Hello traders once again for another addition of the Forex Trading Journal. It was great to have you on board posting your trades and following along. I don’t have any idea how many people are following along. Your comments let me know that people are interested. Would you like me to continue with the forex trading journal?
Remember to follow me on twitter so that you can get the trade updates as they happen. I have one question to all of the readers here? Are you following by updating your journals or are you just following me. It is critical that you have your own journals and your own entries.
Lets review: the trade worked out with probably the best execution I have had since the journal has started. This trading journal has improved my trading already. Yay! I entered at 131.77 with 2 positions and I exited both of those at 130.87 for a total of 90 pips.
See the Journal below for the entire month.
Thanks to some dedicated members we learned two valuable lessons I want to mention here. I want to once again thank you all for the comments because this training is so valuable.
Lessons Learned from the last trade:
- Do not enter a trade unless you know why you are entering
- Never “Chase a trade”
When entering your trades make sure that you know why you are doing it and not guessing or hoping. There must be solid confidence in your entry point. That is why I don’t like signals because traders do not know why they are entering. With time and hard work, every trader can get an understanding of solid entries.
Never Chase a trade: At times we will miss the entry and the trade takes off in the way we thought but we didn’t get in. If you attempt to follow that trade most times it will snap back and stop you out. If I miss a trade I am ok with that because I know that
a) It will give me another opportunity to get back into the trade
b) Another trade is right around the corner.
Lessons learned from this trading journal is that execution is critical and that we can be taking the same trade and you can get +100 and I can lose -100. Timing and execution is critical in trading. That is why i recommend using a trading journal because you can review each trade and determine how was your timing? How did you execute this trade? Self analysis is very important in Forex Trading.
I am so excited it seems as if we are learning everyday about new things to look out for. If we keep learning together I think we will have many traders getting the hang of making lots of pips each day 🙂
Next Trade:As I write this post the Eur/Usd and the Gbp/Jpy are moving upwards and are testing resistance so this could be a great opportunity to get short on both of these pairs once again. The Eur/Usd has been moving up with some strength and that indicates that this rebound could be a bit stronger so any short trades must be made with a clear signal. I am watching both of these pairs on the one hour chart. I think I may trade the Eur/Usd this time because the Gbp/Jpy is bit whippy that is a good thing because large price moves can produce lots of pips but it can be hard for newer traders that have not mastered execution yet. The Eur/Usd is an easier pair to learn on.
I am watching both pairs so I will show both charts. Here is the Gbpy/Jpy 1 hr
One important thing to note is this is not a trade but rather a setup I will announce the trade on Twitter when I make it. One other key point is that the 200 period moving average is also acting as resistance so that adds as additional confirmation on this trade.
This is also not a trade but a setup. This one is moving up and it broke the downward trendline so it could have some momentum to the upside. The pair is still bearish but even in a bearish trend there are pops to the upside.
Winner’s Edge Trading, as seen on: