Trading journal

Today, I had to take a moment to remind myself that right now, I’m focused on trading correctly. That means most of my trading activity is just observing–not actual trading.

Just watching, waiting…

This is the time to be patient. 98% waiting, 2% trading. When I looked at a given month, each pair only had one trade. Just one. Some of them, not even a full trade. Either an entry or an exit. So, that tells me most of my days observing the market will have NO trading.

Patience, young padawan.

There are a couple trades that I missed, (including the one I ruined by moving my SL to BE too early), and I realized that they’re actually part of my short-term strategy, which I shouldn’t be trading now anyway. I should be focusing on my longer-term strategy.

So, I’ll 50% forgive myself for now. But once I start trading my short-term strategy, I can’t use any excuses; I’ll really have to be more aggressive, and walk myself through how to do it.

You are in “learning mode” don’t dwell on the past , write it in the journal and go forward, bear in mind that you can’t extract all pips from the market.

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That’s a hard pill to swallow, but you’re right. Doing so will only result in more losses, not wins.

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I feel frustrated that I’m back practicing my long-term strategy, but I’m glad about it at the same time.

I’m seeing things that I didn’t see before. It’s kinda like studying Pipsology. The first time, there’s so much information, so it’s difficult to digest and understand everything. But after some time goes by, and you study it again, it’s as if you see details that weren’t there before.

It takes time to digest/internalize the first batch of information. After this, we can compound more information on top.

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With one of my trades, I think price might hit my SL, but I’m not sure. In my strategy, moving my SL to BE sometimes prevents loss, and sometimes it ruins a trade. So, I have to leave my SL in its original position.

And that’s what I did today. I thought about moving it, but I remembered my rule, and I left it. I have to follow my strategy, and let the market do what it’s gonna do–regardless of the outcome.

Also, I’m almost done practicing my long-term strategy. Next, I have to revisit my short-term strategy.

Once I practice my short-term strategy, I’ll be open to taking a more trades. Not every single signal, but more.

I got so focused on these two strategies, that I had forgotten that I have another strategy to study. Sometimes, price will bounce S, and you expect it to hit R. But how about when it ignores R? That’s what this forgotten strategy is for.

There’s an entry that I missed earlier this month, and it fits this forgotten strategy. So, I’ll have to add that to my list of what to study. I thought I could skip it and the other strategies could replace it, but they can’t; I’m gonna have to study this one as well.

I hope I’m making sense here. haha

I have four strategies. One of them is for a setup that’s really really similar to my long-term strategy, except it’s more rare and probably only happens a few times a year. So, I’m not worrying about that one too much. I should focus more on the ones that occur every month or so.

It’s frustrating because when I miss a trade. Even if I haven’t studied that strategy yet, I still feel like a fool for not taking it. But that’s only seeing the positives and not the inherent risk/loss of trading a strategy prematurely.

There’s a movie called Southpaw.
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I like this movie a lot. Basically, a guy named Billy fights angry and kinda boxes crazy. Then he meets a new trainer, and the new trainer tells Billy that he’s all power and no precision. He explains to Billy, ¨You’ve got two weapons: a shotgun and a grenade.¨

So, he starts training Billy, and starts him off by just LIGHTLY punching the punching bag. Tap, tap, tap.

I’m trying to do the same thing. I’m breaking myself down, and starting from scratch. I’m building myself up, one layer of strategy at a time. Sure, I’d love to go for the knockouts, the big profits, big swings. But how in the bejeezus am I gonna do that if I’m trading recklessly and losing money?

The money will come. But I have to trade correctly. I have to know when to wait, where to draw S/R, when to keep trading, etc.

Patience, young padawan.

This is embarrassing, and I don’t even feel like writing this. But I’m trying to be honest with myself about my development as a trader.

So, for the past two weeks I was practicing my long-term strategy. It’s pretty much for trades that last over 30 days. I was practicing this strategy with my chart samples, and I was learning how to trade this set up. I was really trying to drill it into my brain, and understand what the candles are trying to tell me. And I was doing pretty well with those chart samples. There were several charts that I just couldn’t understand why they did what they did, but the majority I understood.

Then, I was looking at a random chart with the same setup that I had been practicing, and that one chart had me questioning everything I did for the past two weeks. You could say it was just one setup.

But that chart had exactly what I had been practicing, and the strategy failed. It was one more example on top of the other questions I had about other practice charts.

And then I remembered something. I had found a big clue to modify my strategy, about two or three months ago…I’m not even sure. But it was a significant development.

And somehow…I had simply forgotten about it. That’s it. I forgot. I had forgotten and just fell back into a previous technique and I just ran with it.

I can’t believe I forgot. That’s my excuse: I forgot.

So, yesterday I started doing some analysis on this strategy. I could only work a little bit at a time because my frustration and cognitive dissonance was pretty high.

I collected some samples, and now I have to examine them.

The good news is that this approach could simplify this strategy as well as another. I’m gonna have to collect some samples and prepare some practice charts.

Patience young padawan.

Last week, I correctly identified a fakeout sign. I didn’t trade it because there was no entry sign for the strategy I’m trading now.

This isn’t big news, at all, but it’s a positive sign that I read the chart correctly.

Patience, young padawan.

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The view of my live charts are a bit different from my practice charts.

My practice charts are more zoomed in. When I look at my practice charts, I only feel slightly uneasy–because I’m stepping into the unknown, and I don’t know if I’m gonna trade well or not. But looking at live charts makes me even more uneasy.

I wanna close that gap between how I approach my practice charts and how I approach my live charts. Is it the way I label the charts? Is it the different zoom?
I don’t know.

But I have to be willing to look at all these different things.

I’m still collecting charts for practice. I feel like the collecting has gotten out of hand. Usually, my practice batches have about 30 charts.

Collecting them takes time, and editing them takes even longer.

I did something a little different this time to help my understanding. I have some charts that focus on the entry, some that focus on the exit, and some that are fakeouts.

I said before that I wanna add more fakeouts. The problem is that I have more charts to add, and I already have about 100 charts. It could take me two weeks to edit these!

This is for my long-term strategy. I’ll have to do this again for my short-term strategy. But in the interest of time, maybe not. Perhaps I can just add to my previous batch. My short-term strategy hasn’t changed at all. That’s a relief.

I expect this batch of practice charts to really help me out, and get my brain accustomed to the small adjustment in my long-term strategy.

The goal after this is to be more aggressive/brave and take the trades according to my strategy. Rather than feeling nervous, and missing good trades.