Forex Trading Journal, May 24 2017
I will start sharing my Forex trading journal today. I am going to post every trade I make, and all results that followed. I will try my best to post every day. The purpose is to share will others my thought process.
New Trades Today
1. GBP/AUD
This is the daily price chart at 1415 (UTC+8). I enter the trade this morning, not long after the start of the new trading day (around 0500 UTC+8). So the signal that I am looking at was the second last bar. From the daily price chart, the trend is heading up, and pullback to level near 1.733 last week. Price bounced back but failed at first attempt. Then pullback again these few days and break the support level (1.733), but then the bar closed at that level. This type of false break is one of my favorite entry signals. I entered a long position at 1.73282, with stop loss (SL) at 1.72370 and profit target (TP) 1.75615. Risk and reward ratio is about 1:2.6.
2. AUD/USD
Support and resistance level is not a firm line. It is a zone. For this currency pair, the resistance zone is somewhere near 0.749. Price trending down and pullback to the resistance zone, so I waited for an entry signal. A long pin bar is always a good signal. I entered the trade with SL just above the high of pinbar, and TP near the previous swing low. This is a text-book setup.
3. USD/CAD
Nothing special with this pair. 1.35269 is a resistance-turn-support zone. Price come to that level and form a pinbar. I took that as entry signal to go long.
My open positon on May 24 2017
| pairs | positon | entry price | stop loss | take profit | risk reward ratio |
|---|---|---|---|---|---|
| GBP/AUD | long | 1.73282 | 1.72370 | 1.75615 | 1:2.6 |
| AUD/USD | short | 0.74817 | 0.75267 | 0.73515 | 1:2.89 |
| USD/CAD | long | 1.35139 | 1.34441 | 1.37168 | 1:2.9 |
Some notes on my trading plan
Usually, I only enter a trade with risk reward ratio better than 1:2, that means I only need 30% of success rate to be profitable.
I adjusted all my position size so that the maximum risk of every trade remain the same, and I call this value R.
I love price action analysis. I perform my trade on the daily timeframe. The only indicator that I use is EMA(8) and EMA(21), and they are only for reference. Resistance and support zones matter.
And lastly, most of my trading skills and knowledge I learnt them from learntotradethemarket.
This is my first post on this category. I will continue posting and will assign the #ygernforex tag to every trading journals I write in the future. So you may click on this tag to have all my journals. Thank you for reading.