Anyway

Was at a hospital attachment and found this meaningful quote. Found online that it is a quote from Mother Theresa edited from Kent Keith's quote. Pardon my lousy photo taking skills, I will upload it anyway. =D

Forex 16/03/09 to 20/03/09

Japan bank holiday today and currencies didn't move much, decided to close for the week. It is always better to under-trade than over-trade. Two of the trades did not move how I imagined it to be, the price action was acting weird, so I closed out the positions. The other trade was a big bang, holding it for 3 days.

Total No. of Trades = 3
Accuracy = 2/3= 66.7%
Win-Loss ($) = 44.12-0.06= 44.06
Average Win ($) = 22.06
Average Loss ($) = 0.06
Max Win($) = 43.62
Max Loss($) = 0.06
Pips = 442
Capital left(Using $500 fake money, $) = 483.87

Thinking back, computing performance is much easier with just a few trades. Why make my life so difficult trading so many positions? =D

Walking in the dark and found light

The past 2 weeks of trading forex was an eye opener. I was walking in the dark and now found light again. Here are some of the lessons.

1) There is no perfect system, if you are looking for the "holy grail", there is none. You might find answers when you look into the mirror.

2) Price action is king, indicators are just guides, does not mean that they are not useful. Train your naked eye to look at price actions, you dont need a trend line to tell you where the trend is.

3) Patience, patience, patience- Yes! A trader needs lots of patience, he needs to wait for the big move, the signal, when most factors/probabilities are with him.

4) Trading doesnt mean more activity. When it gets too exciting, you are walking on the wrong path. It should be boring and dull. Trading more is actually bad.

5) Anything less than H4 chart is just noise. Know how to differentiate between signals and noise.

6) Let your profits ride, cut your losses fast. Money management is crucial, you can lose 7 out of 10 times and still make money.

7) Look out for sharks in support/resistance levels, round numbers like 100 or 500, psychological levels like Dow 7000 level. Sharks will trigger your stop loss at these levels, making false break outs or break downs. When they have cleared the amateurs out, they will continue on their buying or selling where there is less competition.

8) Be the predator and not the prey.

9) Keep a ear of news on the ground. When looking at retracements, is it a normal reaction or an abnormal one?

10) Do not trade when crucial news is going to be released. Wait for the release and see how it goes before you take the position.

Forex 02/03/09 - 06/03/09 (Still walking in the dark like last week)

Total No. of Trades = 20
Accuracy = 5/20= 25%
Win-Loss ($) = 2.61/45.62= -43.01
Average Win ($) = 0.52
Average Loss ($) = 3.04
Max Win($) = 1.4
Max Loss($) = 13.82
Pips = -351

Here is where I found enlightenment. Learning how to fish with dream's help. Many thanks.
http://triple-screentrading.blogspot.com/

And here, Feb2865 the pro trader. http://www.forexfactory.com/showthread.php?t=54528

Forex 09/03/09 - 13/03/09 (After I learnt the lessons from above. Still need to cut down on the number of trades)
Total No. of Trades = 14
Accuracy = 9/14= 64.3%
Win-Loss ($) = 17.86-12.04= 5.82
Average Win ($) = 1.98
Average Loss ($) = 2.41
Max Win($) = 8.85
Max Loss($) = 4.40
Pips = 74
Capital left(Using $500 fake money, $) = 439.81

Forex 23/02/08 to 27/02/08

The week was very volatile. Some of the currency pairs were trading at weekly or monthly resistance and support lines. This is one thing which I must take note and incorporate into the system. Another issue that breeds the lousy performance is my risk management skill. Many times I was in 50-100 pips profits and then it turned it's back on me. I need to take profits when I can and maybe trade 2 lots and cash out on one and let it run.

Here are the week's result.

Total No. of Trades = 121
Accuracy = 43/121=35.5%
Win/Loss ($) = 135.92/158.92= 0.86
Average Win ($) = 3.16
Average Loss ($) = 2.04
Max Win($) = 15.27
Max Loss($) = 5.2
Pips = -259
Gains/Losses ($) = -23
Capital left(Using $500 fake money, $) = 477