Taishara's GY / GU Trading Journal

This is a discussion on Taishara's GY / GU Trading Journal within the Trading Journals forums, part of the Reception category; I am starting this as a way for my own tracking (besides my trading log / images) as well as ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Dec 14, 2009, 10:25am   #1
 
Taishara's Avatar
Joined Dec 2009
Taishara's GY / GU Trading Journal

I am starting this as a way for my own tracking (besides my trading log / images) as well as to share what I am doing with friends and family (other than lots of email).

About me and how I got here:
I started trading in July 2007. I quickly realized I was not going to figure out how to do this on my own, so I took classes with a school (contact me directly if you want to know more about that). I graduated in June of 2008 and had a baby in July 2008... I was in 18 month old baby / new born baby tailspin for about 6 months (that is being generous... probably more like 9 - 10 months).

I got my act together and started really focusing on GY (GBP / JPY, hereafter called GY). Around the same time, I started noticing a serious heart burn with my full time job.

After lots of studying, lots of conversations with my husband, and lots and lots of praying, my husband and I came to the decision that I was going to leave my full time job and trade. If it is what I am supposed to be doing, I will do ok. If not, I can get a job. But I was not going anywhere but terrible health and unhappiness there, so why was I there?

So that was July 2009. I have since had (it seems) every cold strain and flu strain (except H1N1) available in Illinois. Ah the joys of children in day care!

Taishara the Trader:
In that time I met 2 major professional milestones.

1. I developed 2 trading contexts that I am able to see and act upon. This includes money management strategy and written trading rules.

2. I documented my psychological guide. I used Mark Douglas' Trading in the Zone to help me start to work through the bad habits I had picked up over the years of trading so far. I am done with identifying my rules at this time, but I will never be done working on the psychology. If you are a trader and haven't read the book, I highly recommend it.

I will use this journal to document some of my previous trades as well as trades that I make going forward.

Enjoy the read. Feel free to comment if you have a positive or constructive comment!
Taishara is offline   Reply With Quote
Thanks! The following members like this post: Yamato
Old Dec 14, 2009, 10:35am   #2
 
Taishara's Avatar
Joined Dec 2009
Re: Taishara's GY / GU Trading Journal

Taishara started this thread Just a note on my psychology, as it is now my hardest area of focus. I took 22 pages of notes from the book. I read them 2-3 times a week. I took 1 page of key notes and read them several times a day. They are all included in my trading log. I read them aloud to myself several times a trading session. I give all credit for these to Mark Douglas and Trading in the Zone.

Some of the key items:
1. I am a consistently successful trader.
2. Keep a winning attitude - A positive expectation of your efforts with an acceptance that whatever results you get are a perfect reflection of your level of development and what you need to learn to do better.
3. Do not be afraid.
4. All you need to know is: 1. the odds are in your favor, 2. how much it will cost to find out if the trade will work out, 3. you do not need to know what is going to happen to make money on the trade, and 4. anything can happen.
5. The stop loss is the cost of doing business.
6. Be rigid with the rules and flexible with the expectations.

I read this book as a young trader and thought it was great. Put it on the bookshelf until my close friend and trading mentor reminded me that all the problems I was talking about were in the book.

I took my mentor's comment seriously and spent the time building my notes and questioning my current beliefs and starting the long journey towards developing a professional trader's mindset.

That's it about psychology. But just remember, I read these notes and about this many again 8-10 times (at least) during each trading session. Some of them I read out loud. Perhaps I am just dense, but it takes time for them to work into my mind.

Tai
Taishara is offline   Reply With Quote
Old Dec 14, 2009, 10:51am   #3
 
Taishara's Avatar
Joined Dec 2009
Re: Taishara's GY / GU Trading Journal

Taishara started this thread My Trading Rules
I have 2 contexts on the GY.
I use the 30 minute and 1 minute charts for price action trading. I keep the 5 minute chart handy for confirmations. I am able to look at both the GU and the GY charts simultaneously. I am finding they are good confirmations of each other. (if the trade is no where near setting up on one, question the other, etc)

Indicators:
GY candle colors - upward movement - yellow, downward movement red.
GU candle colors - upward movement - blue, downward movement red.
30 minute chart: I use price, RSI 3, and RSI 14 to establish bias. I always factor in support and resistance. I have also added the 5 and 13 EMA. Right now I am feeling this is more of a confirmation rather than an indicator considering my other rules.
1 minute chart: I use price and the 50 CCI.

5 minute chart: I use price and slow stochastic.

Context 1 - 1 Minute ZLR:
1. Verify bias on 30 minute. Look for support and resistance.
2. CCI has been extreme (low for buy, high for sell)
3. CCI goes over 0, possibly to extreme
4. CCI drops back down for a zero line reject IN THE TREND DIRECTION
5. CCI MUST be established at the candle close in the direction of the trade
6. CCI establishes in a +- 15 channel around zero.
7. Must be red after yellow for a sell or yellow after red for a buy.

Context 2 - 1 Minute Divergence:
1. Verify bias on 30 minute. Look for support and resistance.
2. CCI further than +- 160
3. price makes a 2nd attempt with CCI divergence. CCI must be greater than +- 100
4. a new attempt (after divergence established) at which price does not move as far (looks like a head and shoulder)
5. CCI must be approaching +- 100
6. CCI must be established in the direction of the trade
7. Must be red after yellow for a sell or yellow after red for a buy.

I will figure out how to add pictures of this later.
Taishara is offline   Reply With Quote
Old Dec 14, 2009, 10:57am   #4
 
Taishara's Avatar
Joined Dec 2009
Re: Taishara's GY / GU Trading Journal

Taishara started this thread I traded a long time to establish my rules and then to get to the point that I was trading them without mistakes. Well over 50 trades to get to the point that I felt I was somewhat stable with this.

I am still working out exiting. Ideally I look for an opposite context set up.

I feel I have had a few "perfect entries" as per my rules. I cannot say I have had a single "perfect exit". Sometimes I panic and exit too early for what my rules tell me is the right time. (note that is NOT to say I got all the pips on the table.) Then I try to crack down on myself and do not panic and I miss the exit and get out too late. Sometimes I am able to salvage some of the pips I made, if not all. Other times, I stop out after being in a winning trade.

Exiting is an art I am still learning about!

Now I will try to figure out how to do images as it will make the following posts more useful.
Taishara is offline   Reply With Quote
Old Dec 14, 2009, 11:07am   #5
 
Taishara's Avatar
Joined Dec 2009
Re: Taishara's GY / GU Trading Journal

Taishara started this thread I have my full rules in a .pdf file that is (I hope) attached. The text is redundant from my previous rules post, but the images are worth way more than 1000 words. So I kept it all.

It also shows some light weight work on exits.
Attached Files
File Type: pdf Rules-Oct28.pdf (285.8 KB, 747 views)
Taishara is offline   Reply With Quote
Old Dec 14, 2009, 11:14am   #6
 
Taishara's Avatar
Joined Dec 2009
Re: Taishara's GY / GU Trading Journal

Taishara started this thread One of my good trades... When I was getting into this and my rules all shiny and polished (had been working on them for ages with very minor tweaks, but not fully documented and printed), I made this trade.

GY - 1 Minute divergence context.
Enter close of 01:04.
30 Min RSI 3 bouncing off extreme after large move up.
1 min H&S right shoulder. Exact rule following. Good job!
Exit on CCI moving above -100 with a red candle down that had a neutral CCI.
Exit at close of 02:24.

I included images of my two primary charts at the time of exit all marked up.

This trade was a +53 profit for me, just over a 2:1 with my stop loss.

After the fact, I realized that I exited the trade much earlier than I could have.

The positive side was that it was a reflection of where I was at as a trader and not having as much experience exiting successful trades. And after all, I won! Woohoo!
Attached Thumbnails
091103-trade48_1minexit.jpg   091103-trade48_30minexit.jpg  
Taishara is offline   Reply With Quote
Old Dec 14, 2009, 11:17am   #7
 
Taishara's Avatar
Joined Dec 2009
Re: Taishara's GY / GU Trading Journal

Taishara started this thread I followed that trade up with a trade that I got into by being stupid... on Forex Factory, I listed that trade as my biggest mistake. I did not cancel the stop loss from trade 48 correctly and got to the charts next day with an open trade riding with no stop / limit. I was EXTREMELY lucky and it went my way for a +68 before I got out (way earlier than I should have, but considering I would not have been in it at all, my psychology just panicked and got me out). Not a good moment, so I will just leave it at the Lord looking out for me on that one.

Trade 50 was an entry that I just made a mistake on the rules. Namely, I did not establish bias correctly.
Taishara is offline   Reply With Quote
Thanks! The following members like this post: Yamato
Old Dec 14, 2009, 11:22am   #8
 
Taishara's Avatar
Joined Dec 2009
Re: Taishara's GY / GU Trading Journal

Taishara started this thread Trade 51 - This was a prime example of poor exiting.
My trading log notes:
3:17 Entry.
30 Minute RSI coming to extreme. RSI 14 divergence from 1:00 candle.
1 Minute Triple top showing upward momentum slowing after day long down trend.
Divergence and CCI crossing 100 going down.
Result... Stopped out.

NEXT TIME – watch more closely for exit. 4:02 was an excellent exit point. 4:06 was a good point. Cut your losses and take at least no loss rather than another -3%. Instead of watching what was happening, you let the desire of what you wanted get in the way of what you were seeing and you let a +50 pip profit melt to a -25 loss.

On the image of the 1 minute chart, you will see a circle at the bottom and then 2 places where I wrote exit! I did not do that... I let it melt away hoping that it would go down again and I turned a beautiful win into a loss.

Again... it was a perfect reflection of where I was at and I hope to learn from it.
Attached Thumbnails
091105-trade51-1min.jpg   091105-trade51-30min.jpg  
Taishara is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
ES Trading Journal new_trader Trading Journals 141 May 6, 2010 10:40am
My trading Journal winstonrazek Trading Journals 1 Jul 8, 2009 1:30am
FX Trading Journal dcousins2k4 General Trading Chat 10 Feb 17, 2009 2:38pm
Trading Journal wrmeeker Trading Journals 4 Jun 9, 2008 4:41am
Trading journal rezo_s Forex 147 Oct 31, 2003 4:48pm

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)