FOREX end-of-week summary (7-11 Sep 09)

As mentioned in my previous entry, I applied the common indicators with uncommon application as well as my refined longer term trading method. So far so good, out of 8 trades, only one of them was a negative trade. ;p Yet another great tools added into my arsenal, and with this great tools combined, I continue with my journey in FOREX trading and to attain my goals.

My trading plan had also been refined along the way, and instead of making the 10% growth daily, I change it to growth of minimum 10% each week. This would reduce my risk significantly and would also reduce the stress level haha... The only thing that had yet to be addressed properly, which in fact most traders would say that it's the most important one, would be calculating the lot size relative to the placement of SL. In every trade that anyone take, the setup involve indentifying the SL before even deciding on the TP. This will in turn allow one to calculate the lot size based on the risk one is willing to take on each trade, commonly 3-5% of the account. Seriously speaking, I had not been hard and fast on this rule and this is the reason why my trading journey had not been able to sustain in the long run. Small profit, big losses...

Also in the past, it seem that I had been trading rather blindly when I enter a trade, I do not know of the exit point. I only see the exit when in profit but not the other way round, resulting in big losses. Hence it is important to decide the SL first during setup before entering the trade and the exit signal must also be defined clearly. Using common profit, uncommon application need time to monitor the trade, but the exit signal are clear to me, be it in profit or losses. I will have to build on defining my exit signal clearly for my longer term trading method.

For now, my goals remain the same, to grow my account to breakeven and subsequently into profit. It will take along time, but like what the saying goes, "Late is better than never!"