Newbie Spread Traders Journal

danboi8989

Member
63 2
Thanks Aspiring Trader very useful!

I've pretty much spent most of today studying this video and many others like it.. My morning thoughts on the UK market where bearish again... I've placed 2 trades that are currently still open along with the Facebook trade from 2 days ago that's still hovering around break even.

1st trade - FTSE100 - 1 pound a point SHORT from 5791 at 9.03am... i took the trade because my views on the UK market are very bearish for the time being and also it fitted in nicely with my trend following system. Price had previously rebounded off the 50 day MA.

2nd trade - GBP USD - £2 a point - Over all trend looked positive on the LONG side. Price had been consolidating for a while (1 hour time frame). I took the trend when the price hit the bottom of the rectangle it had been consolidating in using the 15 minute time frame. Here i am hoping for at least a bounce to the upper end of the rectangle if not break through it for longer term gains When price hits the top of the rectangle i will sell half the position for a small profit to cover any losses that may occur if price rebounds and breaks to the downside.
 

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danboi8989

Member
63 2
Ok so i got out of the GBP USD trade at a very small profit. This is because i spotted something using Fibonnaci on the daily time frame. The price had just hit the 61.8 retracement and bearish signals from the stochastic being over bought also signaled a possible reversal. As most know signals on larger time frames are more significant than signals on smaller time frames. So basically the signals given from the daily were likely to effect what happened on the hourly time frame. Even if it did look bullish. NOTE: Make sure to check larger time frames before entering a trade. School boy error
 

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danboi8989

Member
63 2
My feelings again today are bearish for the FTSE100... Daily there is still room for downwards movement before hitting any support and the 4h and 1h time frames just show downwards trend continuing. My FTSE100 index trade was 25 points in my favor this morning so i am going to set my stop loss to zero. Just to make sure my gains don't turn into a loss. Facebook does not seem to be moving and is till hovering around break even on its close last night. I need to perhaps review this chart in case of any support i have missed on the larger time frames that could cause me problems.
 

danboi8989

Member
63 2
Stopped out of the FTSE trade at break even. Maybe i should not have tampered with the stop mid trade or i need to learn more about placing stops. Anyway more learning over the bank holiday weekend and go again Tuesday
 

danboi8989

Member
63 2
Back to Trading after the bank holiday weekend! Bearish outlook for the FTSE100 again but its trying to find a good entry point that's the problem. The only thing i can see from the 15min time frame is a bit of channel forming downwards where price action is bouncing from top to bottom. Maybe i will try to find an entry based on this today, to go for a SHORT trade.

My facebook trade us currently 37 points up. I will not tamper with the stop loss unless it reaches at least 100 points profit.

Bit dry today in picking trades, think im going to have to just go away read up on some stuff n come back to these later (keeping an eye on the potential ftse trade of course)
 

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danboi8989

Member
63 2
Today i entered short again on the FTSE 100 from 5771.8 at 10.33am... the trade is current around break even however today it was more than 20 points in profit at one point. i am trying this time not to tamper with my stop loss and hopefully let my gains peak and trough down to my target price. (2:1)... i have set a limit order at 60 pips profit as this will be 3:1 risk reward ratio.

Facebook is still the same consolidating hovering between break even and maximum 30 pips profit. however i want much more from this trade. must hold on
 

p-lab

Active member
189 12
good luck with your trades danboi....

Yes Dee agreed. Correct me if I am wrong but this your first week live yes? and you are giving up a lot of detail and reasoning which is excellent for the journal, very good.

2 comments
Your setups seem to be very busy - a mix of MA's, indicators, S/R, daily bias, throw in the odd Fib etc - if it works great just seems a little much to me

Are you position sizing your risk?. Your stake sizes seem quite random and by your last few posts a hit of expectation of a 2/1 3/1 RR as a market given if you know what I am suggesting. The internet is awash with 2/1 minimum etc - it doesn't mean the market owes you it.

Anyway just comments and by no means criticism. Good luck fella
 

danboi8989

Member
63 2
Yes Dee agreed. Correct me if I am wrong but this your first week live yes? and you are giving up a lot of detail and reasoning which is excellent for the journal, very good.

2 comments
Your setups seem to be very busy - a mix of MA's, indicators, S/R, daily bias, throw in the odd Fib etc - if it works great just seems a little much to me

Are you position sizing your risk?. Your stake sizes seem quite random and by your last few posts a hit of expectation of a 2/1 3/1 RR as a market given if you know what I am suggesting. The internet is awash with 2/1 minimum etc - it doesn't mean the market owes you it.

Anyway just comments and by no means criticism. Good luck fella

Yes i spotted the problem with my random staking yesterday i learned all about this a year or so ago but completely forgot. I will implement something consistent as of now. With regards to the set ups this is just what i have been taught from certain DVD courses i have watched and picked on what i think are the best tools to use. If you have any other suggestions to help keep things simpler i would love to hear them. Target prices exit point and risk reward ratios is something i am still not completely sure of but I'm getting their slowly thanks to youtube lol. I'm only 23 soon to become a full time business economics student at University, so theres plenty of time to perfect my trading as i would like to do this for a living. Anyway thanks for everyone's comments and any feedback critical or not would be much appreciated. Thanks
 

danboi8989

Member
63 2
Last night the US market closed and my Facebook trade was 40 pips in profit. This is an improvement from its recent consolidation and hopefully this is the beginning of a new down trend (no offence Mark Zuckerberg).

The FTSE100 trade i entered last night is currently around 30 pips in profit with the market open. I will not tamper with the stop on this one as i have spotted something promising on the weekly chart. It seems as if price has hit a major resistance trend line and is looking to reverse. This hopefully will add downward pressure to help my trade on its way to success. Also the stochastic has just crossed over at over bought and indicates possible downside potential.

Today i wanted to try trading the smaller time frames like the 15m. I read all the time that this is just noise and basically it seems frowned upon but i always seem to notice a lot of good set ups when browsing and it would mean not leaving trades open for days and days, and also much tighter stop losses. Just something i am going to look into. If anyone has an opinion please feel free to post.
 

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danboi8989

Member
63 2
FTSE100 Trade is around 53 points in profit now. I am going to set my stop loss now to 40 pips profit that was no matter what i have acheived my 2:1 ratio... but i have taken off my limit order of 3:1 because i think there still may be a chance for further downside. I will monitor this closely

NOTE: Make sure my stakes and potential reward is the same for all trades. Had i have risked as much on this trade as my other losing trades i would of made up for 2 of the losses at least. But only risked the same as them.

I did show the graph of the weekly chart looking like it was going to drop but i am not comfortable trading these time frames as stops have to be placed much further away risking more. This was only to show which general direction the market is weighing on. And added proof that movement to the downside is likely
 

danboi8989

Member
63 2
Just entered a LONG trade £3 a point in Gold based on the 15m time frame hitting a support zone and the stochastic nearly oversold. I did not wait for complete confirmation of a turnaround but this trade as i wanted to try a new tactic to get me in at the best price, before everyone else. The daily is also showing an uptrend so that is on my side also. My stop loss is placed around 1650 at about 120 points loss staking the same as my 1st trades. I will keep staking around this much from now on throughout my trades to remain consistent. Anyone correct me if I'm wrong but it is also to my knowledge that as UK economy falls the price of Gold rises???

My target price is 1662 (a resistance point close to my 2:1 ratio) based on the 15m time frame
 

timsk

Legendary member
7,601 2,376
Hi danboi8989,
Please tell me you're trading a demo account and not real money! If by chance you are trading real money, I suggest you stop immediately before you lose it all. As an absolute bear minimum, if you must use real money, find a broker that lets you trade pence rather than pounds.

Essentially, I fear you're trying to run before you can walk. Sure, we all have to start somewhere and you're just finding your way - nothing wrong in that - so long as it's with funny money! At the moment, you're all over the place, trading different instruments - FX, commodities and stocks - in different timeframes. Would Usain Bolt be an olympic champion if he ran the 100m one day, the 5,000m the next, then tried his hand at field events like the discus and long jump before returning to the sprint track? No sir - he would not! Everything he does is focused to make him as fast as he can be over 100 and 200 metres.

Experimentation is good and worthwhile, but it needs to be backed with clear focus. So, if you're wanting to continue as you are, (on demo only!) then make a note of what you like or dislike about the different markets and timeframes. There are just so many possibilities and options available - the problem we all face is to strip away the ones that don't work for us so we're left with a simple set of tools and techniques that harness our trading strengths and minimises our exposure to our trading weaknesses. Imagine you're like Michelangelo chipping away at a lump of stone to reveal the statue of David. Okay, a bit flowery I know, but you get the idea, hopefully. Going back to the analogy with Mr. Bolt, he may have tried all kinds of different events when he was younger, before concluding that what he liked best and excelled at was sprinting.

I hope all that makes some sort of sense. As to where to start, take a look at the links in my signature.
Enjoy!
Tim.
 
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danboi8989

Member
63 2
Hi danboi8989,
Please tell me you're trading a demo account and not real money! If by chance you are trading real money, I suggest you stop immediately before you lose it all. As an absolute bear minimum, if you must use real money, find a broker that lets you trade pence rather than pounds.

Essentially, I fear you're trying to run before you can walk. Sure, we all have to start somewhere and you're just finding your way - nothing wrong in that - so long as it's with funny money! At the moment, you're all over the place, trading different instruments - FX, commodities and stocks - in different timeframes. Would Usain Bolt be an olympic champion if he ran the 100m one day, the 5,000m the next, then tried his hand at field events like the discus and long jump before returning to the sprint track? No sir - he would not! Everything he does is focused to make him as fast as he can be over 100 and 200 metres.

Experimentation is good and worthwhile, but it needs to be backed with clear focus. So, if you're wanting to continue as you are, (on demo only!) then make a note of what you like or dislike about the different markets and timeframes. There are just so many possibilities and options available - the problem we all face is to strip away the ones that don't work for us so we're left with a simple set of tools and techniques that harness our trading strengths and minimises our exposure to our trading weaknesses. Imagine you're like Michelangelo chipping away at a lump of stone to reveal the statue of David. Okay, a bit flowery I know, but you get the idea, hopefully. Going back to the analogy with Mr. Bolt, he may have tried all kinds of different events when he was younger, before concluding that what he liked best and excelled at was sprinting.

I hope all that makes some sort of sense. As to where to start, take a look at the links in my signature.
Enjoy!
Tim.

Erm... Thanks for the advice, but if you read my 1st posts you'l see that i am using demo money and its clear i am experimenting to see what is good for me... I agree with everything your saying and that's what I'm trying to do. If you have any ideas on how i can cut this learning curve they will also be greatly appreciated...

P.S I read an interview once about a very successful technical analyst who would trade anything from FX to Indeces Stocks etc... It was just a chart to him... I cannot remember the name of him unfortunately but its true.
 

danboi8989

Member
63 2
Days Trades Summary

Facebook - Still open market closed with it 43 pips in profit
FTSE 100 - Stopped out 40 pips in profit... good trade, hit my target... shame about my staking being abit random
Gold - Still open hovering around 20 pips in profit
 
 
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