This is the start of my journey to becoming a Disciplined Trader. I am a swing trader, after I took a personality test, so my technical analysis will be on the Daily, Weekly and Monthly time frames. However, if I did find an opportunity, I will look at the 4-hour and the 1-hour charts for entry. I usually in a trade for two days up to a week or longer, so I might just trade once a week or none at all. I will use MT4 from FXDD for charting and to show my entry and exit points.
My Affirmation:
- I am a disciplined trader
- I trade my own profitable system
- I use my technical analysis skill to increase my efficiency and profitability
- I follow specific set of rules and stick to them
- I take a loss if my system tells me to take a loss
- I take a profit if my system tells me to take a profit
- If I made a mistake, I fix the mistake before trading again
- I learn from both my profits and losses and this makes me a better trader
- I am a disciplined trader and that’s the only way I trade
Technical analysis:
- Price action/pattern
- Support/Resistance or Demand/Supply areas
- Trend lines
- Fibonacci retracement/extension
- Fast Stochastic (10,3) for confirmation only, not signal
- Optional: Oscillator of Moving Averages (OsMA) for divergence
Initial entry is two lots with 70 pips stop loss. First lot profit target is at 70 pips and move the second lot stop loss to breakeven. Second lot will stay and I’ll be moving the stop loss manually or close trade when reversal is inevitable. I can add position/s if the trend is strong and manage it by moving the stop loss.
Normally, I make my decision at 2 PM PST (USA); this is when FXDD ends and starts a daily bar. My entry will depend on the 1-hour and 4-hour charts. So, I’ll update this when I place a trade and follow it through.
Good Pips Hunting,
Rick
Addition: Here is a chapter from Swing Trading book I have: Technical Analysis by Terry Bedford. He use stocks and volume, I don’t use volume in Forex but use the oscillators for confirmation:
Addition: Trading Personality quiz from Brett N. Steenbarger, Ph.D.
www.brettsteenbarger.com/Traders’%20Questionnaire.doc
Nice to post about trading. Thanks for sharing…
Thank you for the warm welcome and interest. I hope during this journey, I can share my trading technique.
Here are my trades today:
Short 2 lots EUR/GBP @ 0.8979
SL @ 0.9054
First lot target @ 0.8904
Reason: Price action at resistance and divergence between Price (Higher Highs) and Oscillators (Lower Highs). A high Probability reversal.
Short 2 lots GBP/CHF @ 1.3505
SL @ 1.3580
First lot target @ 1.3430
Reason: Price action at resistance and a hidden divergence between Price (Lower Highs) and oscillator (Higher Highs). A high probability trend continuation.
Update tomorrow,
Rick
Short GBP/CHF:
First target hit for 75 pips and remaining lot SL moved to breakeven; target open.
Short EUR/GBP:
I close the first lot at 45 pips due to the pair’s ATR(20) is only 70. Remaining lot SL moved to breakeven and target @ 0.8905 with news tomorrow morning.
Will update tomorrow.
Regards,
Rick
Both trades hit stop losses at breakeven. Will wait for next opportunities.
Regards,
Rick
Thanks for sharing drick, also wishing you success with your system!
I saw the GBP/USD, Daily chart, made a Bullish Engulfing bar last Friday. Since it happened on a support area and the Stochastic is making a higher lows, I’m planning a Long entry only. I’ll be watching the 4-hour and 1-hour charts starting at 2:00 PM, Sunday (Pacific Time), for a good entry…I’ll update when I placed the trade.
Regards,
Rick
I entered on the gap at 1.60244 1 lot Long GBP/USD with SL at 1.59300 and no target for now. I’ll scale if trend do start and manage exiting trades…update tomorrow.
Regards,
Rick
GBP/USD trade went south. Had to close last night @ 1.5945 with 78 pips loss.
A lot of price action that broke trend lines and S/R. I will wait for better opportunity, until then, have a great day.
Rick
I found two opportunities today.
First:
Planning to go Long AUD/NZD;waiting for confirmation on lower time frames.
Price action bounced off Support and it happened twice before.
Second:
Planning to go Long GBP/USD (again?); waiting for confirmation on lower time frames.
This time, it has a big Pin Bar and created a Lower Lows on the Price and Higher Lows on the stochastic.
I will update when I placed the trade.
Rick
Entered Long GBP/USD @ 1.59143 S/L @ 1.5834. First Target @ 1.6000
Still waiting for AUD/NZD for a good entry…will see if 1.2900 is a good support at 1-hour time frame.
Rick
Update: 8PM PST
Entered Long AUD/NZD @ 1.2909 S/L @ 1.2835
Update 9:30 AM
I closed AUD/NZD around 1:00 AM due to no action.
Update 7/13/11
AUD/NZD closed last night for 15 pips
GBP/USD first target closed for 85 pips and stop loss moved to 1.6015 to keep 100 pips profit for the last lot.
Regards,
Rick
July = +145 Pips
Closed remaining lot GBP/USD @ 1.6100 and got +186 pips. Some news at USD in the morning and I’m ready to go to bed. Someone else can make money…I’ll have my beauty sleep.
Until the next opportunity
Rick
July = +330 pips
Today shows CHF is weak against GBP, JPY, EUR and USD…all pairs shows price action with Stochastic started moving up (USD/CHF, GBP/CHF, EUR/CHF) or down (CHF/JPY). These are all in my watch lists tonight…I’ll update if I did place a trade later.
Rick
I place two trades:
Short 2 lots CHF/JPY @ 96.856, SL @ 97.720
First lot target @ 96.000
Long 2 lots EUR/CHF @ 1.1536, SL @ 1.1400
First lot target @ 1.1625
Update tomorrow or tonight at London session
Rick
Added pictures
UPDATE: 1:30 AM PST
First lot for EUR/CHF target reached +88 pips
Closed first lot for CHF/JPY for + 55 pips
Last 2 lots moved stop loss to BE.
Going to bed now and we’ll see what happens in the morning.
Rick
Still open 1 lot Short CHF/JPY SL moved to 96.65 Target @ 95.00.
Still open 1 lot Long EUR/CHF SL moved to 1.1555 target @ 1.1800.
SL will be moved if target is not attained and I might add positions if opportunity shows.
Rick
July = 473 pips
Closed CHF/JPY @ 96.12 = +73 pips
Closed EUR/CHF @ 1.1656 = +120 pips
Reason: Doji bars means Indecision.
Until next opportunity
Rick
July = 666 pips
Rick, I’ve been enjoying watching your thread. You are as advertised, “Disciplined Traders”.
Keep up the good work!
