Ten thousand hours is the magic number of greatness. - Malcolm Gladwell
Hi everyone! Firstly, I’d like to say that in going through other peoples’ threads and seeing how helpful and supportive the members here are, it encouraged me to start my own trade journal too. So here I am, writing this to keep myself accountable to that magic number - whether it’s hours or trades, 10,000 of them are sure to get me somewhere!
Will do my best to update weekly.
The warm-up
- finished the school of pipsology
- created a cheat sheet of chart patterns
- read through trading systems, analysis articles, other peoples’ trading journals
- analyzed the major pairs to practice reading charts
- created a trading strategy
Now that I’m done warming up, it’s time to start training my form. No weights, just going through the motions (demo trading).
The workout (trading strategy)
Chart Analysis
- analyze all major pairs at weekly and daily timeframes on the weekend
- technical analysis: trendlines, ranges, support/resistance levels, chart patterns, candlestick patterns
- moving averages: price action bouncing off or breaking through
- stochastic: look for divergence and use as confirmation of price action/technical analysis
- use 4H chart for additional confirmation, and to place stops, entries and exits when necessary
- because this is a skill to be developed I will be posting my analysis here, and cross-referencing it against more experienced traders who also post their analyses here
Charts
All major pairs - yup I said it, all of them!
Consider trading the new Strong Weak (SW) pair if technical analysis gives entry confirmation. Do not trade SW signal if more than 2 new top SW pairs in one week.
Time Frame
Use weekly chart as long-term trend and daily chart for trading
4H chart used as necessary for additional trend confirmation and to help place trades
Indicators
200 MA
100 MA
Stochastic (14,3,3)
Risk
Account size of $2000
Risk 1% account margin per trade
1.5:1 R:R or greater, ideally at least 2:1
Max 3 open trades
Entries
Wait for daily close as a confirmation of signal. Enter using stop orders set after market close to catch intraday movements
Let the market tell tell me what it’s doing. Don’t try to anticipate moves
Exits
Mental stop loss method: mark a line on the chart and if price closes beyond the line, get out
Introduce actual stop loss at breakeven when price moves 150 pips in the direction of the trade. Wait for daily close as a confirmation of signal (candlestick pattern, chart pattern, price action crosses through the moving average). Close trade when price action shows weakness. Use limit orders set when market is closed to catch intraday price movements.
This system doesn’t have such rigidly drawn rules as other trading systems designed for beginner traders, but let’s see how it goes. If I notice that my emotions are getting the best of me, or that I take obviously bad trades, I will tighten the leash and impose hard lines around entries, stop losses and take profits.
What do yous think?
