The Road To Profitability

This is a discussion on The Road To Profitability within the Trading Journals forums, part of the Reception category; Ok, several times during my trading career I've failed to learn from my risk management mistakes. About two years ago ...

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Old Aug 3, 2011, 10:34pm   #1
Joined Aug 2009
The Road To Profitability

Ok, several times during my trading career I've failed to learn from my risk management mistakes. About two years ago I had my first margin call on a 2000 dollars account, and that was the most awful day in my life. I told myself that never ever do I want to put myself in a situation where my trading "spark" will decline to almost zero.

After my first margin call I've had an fair amount of success in my trading.... I have manged to increase my account by respectively 13, 24 and 36 percent before I managed to give it away quicker than the wink of an eye (yes I know, I am an idiot.. well almost).

I think my greatest flaws in trading is that I have never manged to hold my risk constant.
From this day on my risk will be held at 1% any given trade.

Lets put out a scenario where I time after time change my percentage risk:

First assume that risk-reward for my winners is always 1:1

Trade 1) Risk = 3% ---> Trade ended up in profit.
Trade 2) Risk = 5% ---> On a 5% trade I "should" feel extremely confident ----> Well the market did not react as I saw it and it resulted in a 5% loss.

Result: -2%

A constant risk would put me in a break-even situation which would be counted as a winning month in my book

The aim of this journal is to:

1) Keep track of my trades
2) Developing a traders long-term success mindset by talking with others about mistakes, how one could do things differently to what I did/do etc
3) For every trade there has to be a detailed written management plan, I've been quite bad at this and this is something I will work on.

I view myself as a chartist who is slowly managing to take the step away from being a newb. Thats at least what I think.

I follow 32 FX pairs + gold and silver. All my trades is based on the daily timeframe, haven't had the time to follow markets more than that for the past 2 years. Most of my trades are based on confluence with respect to specific price action patterns. While a few percentages of my trades are based on box breakouts or pure box trading. What I mean by box trading is when price have been trading in a rectangle. I do not consider funnymental in my analysis.

While I'm on it might be a good idea of where my trading is influenced from.
It started here on T2W with the MMT thread by TD and continued over at FF j16 thread.

By the way, my journalistic skills are probably as bad as my trading skills haha

Cheers

Last edited by Shuanl0ol; Aug 4, 2011 at 8:05pm.
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Old Aug 3, 2011, 11:10pm   #2
Joined Jan 2011
Re: The Road To Profitability

Why is someone "who is slowly managing to take the step away from being a newb" also a "Training Literature Vendor"?
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Old Aug 3, 2011, 11:14pm   #3
Joined Apr 2006
Re: The Road To Profitability

Quote:
Originally Posted by Pazienza View Post
Why is someone "who is slowly managing to take the step away from being a newb" also a "Training Literature Vendor"?
"T2W its a marketers paradise"

Davie Robertson, 2011
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Thanks! The following members like this post: Pazienza
Old Aug 3, 2011, 11:29pm   #4
Joined Aug 2009
Re: The Road To Profitability

Shuanl0ol started this thread
Quote:
Originally Posted by Pazienza View Post
Why is someone "who is slowly managing to take the step away from being a newb" also a "Training Literature Vendor"?
Haha thanks for highlighting that one, I haven't looked at my profile once until you mentioned it.
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Old Aug 3, 2011, 11:32pm   #5
Joined Aug 2009
Re: The Road To Profitability

Shuanl0ol started this thread Markets does not appear to give me any opportunity for the night. I stared at USD/SGD setup i.e. potential box trade. But this box is in a really narrow range, which lead to the conclusion that it is not worth putting 1% at risk for a trade like this (at least according to me).

Setup facts:

1) Trend is our friend
2) bar-size isn't the best one but OK
3) 1.2000 level seem to have a quite decent balance between buyers and sellers, this would be my target if I would take it.
4) 8 pip spread on this pair make it a pass for me (not that I think it is a lot for swing trading but the profit target and entry is quite close to eachother hence making the 8 pips a lot!

I'm not getting in on this one.
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Old Aug 5, 2011, 1:51am   #6
Joined Aug 2009
Silver + AUDJPY

Shuanl0ol started this thread Markets has been extremely volatile today due to press conferences and important data releases all over the world.

On the daily silver chart we have a bearish outside bar that engulfs 10 of the previous bars which to me is a indication of a significant change in sentiment. It went right through the big round number 40 and seems to want to get in to the aqua blue rectangle.
However this setup offers me a 400 pip stoploss which I cannot afford to have, it easily exceeds my "new" 1% rule. So I must pass this one.. how unfortunate!

I'm not going to bed empty handed though. AUDJPY offers quite a interesting setup. It isn't one of the 'traditional' price pattern setups, im trading this one based on confluence with major S/R (85.00) and the formed flag . There has been a huge sell pressure on most yen pairs today, one of the reasons is ofc due to the speech one of the chairman held. And the other is probably beacuse that everybody knows that whenever centralbanks intervene, price always (well almost then) manages to retrace back to it's starting point or lower.

259 pip stoploss, little less than 1% at risk. entry on the break of the prev. bar low.
My target is around 80.

Cheers
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Old Aug 7, 2011, 10:11pm   #7
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Re: The Road To Profitability

Shuanl0ol started this thread
Quote:
Originally Posted by zutou View Post
admire your attitude ,positive !
tw2 here can see something more than businness!Click the image to open in full size.
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Click the image to open in full size.
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Thanks mate, I'm grateful for all input anyone has!

Cheers
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Old Aug 7, 2011, 11:08pm   #8
Joined Aug 2009
Re: The Road To Profitability

Shuanl0ol started this thread My AUDJPY trade is currently +80 pips. But it gapped on the downside @ asian open. I expect the gap to get filled and continue in my direction. My stop is held at the same level as before.

Let's see how it goes.
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Old Aug 8, 2011, 12:29am   #9
Joined Aug 2009
EURSEK saying goodbye to zÚ box?

Shuanl0ol started this thread It seems to me that price is heading around 9.5000 level on this pair. The push up to 9.5000 will most likely be supported by funnymentals during the upcoming week where there is lots of important decisions to make for the market key players.


There is two way to play this setup in my eyes, you either play it on the break of the box or on the retest after the break. But then again it isn't sure that it will retest, it might have a nice rally.

So I'm playing it on the break.

If price manages to reach 9.4000 which is a solid S/R level I will move my stop to BE.
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Old Aug 8, 2011, 11:08am   #10
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Audjpy

Shuanl0ol started this thread Right on spot

Account Gain: 0,9%
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