I have a follow-up to the video I posted yesterday. I actually tried to watch my own video this morning and realized just how boring it really is. Wow….
Anyway, the trade that I talk about in the video would have hit its' profit target. In fact, the price just hit R1 exactly and reversed. By the way, these pivot points were obtained from my new site at http://www.allpivotpoints.com. Here is the chart from 9:00 am today. Click the thumbnail for the large view of the chart.
I did not take this trade because I'm still working through this possible system. One thing that I'm not sure about is how long to stay in the trade. I would have entered 1 pip about the pivot point but the price fluctuated above and below the pivot point until this morning when it finally broke upward. At the point it broke upward, was the bearish hidden divergence still valid? I'm not sure.
I'm still working on this one and it's only in its' infancy. It's called D&P which is short for Divergence and Pivot Points. I created a video of a potential trade using this system and it's attached here. I WILL NOT BE TAKING THIS TRADE! THIS IS A BRAIN DUMP ONLY! I find creating a video helps me work through the trade thoroughly. Everyone should do their part to create their own trading system whether you eventually use it or not. It is truly a learning experience.
There was very little movement during both the European and US sessions for the GBP/USD today. There were no economic announcements which may be a big reason. The H-system was still able to grab 21 pips from the market today. Nothing exciting….
I don't know if the so called "professional traders" let a losing trade go to their head but it bothers me because after all I am human.
During the European session this morning, I had a signal to go short. I placed my stop at 1.9008. A little after 4am, my stop at 1.9008 was taken out. The price did not go any higher than 1.9008 and preceded to go back down where it would have hit my profit targets. There is nothing more frustrating than having your stop at exactly the wrong place! If I had placed my stop at 1.9009, I would have profited at least 100 pips. Instead, I lost 87 pips. This is an $1800 swing against me.
Like I said, I'm human and even if I do eventually trade full-time, I don't see how things like this won't ever bother me. I also have a hard time believing those who say that a losing trade never bothers them no matter how professional you are. I'm also not one to dwell on blaming others for my losses. Someone might say, "the broker took my stop out!" This would be something beyond my control so I don't even think about it. If I never wanted to get stopped out then either I shouldn't use stops (not a good idea) or I shouldn't trade. No broker is perfect and I'm not about to blame any unless it is blatantly obvious. It doesn't mean I won't question their tactics but I won't blame them when I lose.
Even though this trade loss is bothering me, I am not going to let it sabotage my trading. I am disciplined enough to not just jump into another trade because I have to make this money back. I think this is more important than anything. If a losing trade is going to bother you, don't let it carry its negativity to your next trade.
So this is really a journal entry because I'm entering it while I'm still a bit frustrated by this loss. This is probably a better time than ever for my feelings on this trade to be recorded.
I'm sitting tight tonight, Sunday because I'm expecting consolidation after the Dollar bearish moves last week. I'm expecting consolidation also on Monday and most of Tuesday until the FOMC interest rate statement on Tuesday at 2:15 p.m. EST. As always, there is no way to tell what might happen the days ahead, so I'll be keeping my eye on 3 currency pairs nevertheless. This weekend, I went through all of my charts and deleted the AUD/USD, USD/CHF, EUR/JPY and USD/CAD. I'm going to stick with trading only 3 pairs, the EUR/USD, USD/JPY, and GBP/USD. I've been trying to maintain 7 currency pairs on 4 different time frames and this is just not wise to do as a beginner. I have to get to know these 3 pairs.
I've been reading around today to see what an interest rate hike or a pause in rate hikes may do to the market on Tuesday and from most everything I've seen, 2 out of 3 scenarios could be dollar bearish:
- FED pauses in rate cycle would equal dollar weakness
- FED raises rates and keeps a hawkish statement could be initially dollar bullish
- FED raises rates and tones down their hawkish statement could equal dollar weakness
I did some manual backtesting this weekend of a couple of systems I've been working on. I'm still learning MQL4 (Metatrader programming language) so I haven't automated my backtesting but hopefully I can close the knowledge gap this week.
I have created a trade journal video for my latest Forex discretionary trade that closed today with a 92 pip profit. If you feel like being bored for a couple of minutes, take a look.
I went with the recommended Forex Engines today and things did not go well. Whether you win or lose during news trades, it usually happens very quickly sometimes in the blink of an eye.
I decided to document 1 of the things I'm looking at for next week in a Narrated Audio/Video. Click [Read More] to see and hear it.
Here is my +30 pip trade this morning. Don't forget that I also had a -30 pip trade using the exact same logic but with the Yen.
Click [Read More] to see video.