this is where i feed my impulse trading
my inner demon that wants to trade every minute
this is also my start in the day trading forex career
let the trade begins!
daily chart of gbp/nzd
prices opened sharply downwards, also a breakout of both a falling wedge and 1.896 bottom
we’ll be shorting at 1.8917 with a stoploss at 1.9 for 83 pips
seems it was a false breakout on the downside
good thing i never shorted
buy entry : 1.90273
stop loss : 1.89668
target :1.910
buy entry: 1.92224
stop loss is ??? dunno yet think about that later
so will wait to buy this later
edit 2nd time
this pair has too many forming consolidations
many form a pattern within a pattern
very hard to trade this pair
but you know what…all the patterns seem go up
i just entered long at 1.89887
with a stop loss right below the recent low at 1.89170
yes this is a buy and pray strategy, i can’t really find a good breakout entry point
this trade either goes super high or i get hit by my stoploss, too many consolidations formations…
once trade goes in my favor, im more likely to take profit then find a better entry
dunno…this pair is tough to trade
gbp/usd hourly chart
seems to be consolidating could break up or down
more room towards the upside it seems
entry buy 1.58858
stop loss 1.58308 - 55 pips
not going to trade this pair will trade once confirmed on directional bias
im getting mixed biased atm, long on hourly, short on 4h
will look deeper into this pair later
atm, ignore entry/stoploss edit
edit#2
omg, i forgot to cancel the entry trade, so the trade got triggered…and guess what? after i saw the trade trigger with losing position, i just let the trade hang itself…i was really not in a position to trade this pair which i stated earlier…
anyway, i closed the position right before hitting my stoploss
anyway, instead of dragging down on my mistakes further
will set another buy entry on the breakout
entry - 1.59023
SL - 158276 edit#3
actually looking at the 4h chart again prevented me from buying…
this time i will cancel my entry for sure!
just realized drawing these trendlines is hard, if drawn incorrectly, often leads to bad trades
what looks like a trendline might not be a trendline…
dunno, will try and master this trendline logic
did not like what i saw, exited for 4.4 pips profit
lesson learned
very tiresome/gruesome trading the 5 min chart
constant monitoring the trade and keep changing the entry/stoploss point every couple minute
im going to stick with the hourly+ charts from now on, since not much pips can be made on the 5 min chart
another mistake learned, when multiple consolidation formations forming within each other
dont jump at the trade from the smallest timeframe if it’s very close to the next support/resistance line
before jumping in at a breakout on smaller timeframe, first look at the bigger picture to see if there’s any nearby resistance/support line!
rather jump at the breakout on the bigger timeframe!
jumping at the smaller timeframe breakout entry without looking at the bigger timeframe clues is suicidal
another thing is, there are gazillion of trendlines…it’s hard to identify all of them
and another thing is drawing the trendline is super hard since it’s open to interpretation on how you draw them!
Entered short immediately after seeing the breakout
entry - 158106
stop loss - 1.59
Target - to be decided by macd slope and formations that will be coming up
also i must first note unless i get hit by a stoploss on my gbpusd pair, i’ll try to hold onto this trade for a couple days at least
this is an important note, i will try not to close my trade too early unless i get chewed up by a false breakout
another lesson learned
jumping at a breakout on a large scale is worth a trade
but perhaps can get a better pricing of the breakout using lower timeframe
prices retracing a bit on the 5 min, seems to be a better opportunity in retrospect
just got an idea for a new system
idea is based on elder alexander’s impulse system
cept it’ll be used purely for scalping
recently just got a trial low spread account with fxcm to test this idea
rules
will only trade popular pairs with low spreads
have 2 EMA set on hourly
13 and 26 will be the testing parameters
both of the EMA must either face up or down, if it’s flat then no trade
then go to the 5 min chart
will only use the macd histogram indicator
if ema is down on hourly
ideal setup will be up slope on the histogram then once the bar closes and macd-h ticks down, we’ll short immediately
exit after bar closes as macd-h ticks up
no stop loss will be implemented unless the trades moves super fast against my direction will close manually and constantly monitor the trade
and the complete opposite for long trades
let’s see how my idea for this system will work out
will try to post those trades
the whole idea of this scalping system is to limit losses and let profit ride out on the trends
if this is a profitable system, i will deposit more into the trial account to fully utilize this system
i can’t believe im starting to come up with my own ideas
although it mimicks the original creators methods
it nevertheless it’s something worth some value with putting the pieces together myself
ok scalping is too hard
tears down your brain, constantly looking at the graph makes me explode
maybe as a bot, then can scalp like hell the easy way
anyway, the more i thought about the idea of the system idea
the worse it looks, becoz it gives too much signal, good and bad
probably need a filter indicator or something for this system to work better
anyway, with that trade…i hate monitoring the 5 min chart constantly
so from now i’ll stick with my hourly+ charts and perhaps go to 5 min charts for better entries
Scalping is not for everyone, much less for a new trader. The idea of profiting for a few pips with each trade lasting a few seconds to a few minutes might sound appealing to some but the reality is that scalping is time-consuming and mentally draining.
Even though the trade may last a few seconds, the waiting for the setup to occur may take a few hours. You will have to be watching your charts all the time just so to enter the trade. The waiting is not the only problem, the identification of a setup is also difficult as trading very low time frames like M1 or M5 contains lots of market ‘noise’. You have had to be trading for many years in order to get a ‘feel’ of how the price action is moving.
I personally trade on H4 and Daily charts as it is much easier to read the market structure. Granted it will yield much less trades and each trade may take hours and even days to close but it fits my work schedule. The beauty is I typically look at the charts only twice a day. So technically I spend just minutes each day trading. There is really no need to stare at the charts.
