SLK Forex Journal

Wednesday, May 13, 2009

13 May 2009

There seems to be a trend line on the M10. If it's broken to the up side, I'll take the buy orders at about 1.5290

13 May 2009

Getting ready to set up today's trade. Let's have a look at the charts.

I set sell orders at 1.5234. Would have used 1.5242 normally, but there was a spike right down to 1.5236 at around 5:40 this morning, so since it's really close to the 1.5241 low at 15:30 bar, I'll just set it at 1.5234 to be safe.

Tuesday, May 12, 2009

Made $290 last night 12 May 2009

Buy order open at about 4 pm, took the first 3 lots. Last lot taken at 50 pips. 50+80+110+50 pips, total $290 made last night.

Monday, May 11, 2009

Secrets of a Successful Forex Trader

They say a wise man learns from his mistakes. A wiser man learns from other people's mistakes. So what have I learnt in these few months of trading? I've learnt a few golden rules.

1. Patience. After losses after losses, you get patience pounded and drilled into your head. Until one day, you no longer feel that you've lost out if you didn't catch that big move.

2. Don't be greedy. It's so much easier trying to achieve a small target than a large one, e.g. taking profit at 20 pips rather than 150 pips. It is doable of course, to achieve large targets, different strategies call for different take profit points. But as a beginner, I feel it's much better to try to catch a small chunk each time. Firstly, even if it's a small chunk out of a big move, it's fine. Some people might have even lost on that same move by being rash. Secondly, if it was a reversal, you've already took profit. You've won while others lost. Thirdly, even when you do lose, it was a small stop-loss.

If you've seen 'The Secret', you would understand the Law of Attraction. They say good thoughts attracts good things, negative thoughts attract negative things. Even if you are constantly thinking about not letting something negative happen, that's exactly what will happen! Because you are thinking about it, you are therefore attracting it. It doesn't matter if you're thinking about something you want or do not want.

So with small targets to achieve, the win-loss ratio will definitely be better than when you try to achieve big targets. You feel good about yourself having so many wins and little small losses. You feel confident when you are trading, and are no longer concerned when a loss happens. You don't think about the losses, you are happy and thankful for the wins. Guess what, that's what you attract. Wins!

P/L as of 11 May 2009

I think you would have gotten the hang of the whole thing by looking at the trades I've put up so far. Now, just rinse and repeat. If you carry on looking at the charts all the way through 11 May 2009, you'll see the trades went like this:

So you see, there will be times where there's a string of losses. That's common in any strategy. That's the very reason why I can't trade big number of mini lots because of the limited account balance. But in time, I get to slowly increase the amount of lots I get to trade due to the increasing size of the account.