This thread will follow my trades for the rest of the 2012. I will post charts and discuss my reasons/thinking behind the positions. Constructive comments and discussion are welcome.
So I would like to start this journal with a little about myself and my style. I have been studying the financial markets for three years and started when I was 19 years old. Just read books and did a little sim trading for the first two years, but opened a live FX account about 6 months ago. I am a purely discretionary/directional trader. I will take positions based on technical analysis alone, but my favorite trades have solid fundamental reasoning and confirmed by the proper price action. I will be trading a small account (2500 usd). I realize the odds are stacked against the undercapitalized trader, but everyone has to start somewhere. I feel there are a few things that a small account must do to improve the odds of success from zero: 1. Trade longer time frames. I will trade the weekly, daily, and 240â time frames 2. Trade selectively: The goal is to not overtrade and if I can maintain proper psychology only the best setups for each strategy will be entered 3. Tight risk control: I would prefer to risk 0.5 to 2% per trade, but with such a small account I will have to increase this to 3 to 6%. I realize that once a drawdown reaches a certain size the percentage needed to get back to even increases dramatically. I have set the monthly drawdown limit to -15% of the months starting capital 4. Add to winners / Close the losers: I will be adding to the positions that show open profits and closing the losers at the predetermined stop level. So I will probably only update the journal once or twice a week for now and see how it goes. Once again CONSTRUCTIVE comments are welcomed. Additional posts to follow detailing my strategies and current positions
"Swing" trade strategy winner I am trying to attach a jpg file. Not sure if it's working so just going to post and hope it's there.