I carefully reached my profit goal in Week 4:
|Week #||Pip P/L||Gross P/L||Total # of Trades||Total Winning Trades||Total Losing Trades||Total Even Trades||Avg. Winning pips||Avg. Losing pips|
This week, I profited 61 p. If anyone remembers, my goal when I started Rob Booker training was to make a total of 60 p each week. Trading 1 lot at a time isn't going to allow me to do this for a living but increasing this to 3 or 4 lots will. I personally feel that a lot of people go into trading forex (myself included) with the thought that they need to profit many many pips each week. When I say many pips, I'm thinking over 200 or so pips a week. I hear how many traders not unlike myself profiting over 400 p for a given week which is absolutely possible but you also have to be honest with yourself. Can you consistently make 400 p a week? I don't think it is possible! Imagine the additional pressure you're putting on yourself when you're expecting even 200 p a week. I find that keeping a pip target low and then raising your lot count is a more realistic expectation.
The above trades were all day trades. I do not have any position trades open and really haven't in a long time. My goal is to continue day trading and then find position trades on longer term charts.
Making 61 p isn't easy. I made 18 trades, profiting on exactly half. I was very careful today and hesitated to make a short AUD trade which would have hit my target (30 p had I made the trade) because I was at +51 p and was satisfied with ending the week here. I did see another trade this morning though and took the chance of going long on the USD/CAD. I was still very careful placing a tight stop and only looking to stay in the trade if it went a little my way I got out of the trade quickly for a 10 pip profit bringing my total for the week at +61.
To be totally up front, I really haven't sent Rob Booker email in weeks nor have I been following his "Chart School" all that closely. I've been discretionary trading all week just like last and I don't know if it is a coincidence or not that I have been profitable both weeks. I'm not trying to apply any new techniques but just trying to become more intimate with the techniques and indicators that I already have. I haven't stopped learning or exploring new techniques or indicators but it really is just for exposure and because I feel the need to learn new things regularly.
I'm away until Sunday and will be back then to get ready for next week. I hope everyone caught some good trades this week. Take care.
TIC data was released at 9 this morning and it was less than
forecasted. Net foreign purchases of long-term securities were
$69.8 billion. The forecast was for 80.2B. I thought that
this would have been bearish for the dollar but the dollar took off
after the release. I scratch my head sometimes and wonder why
what I thought would happen didn't. Either way, I don't care
which direction the price goes because I was waiting for a channel
break either up or down.
The dollar did well overnight and my
long USD/CAD position was up about 70 pips during European session
trading. Ahead of the NY session and the TIC report release,
some of the dollar gains were given back this morning. I had
moved up my stop this morning to 1.1143. I entered at
1.098. The USD/CAD actually hit the .250 fibonacci at 1.1175 and
then bounced off. This is where having multiple lots would have
helped. I was watching 3 fibonacci levels:
.250 = 1.1175 .382=1.1280 .500=1.1374
I had entered with 3 lots, I would have placed a stop order at the .250
for the 1st lot and held on to the other 2. This is all in
hindsight but something I thought about when entering this
position. Either way, when the prices started consolidating a bit
this morning, I was stopped out at 1.1143 for a profit of 45
pips. Should I have held on to the position longer? I don't
know. I didn't want to give back all the gains if the dollar
started to get pounded again. I figure I can go long again on a
break above the
I decided to trade the Asian session and shorted the USD/JPY. I was just stopped out at 0 profit/loss.
I shorted the pair on a break of the support trendline and a break of RSI trendline. It was good entry execution. I waited for the price to break the trendline and then waited for the 15 minute candle to close. After I was up 20 pips, I moved my stop to break even at 111.52. My limit was still 111.05, right above a lower support line. The trade was up as much as 28 pips where I typically would have closed the position. Tonight, I wanted to show a little restraint and patience so I waited. The pair never made it back down before stopping me out for a scratch.
Should I have taken the 28 pip profit? Would you have?
OK. I closed out the GBP/USD position with a 1 pip profit for 2 reasons:
- European session is over
- All major currency pairs are consolidating in expectation of US economic reports this morning.
I couldn't set the limit to close out the pair at break-even so I performed it manually. That is why I profited 1 pip.
Good thing I did. The pair moved upwards 20 pips right after I closed it.
I'll regroup and see if any setups emerge during the next couple of hours.
I opened my first "post booker" trade this morning at 4:15 a.m. in the GBP/USD following a break of the lower channel at 1.7849. Since then is has worked itself against me a bit barely stopping my position out. As of 4:42 a.m., my position is still open. Of course it would be nice to come out on top in my first trade since starting 1 on 1 training but we'll have to wait and see.
There are some economic reports coming out of Eurozone and Germany during the current session along with U.S. Consumer Confidence and Existing home sales at 10:00 a.m. EST. I'm off to the gym at 5 a.m. and will try to pick up the US session at 7 a.m. this morning (My routine sounds like Raghee Horner's.) She has stated that she sometimes looks at European session action before going to the gym and then concentrates on the US session. I was going to the gym before all of this so I don't want everyone to think I'm trying to fanatically emulate her behavior though if this is what it took to consistently be profitable, I would do it.
Sticking with my trading system to start the week off has paid off. Dooku generated some realized profits this morning when I closed out 2 positions +$1000. I have since reversed 1 position that Dooku generated after the exit.
Trading with a plan is so much easier than trading without a plan. Where the emotion was so evident before, now it just isn’t as much of a factor. I still don’t know if this trading system is the answer to making a consistent profit but I like the feeling that having a plan gives me.
It's actually Sam Shenker's Trading Corner and it can be found here:
I have exited only 1-lot of a 3-lot position for the first time. Last week I said that I had a bad habit of closing out a position when it went a little bit in my favor and that developing a multi-lot exit strategy may help.
I entered a Long position in the USD/CAD at 1.1360 (3 lots):
My targets were:
T1 – 1.1395
T2 – 1.1425
T3 – 1.1460
My T1 was hit for a 35 pip profit. I heard that it would be best to move your stop up to the entry level which I did at 1.1360. So the worst I can do at this point is make a profit of 35 pips. The best I can do is a profit of 200 pips.
I already feel like this strategy will be good for me. For one, I already have a guaranteed profit. Two, I have the potential to profit 165 more pips without any risk of losing anything except unrealized gains. I really think this will prevent me from micro-managing my positions and
My profit so far this week is $883. I have felt very comfortable with the flow of the market and when I look at the charts, everything just seems to make sense. A big reason for this is because of my reluctance to trade a fade or go against the trend. My trades have been with the trend therefore I’ve been trading the faster time frames. It’s amazing how much easier a trade can start in your favor by simply trading with the trend. Even so, my week has not gone without mistakes.
My biggest mistake is exiting positions too early. I had a short position in the USD/JPY open overnight and through the GDP announcement this morning. Shortly thereafter, I closed it out for a slight profit. Afterwards, the pair declined over 40 pips. The trade was going just fine before I decided to micro-manage it. I must try to curb this bad habit.
This information is already stale but good for those of you who want exposure to Rob Booker’s style.
GBP/USD 1 Hour Chart
Friday, the pair broke below the redline, and created a really nice short trade. Here’s what I would consider now: a short trade on a break below the low of Friday, with a target of EITHER of the blue lines shown below. The lowest blue line is the more aggressive target. One way to handle this is to initiate the position immediately on a break below Friday’s low, then move the stop loss to break even when the pair hits the FIRST blue line below. Then use the lowest blue line as the profit target.