£80

[£80]

Day 3

Today I placed a trade on GBP/USD short but I placed this trade because I felt I had to place a trade this week so I'm not that confident about this trade anyway the reason for my entry is the price found resistance at downward sloping trend line meeting at 61.8 fib.
My entry is at 1.4544 (point 2) a break of the inside bar and my stop is at 1.4596 (point 1) my target is the area of point 3.

So lets see what happens

 

[montmorencyt2w]

Hi Rookie,

For what it's worth, I think your approach is valid enough, and I support the idea of small stakes until you are used to trading real money. BTW, I think with III it is only 4 weeks at 10p/pip, not 8.

One thing: you said something like "unfortunately, I did not get chance to trade today".
Don't think of it as a wasted opportunity, but as a waiting game. If you have studied TD, then you will know that he says it's all about waiting ... for the high probability trades to come along. So a day not trading was at least day not losing, and the people who end up winning are the people who do not lose all their capital.

One other point: I don't think GBP/USD is the easiest market to trade as a rookie. At least paper trade that one for a while first.

Good luck. I will watch with interest.

 

[£80]

Day 3 Exit

This was a careless trade and I will NEVER make this mistake again. I cannot afford to make such foolish mistakes, I am so angry with myself, I am going to send myself to bed without dinner.

Anyway... I got stopped out but I should not have been in this trade in the first place because I was trading into a very strong support. I think the reason my analysis was wrong is because I was desperate to trade.

 

[montmorencyt2w]

Don't beat yourself up (and try to diffuse that anger because as you know very well "emotions are out..."). It's a lot easier to see in hindsight (and probably a goodish counter-big-trend long opportunity). I believe I can see why you took it. I imagine the experts would say it wasn't a high enough probability one to take. If you honestly believe your last sentence, then you have learned the most valuable lesson you could have from this trade.

 

[£80]

Don't think of it as a wasted opportunity, but as a waiting game. If you have studied TD, then you will know that he says it's all about waiting ... for the high probability trades to come along. So a day not trading was at least day not losing, and the people who end up winning are the people who do not lose all their capital.

Thanks Mike, you are very right it is all about waiting and I lacked patience and because of this I lost discipline. Without patience and discipline I don't think a trader can be successful.

 

[£80]

Day 4 Entry

Today I took a breakout trade on 15 min which was retested on previous resistance and this is why I got in on this trade.

Point 1=my stop, point 2=my entry, point 3=my target
So lets see what happens.

 

[£80]

Today I took a breakout trade on 15 min which was retested on previous resistance and this is why I got in on this trade.

Point 1=my stop, point 2=my entry, point 3=my target
So lets see what happens.

Sorry here is the chart

 

[£80]

Day 4 exit

Unfortunately i got stopped out. Oh well on to the next trade.

 

[£80]

Day 4 second trade entry

Another trade but this time I made sure to double check everything so the reason I took this trade, downtrend, fib level, sloping trend line as resistance and all this confirmed by two pin bars.

entry at the break of second pin bar (point 2), my stop at point 1and my target at the zone of point 3
So lets see what happens.

 

[£80]

Day 4 second exit

I got stopped out again I have know idea what I have done wrong in this trade can someone maybe point it out to me.

 

[£80]

Chart

 

[KillPhil08]

This. Nice journal though, you need to find direction in dailies, then 4hours then 1hour. . (Ofcourse this is hindsight).

Keep it up.

 

[MrMiyagi]

I got stopped out again I have know idea what I have done wrong in this trade can someone maybe point it out to me.

You would probably find trading the daily timeframe easier to trade, though I understand your account size won't allow for the wide stops that that method entails... therefore, Killphil's advice is most certainly sage... short timeframes are noisy noisy noisy.

 

[trader_dante]

Hello £80,

I'm touched that I inspired you.

A few points to make:

1. Your first trade NZD/USD: This is not a pair that I trade although that hardly matters...but what does matter to me is that the pin appears after only a minor retracement. There has been no real force into that swing low. Plus it doesn't bounce off the pivot but merely closes above it. So it is not one I would have taken.

2. Your second trade in USD/CAD: This pin is in "traffic". That is, it appears within congestion. It worked very well as you proved but nonetheless, it is not a trade I would have taken.

3. Your third trade in GBP/USD: This was a weak setup and you traded for all the wrong reasons. Your last consideration should be how often you are trading. You have to be patient and wait for the best setups.

4. Your fourth trade was off the 15m TF. I keep to the 1hr and Daily. Don't be tempted to trade the lower TFs. They require a skill you most likely have not learnt yet.

5. Your fifth trade was in USD/JPY. On the hourly, it looked like a great trade for all the reasons you mentioned in your post BUT Phil is right - if you look at the daily TF, you can see the strength of the support below. I follow a principle which I find hard to explain but on hourly setups, I have to be able to IMAGINE that the daily TF can look like what it would if the trade is profitable...I just could not do that in USD/JPY. The move down has been too clean (a steady trend down - USD/JPY just does not move like this for long) and there was CONSIDERABLE support below that price has massively rejected on two previous occassions. I don't, however, think this was that bad a trade.

I have taught some students that are making money despite winning only 40% of the time. So don't worry about the number of wins versus losses. Just be patient and keep taking good trades and make sure when you get a good trade, you try and run with it.

-Tom

 

[£80]

This. Nice journal though, you need to find direction in dailies, then 4hours then 1hour. . (Ofcourse this is hindsight).

Thank you Killphill
Would you believe that looking for these levels on each one of the time frames is what I do everyday.

 

[trader_dante]

Incidentally...you say you are trading my method to see what happens to your account after 50 days BUT I would not have taken any of the trades you have done so far with the exception of that USD/JPY trade, which I will allow you a fair loss on

I've taught the setups but not only do you have to get them right (e.g. sticking to the correct timeframes, making sure the pins are at swing highs/lows and not in traffic etc) you also have to bring some discretion to them (knowing what the higher TFs are doing and whether they increase or decrease the probability of an hourly trade working etc)

I didn't create this method. It's as old as the hills. If it was that easy then everyone would be rich by now. It's not easy and like any method it takes some screen time and experience. But once you get it, you will find it immensely rewarding.

Good luck.

Tom

 

[£80]

Hello £80,

I'm touched that I inspired you.

A few points to make:

1. Your first trade NZD/USD: This is not a pair that I trade although that hardly matters...but what does matter to me is that the pin appears after only a minor retracement. There has been no real force into that swing low. Plus it doesn't bounce off the pivot but merely closes above it. So it is not one I would have taken.

2. Your second trade in USD/CAD: This pin is in "traffic". That is, it appears within congestion. It worked very well as you proved but nonetheless, it is not a trade I would have taken.

3. Your third trade in GBP/USD: This was a weak setup and you traded for all the wrong reasons. Your last consideration should be how often you are trading. You have to be patient and wait for the best setups.

4. Your fourth trade was off the 15m TF. I keep to the 1hr and Daily. Don't be tempted to trade the lower TFs. They require a skill you most likely have not learnt yet.

5. Your fifth trade was in USD/JPY. On the hourly, it looked like a great trade for all the reasons you mentioned in your post BUT Phil is right - if you look at the daily TF, you can see the strength of the support below. I follow a principle which I find hard to explain but on hourly setups, I have to be able to IMAGINE that the daily TF can look like what it would if the trade is profitable...I just could not do that in USD/JPY. The move down has been too clean (a steady trend down - USD/JPY just does not move like this for long) and there was CONSIDERABLE support below that price has massively rejected on two previous occassions. I don't, however, think this was that bad a trade.

I have taught some students that are making money despite winning only 40% of the time. So don't worry about the number of wins versus losses. Just be patient and keep taking good trades and make sure when you get a good trade, you try and run with it.

-Tom

Thank you for taking the time to read through my journal. I kind of see what you are saying by looking at your "making money trading" thread and reading this post but I am still trying to fully understand this.

I know that some of the trades I took were careless and impatient and thus causing bad trades but it is part of the learning process because now I know what not to do.

Thanks again Tom

 

[£80]

Day 5 entry

This trade I took because the pin bar formed at a resistance level where 38.2 fib was as well. My entry was a break of the pin bar (point2), my stop is at the high of the bar (point 1), my target is the zone of point 3.

I hope that this is a trade that Trader_Dante would take and if not can someone please tell me why.

 

[trader_dante]

This trade I took because the pin bar formed at a resistance level where 38.2 fib was as well. My entry was a break of the pin bar (point2), my stop is at the high of the bar (point 1), my target is the zone of point 3.

I hope that this is a trade that Trader_Dante would take and if not can someone please tell me why.

I don't actually trade GBP/CHF but that's certainly a high probability level as it's an s/r pivot and the 38 retracement from the hourly double top.

Only problem with that setup is that it is still what I would consider to be a pin in "traffic". The three hourly candles before it are going sideways...I'm pretty picky with my trades and would probably have passed on that one.

I will let you know the next trade I do so you can compare what you are doing.

-Tom

 

[£80]

Day 5 exit

I don't actually trade GBP/CHF but that's certainly a high probability level as it's an s/r pivot and the 38 retracement from the hourly double top.

Only problem with that setup is that it is still what I would consider to be a pin in "traffic". The three hourly candles before it are going sideways...I'm pretty picky with my trades and would probably have passed on that one.

I will let you know the next trade I do so you can compare what you are doing.

-Tom

Thanks Tom

So I got stopped out but I understand the term "Traffic" now but just to be sure, what you are saying is that you would trade pin bars when there no other immediate bars causing a small consolidation before the pin bar forms. In other words higher highs and higher lows or lower lows and lower highs leading towards the pin bar.

Would I be right in saying so?