Fadetoblas Journal -
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thread: Fadetoblas Journal

  1. #11
    Junior Member Jhoanperwz1996's Avatar
    28
    Hi Zoopy,

    Thanks for your feedback, really valued. You're completely right, I have to give this thought a serious thought. I just don't know yet that other pairs I need to include in my portfolio. One thing is for certain, I'll specialize on just 1 - 3 pairs maximum. Thats it. Otherwise its very hard to keep tracking them. Do you have a suggestion as of which other pair I could include?

  2. #12
    Junior Member pauladd's Avatar
    14
    Zoopy,

    Thank you for taking time and effort to place these pairs together.

    I am thinking that even though these currencies are connected to a certain level, nevertheless these correlations will only affect our trades if we'd exchange those huge waves in weekly or monthly charts. But on H4 I see different secondary trends and the effects of correlation is at minimal. What do you think on this? However, concerning the major trend you're correct and I have decided to limit my trades to EURUSD, GBPUSD just. Sometimes I might start a position on other pairs though.

    In respect to my journal, now I had an excellent idea that would help me in documenting every trade I undertook. For those who follow this thread and MYSELF, I guarantee that no trade will disappear not being disclosed here. By taking a look at the documentation, it was a good to understand at how stupid I can be at times. Today I managed to document every EURUSD trade which I did undertake.
    I haven't really researched correlation with respect to that. But, I will mention that significance is actually more harmful on shorter timeframes. Consider NFP for instance. If NFP caused the eurusd to go up, you can almost be sure gbpusd, audusd, nzdusd is going to be led up too and usdjpy/usdchf will go down.

    One way you could solve this issue is to examine your charts on the first day of every week. Lets say you're trading gbpusd and eurusd. After analyzing each chart, you discover that gbpusd includes a wonderful setup forming so you will ONLY exchange gbpusd that week. Basically specialize in just two pairs but just trade one pair a week. Not sure if that makes sense at all?

  3. #13
    Junior Member Jhoanperwz1996's Avatar
    28
    Okay I think the graphics are clear. I believe its all about simplicity. An associate of FF, can't recall his name but his avatar had a fox on it, he's favorite motto is Simplicity is the highest type of elegance, so I will stick to that. That is why I didn't cover all the transactions in one chart.

    Below you will find all the transactions I've entered so far on EURUSD pair:

    Trade #6: was an unlucky commerce because I lost money, but it was a fantastic trade in terms of sticking to my system.

    By reviewing your transactions in a similar fashion I've come to realize just how stupid one can be at times. By executing my transactions in accore to my method, no matter how the final result is, I am becoming a better and better trader. This is what I will do from now on.







  4. #14
    Junior Member Jhoanperwz1996's Avatar
    28
    I have not really studied correlation with respect to that. However, I will mention that correlation is actually more dangerous on shorter timeframes. Consider NFP for instance. If NFP caused the eurusd to move up, you can almost be sure gbpusd, audusd, nzdusd is going to be headed up as well and usdjpy/usdchf will go down.

    One method you could address this issue is to examine your charts at the beginning of each week. Lets say you are investing in gbpusd and eurusd. After analyzing each chart, you discover that gbpusd includes a nice setup forming so you will ONLY exchange gbpusd that week. Basically specialize in two pairs but only trade one pair a week. Not certain if that makes sense in any way?
    Yes, sounds quite reasonable. I didn't think about the news! Oh how I despise these news! All my learnings towards FX trading were basically focused on EURUSD and GBPUSD. It its hard for me to choose between them. I love EURUSD because it trends therefore superb, and I like the volatility of GBPUSD. By not attempting to be ignorant, I'll exchange them both and hope everything goes well. Besides, my combined risk would amount up to 4%, which is okay.

  5. #15
    Junior Member Jhoanperwz1996's Avatar
    28
    June 02, 2008 (live trading started on May 19, 2008):

    when compared with demo-trading, besides monitoring the trades to carefully I have also understood that I'm really afraid of taking transactions! I think this state of paralysis is mostly due to how my account is currently experiencing a 5% drawdown.

    I understood this while reading through a few articles of soultrader and mysticgenie. This guys are amazing, one has nerves of another experience that is tremendous and steel. Backed by great advices like being individual, don't rush in, I will wait untill the price strikes that and that region etc.. I caught myself observing the price rather than trading. In other words, I was coated by FEAR without even having noticed it.

    So I have sort of finalized my trading plan and that I will stick with it come hell or higher water (saying borrowed from soultrader) and will trade. I will not be patient anymore, I will just trade. Perhaps I'm a fool and will loose, but its better than just to observe the price and performing just a transaction or two in a months only to loose again! Oh good, I've forgot to place another rule in my trading egy - Be constantly on the market.




  6. #16
    Junior Member Jhoanperwz1996's Avatar
    28
    Ok trades are doing fine and my impending P/L shows that I'm back in break-even following this horrible drawdown of 5%. But FEAR will not let me off, its telling me to shut my rankings. I must mention here that while live-trading, I have already had two minutes where my places where originally doing good simply to wind up in minus after a while. This makes it tempting to shut my rankings right now! However, while writing this passage, my trading plan comes in my thoughts and tells me you don't need to win in order to produce GOOD TRADES. I would like to make good trades instead of fortunate trades. I will exchange my plan come hell or high water.

    But I have to admit that I'm happy. Thus emotions are still there and that I don't understand how to eliminate them. How do I deal with my emotions? I don't wish to become happy when winning and that I don't wish to get angry when loosing. I would like to call myself a trader: no emotions, pure mechanics.

  7. #17
    Junior Member Jhoanperwz1996's Avatar
    28
    June 02, 2008 (live trading began on May 19, 2008):

    Ok the trades went well and I am back again at break-even. Had to return from nearly 10% drawdown. Let us continue with the trades I have taken up to now, now I have finished also documenting the GBPUSD trades. But first lets proceed with EURUSD.


  8. #18
    Junior Member pauladd's Avatar
    14
    Ok transactions are doing fine and my impending P/L shows that I am back in break-even after this horrible drawdown of 5 percent. But FEAR won't let me off, its telling me to close my rankings. I have to mention here that while live-trading, I have already had two moments where my positions at which initially doing good only to wind up in without after some time. This makes it tempting to close my rankings at this time! But while writing this passage, my trading egy comes in my mind and tells me you don't need to win in order to produce GOOD TRADES. I would like to make good trades rather than lucky trades. I will trade my egy come hell or higher water.

    However I must admit that I am happy. So emotions are still there and I don't understand how to get rid of them. How can I cope with my emotions? I don't want to become happy when winning and I don't want to get angry when loosing. I would like to call myself a trader: no emotions, pure mechanisms.
    That is a very good point you made there Fade. Good trades aren't necessarily winners. Sometimes you make the right analysis given the market information at the time but things don't workout. The important thing is that you stick to your egy based on what the egy is.

    Only a comment on fear. If you find you are constantly wanting to check up on your transactions and you never did this before, it may be because you are trading too large (this is typically the case). That or you don't fully expect the method you are using.

  9. #19
    Junior Member Jhoanperwz1996's Avatar
    28
    Now to GBPUSD trades. One thing is for sure, by reviewing and recording my own trades in this wayI have realized there are certain frequent failures I replie all the time, therefore I will post just 6 trades will continue later on when I will have any time.






  10. #20
    Junior Member Jhoanperwz1996's Avatar
    28
    That is an excellent point you made there Fade. Trades are winners. Sometimes you make the ideal analysis given the market information at the time but things don't work out. The main issue is that you follow your plan based on whatever your egy is.

    Only a comment on fear. If you find you're constantly wanting to test up on your trades and you never did this before, it may be because you're trading too large (that is usually the case). That or you don't fully trust.
    Zoopy,

    I trust my method. I really do not overleverage. Still when I encounter a drawdown of 5% I feel angry. I really don't understand how to overcome this.

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