Trading Journal #11: A reflection after getting stopped out
This trading journal is composed of three parts:
- the trades I have made in a particular day (either win or lose)
- the lessons I learned
- the things I can do to improve my strategy
Important Notes:
- I update the zones of my tradingview charts every morning.
- I make daily zones (green boxes) and 1h zones (blue boxes).
- I am a scalp to swing trader. I often look at the following timeframes: 15m, 1H, 4H, 1D.
- I only observe/trade two Forex pairs: GBPAUD (British Pound vs Australian Dollar) and XAUUSD (Gold vs US Dollar).
- I journal both my losing and winning trades.
- I don’t claim myself as a guru. I am still working on refining my strategy. Thus, whatever you read here shouldn’t be taken as a piece of financial advice.
The trade I am posting right now is the trade I did the other day. I did not take any trades after it since I am still reflecting on this particular trade.
My Forex Trading Journal for August 1, 2019
XAUUSD (Gold vs US Dollar)
| TRADE EXECUTION | EXECUTION INSIGHTS | HOW TO IMPROVE / LESSONS LEARNED |
| Entered LONG(BUY) | I placed two buy orders for XAUUSD and set the target prices as two different resistance levels. The bad thing though is my stop-loss level was too tight and the price hit my SL just before bouncing up! I could have made another set of orders but when I looked at the chart, it is already too late. | My fault in this trade is pretty obvious. I set my SL too tight. I should have set it below the daily zone (green box), but I didn't. Haysss This serves a huge lesson for me. I should always put my SL at the back of the zones or set it at prices that could invalidate my trade bias. |
This should have been a good trade that could give me good gains, but because I was too scared to lose (setting the stop-loss too tight), I incurred losses instead. Still, this is one of those bad trades that is worth reflecting. I am fully accepting the consequences of what I did wrong and will apply the lessons in my future trades.
Note: A zone is a premium price area in which no one wants to give up the price. Zones usually serve as strong areas of support and resistance. Therefore, the price is expected to move from one zone to another.
PS: The reasons why I am having this online journal can be found here:
Officially Documenting My Trading Journal Online
Posted from my blog with SteemPress : [https://pinayteenvestor.com]