Well, good news and bad news.
The good news is I placed some trades about a couple hours after the market opened. And of course you should know that I was going after the one particular trade. CAD/CHF. Yep, and it's going good. I picked the right direction alright. Plus I didn't get to clue you in on the other ones that I had marked. I wanted to talk about those also, before I pulled the trigger, but just didn't have enough time, was so preoccupied with that one trade. Sorry. But in any case, my account is nothing but rocketing higher and higher.
Ok...yeah.....that's nice.....But this is the problem. And I seen it coming. When I placed all of the trades.
(This is why it's good to be learning this stuff on demo) (But also kind of a bummer cause I would be pretty rich right about now)
Ok, well, I seen it coming when I set up the strategy. It's all about money management factor of my system.
So far, what I got here (I believe) is a good method for getting in, what's keeping me in, and what gets me out. And I believe that encompasses the old adage 'let you winners run and cut you losers short'.
But, I need to figure out a suitable money management system to match this system. I was definitely wrong what I noted down earlier. And I noticed this when I placed these trades last night. Sure, there's many trades I wanted to get in. So as I calculated the position sizing, I noticed that it just was way too much on each trade. Then the next thing you know I was out of margin. I couldn't place anymore trades, which I had many lined up to do. Something is wrong. Big time. So, I guess I need to talk it out. Cause there is an idea I have in my mind about how it should go.
Let's begin. This is what I want.
I would like to trade any and all of the set-ups that are occurring on my charts. I truly believe it's the only way to go. I mean, the take off is going to be rough, no doubt. But once things are moving, I want to be able to say, 'If it's trending, I'm in it'. Look, all I want to be preoccupied with is the take off. And that means getting in on a ground level trend, in it's infancy (the purple line). Once it starts, and I'm in profit, I do nothing else. It is going to ride on out till the market stops me out. Sure, if it happens that it was a fake out (a deep cut into the trend), and I got stopped out, then I will look for the reentry. But, other than that, all I am doing is looking for trends to be starting. In the different time frames.
But what I want is very minimal riding on the trades that are on higher time frames. And the closer the time frame the more of a size on them. Generally speaking though, I don't want a lot of risk out there on each trade. But there should be more risk with the multiple trades running though. Man, this is gonna be such a balancing act.
Oh, and there's another aspect that I came across also. And that has to do with the stop loss. You know....I can't really place one when I first get in. (That's going to do wonders to what kind of position size I need.)
But anyway, I feel it's more important to see where price ends instead of where it stretches to. Yeah, I place a stop loss, then get stopped out, and then start over again. So looks like I need to come up with a set of rules for the stop loss. Ok, how about this? Not far away from the purple line!
Ok Journal, I just wanted to pop in here and clue you in on what I need to work on. Once again, I need to read. And that's precisely what I was doing all morning. I am digging up as much as I can here in BabyPips.
I was reading up on leverage, margin, position sizing, etc... So, much work to do Journal. I am on it though.
But, in the meantime, check out some of my trades. I'll start out with the one and only trade.
CAD/CHF. This is the 4HR, Daily, Weekly, and Monthly time frames.
In the first chart there (4hr), that big huge 4hr green candle is where the market opened up this week. I tried to get in as close to the purple line as possible. That's the best I can do.
Look at the 2nd chart (D). That is the only one perfectly lined-up (most trending high...purple(sma18) on bottom, then green(sma9), then yellow(sma4), then price). The 4hr chart is close and only needs the green to get above the purple. But the weekly time frame seems kind of risky, except for the fact that the purple line is surely pointing on the rise, along with the other 2 lines also. And the monthly shows some promise. No doubt that this is premature cause the month has just begun. But starting out on a rise though. Also need to note that the yellow crossed the other 2 fairly quickly. That signifies a strong turn around. Hopefully I caught this at a good time.
Anyway, this demo account is looking really good. But, it means nothing until I can get the position sizing properly adjusted. And that's my primary goal now.
Much reading to do.
P.S. I opened the week with the account right at about $105,000.00
Now it looks like this.
Man am I trying to get a 2k demo account balance going. Need to trade as real on this demo!!!