After losing some 16k I decided to throw away all indicators, stop reading forex news, and simply watch the charts.
Basically my strategy consists of buying while the market is going up and selling when it goes down, watching the 5min, 15 min and 30 minute charts for support and resistance levels.
I added $1,000 to my account 15 August and so far so good. I know this gains I have made so far are not going to always exist but…can use the extra funds as a buffer against any losses.
I second Huck! You sound like a gutsy trader who has gone rogue. I’d love to hear more about your system and get more insight on your thought process. Please post them here. Pretty please!
Well it is hard to explain my trading method, it changes from day to day depending what the market is doing, I attempt to see the chart with fresh eyes each day forgetting my own bias and bring up the 15 minute, 30 minute and 4 hour chart, drawing resistance and support lines.
I then monitor price action using the 1 and 5 minute candlestick for some time depending on what the market is doing and see if I can notice any patters in the chart.
If I don’t see a patter or obvious support, resistance I don’t trade.
I also normally trade only one currency the AUD/USD as I am from Australia and it is a little less risky then the EUR/USD for what I do.
I guess the most important parts of my strategy are trying to trade using the below mindset:
The market is always right
The market is illogical
Don’t make decisions based on what the market did yesterday. Everyday is a new day.
After each winning trade I try to sit it out for 4 hours or so and do nothing then look at the charts again.
Bacon
I TRY to do the above, but i’m not perfect, today for e.g. I over did it with leverage, it worked out ok but im not happy that I did. Money management is something I need to focus on.
End of week three and i’m not very happy about my performance. By balance has gone from 1k to 4k however my draw down has been unsustainable and for the last two trading days I become to emotionally involved and closed out some positions too early.
Lesson learnt.
For the next trading week I am limiting my trade size to 100k per trade and only have one position open at any time., my goal is to increase my balance from $4,000 to $5,000.
However you seem a bit overleveraged. Maybe it is not my business but I don’t think anyone can keep up with such level without risking to go bust again. I imagine you are in hurry to get back the money you lost and you will maybe succeed (I hope so!) but you are gambling not trading.
Maybe I am wrong however. Let me ask you. How big is your SL on average?
Well my stop loss varies on the trade, on average 15 - 20 pips. I am prepared to risk 5% per trade, yes high, but, I am only risking money I can afford to lose and feel confident that even if I had:
10 losses in a row 10 x $200 = $2,000
i would still be up 100% from my initial $1,000 deposit.
if I get 10 losses in a row I will be ammending my strategy.
I intend to grow the account aggresivly until I hit the 20k mark then trade with a much smaller % of my equity at stake.
I think the Syria situation has been priced in, but may still retest 88.48.
if we see a very small scale missle strike against Syria with no flow on effects I think the AUD may retest 90.20, obviously if the middle east implodes then its down.
Longer term it should be going down with U.S. taper however…you never know if QEIII is just around the corner.
In general terms I have a downside bias, mostly likely though will retest 88.48 possibly 88.20 then rebound 90.20 - 91.70 before going down again.
In the end its up to what the market is doing on the day.
Took a quick scalp this morning, was reasonbly sure the AUD would go up a bit so took a large position with a a very tight stop. up $400…40% of this weeks goal.
Am going to take a break until European open on Tuesday due to the U.S. holiday, reserve bank of AU decision, market is a little bit too thin at the moment.
From August 15th 2013 to September 3 2013 have grown account from $1,050 to $5,150.
How I wish this was sustainable…
Biggest issue I have right now is staying centered…I have to take a day off trading too centre myself before I get greedy, emotion is the biggest enemy of trading if not controlled imo.
Decided to withdraw $1,000 from my account, new goal for the week is to make it back by Friday close, also a good way to test FXCM’s withdrawal times.
Not sure why debit cards deposits HAVE to get withdrawn back to the same debit card on FXCM, for credit cards I understand but debit cards a different story…you cant “cash advance” on a debit card.
Still though FXCM are a great broker, the mobile app is a god send for when im at work or away.
Well its pretty straight forward I just watch the charts and have a feel for how the market is doing, what support its going to take etc.
I have been watching the AUD / USD behaviour for years and it tends to have patterns that emerge, it is really difficult to explain my system, I guess the best way to put it is price action.
It does seem promising but is high risk, I wouldn’t recommend anyone trade like I am trading with money they can’t afford to lose.
I am starting to get drained though and am going to step away from the market for 24 hours equity is now $5657.14 after scalping some of the RBA decision. Time to see some friends and have a while away from the market before I get overcome with greed and or fear and loose everything.