Two weeks forwards testing under my belt. I’ve already updated my journal proforma’s at the start of this week and now I need to do it again, to log down exactly what I want. I also was reminded by the nobrainertrades website to print off each trade chart and use to make notes and appraise the trade. I’m entering lots of trades, many more than normal, just so I get results that I can analyse. This is not over trading because thankfully this week I’ve calmed down and am not interested in whether I’m profitable on not.
One of the main things that has come out for now, ( this might change with more results), is that I need quite a decisive reaction at my levels or I need to kill the trade quickly. My trading chart is the 1 hour, but I also print off the 5 min to see what occurs after entry. Anything that hangs around going sideways, especially using my resistance as support or vice versa appears to have a good chance of going against me. I will see if this continues to happen. I see that if my stop has been tucked in behind a level including a round number, I have a good chance of getting out for break even at some stage after an hour has passed, that is unless the move has quickly spiked down to my level and quickly looks like the support changes to resistance and the move is bouncing around with energy, then I must get out for a small loss. All in all, this part is about cutting my losses off quickly.Overnight limit orders with big announcements pending are also a no-no, as is trading around the NFP. With stop losses in the 25-28 pip range, an ROI of 3 to 1 is minimum, with a max around 5 to 1, dependent on levels in the way of the trade, this is the, ”letting your trades run,” part .
Anyway I’m going to continue entering trades, even if they don’t look the best, letting either my stops get hit or my take profits, just to get a bigger sample before I start to to write up any plan. One little set back. I bought another system, derr, from Rob Booker for £16.65. What was I thinking! I’ve dumped it in a file somewhere. I could ask him for my money back, but it’s a lesson best learnt with cash. I need to keep focused on what I am doing. Period!
I’m out of here.