Trading journal

Trading Discussion Trade Journals
84

GBP/USD on D1 is in the middle of a candle, and on H4 mid swing.

One of my 4 check list items is “early entry.”

In the back of my mind I knew it was not an early entry.

I ended up placing the order, and felt like it was wrong. Wrong because it broke my rules. The TP I set would get me a 1:2 R/R. Sounds great!

But I’ve had a bad habit in the past of jumping into the middle of a move. My goal is to catch it in the beginning or not at all.
Jumping in mid move requires a very wide SL, and anything can happen once a trade has already begun.

By a happy mistake I placed an order instead of opening a market order. So, I just cancelled the order.

A few minutes later, price hit what would have been my TP. I was correct, but it still violated my trading plan.

I put myself in the cold shower for 3 minutes again.

2 Likes
85

But how many minutes would it have been if you had taken the trade against your plan and it had hit your stop loss?

I don’t think it matters at all if we see possible trades and ignore them because they are not according to the main plan so long as we do take the ones that are correct.

Having said that, I sometimes think we can tie ourselves too rigidly to the rules and extinguish some of the pleasure and flair in our trading. Protecting equity is not only about avoiding certain trades, I think it is more about ensuring the trades that we do take have a sensible exposure risk relative to the potential reward. Avoiding losses is not about suffocating our trading or stifling our style.

For example, if the month is going well then one can allow oneself a bit of play room to try other things like other instruments or ideas from other sources which look good, and so on. But we have to be sure that if they go wrong then the cost is proportionate and within the accepted parameters. Even a small position can bring some satisfaction on these occasions even if the actual gain is rather moderate and less than the morale boost it brings! :slight_smile:

1 Like
86

It was a quite small position. .5% risk.

1 Like
87

It would have been nice to win. It would have been small money, but 2x what I earn at my job in a day.

But just because I won, it doesn’t justify breaking the rules.

I have to learn to follow my strategy before I can start being flexible about it.

I really gotta get greed and FOMO in check. It’s a big problem for me.

But I understand what you’re saying. It’s ok to take small trades just for fun. Right?

I think I can handle that after learning respect for the rules.

If I risk 50% of my account on one trade, and I win, does that make me a good trader?

I think not. Fortunate? Yes. But you can’t survive like that.

1 Like
88

GBP/USD D1. Yesterday, I got faked out.

GBP_USD_20210317_06.31
GBP_USD_20210317_06.311114×582 71.1 KB

This pair has been forming an upward channel for quite a while. It has bounced an old resistance level. I’ve been waiting for it to break out from the upward channel. My plan was to wait for it to break out, then enter a short trade.

However, I learned from my EUR/USD blunder that it’s possible for a pair to break out of one pattern, and form another. EUR/USD broke out a downward channel and formed a range.

GBP/USD is doing the same thing. I trade the MA, but in a small range, the MA will ruin me with false signals. In a range, the MA is just the first sign. If a candle breaks out of a range, then I have two signs, and it’s safer to enter. Once a candle closes outside of the range, it’s safe to start adding additional positions, then ride the swing.

However, during this thought process, I missed the chance to short the range.
Here’s the range hi-lighted.

GBP_USD_20210317_06.32
GBP_USD_20210317_06.321114×582 72.5 KB

So, I have to pay closer attention to that.

Even though I got faked out, it’s not so bad because it was only 2%. I actually was going to double my position, but I told myself to chill and placed my second order on the outside of that range–not just outside of the channel.

FOMO got me, but not so bad this time, which is an improvement. A mistake, but a better mistake.

My problem is that I don’t learn my lesson until I lose or feel some pain. But, I think that’s my nature. Otherwise, my brain keeps thinking “What if?” and I have to live with that.

As long as I learn from my mistakes, and I use good judgement to keep these sacrificial mistakes from being excessive, then it’s all good. It’s all a healthy process.

There is also an entry signal because the price bounced the MA20 resistance, BUT…BUT it’s in an range. So, maybe I should just open a .5% risk and that’s it. I can always add later. I want big money (greed) but I could be wrong, so I must protect my money while taking risk. Once I have more entry signals, I can afford 2% and begin scaling in.

I was watching AUD/USD. And it has the same pattern as GBP/USD. I wanted to go in with a wide SL, but then I was going back and forth about it.

That’s usually when I open a trade that I later regret.

It bounced the MA but still in the middle of a range on D1. Anything can happen within the range. Once price leaves the range, it’s safer to enter. But not before.

I figure it would be good practice to just sit this one out and wait for my entry OUTSIDE the range. Even if price moves in my favor, and I would have won some pips, I can’t keep petting a dog that bites. Gotta wait for the entries according to my plan.

89

I’m considering taking a page from @chrisfraser05’s journal.

Sometimes, checking on trades several times a day is bad for me. Daily action is an emotional roller coaster.

I should check once a day, and once the candle closes I can get a better understanding of what the chart is trying to tell me.

I have a short-term USD/DKK long trade. It bounced the MA, and was bullish for the day, then took a nose dive suddenly. It hit my SL.
Even if my SL wasn’t hit, I would have been worried. And of course, the next day it starts going back up.

A key lesson I’m learning, which I myself have posted on is: ignore the MA in narrow ranges and channels.

That’s not written in stone, but generally, I’m gonna ignore it. And the BIG rule: only open a trade on the S/R bounce–NEVER mid-channel. Anything can happen after that bounce.

1 Like
90

This morning, I’m updating my journal template. I need separate journal templates for ranges, channels, breakouts and swings.

The difference in each of these is the checklist. The purpose of the checklist is to keep my emotions in check and let the checklist do the thinking for me.

The trick will be not tricking myself into believing I’m following the checklist, which renders the checklist useless. My ability to be honest about what the chart is telling me will determine how well I fight my greed.

2 Likes
91

I almost don’t want to say this, but as I modify my journals for different trades, I’m thinking that perhaps trading the MA is what’s partly responsible for confusing me and giving me mixed signals.

I think I’m leaning toward trading naked charts and using trend lines only. Haha, is that considered a naked chart?

I noticed I’m using trend lines A LOT. And I really really like them. The way they connect things, and create borders. They’re not guarantees, but they help me see what the market is trying to tell me.

1 Like
92

I’m trying something new here. Same pair, but two different trades.
One trade based on trend line crossovers (short-term) and the other is based on MA (longer-term).

For example, I just opened two trades for the EUR/USD. Each one is 1% risk. Honestly, I wanted to do 2% for each trade, totaling 4% risk. But I knew I was lying to myself. It’s not 2% per trade if I have two trades for the same price movement.

So, my first trade is based on drawing trend lines at the start of the swing, and when a candle closes on the other side of the TL, I close. Simple. When I open the next TL trade on EUR/USD, I can compound. That’s the advantage of this TL trade: it allows me to compound along the way. Yet, the disadvantage is that being wrong compromises my recent gains.

The other 1% trade is based on trading the entire channel…or 4/5 the total height. This I expect will last a few weeks.

I’m happy about this trade because I managed to defy my greed and limit my risk to 2% TOTAL, even though I wanted to trade 4% total.

The crazy part is that I’m kind of on unsure about where price could go. I’ve been reading about trader psychology, and the fear can immobilize you and make you miss opportunities. Price could go this way…but what if it goes that way? Then you can’t make a decision, and you miss out altogether.
I can’t just sit here and watch the market move forever. I gotta place my order, and an OCO, and leave it alone. Just let it unfold. It’s only one trade. Fear of losing will cause me to not participate at all.

I had told myself that if my trend line strategy and MA strategy are contradicting each other, I should sit it out…I’m wondering if I should have followed that advice.

93

This is one reason why, at this stage, it is so important to follow your rules and document the results. Otherwise you can never tell with any assurance whether your rules are providing you with an edge over the long term or not. And then you cannot build confidence in your approach.

But if you do not have confidence in your methods then you cannot be decisive about your trade actions.

Confidence is so important here, and it is only built on historic results and knowledge of the methods that produced those results. Otherwise there is nothing to lean on.

This is probably one reason why people seek trading methods from elsewhere. It psychologically provides an escape from personal responsibility for one’s trade actions. It is easier to blame the third-party system than oneself when things go wrong.

But ultimately, one has to face the fact that whatever approach one takes it is one’s own responsibility, and therefore confidence in the long term, overall, positive expectancy of one’s approach is essential in order to take one’s mind off the risk of just the present trade in question.

4 Likes
94

I am probably missing something here, but why do you say these trades are contradicting each other if they are in the same direction?

But if they are not in the same direction, then your two trades are effectively zero risk until the short term trade is completed?

Perhaps i have misunderstood here?

1 Like
95

I meant that if price has bounced a support trend line and looks bullish, but maybe it also bounced the MA as resistance.

Which direction do I trade?

Each pair and each range may be different, but I think that if price is in a channel or range, forget about MA.

I’m sticking to that in this trade.

But, I was feeling flustered and confused at that moment. I told myself to trust my trend line and see how it goes. If price goes down, I have an OCO.

Perhaps I would have felt worse if I didn’t do something. There were
some signs there, and I wanted to make a move based on my strategy. I’m trying to let my strategy do the thinking for me.

1 Like
96

You’re right. I didn’t think of that.

For now, I want to choose the direction and see how it goes. I’m trying not to check on it frequently throughout the day.

1 Like
97

You know, this is a funny thing. I have the same problem and I often think to myself why is it that I don’t look at my share investments from one week to another and I only occasionally glance at my various fund investments to see how they are doing, and yet whenever I have a position open in my trading account I am thinking about it all the time and trying to sit on hands to avoid watching it! :rofl:

1 Like
98

Sounds like you have a pretty wide portfolio!

Your shares are buy and hold investments? If those are 10-year investments I can understand checking on them once in a while.

But forex and shares, unless you’re trading the M1 or W1, you find out pretty soon if you’re getting a lump of coal or a Red Ryder BB gun.

1 Like
99

I’m gonna be a Dr Jekyll and Mr Hyde trader.

Draw my trend lines, set my trades; then switch charts and turn off my trend lines, and review my MA and place my trades.

I have to switch minds, look at the different charts, and understand what the market is trying to tell me.

Even if the two trades end up being contradictory. If my MA strategy tells me to go long, and my TL strategy tells me to go short…then so be it. It’s likely that one will be correct.

Hopefully, both strategies will often be in the same direction. But if not, it’s ok.

1 Like
100

I look back at EUR/USD and I see sooo many opprotunities that I missed. Not random entries, but actual signals from my strategy.

The signs are there, but I wasn’t paying attention.

I would like to get better at that.

This could mean a more “rapid fire” style of trading. I’ll have to think more of what this could mean for me. Pros vs cons…

101

At the start of your journal at the beginning of this month you were talking about longer term trades and long term chart MAs. Does this latest post indicate that you are now focusing far more, even entirely, on short term moves?

I am just interested how you are seeing your trading horizons changing (or not!) as the weeks go by.

Is EU your main currency pair interest?

1 Like
102

Great question! You’re calling me out on my own word. Thank you!

My answer is yes and no. I still have a few long-term trades. The DKK I’ll be holding that for about a year.

AUD/SGD, I plan to hold for 6 months. But, that could change during next week.

I previously wanted to trade W1 on one account, then trade D1 on another.

However, someone suggested I try focusing on D1 or H4 for more action. Because so much can happen in week.

I want to see faster profits, and gain more experience , so focusing on the D1 is a good fit for me.

As far as EUR/USD, there is a lot of volatility, and I think there are more opportunities for trading. So, I would like to make it a higher priority.

103

I’ve been crossing my wires this whole time.

Enter one trade with a MA entry and trendline exit.

Enter the next trade with a trendline bounce entry and exit on a MA bounce. I’m getting better, but I still mix things up.

I think I have to reorganize my trades.

I have two accounts: one for swings and the other for trend line trades and trades with a target profit.

I’ve been mixing my trades on both accounts. It’s turning into a mess.

What I can do is place my TL trades, then turn off all my drawings, and look at the MA only. This would help me trade one strategy without considerinng the other.

I’m looking at several opportunities that I’ve missed due to fear and confusing myself.

For example, I was short on the EUR/USD. From my swing account I opened a trade, but treated it as a trendline trade and closed it upon the first green candle.

I was AFRAID price would retrace all the way back up to the MA20. But, it didn’t all all. It kept going down.

The good thing is that I locked in my profit and opened a new position. Locking in profits is great. But I could have just moved my SL. But, I panicked and just closed it.

I assumed that price would retace back to the MA. But, that’s me expecting the market to do what I want it to do. I’m not the boss here. The market is the boss.

It’s like surfing AGAINST the waves. You USE the wave’s movement in your favor.

I wasn’t doing that.

I’m gonna take some time today to think about some steps to help me organize my trades.

One nice little development is that for the last two days, I only check my trades twice a day: in the morning when I do all my trading, and at night.

It’s quite difficult. But, I think it makes sense. There’s no use trading based on a candle that hasn’t closed yet.

There are so many things that can happen before that candle has closed. So, I’m learning patience. My eagerness to trade is not an entry signal.

My entry for MA entry is an MA crossover or a MA bounce. The bounce will require moving the SL to BE as soon as it no longer interferes with price fluctuation. This will reduce losses and help me survive multiple fakeouts.

This is where I’m having trouble. My MA trades.

My channel trade entries are compromised by my confusion with the MA activity. I thought mixing them would make my decisions clearer. But it’s doing the opposite.

I don’t want to seperate them becaue part of me fears the possibility of the trades contradicting each other, and being wrong twice. That’s fear not logic. Logic says I’ll break even until one of them is proven profitable.

Gotta take some time today to write some ideas down and be more organized.