Moe salama trading journal

[moesalama]

Hey all,

I just want to share my real life trading experience here.

It is taking me some time to be able to manage my trading psychology most importantly in terms of money management and other mental/ psychological trading activities.

Therefore, i decided up on speaking out loud about my trading, in terms of analysis, trading plans and trading psychology.

I guess that speaking out loudly at this period of my trading career will help me to perform better.

In regards of my analysis, i only use structural analysis.

Counting waves, identifying repetitive patterns and connecting the dots together to get a clear outlook of the markets.

So beside the trading part, i will be writing lots about the psychology of trading and money management.

Thank you,

 

[moesalama]

Trade # 1 - GBPUSD

Looking at the gbpusd h4 chart, i see that the pair created a new support @ low 1.5420 - the structure of this support is identical to the structure of the support created at low @ 1.4560 during April 2015 with x y z as shown in the H4 chart below:



after analyzing my major support point with the h4 chart, i used the 5 mins chart to be able to identify smaller support areas to buy from.

anyways, my count for wave 3 starts @ 1.5454 - but am placing my stops @ 1.5475 - which is around 25 pips into wave 1.

since am planning to trade a motive movements similar to the one taking place during April 2015 - i want the structure of the current movement to be similar - i dont want to see any correction moving into the previous correction.

5 mins chart:



My trade plan is as follow:

1. waiting for the pair to go back into wave 4 of the 5 mins chart - buying @ around 1.5530-1.5550 with stops @ 1.5474 and target @ around 1.5850-1.5900

 

[moesalama]

the pair is currently moving in a support area - wave 4 of 5 of 3.

so this can also be a good support area to buy from.

theres like 20-30 pips difference between both entries, anyways, for both entries, stops must be kept @ around 1.5475 and not risking more than 1-2% of the trading account in the trade.

at the end, this is just a trading idea.

for me, it has 50/50 chance no matter how much the odds are in my favor.

 

[moesalama]

am waiting for this count to repeat it self - more or less - the most important thing is for corrections not to overlap.

 

[moesalama]

i entered long gbpusd @ 1.5570 stops @ 1.5475 target @ 1.5870

the first step of a trade is over which is the analysis and the entry - i made my analysis, i placed my stops and targets.

am currently in the waiting stage which for me is always the second stage of a trade. @ this stage any extra analysis i do i will consider as irrelevant because i guess that the worst time to make a new decision for a trade is when the trade is open.

i will not adjust or change my stop loss any lower, but as soon as wave 4 is complete and a new motive wave on the h4 passed through wave 3 i will re adjust my stop loss to the low of wave 4.

lets wait to see what information will the market provide us with

 

[tomorton]

the pair is currently moving in a support area - wave 4 of 5 of 3.

so this can also be a good support area to buy from.

theres like 20-30 pips difference between both entries, anyways, for both entries, stops must be kept @ around 1.5475 and not risking more than 1-2% of the trading account in the trade.

at the end, this is just a trading idea.

for me, it has 50/50 chance no matter how much the odds are in my favor.

Hi moesalama - Thanks for your honest start at showing us your trading.

GBP/USD - Hmmmm..... As a trend-follower, I have this as one of the more difficult pairs to trade right now - that is, for me to trade right now as its not in a trend.

You say its in a support area right now - couldn't that just as easily be a resistance area, and a good place therefore to short from?

In any case, you have gone in with a tight aggressive approach - your long entry is still within the congestion band, so is not at a price that confirms an upward break-out. similarly, your stop is also within the congestion, so doesn't indicate a break downwards.

I will admit to being a lazy trader, but isn't your approach in danger of just trying too hard to make a trade? But maybe I miss something so care to say more about what is your thinking?