Forex Intraday Short Term Trading

[SvenFoster]

Day 1. Lets get bloggy wit it

Ok so I've created my new blog on t2w after being away for ages.

Why blog?

Well I've been busy trying to tame the beast that is FX only to discover its actually more about me.
...me me me. All about me really.

I'm convinced now more than ever that my success at trading is as much about psychology and discipline as the method one uses.

So because making money isnt enough for me(yeah right) I thought i'd try and add to my focus and post a few trades.

So if your into FX and fancy taking a butchers then please do.

No egos please but opinions and comments always welcome.

 

[SvenFoster]

Chart Setup

Ok so heres my chart setup. After years of searching both with millions of indicators and none I've settled on the following simple setup.

I'm based in the UK so GMT for me...

Chart Setup/Indicators/Tools
Pair(s): EURUSD
SMA(s): 5,20
EMA(s): 20
Stoch: 5,3,3
Price action: Candles, Horiz S/R, 1min(5min-1day for MTF analysis)

To be honest I dont really pay that much attention to them and base my trades predomenently on price action and multi timeframe analysis but find them comforting. The 20EMA for example is only on there because a friend used it so thats why its gray.

Trade Setup
Basically I'm looking for pullbacks that look like they should continue else reversals(i know wishy washy). I rarely trade breakouts(other than pullbacks from them)

Spend the most time on the 1min, less on the 5, even less on 1hr etc... The other TF are used to see where Support or Resistance may come into play and this helps to reduce the surprises on the 1min.

I usually try 30-60mins in the morning(10am GMT) and maybe the same in the US session(anytime after lunch).

Position Size
Risk approximately 2-3% per trade, SL 10pips, TP 20pips, looking for 15pips or so depending on volatility.
I will close trades for 5 pips etc if i feel the need however I usually take trades that I anticipate have at least a 1:1 R:R

MAs
If the 5SMA is above the 20SMA the we should primarly consider longs unless the higher TFs or stochs tell us otherwise. Of course if its choppy then the MAs become less useful. Since we wont know its choppy till its choppy then we need to look to the higher TFs to give us an indication of when S/R may kick in or volatility is contracting.
Stochs
The 5min tends to be the key TF for me when it comes to the Stochs. I dont think i really look at them on anything higher.
Horizontal S/R
On the 1hr(for euro anyway) gives an uncanny level of accuracy. Obviously 1min and 5min have to be filtered with your mind.

 

[SvenFoster]

Just as soon as you post you look back to your charts and see the one that got away.

Luckly for me, Thas one lesson i've learnt. move on.

 

[SvenFoster]

No trading today

Got a busy day ahead at work re: deadlines and demos as well as being that time again for the BOE. ...please reduce my mortgage

 

[SvenFoster]

Tradelog Term Glossary

I'll be posting trades and so my life isn't filled with typing I've decided to post a glossary first.
I will always post trades with spreads included etc..

• SL: Stop loss. Usually the inital stop loss i will absorb
• TP: Take profit. Usually the initial value.
• MAE: Maximum Adverse Excursion. The pips that the trade went against me at any point before closing.
• MFE: Maximum Favorable Excursion. The most number of pips it went in my favour before closing it.
• FFE: Fantasy Favorable Excursion. If only i'd left it on i'd have made loads.

Keeping the likes off MFE and MAE are useful to determine future SL and TP levels so i'm going to make an effort to keep them accurate.

 

[SvenFoster]

Well that didnt last long.

It appears that i can spend 4 seconds a day trading for the moment and so I've already failed at the first hurdle.

This blog was supposed to force me to focus and track but I can't even get a trade on the books.

I think a small break is in order and try to get my story straight.

Maybe i need to just give it up, can't be bothered.