Trading journal baigaisvecis

[baigaisvecis]

Hi there,

After trading demo accounts and some not so great live accounts I I’ve decided to start recording and sharing my trades with anyone who feels interested. I don’t expect to gain a lot of interest from my journal here, so the main objectives is to analyse my own trades, mindset in each trade, mistakes and hopefully attract some comments from other traders who could point out some mistakes, give advice or heck, maybe even gain something themselves

A bit of how I am about to execute my trades

Mainly I will be using 4h charts to trade. I will use fundamental analysis to determine the sentiment of a pair and technical analysis to execute trades. I will not be using one concrete technical analysis method with a cool name or something similar. I feel that using one strict rules based technical trading strategy can limit profitable trades and can lead to loosing trades if you don’t take in to account other factors.
My technical “arsenal” will be:

1. Trend lines, chart patterns and S/R areas;
2. Stochastic for pinpointing better entries and even stops at some times;
3. RSI only for monitoring divergences;
4. 50 and 20 MAs. This will be another tool to judge the pairs and trade direction by eliminating some of the noise. If 20 is above 50 than I look for buying and vice versa.

In order to avoid conflicting information from these technical analysis tools, I will give the most “weight” to trend lines and S/R areas. For example in ranging markets I could execute a buy order if it fits my fundamental view and price has reached a strong support area even if MAs signal a sell. This fits my earlier statement that I don’t believe in a universal technical analysis method and we should adapt to different market environment.

All comments are welcome
See you in the first trade setup

regards,
baigaisvecis

[baigaisvecis]

Here’s the first setup. EUR/CAD looks like forming a falling wedge. Price has reached the top of the wedge, price and 20 MA are both below 50 MA (which is a sell signal based on my strategy) and fundamentally CAD is stronger. A lot of good reasons to go short.
Trade setup:
Short at market,
SL at 1.3961
TP at 1.3435 (recent resistance area)

[emanvill]

Good Job, I’ll follow your thread with a lot of interest. Please keep us updated on the results of your trades too

Manu

[baigaisvecis]

Forgot to record one trade. Short EUR/GBP.
Explanation of trade setup:
Fundamentally GBP stronger;
Bearish chart pattern formation - double top;
Price and SMA 20 below SMA 50;
Shorted when stochastic crossed outside oversold area.
SL 0.7320 (At the time of writing I have moved the SL at 0.7263)
TP 0.7020
Since fundamentally this pair has a big downward potential, I will not put the TP based on the double bottom chart pattern, but rather close to the potentially psychological price of 0.7000.

[baigaisvecis]

My stop (yellow circle) was triggered at my EUR/CAD trade. Seems like I should have abandoned my trade and closed out earlier once the pair started ranging in no mans land for quite a while. Lesson learned.

result: -81 pips