Trading journal

[dushimes]

I’m preparing some chart samples. I came across something tricky in NZD/CHF, and I’m trying to figure it out.

I realized I was trying to force my strategy to fit this chart. I came to the conclusion that this chart was untradeable for 3 months.

I’m not gonna change my strategy to fit this sample. Sometimes it works, sometimes it doesn’t. Forcing trades is a bigger waste because it will lead to more losses down the road when applied to correct conditions.

A strategy doesn’t have to work all the time. It has its time and its place.

[dushimes]

So, my final strategy has branched into three. This is what I was afraid of. I was scared it would turn into an onion I’d peel forever and never get to the center.

At first I was nervous because I wasn’t exactly sure what I was looking for.

For about a day I was feeling confused and frustrated. I’ve finally got an understanding of how to separate the strategies and the samples I’m looking for.

Patience, young padawan

[dushimes]

I feel like I’m peeling onions. I’m searching for samples for a particular setup. But I feel like I have to do it in order.

I don’t wanna just have a piece of the trend. I want to understand the whole thing, because they’re all connected.

So, before jumping into the trickier, more frequently seen, riskier/more profitable setup, I should start with the one that is easier, less frequent, and less volatile.

Focus on the big picture, understand that, then zoom in to the smaller picture. Kinda like that.

But then I have images that keep popping into my head about similar setups that I should look at also. My brain starts running all over the place, my thoughts are becoming chaotic and unorganized.

¨Oh, I should analyze this other setup, and that setup related to that, and…¨

My strategy is based on price action that occurs at S/R levels. But there’s not just one kind of S/R–there are many. I’m working on the ones that happen least frequently, and my brain keeps thinking about the ones that happen most frequently.

It’s driving me bonkers!

I stopped what I was doing, and started putting my thoughts on paper. I figured I need to make a definitive list of the setups that are bouncing around in my coconut.

I did that. I thought I was drawing all bullish setups, but some of them were bear trend setups. Then I realized how mixed up the setups are in my head. A couple (or more) of these setups are the same but just bullish/bearish versions.

I need to get a bit more organized, and make a proper list of these setups.

I’m stepping away from the charts for a few minutes, until I can make a decent list.

[dushimes]

I thought practicing this last strategy might be difficult. I knew there were different setups for this S/R strategy, but I thought it wouldn’t be a big deal if they were mixed up when I studied/practiced them.

Well, it is.

This one S/R idea just got split into four, with possibly two types of entry signs. But, at least I have a list now.

I need a break. Time to eat.

Patience, young padawan

[dushimes]

I made a list. It may get longer. I have to be open to that possibility, no matter how much I don’t want it to. If it gets longer, it’s for a reason.

I have four types of S/R strategies. I have to collect samples for each one, bullish and bearish, as well as fakeout samples, for both bullish and bearish trends. That’s 16 different sets of samples I must collect.

After that, there are two different types of entry/exit signals that I want to examine, as well. These signs, I’m not sure what I’ll find when I start examining them.

But this is the most structured my list has been in a while.

Not too long ago, I had a map. A trade map. I had a type of diagram for all my setups.

I thought it didn’t work because there were too many step that it became impractical to use. Now, I wonder if it was impractical because the ideas needed further development.

Patience, young padawan.

[dushimes]

Strangely, I tried organizing these strategies in my head, and I created some folders for the samples.

However, the ideas didn’t become clear until I drew them up on paper. There’s something magical about writing on paper. It’s a different neurological process.

Oddly enough, when I had some images in my mind of bullish setups but had trouble envisioning the bearish version, I simply turned the paper upside-down. I seriously didn’t know they were the same idea! In my mind, they were different setups, but nope. Same setup, just a bearish version!

[RedEyeRishMan]

It seems like such a small realization from such a small action. But simply changing the perspective could make a worlds difference.

An odd but seemingly wonderful discovery! Props man!

[dushimes]

Man, I’m looking at some of the swing trades on D1. It’s great how you could enter a trade, watch it for 3 months, and make a nice profit.

Trading is such an interesting endeavor. Of course, the downside is that it may not end in your favor, after all.

[dushimes]

For now, I broke my final strategy down into four strategies. Basically, starting with larger swings, and ending with smaller swings.

I just finished collecting bullish and bearish samples for the first part. I’m wondering if just having the pictures for reference is enough, or do I need to prepare practice charts.

I may be able to just use the pictures for reference, but practicing those charts is the real test.

Preparing practice charts is laborous and time-consuming. So, perhaps instead of whining about it, I should just get started.

[dushimes]

[dushimes]

I’m considering revisiting my diagram idea. Last time, there were so many steps that the plan was difficult to follow. The difference this time is that my ideas are more concrete and limited.

Hopefully, that means the steps won’t be impractical like last time.

[dushimes]

I finished collecting practice charts for part one of my strategy. The first part involves trades that last months.

The second part involves trades that last weeks. The pace is quite different, the risk is higher, yet so is the profit. I’m excited!

And nervous because this is where…

[dushimes]

Peeling onions over here

I collected my first practice chart for this dicey strategy, and I already see where it’s getting crazy.

Inside the bull trend there’s the smaller bull trend (with the trend), and the bear trend (counter trend), as well as fakeouts for both.

Then co-trend and counter-trend trades within the BEAR trend, as well as fakeouts.

That’s one strategy that just got split into 8 parts. What the fudge!

The good thing is that I’ve never broken this strategy down like this. It’s tedious, but I think it’ll be beneficial.

[dushimes]

It’s funny how ideas come when we’re NOT doing the thing we’re trying to improve. I had a small idea AFTER I walked away from my computer.

I was collecting completed chart samples, then decided I should practice the charts instead of just keeping them for reference. It was an either/or situation.

But then I had the idea that I should collect the samples, divide them as specifically as necessary, take notes, create steps for that specific strategy, THEN practice them.

It sounds like a no-brainer, but it wasn’t a no-brainer for me.

This is something I definitely need to write down to organize. It’s a lot of samples, and easy to get lost, and distracted. If that happens, I may never finish this research, and just keep chasing my tail and taking losses. I’ve done that before, and if I want different results, then I must take different actions.

Patience, young padawan.

[dushimes]

I busted out my handy notepad and started writing. I took my time, and as of right now, I broke my strategy down into 6 major strategies.

I say 6 major strategies because each strategy has a bullish and bearish version, as well as bullish/bearish fakeout signs. Six strategies broken into 24 pieces.

As I study each strategy, I may see some gaps and add more components.

Hopefully there isn’t any overlap (which I had seen some of before). It can be difficult to categorize trends. Sure there are upswings and downswings, and sideways trends. But there are trends that can fall into a gray area.

If a trend is sideways for 8 months, but the range is wide enough for some nice swings, how do I categorize that??

The answer is: I just do the best I can, and make adjustments as I see fit.

[dushimes]

I’ve been focusing on trading my retracement strategy for the last four weeks. I have just four more trading days for it, then I’m supposed to move on to the next strategy.

I’m not ready for that, and I don’t wanna rush. So, for the time being, I’m just gonna pause that progress, continue focusing on retracements, and continue with collecting my new samples.

For a few years my account was only going down. It was awful. It’s made me desperate. It’s made me so desperate that I’m willing to not rush and get my strategy right.

[dushimes]

I’m looking at samples for my first strategy, and I wanna write some steps for myself.

I’m having trouble describing the price action. I know it when I see it, but putting it into words is difficult.

I just realized that if I can’t describe it, then maybe I don’t understand it as well as I think I do.

I have to take some time to try.

[dushimes]

I’ve come to a conclusion that the retracement strategy that I’m currently working on isn’t what I thought it was. I’ve been collecting samples of this strategy for the last day and a half, and it’s quite hard to find such samples. Actually, it’s a sign that occurs AFTER S/R. I thought it was a sign by itself, and it’s not.

Meaning, it appears that I will have one less retracement strategy.

I must keep my mind open to such possibilities in order to grow. I’ll review the samples I’ve collected so far, just to be sure.

[dushimes]

I went out to run some errands, and I had a thought about all the samples I’m collecting. I think it’s taken me long enough. My goal is to finish collecting these samples this weekend.

I’m tired of how long this is taking. I wanna finish collecting these samples, then start collecting charts to practice. However, I should have a clear definition of each setup…as clear as possible, with little to no overlap.

I got some dried mango, some mixed nuts…I have my snacks, and I’m ready for some charts!!!

[dushimes]

I have a friend who is looking for financial growth, and I was thinking of making a pact with him so we could reach our own goals. But, I have learned that we all have different paths, and most likely I’ll be met by disappointment because my expectations may not match others’ goals or methods of getting there.

Unfortunately, it’s best to go about it alone.