Monday, May 16, 2011

When Not to Trade

I've been sitting at the screens for the last 4 hours and so far I managed to get a few pips. Got it on the twitter feed

Thoughts for this session:

Only consider 15 minute support/resistance candle at key levels 00, 50, 80. The single spikey doji.

Try not to get in too early - this is my biggest problem.

Going to sit it out until London opens. Back to cooking see if that calms down my trigger finger.

Wednesday, May 11, 2011

Super Quick Scalps - EURUSD

14:57hrs London time.

Phew...what a day.

Got stuck in the pre-release of the CAD and US trade balance numbers. EURUSD was in a very tight range. I stopped the trade both times when a big 4 pip M1 candle appeared. Losses were about 10pips and 8 pips.

Got right back into it but with 1 mini-lot each time. After breaking even, EURUSD traded down to 1.4300. 2 quick scalps of 4pips each around the support 1.4300 number closed the gap. So I made my 10pips for the day. Bought against the trend of the day so had to get out really quickly. Hold on for 3 M1 candles. No more.

I wonder if I can do that regularly in congestion areas...50s and 00s. Something to think about.

Tuesday, May 10, 2011

When not to trade...

2:46 am London Time.

EURUSD seems to be range-bound for this Asian and Aussie Session. The Tokyo open didn't budge it very much. I am looking to see that it will have a range of 30 to 40 pips before I get into the market.

Going to try to be strong aka disciplined - and stay out for this session.

Monday, May 09, 2011

Waiting for a Trade Setup

Yesterday, EURUSD created a daily doji. Support at 1.4250.

Looks like it is still trying to go down today.  I will try to wait until it re-test 1.4350 before taking a sell.

This will be hard...I had to force myself away from the 5mins chart so that I wouldn't take a buy trade at 1.4330. I think I am built to trade counter-trend and inexplicably trigger-happy. it was downright painful. I started up my twitter feed to force myself to follow the rules. 

Yesterday was a good day. Hit 25pips on 3 quick trades. All 3 trades were sells (in the direction of the trend)

Definitely trying to work on going with the major trend this whole week.

Here are the rules for the week:
  1. Go with major trend
  2. Confirm support or resistance at 15min chart
  3. Exit at 7 - 1 min candles or when it hits major support/resistance e.g. 80, 00, or 50

Trading Forex and Cooking

You might wonder what forex trading and cooking have in common. Frankly I am not sure except for the fact that since I started cooking, my trading has improved.

I went from cooking once a month to cooking meals about twice or three times a day. I find that after slaving away on a hot meal, my brain and body uses up all the restless energies I normally carry around. And when I see my trade setup, I try harder at checking my rules and then I am take it with less hesistation.

Is my trading account better for it? Yes, up until 3 weeks ago when I blew up all the good work I had done for the last 2 months. I know why....Revenge Trading was the culprit.

Now I am starting back to "10 pips a day". A wonderful strategy from Rob Booker. I love his books, they give light to all the monsters that you find hidden within yourself when you start trading forex. And they give hope that to be successful in trading, you need only work away and accumulate small, very small profits daily.

At 10 pips a day, I managed to triple my mini-account in 3 months. But a week of losses wiped it down back to it's original value.

Trading is hard. Cooking is not as hard...but for some people, it's insurmountable. I am working at both.