My learning journal

Hi everyone

I have been trying to trade forex for about 2 years now and I have been unsuccessfull but I will never give up. I am starting this journal as a cry out for help. I will be posting every trade I do with a picture of my entry and exit

I have tried most timeframes and I think the hourly is best suited for me because it contains less noise compared to lower timeframes and the daily takes too long for a setup to develope but I only have about 3-4 hours a day to trade from 7-10am GMT so I have been looking at the 15min chart trading in the direction of the 4hour chart.

I do not use any indicators on my chart, I only look at candlesticks reacting with support and resistance levels, trendlines and fib retracements.

So if anyone can help me I would be more than gratefull for your help.

I suppose if anyone is going to help me it would be better to understand my exact entry and exit method. For now I will be demo trading on a MT4 platform by fxcm with a balance of �3000.

[U][B]Trading plan[/B][/U]

[B]Trading Times[/B]
-I will be trading everyday from 7am � 10/11am because this is the only time I have free.

[B]Markets[/B]
-I will only trade the GBP/USD because this is a very active pair during my time limit

[B]Entry & Exit[/B]
-I will place my trades on the 15 min chart and my entry will be in the direction of the 4 hour chart.

-I will take trades off support or resistance levels, trendlines and Fibonacci retracements.

-When price moves to either one of these levels I will wait for a specific candlestick to form in which the open and close is within the previous bar’s range and my entry will be three points below/above the candle and my stop will be two pips above/below the candle with the highest high.

-I will exit my trade once I have reached my target which will be the next S/R level

-If price breaks through support/resistance while I am in the trade I will move my stop below/above the candle that broke through.

[B]Pre-Session Routine[/B]
At 6:45am each day I will prepare by looking for new levels where the market might turn

[B]Risk/Money Management[/B]
I will risk 3% depending on the strength of the trade, I will also be using a minimum risk: reward of 1:1

If you see any problems with my method or have any advice please let me know.

It sounds like a great plan to me!

My only advice is to have a look at 4 hour charts as a possibility for your trading. While you can certainly be successful trading any timeframe the lower you go the harder it becomes to be successful.

4H charts are the perfect timeframe for people with limited amounts of free time. It’s fast enough that you can get 2-3 trades in per week, but still slow enough that you only need to check your charts once or twice per day! :slight_smile:

I would recommend a risk of 0.5 - 1% for starting out. Also I would adjust the r/r to a minimum 1:1.5, with a 1:1.5 r/r you can be a 50% winner and still profit. All these can be adjusted base on the results from the system.

Why do you need a 1:1.5 RR to be a 50% winner and still profit?

A 50% winning system at 1:1 should break even (not counting the spread, of course), so even a 51% system should be profitable.

Apparently. Its obvious that any r/r greater than 1:1 @50% will be profitable. I’m merely saying a 1:1.5 r/r is a good way to start, then it can be adjusted base on the results.

Nooo!

Take it from someone who’s been where you are not too long ago. Think Dailies and weeklies and learn the patience required for them.
There are many benefits to this: much less chart watching and screen time, higher reliability in signals and formations, squashes the video game brain damage that makes you want to trade to often (I would know as I suffered from it).

You should also take a look at James16 method, there’s a thread here on BP, but the original and supreme is at another forum. Google and you shall find.

Do you really trade weekly charts? I’m all for higher TFs and patience but that would drive me nuts. :slight_smile:

Yes, I really do! And it works, but dailys is the bread and butter. Weeklies also add a bit on insight that’s useful for trading the dailies. It’s also hard to get really attractive R:R on weeklies, but the signals are quite reliable, better than daily I’d say.

Hi and thank you all for the feedback and I have tried trading longer time frames and I have this problem of thinking about the trade which bothers me.

I have not really traded the 15min chart nor the 5min chart but and when I tried trading according to my trading plan I realised that I did not have enough time in the morning to trade the 15 min chart, so I read that the time period that I have I would have much more setups.

I have decided to learn to trade the 5 min chart but I dont know where to start so I am just going to use basic support and resistance.

So if anyone can teach, direct or show me how to trade the 5 min chart I will greatly appreciate it.

This is just my personal view, but if you’re new to this you’re heading straight for disaster if you try to trade 5min charts.

I’ve said it several times in various threads, but here it goes again:
You can either get rich slowly or you can get poor fast.

Guess which path 5min charts lead to?

Work on your psychology, how do you think you’ll be able to make fast and difficult choices, such as exiting at a loss when you trade 5min bars, if you can’t trade dailies without obsessing over it during the day?

Anything below dailies should be forbidden for newbies until they show consistent results on those dailies.

My 2 cents