bidyut's - Trading journal

[bidyut]

Introduction: This is my first trading journal in mt5 forum and it is in a demo account. I’ve opened a demo account with 500 USD balance. The main purpose of opening this demo account is only for making a trading journal in mt5 forum. Long time back our respected moderator dzin4aans had encouraged me to open a trading journal. But due to some unforeseen reasons I was unable to give attention in this regard. After looking at many trading journals available in this section I’ve got some positive energy and a lot of good motivation to open my own trading journal. Now I think it is the right time to open a trading journal.

Main motive of opening a trading journal: First of all I want to improve my trading by sharing my own trading system. By opening a trading journal here I would definitely get an opportunity to interact with other good traders. They can suggest, guide me for opting a better trading system. This is one of the best ways to engage myself in improving my existing trading strategy.

Why Demo Account: This is my first trading journal in mt5 forum. Still I consider myself as a leraner and I want to improve my trading and it is only possible through demo account. Second reason is that I want to open a separate account (real trading account) for trding journal. But at this moment I’m not fully prepared myself (financially) to open a real account for this purpose. In other hand I don’t want to wait for long to start a trading journal. So my main motive here would be to engage myself in a good discussion where we can share knowledge and learn everything which is required to be a good trader.
In future I would definitely go for a trading journal where I can show real profit in real account. Once I get ready for that I would definitely inform you all through this journal or through my signature.

My strategy:

Support & Resistance: From the very beginning I am trying to trade on support and resistance levels. So my main focus would be to see support and resistance levels of a particular pair on a daily basis before opening any order. I’ll try to open orders by looking at support and resistance levels. Most probably my buy orders would be above support levels and sell would be below resistance. In addition I’ll try to take decisions of opening any order by looking at price action.

Price Action: It is important to watch in which direction a particular pair is moving where we’re going to trade. In simple words Price action gives us an idea where the price is moving. When I see 3 to 4 candles formed an upward trend in other words when few bull candles form an uptrend I’ll go for a buy order. In opposite if I see few bear candles lined up in a row to form a downward trend, I’ll go for sell order. So here I would go for trading on any pair by following price action.

Chart Type: I would like to trade in a clearly visible chart and I consider candle stick chart as a best option for me. I do not use too much indicators. It’ll consists of only support and resistance levels.
Time Frame: I prefer to see 1 hr, 4 hours, daily time frames to decide where the price is moving or to predict the actual trend I will go for these time frames. To open any order or to check entry point I’ll go for only 1 hour chart.

News Events: As we know fundamental or economical news are very important to watch while taking any trading decisions. I’ll keep an eye on day to day news events to trade. The best way to watch any types of news events is through economic calendar. Most of the movements take place in any particular pair due to news releases. Even technical trader can’t ignore the importance of fundamental news or any economic data releases (e.g. NFP) etc. Sometimes I would stop trading during high impact news. In other words I’ll be very careful during news events and try to avoid trading in case there are no clear movements.

Lot Size: I would go for 0.10 LOT size (per order) at the very beginning. I may go for many orders at a time but not more than 1 LOT in total. For example, 10 orders with 0.10 lot size orders. Sometimes I may go for averaging my trades by taking additional lot size orders. Gradually I will try to increase the lot size orders with growing account balance.

Target: Anywhere from 10 to 100 pips. I can decide only after looking at the levels. Sometimes I may not give any target and close all orders manually.

Stop Loss: I’ll try to put a stop loss in some trading positions but not in all trading positions. Again it’ll depend on the levels and also in the movement of a particular pair. In case I put stop loss in any pair it’ll be around 50 pips.

Long term or short term: My goal would be to take profit from every trade in a short term period. I prefer short term trades because it is easy for me to handle. In case I see slow movements in any trade I’ll keep the order for long hours and definitely wait for the price to trigger the target ( if I put TP).

Trading Pairs: I would like to trade on major pairs (EURUSD, GBPUSD etc.). Also I would go for high volatility pairs for example, GBPNZD, GBPJPY etc. Sometimes I will try to trade in Gold and Silver if I get good confirmation.

Risk-Reward Factor: As it is not a contest account I’ll try to go slowly. I believe in steady growth and not in sudden growth as far as forex trading is concerned. I would only go for 5% to 10% risk, and not more than that. Similarly, I’ll try to make decent profit from every trade. If I see it is worth to wait for a particular trading position then I’ll wait for it to get more profit out of it. For any trader to sustain in the market is more important than anything else, so I will try to avoid any unnecessary risk. Sometimes I would go for cut losses in the form of stop loss or by closing manually. Once we learn how to manage risk we’ll automatically able to grow our trading account to a satisfactory level.

To my fellow members: I hope there is no doubt about my trading plan. I do not want to complecate things, so I’ll try to elaborate every trade with clarity. I’m ready to answer you if you’ve any questions regarding my trades or anything related to my trading journal. I’ll be grateful if we can stick to the topic and not talk about anything off topic in this section. Your good suggestions are always welcome. Thanks to everybody for visiting here. Lets start together!

[786pk]

Calculating proper risk level is mandatory in Forex trading infact you can get success without it properly so you must develop a proper money management plan by yourself and you must need to follow the rules set by you because if you avoid these things then you face a huge problem in near future!

[shahidmehmopd]

Calculating proper risk level is mandatory in Forex trading infact you can get success without it properly so you must develop a proper money management plan by yourself and you must need to follow the rules set by you because if you avoid these things then you face a huge problem in near future!

Yeah it's essential to evaluate ourselves by calculating proper risk level according tp your money management. No doubt the good profit attract but at same time if we forget our rules then may lose some of capital due to greed of more profit by not setting SL or enlarging our SL for the reversal of market trend.

[harbir]

Calculating proper risk level is mandatory in Forex trading infact you can get success without it properly so you must develop a proper money management plan by yourself and you must need to follow the rules set by you because if you avoid these things then you face a huge problem in near future!

Yes you are right that it is very important for us that we follow all the rules of the Forex trading business because without that we will struggle a lot here and to be able to successful in Forex we need to go step by step following all the rules and the parameters which are said to be followed at all the times and this is why it is so important for us.

[bocahedan]

Yes you are right that it is very important for us that we follow all the rules of the Forex trading business because without that we will struggle a lot here and to be able to successful in Forex we need to go step by step following all the rules and the parameters which are said to be followed at all the times and this is why it is so important for us.

Yeah,we need to follow all trading rules in order to get success in forex and to be able to do that,we need to keep up our discipline. We can become more discipline,if we have a good self control,by having a good self control we can avoid getting controlled by greed and emotion when we are trading.

[penuelophir]

Yeah it's essential to evaluate ourselves by calculating proper risk level according tp your money management. No doubt the good profit attract but at same time if we forget our rules then may lose some of capital due to greed of more profit by not setting SL or enlarging our SL for the reversal of market trend.

The first thing I believe that most of us should be doing when we started trading is to develop an effective trading system and once that is done then making sure that you always stick with good money management is the next thing in line because it is the backbone of successful forex trading! Since I changed my mindset about using high trading lot then my trading experience have changed and I am not making good trades without being disturbed by emotions!

[Honey Bee]

Yes you are right that it is very important for us that we follow all the rules of the Forex trading business because without that we will struggle a lot here and to be able to successful in Forex we need to go step by step following all the rules and the parameters which are said to be followed at all the times and this is why it is so important for us.

Their is no restriction in forex of making profit we will earn unlimited which we can earn according to our knowledge and experience, their is no difficult rules applied in this business we can start will small amount and take this business seriously then in few month we will makes a good monthly profit from this business.

[simisola]

Learning are in different categories,we have the theory were all you do is to make sure you read as many materials as possible and watch videos,then the practical part involves putting what you have learnt into good practice,that is the part were you need the demo account or the cent account as some will prefer to practice all that you have learnt and to perfect your trading strategy.

The practical aspect is where many of us make the greatest mistake in the market, we have the head knowledge about what we are supposed to do in certain circumstances but when the opportunity comes, we find ourselves doing something completely different which is why we may not become professional even though that is what we truly want.

[loveyo]

Their is no restriction in forex of making profit we will earn unlimited which we can earn according to our knowledge and experience, their is no difficult rules applied in this business we can start will small amount and take this business seriously then in few month we will makes a good monthly profit from this business.

Agree with you dear sister Honey Bee and it's true their are no limit earning in Forex business because anybody can get unlimited profit from Forex. I think making profit from Forex not so easy but possible in we hard work, achieve good skills, experience, get proper knowledge, proper analysis, follow good money management and discipline on trading then we may success and get good profit from Forex market other wise we face loss that's true. Thank you.

[Neriah]

They say that practice makes perfect, if this is true then we know that the forex market is where this is very important, we cannot gain much experience from this business in the absence of spending enough time to understand the chart and our system, we won't become successful if we are always in the search for a short cut to earning.

[Leonvic90]

There is a limitation to our achievement from the forex trading business as long as we refuse to practice, we will become professional through the effort that we take to stand in front of the computer and learn about our strategy, once we don't do this, there are many things that are likely to elude us as we trade.