Hey Mike! There you are. Where have you been? What’s going on? You still in the game or what? Talk to me goose.
I know, I know, I know…Man Journal, I don’t know what’s been going on with me lately. Frankly, I don’t want to talk too much about it. I mean, it’s upsetting to myself, more than anything. I get so upset because I’m just sleeping too much. Sure, I still wake up early, on the weekdays, but then I find myself falling asleep sometime afterwards. Then on the weekends I have a very hard time waking up period.
Believe me Journal, nobody spanks me harder than I do. I have a standard. And I want to keep it going. But…sometimes it’s very, very difficult. I don’t know, maybe because I’m getting older. Or something. Yeah, how about just [I]old[/I].
Anyway, I do realize that some of the problem has to do with the content that I’m working on. If I’m not grabbed by it, I eventually lose it. Like I think I’ve been mentioning lately, I’m back to square one. Finding that dog-gone perfect strategy. Ok…maybe that’s a little far fetched. But I have been struggling with coming up with how I’m going to trade. It seems like the threshold that I will never cross. (BTW…this is all the follow up that I’ve been going through)
I remember…there was about 3 times that I came on here and was going to spit out my plan. I started typing away. Then. Road blocked. I realize the holes in it. Then I run out of time and eventually hit the cancel button.
It has been frustrating. Cause I just want to get going with it. So, every morning, I will go over all my mind maps. All what I have down about it already. Oh yeah, all that stuff up there in the previous posts. Well, that’s nonsense. I don’t feel good about a lot of that. So, I keep going over it and over it. It’s all about the ‘when’ and ‘where’. But I have noticed, that over time, some things stick. It’s kind of like osmosis. The good stuff sinks to the bottom, and that’s what I don’t have to change. I just move on to the other stuff. See, there’s so many factors and variables in play. I guess it just takes time to sort it all out. With being such a perfectionist, it’s hard to be satisfied with the whole, when I only have bits and pieces that is good. One one hand, I need to get the ship moving. On the other hand, I want to make sure that my trading is backed by principles. And that requires asking a lot of questions.
For example, I was caught up with one thing for a while. See, I wanted an indicator to tell me when a pair is trending. It hit me pretty hard one day when I was reading someone’s blog, who I esteem as someone who is a very smart trader (N.F.), and he mentioned that he uses this indicator. It was close to something I used before. I surely am not going to pay the fee to be his pupil and take his classes to find out exactly why & how he uses it. But he did mention it. He uses the 8 & 21 EMA crossover, probably to find the trend somehow.
So, to be true to myself and my mind mapping, how do I answer the question of ‘why’ do I use that indicator? The truth would be for me to say that this guy uses it and that’s why. And it sits right with me.
What kind of answer is that???!!! It is no answer. It’s upsetting to me. So, I had to do some research for myself. Well, that took some time. I never really found that answer, cause it’s probably in his class, only.
I did learn some good stuff about cross over applications. And sure enough BabyPips has some rich teachings on that also. I would like to answer it like this. [I]I pick the 8 EMA for this reason…and the 21 EMA for this reason… And these 2 compliment each other better than any other pair. It fits my time frame trading.
Back testing these two prove to work better than any other two.[/I]
Now that’s an answer to the question of ‘why’. Not because this guys uses it, or even B.P’s says to.
This is what I know.
EMA is exponential moving average. In my opinion it is better than the ‘simple’ moving average because it factors in the latest moves, as the simple does not. Simple is better for longer term trading. Exponential is better for shorter term (the curves are quicker). These are the smoothed averaged price. The 8 is taking the last 8 days of price and averaging it. Same with the 21, the last 21 days. So you have a shorter averaged price line against a longer averaged price line. And you have the current price, which is the candle sticks. Their relationship to one another is important. You can see where the current price is at in regards to the last 8 averaged days, and 21 averaged days. The rule of thumb is if price is below the 8, and the 8 is below the 21, it’s in a downtrend. If price is above the 8 line and that line above the 21 line, it’s in an uptrend.
Yep, that is nice. And all this tells me is if it’s trending high, or trending low. That’s the only reason why I use it.
Anyway, where was I?
Well, I guess I was explaining where I was at some days ago. Stuck on stuff. But, guess what Journal? I believe I have come out of it. I pretty much have settled on a plan. Oh…don’t worry. Your gonna see it, whether you like it or not. All of that up there? That’s nonsense. I got some revised mind maps coming.
And I got some more good news.
I found a broker. And.
Hold on…wait for it…
I got in on my first live trade, today!
Yep. Man…I was pretty upset of how it happened. But, I pulled the trigger.
See, it’s Friday, and I’m off today. Got up early. Good. But, I did fall asleep a couple hours later. Bummer!
So, everyone is off to work. It’s 8 am. Got back to working. But fell asleep! So I woke up, with the computer on my lap (on the lazy boy) and checked the market. Bammm!!! The market was flying! My way. This is what I’ve been waiting for. So, yeah, a bit late, but I’m in as the plan dictates. See, I guess there’s a lot I didn’t explain, like exactly how I’m getting in. That will all be laid out as I put up my MM’s.
Well, bottom line is, I’m in with $100 of an account balance. In a trade, with a stop loss of $5.00, if I lose.
(Man, I wish I wasn’t sleeping! Even if I was at work, I would’ve been able to see the action. And then to take action.) See, I was struggling with whether to keep my rule of waiting for the daily candles to close. I would wait for the pullback up to the line. Then get in. But…what if that never happens? That’s the other side to the argument. And so I think that rule is no longer. Surely I will learn more as the trading goes along. I think my positioning of these levels that I am waiting for are for major breaks that will happen. Which was the case now, in my trade.
So. I will put up the trade pic now. Then I’m coming back with shot after shot of my trading plan.
The first one is the daily chart. The green line is where I sold it at. I’m going south. Red line is stop loss, my much awaited line in the sand, support line. CAD/JPY . Short. At 84.386 . Stop loss at 84.840 . No take profit yet.
This is the one hour time frame shot. Along with the account at the bottom. See that…I was sleeping when it was moving on down!!!
P.S. Sorry can’t see much.