EURUSD Helps Me Crack $30k!! :D

2014-02-13_03.02.41

Results: (Link to myfxbook – http://bit.ly/cazfxbook)
Today 2/13: 1 Trades, 1W – 0L, 100% win rate, +14.8 pips, +1.00%
Week 7: 2 Trades, 2W – 0L, 100% win rate, +28.8 pips, +1.96%
FEB ’14: 8 Trades, 6W – 2L, 75% win rate, +64.1 pips, +4.42%
Total: 106 Days, 362 Trades, 271W – 91L, 74.9% win rate, +2378.0 pips, +77.76%

2014-02-13_03.02.00

*** Make sure to read the bold paragraph at the bottom!!

Alright… a few things here. It’s hard to see from the chart, but the EURUSD has an average true range (ATR) of about 77 pips and with the help of some news it had been boosted up to 79 pips early in the session which was one of the contributing factors to this trade. It was also a pretty strong price level of previous resistance that I felt would be compounded by the rally into the ATR. I was able to be patient and wait for this level because I went back to my old friend the price alert on my trading platform.

Overall I’m very happy with this trade. I had pretty much an ideal entry and my exit was okay… in the chart it looks like an amazing exit… but in the elusive world of hindsight the price continued to move another 7 pips lower. Eh… I got the lions share of a minor move in just a smidgen over an hour… Which ultimately means I’m ecstatic.

Two days in a row I got pretty fantastic entries and patience is 100% to blame. I’m going to bed happy with myself and my trading AND… my account broke into the $30k range all official like!! HUGE HUGE milestone. Tomorrow is a new day, so I will enjoy it while I have it. Until then.

One other note… Price alerts!!! I have no idea why I stopped trading with them… This is actually really important and should probably be bolded… hang on…  Okay, that is much better. In fact I’m going to notate the top of this entry to make sure I read this paragraph… One sec.  Alright… SO… I have been struggling pretty bad recently with my 3 month nightmare trade and the whole getting-beat-up-during-all-of-January-and-most-of-February thing and I’ve been wondering why I can’t trade as well as I did when I first started a year ago… What has changed? Why am I struggling so much where before I seemed to be cruising?

I can’t say it’s all because I’ve been trading without alerts, but I do remember when I used to trade with them and how I considered it to be STOOPID effective. I even have a couple blogs entries posted on exactly those thoughts and feelings (I think). Now… it could be nothing more than coincidence that I have been going though a tough time, but it could also just be that PRICE ALERTS ARE VERY HELPFUL YOU JACK-HOLE!! “YOU” meaning “ME” btw… 

So here is what I have been doing… that I did way back when I was a just a kid cutting my teeth on the trading shindig … I go over each currency that I track, and while taking into consideration the ATR, I select levels of support and resistance that seem to be likely areas of rejection and then I set a price alert at those levels. Rinse and repeat on all the currencies… then… I stop looking at the charts and watch “Big Bang Theory” or play a video game or just doze. If the price alert GONG goes off… I know I’m at an interesting price level and can monitor… If it doesn’t… then I go to sleep and more than likely get woken up and have no idea where I am when said GONG goes off.

The point is… it’s built in patience… and in a game where patience is not only valuable, but MANDATORY… it should go without saying that manufactured patience as awesome the cool side of the pillow! Coupled with my new found rule of closing EVERY (almost) trade -20 pips without exception (except when I don’t)…and my earned insight into price action from 1000′s of hours of watching candles being created out of thin air… I should have a much stronger selection of trading opportunities that are exactly that… opportunities, and not forced observations and conjecture that fits a paradigm I create just because I’m antsy and want to put a trade on. BAH!! So dumb…

Anyway… long way to say that it’s time to get back to the old school tactics… Whether it’s just coincidence or not… I got 14.8 pips tonight pretty handily… and alerts can easily be the difference.

Last note… I was also prepared to close my trade for break even if it came back at me. I was like that on the last session too… I really like the idea of NEVER letting a winning trade go negative…. ever. It will be hard I’m sure, but I think it’s one of those “never trade without it” kinda rules.

OKAY!! Good post… good session… good perspective and insight… good night!

Small AUDUSD Short – First Easy Trade Of 2014!!

2014-02-12_03.02.59

Results: (Link to myfxbook – http://bit.ly/cazfxbook)
Today 2/12: 1 Trades, 1W – 0L, 100% win rate, +14.0 pips, +0.95%
Week 7: 1 Trades, 1W – 0L, 100% win rate, +14.0 pips, +0.95%
FEB ’14: 1 Trades, 5W – 2L, 71% win rate, +49.3 pips, +3.39%
Total: 105 Days, 361 Trades, 270W – 91L, 74.8% win rate, +2363.2 pips, +76.01%

2014-02-12_03.02.12

Who cares how many pips I left on the downside here. I made my 10+ pips for the day and I’m stoked by that. I needed a relatively easy trade and I finally got it. Tonight was a total success in every single way.

TO BED!!! :D

My Miracles Are Cashing Pips My Brain Can’t Handle

2014-02-07_05.02.27

Simply put… I am one lucky SOB. I’ve been riding the coat tails of luck beyond luck for a really really long time. Tonight has to be one of the most biggestestEST luckbox nights I’ve ever had.

Alright… so earlier this evening I thought… You know what… I’m going to try to do a break out trade. Usually when something gets moving it keeps moving, right? Right!!

I watched my old friend the USDJPY start to plow downward and I waited the perfectly prudent amount of time to make sure it was a legit move down and not some silly fake out. Right when I felt uber confident that it was going to keep cratering to the center of the earth… I sold it. And at that exact moment… the market thanked me for my money and immediately reversed and left me with my worst entry since that time way back when I accidentally sold when I meant to buy and it was the most sweetest entry I’ve still yet make to this day. Yeah… this entry tonight was probably WORSE than my all time worst entry.

Anyway… Immediately I’m down 12 pips… and then the games start. It is just a menagerie of mind games and flicks of the price to and fro… for me .. against me… for me … against me… see-sawing my brain down to a nub of emotionless putrification.

Then I realized… Non farm payrolls are coming out at 5:30am :(

This stupid trade worked itself from 0 pips… all the way to -20 pips… back to 0 pips.. back to -20… -25… -10… -25… -30… -40… ALLLLL the way right up to 5:30am … at it’s worst… I was down -50 pips. I didn’t see it though because my heart was beating through my eyeballs.

Anyway… it sounds a bit over dramatic… but the truth is, I haven’t been more afraid of the market then I was tonight.

Immediately the trade dropped 100 pips in my favor. I snatched up a 32 pip victory and remembered that I forgot to breathe for quite some time.

I came out of this horrible horrible trade… yet again. I really should learn to be a good trader at some point.

Oh yeah… My account balance just reached it’s highest point ever as of tonight. Yay! :D

Now to deep slumber. Gnight.

USDJPY Playing Mean Nasty Games With Me

2014-02-07_05.02.43

This one was just mean… Downright… plain ole fashioned, mean. Earlier in the day I made a quick 2 or 3 pip trade in a tight range which … who cares? The real story was in the evening when I decided to go long on the USDJPY after watching it for hours and hours and hours respect a nice little uptrend. I waited… and waited… and patiently watched and stalked the price till it got to the exact price that I wanted and bought it. Within minutes… I believe it was 9 minutes from start to finish in fact, I was down over 20 pips and closed the position. I was PRETTY PISSED at the market for that one… and decided to do what anyone would do who has had their last straw of a market picking on them. I sold it immediately in the breakout direction.

This was a knee jerk reaction from a long string of trades that had been beating up on me. I remember seeing 12 pips for about 2 seconds… and then just watched as those little pips melted away into nothingness… My break even was breached almost immediately… and then I watched the sadistic market swiftly ascend to challenge me FIRST FREAKING BUY ORDER!!! It handily strolled right past it and start to climb higher and higher.

I broke my rule … yes… again. And watched as I went past 20 pips in debt… to 25… to 30… to 40… finally I said “Screw you market” and went to bed. I woke up in the morning to a steadily rising USDJPY. Finally at about -80 pips… I broke my second rule. I averaged my position. I watched as I got -100 pips behind and then miraculously the market started to come back my way.

It took a good 24 hours, but finally… after watching it bounce along my average price. It finally decided to give me a few pips and let me out of the trade. It wasn’t enough to wipe the previous loss out, but it was nice to be flat again.

So… the quick version of this story could easily be written in 2 words. I suck.

Maybe someday I will have a good session… certainly not this time.

I Escaped A Bad Entry … I’m Sleepy

2014-02-03_00.02.11

Results: (Link to myfxbook – http://bit.ly/cazfxbook)
Today 2/3: 1 Trades, 1W – 0L, 100% win rate, +6.4 pips, +0.45%
Week 6: 1 Trades, 1W – 0L, 100% win rate, +6.4 pips, +0.45%
FEB ’14: 1 Trades, 1W – 0L, 100% win rate, +6.4 pips, +0.45%
Total: 100 Days, 355 Trades, 266W – 89L, 74.9% win rate, +2320.3 pips, +70.99%

2014-02-02_23.02.39

I only made the one trade today. It was a pretty poor entry that went against me about 13 pips, but I managed to escape at the exact right time for a small 6 pip profit. The EURUSD ended up turning around right at my exit and after an hour it still hasn’t come back.

I want to trade some more, but I’m feeling pretty tired. There will be plenty of time for trading this month… Here’s to a good February!

EURUSD, EURJPY, USDJPY – win win Win ;)

2014-01-15_01.01.38

Results: (Link to myfxbook – http://bit.ly/cazfxbook)
Today 1/15: 3 Trades, 3W – 0L, 100% win rate, +19.8 pips, +1.35%
Week 3: 7 Trades, 6W – 1L, 86% win rate, +22.5 pips, +1.53%
Jan ’14: 9 Trades, 8W – 1L, 89% win rate, +29.8 pips, +1.56%
Total: 96 Days, 336 Trades, 251W – 85L, 74.7% win rate, +2308.0 pips, +69.73%

2014-01-14_22.01.22 2014-01-14_22.01.56 2014-01-15_01.01.20

I guess I can say that today was a great trading day. I made 3 trades and even made one of them from my phone!! That’s pretty awesome ;)

I’m proud of myself for continuing to make trades fearlessly at this nose-bleed-$20-per-pip-level. It hasn’t proven to be stressful so much as it has been making me excited to trade again. Knowing that there is a set limit to my loss really goes a long way to reminding me that trading is actually very simple: Develop and cultivate an ever-sharper edge in the market and close losing trades. That’s all there is to it.

I’m also proud of myself on my last trade of the day (EURJPY). Even though my entry was about as bad as an entry can get… I still haven’t broken my -20 pip rule or averaging the price of a bad position. I have simply been letting the market do what it is going to do.

When the London market opened and I finally got back into profit on the EURJPY… I must have wanted to secure a profit 1000 times, but I managed to sit on my hands and let the trade mature a bit. As of writing this I’m convinced that there is a lot more to the downside on this trade, but I had already been negative in it for so long that my stamina was gone and I just wanted out.   But despite that I did resist the urge to take profit immediately and got myself another 10 pips or so for my patience.

Now … for what I’m not happy about. That last EURJPY trade really got under my skin and started to make me very emotional. I was angry that the market went against me at the exact moment I put in the trade and I was angry that it toyed with me for practically the entirety of the trade. I really need to learn how to open up space in my mental schedule for a trade to “work” … I know that trading doesn’t happen in straight lines and that it has to breathe and undulate… but despite that knowledge I did lose my cool with this trade.

I am still very new and because of that I give myself some slack on my outbursts and tantrums. But it does make me realize that I’m not any fun to be around when I’m trading and I still have a long way to go when it comes to mastering my emotions.

In the meantime I will continue to work on the basics. Continue to to refine my entries. Continue to build my confidence in allowing a winning trade to play out and continue to hone my intuition about when a trade is no good so I can close bad trades sooner. My hope is that one day I will develop a certain artistic type confidence about my entries and rely on past experience to guide me in letting winners run and closing losers fast.

Alright… I’m DONE… oh.. and as of this moment… yeah… that EURJPY I was short in has gone down another 20 pips.  I’m still happy that I got out when I did…  IT WAS MAKING ME CRAZY!!!!  haha

 

AUDUSD Bites And NZDUSD Toys With Me

 

2014-01-14_00.01.54

Results: (Link to myfxbook – http://bit.ly/cazfxbook)
Today 1/14: 2 Trades, 1W – 1L, 50% win rate, -3.0 pips, -0.21%
Week 3: 4 Trades, 3W – 1L, 75% win rate, +2.7 pips, +0.18%
Jan ’14: 6 Trades, 5W – 1L, 83% win rate, +10.0 pips, +0.20%
Total: 95 Days, 333 Trades, 248W – 85L, 74.6% win rate, +2288.2 pips, +67.47%

2014-01-14_00.01.09 2014-01-14_00.01.32

Today was a really good trading day. I started the day losing 20 pips on the AUDUSD. It stung just like I would expect it to, but I took the loss and accepted it. I felt good about it. I stuck to my new rule. I believe I could have closed it sooner, but it was still a good exercise.

The next trade I made was on the NZDUSD. This little fella took me for a ride… came all the way down to -19 pips… just a few pips shy of my stop loss and then bounced and slowly made it’s way to +9 pips… then within 30 minutes dropped back down to -13 pips… and bounced again. I could have made another 8 or so pips had I just hung in there for another 10 minutes, but I looked at this day as a really good success despite the small loss and I was happy to be near break even.

This is a much more civilized way of trading… now it’s just time to get better at entries and to become more disciplined at sitting on my hands when I am in a winning trade and become increasingly intolerant of losing trades.

I’m Back… And It’s Time To Lay Down The LAWS!

Results: (Link to myfxbook – http://bit.ly/cazfxbook)
Today 1/13: 2 Trades, 2W – 0L, 100% win rate, +5.7 pips, +0.39%
Week 3: 2 Trades, 2W – 0L, 100% win rate, +5.7 pips, +0.39%
Jan ’14: 4 Trades, 4W – 0L, 100% win rate, +13.0 pips, +0.42%
Total: 94 Days, 331 Trades, 247W – 84L, 74.6% win rate, +2291.2 pips, +67.83%

2014-01-13_05.01.56

 

Okay… I have had about a month and half to think since my 3 month nightmare trading session. I learned a lot of things in that grueling horrific experience, but the biggest thing I learned is that if I can’t manage to take a loss gracefully then I have no business trading at all.

So this is what I have been wresting with during my hiatus. How do I continue to keep trading while avoiding such catastrophic disasters? How do I train myself to take a loss and keep moving forward? How do I cut the pride and ego out of the equation and get back to the focus of learning and making money?

I didn’t have an answer to these questions right away… so I didn’t attempt to make any live trades (actually I made a couple, just to prove to myself that I still could). I did however make some demo trades and managed to pull a small losing account back into profitability, but it had more to do with pure luck than really anything to do with skill or technique. Either way… I have been going through the trading “motions”, even if there hasn’t been any emotional investment.

But I’m back, right? I made some trades tonight… What the heck have I decided to do with this new found experience under my belt?

At first I was convinced that I needed to dial it all back and go back to basics… Trade like I did in the first weeks I was learning. Bring my $/pip down to $1 or less maybe… then ramp back up to the $6/pip I’ve been trading at. This seemed like a logical approach to getting back on the horse after I had been run ragged. But rather than just jump back in with this as the game-plan I really though hard about it… and finally decided that going back to square one would just run me in to the same pitfall I miraculously managed to escape in the first place. No… the answer was not to lower my investment per pip… the answer was to increase it!

I’m now trading at what could be considered a ridiculous amount of money per pip… $20 dollars. That’s right… $20/pip is what I’m now trading.

This at first may seem reckless given that my last trades proved that I don’t have the basic and most fundamental ability to accept a loss in the first place, but the truth is… I have to make taking a loss a LAW.

As of now… stop losses have been very subjective. I’ve flirted with averaging my price and moving my stop losses away to give the trades enough room to “breathe”, but what I have really been doing is slowly raising the temperature of the water in a pot I’m unconsciously boiling myself in. Inching out the rope until all of a sudden I’ve got a noose around my neck and I’m swinging in the wind with a surprised expression on my face. The fact that I have no conviction about a stop loss is and has been my single biggest leak, next to impatience. So that’s what I need to fix.

Twenty dollars per pip is a huge amount of money to be trading, but my intention is to limit my risk to a maximum of 20-25 pips. With stops in the 20-25 pip range I’m limiting $ losses to $400-500 which is within the 1-2% acceptable loss I read about all the time.

I’ve always felt that when a trade moves past 13, 14, 15, 18, 20 pips… that I have passed into a new invisible but gut felt price region… I always feel like right around 20 pips I’m on the cusp of make or break. Normally when a trade hit 20 or so pips against me, my first reaction was to consider averaging my price and move my stops down. The $ pain was not so great that I felt I had to take the loss just yet and I convinced myself to manage the trade rather than take the loss and move on. Not to mention that I had long winning streaks that messed with my ego…

Not only did I discover how difficult it was to take a loss, but I also compounded that inability with a prideful egotistical need to keep some artificial streak going. It was all a bad combination and TADA… I get into a situation where I’m hopeless and lost where nothing but a miracle will be able to bail me out.

No more of that… here are my new LAWS. Very simple… very short… very effective.

1. If a trade goes against me -20 pips… I will have my finger on the trigger to exit the trade. If it hits -25 pips… I’m out without debate or excuse of any kind. Feel the sting… analyze my entry and my thought process. Determine what I could have done better and then look for the next trade, hopefully wiser in some way.

2. I will not average my position … ever. Ever. EVER! It’s time to take losses as they come and learn from them… not cover up a bad trade with a brilliantly executed average price. The goal is to become amazing at entries and to take losses in stride, with barely a whimper.

3. Look for buying opportunities in uptrends and selling opportunities in downtrends. No more fighting the trend. It’s all about patience and discipline.

Alright.. there is literally a truckload of stuff that I have going through my head, but as of now this is where I’m going to stop. I hope to be trading regularly again and to get back on the good side of learning this business.

Wish me luck… I’m going to need every edge I can find.

OUT!