JOIN OUR MAILING LIST
Blog


2012-10-30
Trader Sonskyn's Trading Journal


For those who actually take the time to read my trading story, thank you! I hope you can learn something from my mistakes and even my victories.

To start off, I have been trading for more than a year now, but mostly with funny money (demo). I have gone live this year and it has been the ride of my life!!

There was a lot I knew from all the years I had in the industry and finally it started coming together. Don�t let anyone fool you; demo is really just playing as there is no accountability. Trading Live is hard core and very thrilling!

Because I do not have a $5000 plus account I prefer to look at my gains and losses in pips as this is a realistic representation of what to expect when you are trading.

In the last 4 months we have seen gains of over 2000 pips at a run!!! Yes pips, not points! And they were moments of true euphoria; believe me I felt like the BEST trader in the world!

BUT due to greed!!! I tried to make even more and lost more than half the gains�. Yes I am sorry to admit, but man it is difficult to stick to your own rules�

And this is exactly why I am starting this journal. Accountability!

I am following a strategy based on a daily chart setup. The rules are simple:

  1. Only Currency Pairs of which one must be in the strong corner and the other in the weak corner�.
  2. Only when my trend indicator confirms that the daily chart is trending up or down may I even look for entries.
  3. My signals are generated by an Oscillator indicating when the market is overbought or oversold.

Simple and easy, the catch is when you are eager to trade and you are looking at a daily chart the signals can take days to manifest�. So you need to SIT ON YOUR HANDS!

Ok to give you an idea of my current trades and their status�


1. AUDNZD: buy: 18/10/2012 The only rule I adhered to in this trade was the daily trend indicator showed a bullish trend�.:-( now I am stuck in this trade� at the moment it is in a range between my entry and my stop level. So I wait�.

2. USDJPY: buy: 22/10/2012 Here the only rule I broke was my oscillator showed overbought and I still took the trade. Luckily the strength and weakness match is still intact and the oscillator is moving into oversold positions so this trade should still work out fine.

3. NZDJPY: buy: 24/10/2012 All the rules where met in this trade and currently I am 17 pips in profit and all the indicators still look fine so I expect some good returns here, that is if the NZD behaves�

4. USDCAD: buy: 26/10/2012 2 of the three rules where met here, just my oscillator that is still overbought� 33 pips in profit so, SIT ON HANDS�

5. GBPUSD: Sell: 2910/2012 All three rules were in place when I took this trade AND my down trend line is acting as resistance. Not in profit yet, but again I SIT ON HANDS.

6. GBPCHF: sell: 29/10/2012 Now this is a perfect trade if I say so myself!! All my rules where met AND I had a lovely 61.8 Fib retracement to add more confidence. Only 3 pips in the profit but looking good!!

7. EURGBP: buy: 30/10/2012 Another brilliant trade!! As it was confirmed with a trend line as support with a fib retracement on 61.8 exactly on the trend line!! Only snag here was that my daily trend indicator was not in place, but the trend line with the fib retracement overrides it. 2 pips in profit so far�

8. NZDCHF: Sell: 30/10/2012 Two of my three rules were not met here, 1 daily trend indicator and 2 both these currencies are relatively strong but flat at the moment, so anything can happen� But I took this trade because the Trend line is resistance supported by a Fib retracement of 61.8. Price action has a tendency to override my rules� So this could be a disaster, but I really believe in the combination of my oscillator and the trend line on the fib retracement� SIT ON HANDS�

Will check in daily to see what is going on�

 


Back Back to top

Forex Risk Warning