My Trading Log

[o990l6mh]

I intend to use this thread as my way of logging my trades and to post my thoughts about what I've done well and more importantly, the mistakes that I identify.

Next post will state the system I intend to use, although it may be changed along the way.

[o990l6mh]

Just a quick reflection before posting my system:

After making quite a few pips on the EUR/USD over the last few days movement, I closed that trade yesterday and later opened another trade that seemed good:

EUR/CHF sell at 1.5727 approx 2400 GMT+1

However this morning as I checked, the trade was going against me and i decided to close it, thinking that it was a case of overtrading on to much self-confidence due to the previous very succesful trade.
As I'm checking now, I realize that patience would have had my trade now at +50 pips...

Why does it have to be so hard to STICK TO YOUR SYSTEM!?

[o990l6mh]

My system as follows:

Risk: max 5% of capital at any one time, no more than two trades going on at the same time. Lot size is adjusted to meet the risk condition.

Timeframe: Daily + weekly and monthly for trend overview
When work allows it, I will be looking for trades on the 4H as well

Trading Hours: Checking news, current positions and planning new positions roughly between 18-19 GMT, position opening and closing 22 GMT

Indicators: Bollingerband 16 periods and candlestick reading

Enter: When moderately to highly reliable candlestick pattern can be discerned on daily and the trade to be is in the direction of the larger timeframe trend

S/L: Place PCI (Power/Computer/Internet) stoploss 3 pips beyond Highest High or Lowest Low of Candlestick formation

T/P: Close 1/2 position at +30pip and move S/L to Break Even, Trailing Stop is placed together with T/P. T/P is placed at opposing Bollingerband.
Position is closed if Trailing Stop triggers or if T/P is reached

Currency pair: Any, if spread <10,
Focus will be on AUD/USD, EUR/CHF, EUR/GBP, EUR/JPY, EUR/USD, GBP/USD, USD/CHF and USD/JPY
Profit Target: 20 pips/day
Leverage: 1:500, though only 1:100 on demo account due to limitation in demo
Broker: Alpari UK

All trading will be carried out on a Alpari UK demo account, until it becomes clear that my system either works or does not work.
Starting capital will be 1000 USD

[o990l6mh]

This thread is primarily for my own sake, but comments, advice and so forth is of course welcome.

I have already begun trading and in my next post I'll add those trades that have been done, and perhaps discuss them briefly as well, as some of them were not carried out well.

There's just one way to learn and improve and it's called learning by doing.

Good trading to all

[o990l6mh]

Trade #1

2008-12-10 BUY EUR/CHF 1.5612 23.55 GMT +1
S/L 1.5653
T/P 1.5705
2008-12-11 CLOSE AT T/P 12.02 GMT+1

+93 pips

Thoughts:
I acted on a morning star formation which appeared in a Bollinger squeeze. Though it might be admitted that I certainly didn't wait for confirmation, it went well.

[o990l6mh]

2008-12-10 BUY USD/CHF 1.1988 23.58 GMT +1
S/L 1.1847
T/P VOIDED
2008-12-11 CLOSE AT 1.1925 12.02 GMT+1

-63 pips

Thoughts:
In retrospect, I honestly can't say what I was thinking. It makes no sense at all this trade. Lesson - be focused and sharp if you're gonna trade
When i realized that this trade should never have been, I closed it at market.

[o990l6mh]

Oh my, it seems I just went from nothing at all to a newbie!

[o990l6mh]

2008-12-11 BUY EUR/CHF 1.5717 12.03 GMT +1
S/L VOIDED
T/P VOIDED
2008-12-11 CLOSE AT 1.5722 12.07 GMT+1

+5 pips

Thoughts:
I saw that the momemtum seemed strong from trade #1 and I jumped back in during my lunch break to see if could catch a few more pips.
This represents a failure to follow my system, and though it went well, I'm ashamed by it. I need to follow the system I've set and nothing else!

[o990l6mh]

2008-12-15 BUY EUR/USD 1.3398 00.12 GMT +1
S/L 1.2719
T/P 1.4001
2008-12-11 CLOSE AT 1.4001 12.07 GMT+1

+603 pips

Thoughts:
Looking at the weekly chart, I thought it seemed quite likely that a move upwards was about. The formation looked like a drawn out morning star if you will. Also a gap up at mondays open suggested the pair would go higher.
Stop was set at the formations right-most candle bottom, and T/P was set at about an equal distance to make risk/reward at least 1:1
Everything went very well, in part thanks to Ben Bernanke.

[o990l6mh]

Because of the small lot sizes I've been trading, it has been impossible for me to close half the position at + 30 pips, and quite frankly I'm thinking about scrapping that part.
It could be replaced by a S/L that is trailed upwards toward Break even as the trade moves in the right direction.

That should improve Risk/Reward also

On the downside, that requires more monitoring.

Maybe I'll just scrap it and not replace it with anything, until i figure something clever out.