"That's why I am here."
"Well, it's not easy."
I couldn't agree with him entirely, but I nodded. "I know."
... Rob Booker: Adventures of a Currency Trader: A Fable about Trading, Courage, and Doing the Right Thing (Wiley Trading)
I may or may not be getting back my trading groove.
I am trying very hard to make this a proper routine.
So every day at the same time, I have to park myself in front of my computer.
Look at the charts, make notes and plan.
Yes, it is supposed to be as boring as that..
I really do like making notes on my charts. It feels like an achievement after I finish working on them.
What I don't like to do is wait....
But I do like winning - so "waiting" is something I will have to do.
Here's this morning's chart:
EURUSD Multi-timeframe
Yes, I am practising my Zen Trader - I will wait for a trade to come to me - mantra.
Some points to note, for a very very long time, I have not been able to see divergence on my charts. Seriously. I have been reading at it and trying to look at in the charts. But I really have not been able to see it. You know that feeling.... everybody else seems to be able to see it on the charts, except me.
Every time when I sit in on a webinar and they talk about divergence - I don't see it. I plot the indicators on the charts and I still don't see it. I read about it in a book and they have charts on divergence, yet I still can't see it.
Well, while working on the charts today, my brain-fog on divergence must have started to clear. I was able to spot a divergence between stochastics and the price. I think it started last night and I used it to enter a short trade which worked nicely.
EURUSD 1M 9JAN2012 - Last trade for the day
Here's yesterday's trade on 1M charts. I entered short on a typical $EURUSD support/resistance move.
In hindsight I may have been over-trading. It was my seventh trade for the day.
The day went like this: 1 Loss, 1 Win, 4 Losses, 1 Win.
The chart shows the last trade. Those quick 12pips brought me back to break-even for the day. It was interesting trade but I did want to exit exit quickly because I was going counter-trend. And I did notice the stochastics divergence - just before I entered the trade. It helped me make a quicker entry decision.
Maybe I am evolving - just like this Pokemon - Bulbasaur.
Yes, it is amazing the amount of strange knowledge you can pick up while trying to engage a 10 year old boy.
Back to trading, maybe in this latest evolution as a trader-to-be, I have been equipped with new powers of observation. Note I didn't say "new powers of trading". Should be fun, let's see where this takes us!
Ooops, just noticed that I did not plan for a long entry. I am not sure I want to go long today. I can't see any entry now. I will go back and have a look at the H1 charts and see if there is are any entries.
In the last hour or so $EURUSD has not moved. If the signal for the short entry above does not happen in another hour, which is around 3am or 4 am GMT (or MT4 time). I will most likely not look to enter into any trades until after London session starts.
Happy Trading!