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method

Method's Trading Log

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I've decided to post up a trading log to instill some 'routine' into recording my trades.

 

I have been watching and trading the markets for about 2 years now. I am currently a losing trader. Probably down about 2-3k euros. I hope to change that by the end of the year, scraping past at least BE.

 

I have two accounts - one is a bucket shop account (CFD) with NZ$2000 at CMC Markets, and the other is a 5000 euro account at Velocity Futures. I usually trade the DAX with the CFD account and FESX with the proper account (due to leverage issues).

 

However, I have recently ventured into commodities and FX - CL & 6E respectively.

 

I'll post screenshots of my trades whenever I do any.

 

Feel free to contribute!

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Here is my latest trade, a stoxx short on memorial day (I think it was, I don't live in the US):

 

nqoihdex.jpg

 

 

An overnight gap. I had my original target set at 2532 but then closed the trade after the tight red bar with large wicks, which indicated the market may be heading up.

 

Needless to say the market briefly touched my original target then bounced back up.

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Losing short on the FESX two days ago.

 

One problem I've been facing since I started trading is not taking my winners when the market lets me. I get greedy and hope the market is going to go further my way. Usually the market reverses and hits my stop (I don't move my stops after I set them).

 

However I just realised it's probably better and easier if I grind out relatively small winners and go for the jugular when I have a safety cushion to fall back on, or when I have extremely high conviction on a trade.

 

Livermore said the way to truly earn big money is to ride your winners, i.e. sit on your winners but due to the choppiness of the equity markets and the difficulty in riding a meaningful trade I am forced to grind out smaller winners to build up/protect my capital.

 

Here's hoping this new strategy will work. I'll go for a 1:1 profit/stop ratio on my trades.

 

30 min FESX Screenshot:

 

 

tkzz4il1.jpg

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Instead of hoping, surely you can test if 1:1 is indeed better than trying to let it run by examining your statements.....no need to hope, it either is or it isn't better and you have the data to know.

 

With kind regards,

MK

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Another loss. Done about 3 days ago, on the FESXM0.

 

Got close to my target and promptly reversed and hit my stop for a 20 tick loss.

 

Probably shouldn't have gone against the trend.

 

 

oxmxnxkm.jpg

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Method,

You need some help. I am not sure where to start. First, have a solid trade plan, if you don't tak trades against the trend then don't. I had a rough week last week, but so far my trade from last night hit target. I have two more for tonight. Here are my trades from last night and tonight. My win rate is around 69%.

Tonights trades This USDJPY long will probably become a short if the market moves down in the next few hours.

USDJPY Long 91.52 Stop 90.97 Target 9197

 

GBPJPY Short same as last night 133.84 Stop 134.66 Target 133.31

Last nights one no trigger and one hit target. I am going for smaller trades with Summer

GBPJPY Short 133.84 Stop 134.66 Target 133.31

 

EURCAD Short 1.2618 Stop 1.2672 Target 1.2582

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Method,

 

The markets that you listed abover are all very volatile markets and you are trying to trade them with smaller account sizes. For me I would rather start with an account size of $12,000-$15,000 on CL and closer to $20,000 on the DAX. With the volatility on these markets just a handful of losing trades or sessions could wipe you out.

 

Not to mention trying to track and trade all these markets can be difficult. My advice to you would be to pick one market and focus on it exclusively. This will lower your exposure to the markets and will also help you learn one market really well.

 

Take crude oil for example. If you go back and look at the last 2 years on this market and did some back testing you would see that you can make a really nice living trading this single market. Everyone seems to think you need to trade multiple markets to be successful and it's just not the case. Any of the markets you listed could be traded alone for really nice results.

 

Worldtrader made a great point that you really do need a trade plan. You have to know where you are getting in and getting out before you ever enter a trade. Otherwise our emotions will get in the way and start telling us to get in or out and the worst possible times. I personally wont trade a market with live funds unless I have a detailed plan in place. This plan must be created and backed by my back testing. I have to be able to show statistics to back up any rule in that I consider adding to that plan. Until you have this in place I wouldn't recommend putting another dime on the line.

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Thanks for all the feedback.

 

I am trading with the expectation of blowing my account, as I am a novice. In time I will learn the ins and outs of trading. Right now I just want to trade.

 

I don't really do any backtesting, because most of my trades are discretionary in nature, although I probably should. The only form of backtesting I do is looking at past price movements and seeing how they respond to S&R, price movement before a trend develops etc.

 

Anyway here is a screenshot showing my last few trades (and my current one).

 

First trade is a short @ 2721, which doesn't work out. I close it on the next day.

 

Second trade is a long @ 2728, which hits my target on the same day.

 

Third trade is an erroneous one at the EOD, which I close immediately upon the next day's open.

 

Fourth is a short @ 2721, which hits my target on the same day.

 

Fifth is a long @ 2673, which I reverse a few minutes later at a tiny profit because the price didn't behave according to expectation. I'm still riding the short, as you can see on the chart.

 

Depending on the opening price action tonight I will either cover or leave it to run, hitting my target hopefully which is at 2599. However I have a feeling it will be a buying day tomorrow if the shorts decide to cover.

 

 

wmqmljxp.jpg

 

Happy trading

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Method,

 

You want to be really careful with that type of an approach. I personally don't know any successful traders that don't have a documented trade plan in place. Discretionary decisions will lead to very inconsistent returns and is a recipe for a blown out account.

 

I'm not saying you need to go drop $5000 on a system out there. However, you do need to have rules for yourself to follow each trade. You need to know exactly where to enter and then once you're in where you will get out. If you want and wing it as you go the emotions will take over and you will find yourself getting in and out and the worst possible times.

 

Obviously we all just want to trade but there is more to it than that. I have been trading for a number of years now and can tell you from experience I spend much more time testing and recording my trades than I actually do trading. You need to treat this like a business if you want to be successful.

 

If I were you I would put my trading with live funds on hold until I have a detailed plan in place. Why go into it knowing you will blow out an account when you could put the work in up front and give yourself a chance at success? Protect that capital until you have a proven system in place. I'm only telling you this because if I had someone there in the begining telling me all this I would have saved myself thousands of dollars.

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The last two trading days have been really rough.

 

Initially I was in a trade that went with the trend, which showed a profit. But I exited the position prematurely.

 

Then I put out a long (against the trend) which didn't work out.

 

Today, just a few hours ago, I put on a long position at the open with the stop loss at yesterday's low. As the market edged closer to the stop, emotions kicked in and I closed out the position without waiting for the market to reach my stop. Then I went short, placing the stop at yesterday's high. Well guess what. The market promptly reversed, hitting my stop!

 

After that I became a bit upset and decided to call it quits for the day. I lost $500 euros, which is at least a 10% loss on my total capital.

 

I find recently I have been overtrading a bit. I need to find trades I can place with more conviction. To do that I need to be more patient.

 

Anyway here's a SS:

 

Focus on the last four trades, this SS contains some previous trades.....

 

 

0clcntqd.jpg

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Method,

I will show all trades this week on the CL and the other markets. We need to get you winning one way or another. If it is the method, strategy or the trader. There are many sucessfull traders here and someone should be able to get you going.

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First trade in more than a week, missed the entire up move in the markets.

 

Looked for a short but it didn't work out, hitting my stop the next day. 2 points after that the market reversed......

 

 

3y3dbuek.jpg

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It's not really part of my plan (I don't have it clearly defined in my plan).

 

It's just that looking at past trades the shorts had higher expectancy, so I try to do more.

 

Also, I just find shorts easier to trade for some reason. The FESX seems to move quickly when it's weak.

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General rule I always heard was that things fall 2x's as fast as they rise... ie bear markets last 1/2 the time of bull markets, but it takes the bulls 2x's as long to make it back.

 

I think to some extent the same rules apply in daytrades... the sharp fast moves always seem to favor the downside.

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Hi method what time frame do u use?How many windows do u have open?Maybe it will be easyer for u to trade of 5 min.chart keeping in mind 60min chart.Hope it helps,good luck.Youri

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One trade I am happy with and another I'm disappointed with (the second one):

 

 

pds4lpg2.jpg

 

 

I am going to try my best to look for a high reward:risk trade because at this rate I am going to get a margin call...

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Ok, time for a major update.

 

Been busy/lazy over the past few weeks, but have been trading intermittently.

 

Here's a recent one on the FESX:

 

1hrz3bl0.jpg

 

Also, I got a margin call on my CFD account because I bet the whole account on a gold short. As you know, it's still on the rise........

 

I have been reviewing my mostly losing trades and the most striking things that stood out for me:

 

- holding trades too long, even ones that initially start working in my favour that eventually revert to my stop loss.

ACTION: babysit my position so that I can move my stop, or exit the position when it starts to look like it's not going to go any further in my direction. This is hard to do as I leave most of my positions overnight. Perhaps I should decrease the length of my trades.

 

- setting my stop loss too far/risking too much on one trade. Looking back at it, risking 250 euros+ on one trade on a 5000 euro account is too risky.

ACTION: Around 15 ticks sounds more reasonable, depending on the context.

 

- trading multiple contracts when I can't afford to.

ACTION: Only trade 1 per set amount of capital (1 for every $5000 in FESX)

 

- not having a proper understanding of how the market will behave and what my reactions will be once I am in the trade.

ACTION: Write up an action plan before I enter each and every trade. This can help to capture my thought processes before, during and after the trade.

 

- don't trade in markets which you know nothing about (gold). If you do, risk small amounts. More importantly, don't bet the whole account on it :crap::crap::crap:. After reading so many trading books and reading the same stuff over and over again, I felt I had it all under control. I was wrong!

 

Here's my futures account balance for the curious folk:

 

k0j1mlk3.jpg

Edited by method

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Three new trades, as shown in the SS below.

 

Ignore the first trade, that has already been posted.

 

Focus on the next three. First is a B/E; I didn't feel good about the trade after I made it and I got out a few mins later.

Second is a short, which I get out for a profit of a few ticks.

Third is a long after a sharp decline at the open. Got out with about 9 ticks profit.

Pity I came late to the market to see the sharp decline happen without me :(

 

gl3muoih.jpg

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Hey youri, thanks for the input.

 

I disagree with the 10 tick stop not being big enough- if you look at my losers I was wrong on the direction of the market and my tight stop cushioned me from extra loss.

 

I will take a look at the 5-min chart next time I am trading.

 

Happy trading :)

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Made a short on the 6B, first time ever trading the market. Didn't even know the tick value before trading.

 

Even though it shows a profit I made a grave error in closing it out early.

 

eibm3fcl.jpg

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