows, the stop loss and take profit will be transferred according to my feeling about what is very likely to take place.
- If one day I lose a 1 percent of this account, I quit trading daily.
So far I have not had a lot of success with this, but the experience has explained that it is potentially profitable. The main problems I've encountered so far are:
- Fake breakouts. I hate those, but once I wait too much to enter, it gets too late and frees up all my potential for profit.
- Monitoring the breakout and watching it gain momentum, then feel that there will be no pullback. Then the pullback will come and I have a losing place right from the start. I will stay in but that makes me risk more than I'm comfortable with. I can't believe how many times that has occurred, however, it keeps happening.
- Overtrading. As I feel excited to check my system I spend a lot of time viewing the charts and attempt to enter a trade just anyplace. Ultimately I'll attempt to restrain this somewhat better.
I did have one profitable week (out of 3 so far), and I feel the main reason for this was simply that I didn't overtrade (I started 4 or 3 trades a day)
And that is it, I will be updating this daily. Feel free to comment with whatever you desire. All advice, criticism, suggestions, compliments or whatever is welcome, as I am a beginner and want to learn as far as you can.