Forex trading is my new adventure. I am very new to trading. By new to trading, I mean my husband (Que) just introduced it to me in the last couple weeks. I spent last week, about 3-4 hours a day, reading information about Price Action from the James16 group. I have also spent many hours discussing with Que about money management and risk management. Clearly, following my trades at this point would be silly at best, but that is not the intention of this journal.
One major factor in the learning process is to analyze your successes and failures. This happens to be a very large community whereby many discussions happen in regards to a variety of trading techniques. I hope to use this journal as a way for me, as well as other beginners, to discuss trades and to analyze the reasons for success and failure. Over the course many months, I hope to have gained a lot of knowledge and experience that will help me become a long term investor in Forex. No matter what system one chooses to utilize, there is no substitute for experience and “time behind the wheel” as it were. Honest feedback and analysis is highly appreciated.
I intend to post a short video with my trades as I make them and give my reasoning behind each trade I am making. The following video will then discuss where I am with the previous trades then discuss any new trades that may be made. I will only be trading on the weekly and daily charts from a price action, risk, and money management standpoint; though I may use the 4 hour chart to determine my entry.
I will try to post, at minimum, every weekend as I can look at the weekly close and discuss anything I see from that perspective. I do work a job in retail and my not be able to post a video on the 5 pm EST close of the daily bar as often as I would like, but I will do my best.
My charts are fairly naked as I am attempting to learn to trade on price action and not use a bunch of indicators that tend to lag anyhow. I am starting a fresh demo account for this purpose as the old one was mainly used to learn the MT4 platform in regards to making trades, adding stops and profit lines, limit and stop orders, etc… With hard work, persistence, and some luck I intend to start a live account in 3 months in which I may start a new journal; this is highly dependent on if I am profitable in the demo account.
Below are my general rules and guidelines for my trades:
- Never risk more than 2% of my account on any given trade.
- Never risk more than 5% of my account at any given time (if multiple trades are ongoing).
- Never move a stop loss in the negative direction, only move a stop loss to lock in profit or reduce risk.
- Never utilize more than a 5:1 leverage on trades.
- Always have a plan for every trade prior to entering the trade (S/L, when to move to B/E, target T/P, etc…)
- Only enter a trade base on a clear price action signal (I.e. don’t set a limit order on a pivot zone just because it “feels” like a good idea).
- Keep this journal up to date with all trades for accountability and analysis purposes.
I hope this will be a productive and long lasting thread in which we can all gain something from. If anyone catches me breaking my own rules, feel free to call me out. Though one cannot remove all emotions from a decision (in this case a trade decision), the idea is to remain as objective as possible; that often means listening to other people’s opinions and viewpoints. I should have my first video up by tomorrow to talk about last weeks bars.