Hey AspiringTrader, good going at the journal. A quick question, what is your time frame for trading? You have posted charts which are Daily, 4H and 1H. How do you make your decisions when to get in and out of the trade? How much to risk etc?
Please take into account that these are my opinions, take it as you like.
Well i look at time frames from 1H, 4H 1D and even 1W.
Its good to have an entire view of what's happening and what has happened. For example, if you look on the weekly chart on EUR/USD and zoom out you will see massive triangle formation and that current price is sitting right on the resistance line from the previous two highs.
D1 gives action of the days performance and can be a indicator of a move especially with big pin bar reversals setups, engulfing bars etc on support and resistance lvls, i think it also gives greater weight to the likely hood of a move because it allows time for the market to digest things before closing of each candle assuming there's a setup.
I like to pick my short term setups on at least the 4H because it has been at least 4 hours in the making before i enter, just gives me a little more confidence and I'm less likely not to jump the gun too early and have the trade immediately reverse and stop me out then reversing back then hitting my target area. So basically it enforces patience which can produce better timed entries.
Though i sometimes use 1H for entry after i pick the setup. or if I'm looking for a continuation after a short pull back i will enter on 1H candles etc
So it all depends of the setup to what time frames i post, but i am always looking at all of them though my trading style remains the same, ie i usually only hold trades for intraday to week at most.. i like to play channels and breakouts
risk..2-3% per trade. always look for at least 1:1 risk vs reward etc..
How do i get in? well i always have my charts mapped out, i look for areas of interest, then a setup up, if price continues past my setup candle i will enter the trade, usually with at least some fundamental aspect behind it.
exits.. well I'm still refining that aspect, usually any support/resistance area i identify as a potential turning point, though some of may past few trades have not reflected that and i missed out on some profit.
its all a head game with exits which i need to work better with. Its easy to say, limit order and set and forget, but then to see price miss your target by a few points then stop you out.
Advice,
Always have a stop and stick to it when price is not in your favour, unless its moved some what in your favour and can move to break even.
enter on highest probability trades, ie areas of interest, set up in place and well timed entry with fundamental aspects giving extra weight to your decision
Look at all time frames, keep up to date with news and data releases
Come up with a trading plan for your own strategies, risk management etc.
Watch the charts as much as you can
read as much as you can about trading psychology and try and limit the emotional aspect.
Learn fundamentals and what impacts the market, learn as much as you can with techincals and combine the two.
Place stops well, ie above last high of the the area of interest, below the the last low etc.. gives the trade some space to move and if it does stop you out the trade will move against you thus it limits your loss while give the trade space to move before it hopefully goes in the direction you want it too. HOWEVER, you must ensure your r/r is at least one to one with your stop placement, if your stop is greater than your target, dont take the trade and definietley dont compromise your positioned stop just to bring your Risk/Reward to 1:1
Never stop learning!!!
Anyway, i still have a lot to learn myself.
Hope that helps
Once again, i am not proven succesful so take it with a grain of salt
