Hey Jake, really enjoying this, thanks for the reply, had a quick look at Forex-Unlimited .The site looks fantastic , very professional, you must have put alot into it. Question, with regards to journaling? Do you hand write yr entries or use a spread sheet or software ? What info do you record? eg lot size, currency pair? I love the philosophy and psychology involved with trading? Any tips would be great, you mentioned thinking like a professional and the mindset required to trade. Can you comment on the importance of the process, is that the method, stratedgy being used and its execution? Thanks im working on a simple trading plan and journal , should have something in a couple of weeks
Thanks for the compliment.
I use my Market Journal on the site primarily, alongside broker-provided reports.
You’ll need to formulate a method of recording trades which speaks to your personal likes/dislikes. Some people may not know how to use MS Excel proficiently, thus, they’d get frustrated when trying to record everything. Others can use MS Word or Access.
At a minimum, you should be keeping track of your analysis before, during, and after the trade.
Coding entries so you can easily aggregate information, and keeping track of your emotions.
Also, log where you were setting profit targets- were you using logical placement, a FIB extension, a trendline, etc etc.
I like to take screenshots (sometimes of multiple timeframes) showing the “before” and “after” of the trade, with my entry/exit plotted out on the broker’s software. On the actual charts, I’ll also capture key information which I saw during my analysis that led me to opening up a position. I’m more of a visual person. I review my journal each morning before I trade.
Your personal journal won’t be “complete” in a couple weeks- try to think of it like an organic document, which you’ll continuously update and make better and more representative of your skill level. Over time, you’ll nail down a general way of recording trades that won’t be so mechanic.
Mindset is critical to trading. Mindset to think and act like a professional; even away from trading. Avoiding using terminology which equates trading to gambling (“I’m trying to double down on this trade”), or a game of chance/luck (“Lucky enough, I closed my trade out before it reversed”…“Luck was on my side with that trade”), or tries to diminish the difficulty level of investing properly and consistently (“Easy pips”, “Guaranteed profits”", “A+ Setups”). The last one is what really irks me, because it’s pretty commonly used when discussing trades on forums. An A+ signifies perfection. Nothing is guaranteed when it comes to trading, so logically it just doesn’t make sense to me. I prefer using strong, medium, and weak to describe trading signals I find.
Mindset to execute trades according to your plan is also critical. Not to deviate because of emotions such as vengeance, or greed. Not to become upset or angry if a trade moves against you and you need to book for a loss…All of this comes with hours and hours behind the charts, trading and interacting with the market.
Think about it like this…
Let’s say you wanted to master baseball and become a professional.
So, you join a baseball forum, watch hundreds of videos about baseball on youtube, read books and interact with other who’ve played baseball. You go out, and you buy the most expensive bat, batting gloves, cleats, and glove because they were the most popularly advertised tools of the game (which the pros use), yet you have no idea how to actually use them on the field. Because, you’ve never swung a bat before at a 95mph fastball.
On the first pitch, with all your knowledge and gear, you get that 95mph fastball and swing for the fences- looking to nail a home run. Yet, you swung 2 seconds too late, too slow, and the ball was already in the catchers mit.
Catch my drift?
In order to become profitable, you need to get in the batting cages, swing the bat. Get out in the field, and field some ground balls. Run the bases. Learn from an experienced mentor. Etc etc. You may even need to return some of that equipment you bought, because you find that it doesn’t “fit” who you are as a baseball player.
You need to demo trade to understand how the markets move. You’ll need to create a strategy, stick to it, tweak it, and learn it in and out. You’ll need to take a trade when your strategy identifies it- regardless of external factors. You don’t need to trade the “perfect pinbar” every single time. That is the biggest crock of #$%^ I’ve ever heard/seen- yet, it’s so common amongst newer folks.
I always say- do professional poker players only play pocket Aces? Do they fold every single hand which isn’t pocket Aces, or pocket Kings? No!!! They have the ability to make money with medium strength and lower strength hands. To me, their are simply two types of traders out there- proactives and reactives. The former get in @ levels, they know their price and get it from the market. The latter waits for the market to fire off some type of signal to confirm a bias, and get in often “late” to the move.
An example of the first would be getting in at a tech support/resistance level (a single price).
An example of the latter would be getting in on a “x amount” pip “break” of a candlestick signal.
Check this out if you’d like…I wrote it a little while ago and it relates to the last portion of my post. Un-surprisingly, it fell on deaf ears. I think “newbs” tend to avoid big-long-novel-like posts like this, because they’re scared to read something which is contrary to popular belief.
Jake
I do trade NFP but it seems like it didn’t work for me last month and these month as well. Good thing I place my SL when place the trade and I just went break even. I know it will not always work trading NFP but overall, I still like trading it. I’ve had great success with it from the past. Hope it worked well for you 
Thanks for asking…
Trading NFP is a personal favorite of mine, since the markets react so violently and really provide some great opportunities to make money.
What type of strategy do you use to trade this type of release? Are you simply buying if the print is better than expected @ release, and/or selling if the print is worse than expected @ release? Where/how are you placing your stops (fixed, indicators, logically, etc)?
My strategy is based off buying into weakness and selling into strength (in other words, fading the initial move back to origin). I still have some positions from Friday open right now, trying to squeeze out as many points as I can. But, once I book, I’ll definitely share the link to my market journal which will include a crazily-detailed analysis of exactly how I traded the release before, during, and after. Now, my method is not the “only” method, but, it is one which is pretty consistent and logical.
my favorite too… Although, I have a love and hate relationship with it lol
Yep, I usually waited when the print news come out. Better or worse than expected is what I mostly look for. Though, you have to be in a look out when the reaction or trend went into the other direction or sometimes they call it a “Whipsaw”. When volatility is there, I waited about 5 min. or so before I get in or at the initial reteacement. When I have about 20 pips I lack that in. Last Friday was different, I thought it will just go to my direction and planning to hold it until London closed but that didn’t happen and I got stop out into break even. I only use simple S/R and mostly looking at the Higher high or the lower low on a higher time frame such as 4hr, daily, weekly chart. For News releases, I look at 1hr, then 15min or 5 min. chart. 20 pips target on a trade is good enough for me…
It is very limited of what I can do to trade via my mobile phone and I use it all the time to trade so this is what the best thing I can do for now but it seems like it is working for me so far… I will probably explore more other ways to trade ,eventually, if I have enough time to be on a regular computer as opposed to a mobile phone. But I won’t make that as an excuse of not succeeding to trade because of a "lack " of time. It should be the other way around. You always make time when you want something and always find a way how to get it. It is actually quite handy doing this , trading via phone, because I can trade or monitoring it wherever I go …I know it’s not for everyone but luckily it is for me
As promised, here it is.
You may want to make some tea for this one, it’s a bit novel-ish.
Have a nice night,
Jake
Great! Thanks… I will look into it. Though, would this work with EUR/USD? I mostly trade this pair for NFP. I rarely trade the Loonie. But I will take a look.
Thanks again. You too. Have a great night…
I think 20% to 30% in a week is too much. If anyone try 10% in a week, I think it will be better for him. I was willing to make 30% in a week. That was a biggest mistake of my life. Thanks for your post. It is too much helpful for the beginner. But the thing I wrote before not to make too much greedy. It is not easy to earn money if you are not professional.
It’s been over 3 weeks since I originally posted- was wondering if there was anyone out there who took my advice and saw an improvement in their mindset / trading ability?
Would be great to hear some positive news.
Hi Jake I wrote a reply to you yesterday but it doesnt seem to be here, ill go again. I have taken yr advice and you have greatly helped my mindset. To go back one step, I carefully read yr pinbar article, very well written, yr charts and explantions are clean and clear very professional. I want to skip the novice PINBAR reversal stuff? HELP , you mentioned KEY LEVELS about six times, please help me skip the pinbar stuff. What are KEY LEVELS? On what time frame do you see them ? Are the S/R , why are they so important ??? Loved yr comments on not thinking like a two bit gambler? Ha , also fantastic stuff on the trading journal being ORGANIC, have been on FX-unlimited and tried reading yr journals, i need more time to absorb them but ill keep reading. My sponge can only take in so much at a time? You have been a great help Jake, thanks, hope this messg gets through
You have your threads mixed up buddy!
You did make this post, just on another page.
I did reply as well, so check that out.
Here’s the reply and question… LINK
Very good tips! Too easy to forget these even though we all know them.
Thanks for commenting.
I agree!
Do you trade live presently?
Jake
Yeh. I’ve been at it for a few months now. Steady progress, main thing is keeping realistic expectations.
I do agree what is said above 100% and have actually found it very helpful especially for newbies please do yourself a favour and take note of this
Personally I’ve realized few things
- Fundamentals do play a big role bigger than you’ve imagined so don’t be too quick to get rid of fundamentals it might be your best friend
- If can use indicators the right way it can be indeed very useful just don’t crowd your chart with several multiple indicators
- Price action doesn’t always work or aka what id like to refer to candlestick patterns so you see one forming make sure that you’ve got several confluence factors on your side before taking on the ride
- A little but of intuition or what some one might refer to as confidence does go a long way
- Be consistent. Don’t go around changing system or setup to another. Remember there will always be a time that your system just won’t work. That’s how markets work. No one will be able to tell what will happen though we’ve got all these tools which actually can help us to make sense out of what is taking place in the market.
- Don’t set unrealistic goals. I’ve started live about two weeks ago with just 80$. I’ve had two losing trades and two winning trades and I’m up again to 79,90$. Now I’m aiming to bring my account back to 80$ then 100$. You see I’m not setting unrealistic goals. And I know forex is not an easy nut to crack and not everyone’s cut for this game where you’ll need disciple and patience.
I guess that’s all I have to say. I’ve gone live since two weeks ago. And I must say it has been the most rewarding not necessarily financially so far of course cause I haven’t turned 100$ into million overnight. I’ve never had fun or had done anything as challenging as forex and it always keeps me interested there’s just so much to learn constantly and that’s what makes me hooked to trading besides the obvious financial rewards that I’m hoping to achieve some day.
I am impressed with all the positivity and the fast learning you are showing after only 2 weeks live trading… Keep up the good work :13:
How’s it going?
What type of drawdown have you experienced?
How does your risk of ruin table look?
Do you only trade the majors?
Agreed.
@Rookie39 how long have you been trading? Do you only trade the FX?
Jake