I completed the babypips school course recently. It was fascinating, scary, eye-opening and exciting! So, I guess I am a self-taught forex trader! This thread will act as my journal allowing me to keep charts, strategies and thoughts in one place. I have been through a few threads here at babypips and price action trading speaks to my simple brain. I’ve demo traded some strategies with indicators but had little success. Indicators lag price action and clog up my charts so I got rid of them and suddenly the picture became clearer! Now for my strategy – nothing new here, just going to keep it simple.
My simple goal: To be consistently profitable.
My simple price action strategy:
- Check news calendar at start of week (I don’t trade news at all but want to be wary of major events eg. NFP)
- Mark off support and resistance levels from daily charts on all pairs
- Enter trades in direction of daily trend based off of price action signals
- Set stops and limits before placing trade
- Risk 3% of account balance per trade
Each trade should meet the following checklist:
() Trade in direction of daily trend
() Obvious price action signal
() Trading away from support/resistance levels
Document each trade with a before and after chart in journal.
Document each trade in excel with:
(a) Dates entered and exited position
(b) Reason for entry
© Trade analysis
(d) Net profit/Loss
(e) % gain/loss per trade
(f) Start and end account balance
Trade management should include what to do with stops before placing the trade.
Trade only from daily and 4hr charts. Price has to reach a key level before a price action signal can be taken. No intraday trades during Asian session (too many false breaks).
Do u trade trendline breakout or just purely price action?? And also u mention only using daily n 4hr TF, but if for daytrade, should v use a smaller TF?? Thx alot