Hi all!
I’m very new to trading, I just started my demo account a few months back (couldn’t remember :D). After a few weeks of trying, I decided to go live with a 100sgd balance account. Until the time I earn confidence that I can really increase this amount with the proper knowledge and guidance, then I will decide on increasing my balance.
So far I’m loosing roughly around 1% of my account.
Then I found this thread of [B]Bijoy[/B]. I have decided to follow his technique by making monthly, weekly, daily, and 4-hourly trend lines. Based on those trend lines, I will decide whether I will enter or pass the trade. With a few days of testing, sometimes trades can go up to a day or a few days before it being closed for profit (hopefully not for loss).
Later on, I found out that this strategy is called Multiple Time Frame Anaysis. It was discussed afterall in the babypips pipsology school. Though not as detailed as Bijoy’s discussion
I have also learned from [B]Bijoy [/B]to start a journal of my trades, so here it is! My own journal!
i’m asking for everybody’s suggestion and comments on all my trades.
I also need to put in my [B]rules of trading[/B], so here they are (i’ll keep on updating them as I continue to learn):
[ul]
[li]Do not trade unless the profit to loss ratio is greater than 1, ideally it should be greater than 2, though 1.5 is still acceptable.
[/li][li]Do not risk more than 1% of capital in every trade.
[/li][li]Buy only if the Stochastics is indicating oversold, and Sell only if Stochastics is indicating overbought (or should it be the other way?)
[/li][li]Wait for as much rising indications before buying, and wait for as much falling indications before selling (e.g. wait for Stochastics to leave overbought area before selling, or wait for Stochastics to leave oversold area before buying, make sure candles are showing signs of rise or fall)
[/li][li]Take note of resistances and supports. Resistances can also become support, and support can also become resistances.
[/li][li]Look for trends in upper time frames (usually daily), then look in 4H or 1H time frame to verify entries to trades.
[/li][/ul]
EDIT:
Here is the [B]summary of my trades[/B] (and please take note months are separated into tabs, so for previous months, you need to check other tabs of the spreadsheet):
view google document
Here is myfxbook stats.
So… here goes my journey to learning! …and hopefully [B]earning[/B]!
Notes:
All the while, I had a different concept with the risk % one can take in every trade. I thought if you say 2% risk, you will only be using 2usd to trade, assuming you have 100usd. It is supposed to mean you are willing to loose 2% in every trade, if you were stopped, you will loose 2% <-- that’s what you’re willing to risk/loose. That will mean at any trade, you can use more than 2usd (assuming you only have 100usd) as long as the lost will not exceed 2% of the capital. This post made it clearer.