Trading diary

Beginner Questions
1

This thread is only start for the recording of my daily trading. If there is any positive / constructive message, it is welcome. If you find not your cup of tea, then please no bother. Tks:)

My trading method is mostly come from one of the great traders ~ Sho (Trade Price) in FF thread. All appreciations go to him.

2

Chart Set up:

The simple the best

  1. M15 Candle / bar Chart (identify the price action by means of pattern and candle formation -> Pin / inside / outside bar etc)
  2. Keltner Channel (for major trend riding)
  3. Stoch 5.3.3 (look for divergence)
  4. Major support & resistance (major H4 / D1 / weekly)
  5. Trendline
  6. Round Number

Pairs to trade: EJ and GU, up to this moment still cannot master too many pairs altogether.

to be considered
Whether to fix the M5 for better entry and exit

3

Don’t know why, whether there is internet problem or not, just too slow to add new post. I’m going to put the entry and exit rules etc. Try later on la.

4

Always trade with the trend

Entry

  1. Based on KC, which acts as good trend indication and as s/r. flat trend no trading
  2. Check the momentum, by outline the implusive and correcive move, only trade with implusive momentum;
  3. bar / candle formation is the 3rd to be considered,no need to trade with every pin or inside ob etc, when we spot the implusive momentum, then check out whether there is good support (for uptrend) for the price bar, an invert pin ob or ib then break out (up) in an uptrend can be a good signal just above the kc, vice versa, an usual pin in an uptrend can be an exit signal only.
    3.1 If it is an ob long bar in uptrend, after the completion of this long bar and wait for 50% pullback of next bar then entry
    3.2 If it is an ib in uptrend, set the sl below the ib then entry in the next bar if up move.
    3.3 If it is a pb in an uptrend, then entry the next bar (if up move), set the sl below the pin or within the tail if the tail is too long;
    3.4 if no any pb / ib / ob, but a good support is spoted (in an uptrend), still can go for long and set the sl below the support line / zone.
  4. Check the stoch, whether all 3 above can be confirmed by the stoch movement, even at the moment of oversold / overbuy area. Cos major move always spot on the “over” area. This is a conservative entry, if base on Stoch, there are plenty of good trade missed, so this Stoch confirmation is to be sorted out.
    Counter trend trade
  5. I used to play DB / DT or 123 formation for some times (major coz when I have time to play, usually the end of a major trend ~ half open session of London), but the winning ratio is a far lower than trend riding. The worst case is you may spot the wrong turning point then a disaster will happen). So better master the trend riding methed 1st.

Don’t even think to add more trade to a losing trade (Hard rule)

5

Always consider the risk 1st

  1. every trade must equip a sl. sl is around 20p (for me intraday trading’s rule)or near the s/r (where the s/r is spot from previous several bars nearby, or a major s/r potted from H4 / D1), below or above the confirmation bar;

  2. If the price is in your direction, after the close of 1st bar (the bar you entry), and there is enough room to move your sl to BE (say around 10p), then move the sl about BE.

  3. No, don’t even think to move bigger your sl, it will definitely become a disaster. Tread the sl as an ending of bad trade, there are always better entry in the corner, don’t waste all the time to look after a bad trade and keep moving the sl bigger and bigger. You simply missed other good setups.

  4. RR is around 2:1, or less when the entry is after 2 implusive moves in a trend.

6

Majoy play with EJ & GU, both are good movers, and bigger daily range

SL - 10 to 20 pips, depends on the entry position
TP - 20 to 40 pips , see the move whether in momentum or not;
BE - same as SL, after good move or set BE after the entry bar;
TSL - same as SL again;
Always allow 2 to 3 pips as spreads

Close your trade after 3 bars even with loss (hard rule)

Close your trade when there is divergence spot (for exit only)

Monitor the trade once open, and close the trade once momentum is against you

7

Play in my own time 1800 to 2400 (during day saving) only, no disturb my real work

8

every trade risk with 2~5% capital

Weekly target at 5% capital growth

Capital as at 9 May 2010: US$661.48

9

Suppose no good to play Asia session, but good form of pattern, jump in have a try.

  • good kc uptrend;
  • seems ending of corrective move;
  • good form of pin, to be end above ma10;
  • Momentum is in uptrend
  • Actually (forgot) without reference to Stoch, which is in downward movement at the moment;

Result: haha, at +20p didn’t take, leave it to retrace then BE out, of course the SL is moved to above BE a bit after around 15p gained.

20100510-0920.jpg504×596 55.8 KB

Edit: the bar after the last red pin is blue and pump up to +33p eventually, seems my sl to BE is a bit fast; see 2nd chart, the blue is in good form and eventually brought the stoch hook up (original still in down trend). Still need to figure out whether to take reference from Stoch before take entry.

20100510-1012.jpg496×605 50.1 KB

10

Still with aggressive approach (but after analysis ~ anyway a kind of probability game)

The uptrend momentum seems ended with the top red pin at 1.49 r/n. Then a downward move original corrective move changed to implusive move. The last blue bar up moved 50% then form a pin.

Mamual cut as the 38.2 Fib is almost arrived.

11

Hi buildcity,
thanks for your thread,
I wonder what indicator do you have on your charts?

12

Hi Renala,

Just Keltner Channel & Stoch. That’s all.
See my 1st few posts, the chart set up is there.

Cheers,
City:)

13

Anyone here knows how to insert a bigger chart? If it keep on like an attachment only, I cant really con’t the recording. Its hard to read!!:confused:

14

Anyone is me :slight_smile:

try this

upload your chart to photobacket

Image hosting, free photo sharing & video sharing at Photobucket

Pothobacket will assign http address to your chart, then you can use tag in your post like this
[ img ]http://yourChartaddress[ /img ] (no spaces in brackets)

I am "hunting for divergences (anything - good teaching thread, trading strategy, indicators) … I thought that you use such indicator

15

It’s important that you do not use “Manage Attachments” feature. I think that is probably your problem. Forget get about that feature. Paste your image link in the post just as you would type something there.