Hello and welcome to the Pegasus FX Trading Journal.
I have been trading for just over 7 years now in the Forex market. Baby Pips was one of the first websites I came across when I was learning how to trade and they have been a great help in developing my understanding of Forex and trading in a simplistic and easily digestible way. I now would like to share my 'go live' experience here, seeing as I am a student of the Baby Pips school.
The purpose of this trading journal is twofold. Firstly, logging down my trades in this journal will help me keep focus and discipline in my approach. Secondly, I wanted to create an environment where I can discuss my trading strategy and share thoughts with other members in the Baby Pips community.
I will explain my trading approach below:
My preferred method of trading is focused on Breakout Analysis. Some of the oldest, simplest and most successful trading systems are breakout systems. My trading strategy is based on breakouts of key swing high and swing low support & resistance levels. The aim is to get in on the side of the momentum of the market, either trading with an established trend or catching a reversal in the market. I trade on the XAU/USD market.
A key part of this strategy is the use of dynamic Stop Loss & Take Profit management on all trades which enables me to lock in profits and minimize losses.
Risk management is of high importance. Our trade software calculates a percentage of total equity per trade, based upon stop loss values. This enables us to reduce equity drawdowns and improve the maximum return on investment by compounding interest.
Only one trade maximum open at a time. On average between 1-2 trades per day placed (*usually just one). We place hard stops on all of our trades, ranging from 20 to 30 pips. Between 0.5% - 3% of total equity is risked per trade.
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Thank you for checking out this thread. Please feel free to ask any questions you may have.