XCC

TRADE #1 OVERVIEW
Forex (Oanda-MT4)

PAIR: EUR/USD
LONG/SHORT: SHORT
LOT SIZE: 0.2

ENTRY: 1.08239
EXIT: 1.07920
STOPLOSS: 1.08239

PNL: -$23.6
PIPS: 10/20

Trade Analysis and Insights:

Entry

I patiently waited for the price to align with the Exponential Moving Average (EMA) and touch the resistance zone on lower timeframe. With the currency pair at a monthly peak, I exercised caution, anticipating any sudden downward correction.

Exit & Stop loss

10 pips stop loss and 20 pips take profit.

Prior to engaging in trading activities, I evaluated two crucial elements: the 21-day exponential moving average (EMA 21) and significant price levels. The EMA 21 served as an indicator of the market’s overall trend, while I closely observed patterns in price fluctuations. In order to mitigate potential risks, I identified resistance zones and considered EMA 21 as noteworthy levels. My primary objective was to execute well-informed trades and establish suitable plans for setting stop-loss orders.

Lot Size

20,000 units or 0.20 Standard Lot or 20 micro lots.

We allocated 20,000 units, following a 1% risk management strategy for each trade and also have a attainable trade. To account for this approach and potential price rally we adjusted our allocation size accordingly.

Trade #1 Result = Loss (-$23.6)

Reflection on Trade

Prior to engaging in trading activities, it is crucial to ensure that you consistently make well-informed decisions. Additionally, it is essential to verify that the overall trend in higher timeframes aligns with your chosen entry point in lower timeframes. Furthermore, it is imperative to establish an appropriate stop loss zone and adhere to it strictly, without any inclination to adjust it. Be resolute in cutting losses promptly to prevent further financial setbacks.

Improvements to be considered:

Always check the higher timeframe to make sure the trade is perfectly aligned with the lower timeframe.

TRADE #2 OVERVIEW
Forex (Oanda-MT4)

PAIR: AUD/USD
LONG/SHORT: LONG
LOT SIZE: 0.2

ENTRY:0.68016
EXIT: 0.68421
STOPLOSS:0.68119

PNL:
PIPS: 10/20

Trade Analysis and Insights:

Entry

I exercised patience as I awaited the price to reach a point where it aligned with the Exponential Moving Average (EMA) and touched the support zone on a lower timeframe

Exit & Stop loss

10 pips stop loss and 20 pips take profit.

Before commencing any trading activities, I carefully assessed two key factors: the 21-day exponential moving average (EMA 21) and important price levels. The EMA 21 acted as a signal for the general trend in the market, and I diligently monitored price patterns to gain insights into fluctuations. To minimize potential risks, I identified resistance zones and regarded the EMA 21 as significant levels. My main goal was to execute trades based on informed decisions and develop appropriate strategies for placing stop-loss orders.

Lot Size

20,000 units or 0.20 Standard Lot or 20 micro lots.

We decided to allocate a total of 20,000 units, taking into consideration a 1% risk management strategy for each trade. Additionally, we took into account the possibility of a price rally and adjusted our allocation size accordingly to ensure our trade objectives can be achieved.

Trade #2 Result = Win (+$20.6)

Reflection on Trade

Despite only achieving half of our intended take profit, we displayed remarkable determination and adaptability by making adjustments to ensure a risk-to-reward ratio of 1:4. Unfortunately, the market subsequently experienced a pullback, yet we still managed to secure a profit from the trade.

Improvements to be considered:

Get the original take profit and re-enter on other time to have a better planning.

TRADE #3 OVERVIEW
Forex (Oanda-MT4)

PAIR: AUD/USD
LONG/SHORT: LONG
LOT SIZE: 0.2

ENTRY:0.68169
EXIT: 0.68069
STOPLOSS:0.68269

PNL: -$20.0
PIPS: 10/20

Trade Analysis and Insights:

Entry

I diligently observed the market, eagerly anticipating the opportune moment when the price would harmonize with the Exponential Moving Average (EMA) and gracefully graze the support zone on a lower timeframe. Throughout this waiting period, I remained steadfast, restraining any impulse to act prematurely.

Exit & Stop loss

10 pips stop loss and 20 pips take profit.

Prior to engaging in any trading endeavors, I conducted a thorough evaluation of two crucial elements: the 21-day exponential moving average (EMA 21) and significant price levels. The EMA 21 served as an indicator for the overall market trend, while I attentively observed price patterns to understand variations. To mitigate potential risks, I identified areas of resistance and considered the EMA 21 as significant thresholds. My primary objective was to execute trades based on well-informed choices and formulate suitable strategies for implementing stop-loss orders.

Lot Size

20,000 units or 0.20 Standard Lot or 20 micro lots.

We decided to allocate a total of 20,000 units, taking into consideration a 1% risk management strategy for each trade. Additionally, we took into account the possibility of a price rally and adjusted our allocation size accordingly to ensure our trade objectives can be achieved.

Trade #3 Result = Loss (-$20.00)

Reflection on Trade

Sometimes we will receive an early signal or indicator that suggests the price will continue moving in our desired direction, only to see it reverse first and hit our take profit level after we got out.

Improvements to be considered:

Wait for the market structure to be completed and have a better entry and avoid being taken out before the trade goes in your way.

Overview of trades

Trades taken: 3 Trades

Win rate: 33% (1/3)

PnL: -$23

Understanding and paying attention to the higher timeframe trend is of paramount importance when analyzing and making trading decisions in financial markets. The higher timeframe refers to longer time intervals, such as daily, weekly, or monthly charts, whereas lower timeframes include shorter intervals like hourly or minute charts. Here’s a brief explanation of why the higher timeframe trend takes precedence over the lower timeframe trend:

1. Reliable Trend Identification: Higher timeframes provide a more accurate and reliable depiction of the overall market trend. Since they encompass a broader scope of price movements, they filter out noise and random fluctuations that are prevalent in lower timeframes. By focusing on the higher timeframe trend, traders gain a clearer picture of the dominant market direction.
2. Longer-Term Market Dynamics: Higher timeframes capture the underlying fundamental factors and longer-term market dynamics that drive price movements. Economic trends, geopolitical events, and fundamental shifts tend to have a more significant impact on the market over extended periods. By considering the higher timeframe, traders can align their strategies with these fundamental forces, which can enhance their decision-making process.
3. Increased Probability of Success: Trading in alignment with the higher timeframe trend increases the probability of success. When the higher timeframe trend aligns with a trader’s strategy, it signifies that the larger market participants are supporting the same direction. This alignment of market forces enhances the odds of a successful trade, as it reduces the chances of being caught in counter-trend moves or false breakouts that are prevalent in lower timeframes.
4. Reduced Noise and False Signals: Lower timeframes tend to exhibit more noise and false signals due to their susceptibility to short-term market fluctuations. By relying solely on lower timeframes, traders may be subject to misleading price patterns and erratic market behavior. The higher timeframe trend acts as a filter, helping traders identify the genuine market movements amidst the noise and avoid getting trapped in false signals.

In summary, the higher timeframe trend provides a more accurate representation of the market’s direction, captures the long-term market dynamics, increases the probability of success, and reduces noise and false signals. Incorporating higher timeframe analysis into trading strategies allows traders to make more informed decisions, enhancing their overall trading performance.

“Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble.”

Warren Buffett

TRADE #1 OVERVIEW
Forex (Oanda-MT4)

PAIR: USD.CAD
LONG/SHORT: SHORT
LOT SIZE: 0.2

ENTRY: 1.32825
EXIT:1.32558
STOPLOSS:1.32959

PNL:-$20.41
PIPS: 13/26

Trade Analysis and Insights:

Entry

With unwavering patience, I meticulously observed the price, eagerly anticipating the moment when it would harmoniously converge with the Exponential Moving Average (EMA) and grace the sacred realm of the resistance zone.

Exit & Stop loss

13 pips stop loss and 26 pips take profit.

Before trading, I assessed two key factors: EMA 21 and important price levels. EMA 21 indicated market trend, while I watched price patterns. To manage risk, I identified support zones and EMA 21 as significant levels. I aimed to make informed trades and set appropriate stop-loss plans.

Lot Size

20,000 units or 0.20 Standard Lot or 20 micro lots.

We allocated 25,000 units, following a 1% risk management strategy for each trade and also have a attainable trade. To account for this approach, we adjusted our allocation size accordingly.

Trade #1 Result = Loss (-$20.41)

Reflection on Trade

News should be considered also when taking a trade, at least 8 hours before to ensure that the position may be adjusted accordingly and not be taken out with a stop loss.

Improvements to be considered:

Pay close attention to the latest news updates and take note of the forecasts provided. Additionally, give due consideration to the projected direction of price surges.

TRADE #2 OVERVIEW
Forex (Oanda-MT4)

PAIR: NZD/USD
LONG/SHORT: LONG
LOT SIZE: 0.2

ENTRY: 0.62260
EXIT: 0.62460
STOPLOSS: 0.62231

PNL:-$22.6
PIPS: 10/20

Trade Analysis and Insights:

Entry

I carefully watched the price, being really patient and excited, waiting for the perfect moment when it would meet the Exponential Moving Average (EMA) and reach the support zone area on an upward momentum.

Exit & Stop loss

10 pips stop loss and 20 pips take profit.

Before trading, I assessed two key factors: EMA 21 and important price levels. EMA 21 indicated market trend, while I watched price patterns. To manage risk, I identified support zones and EMA 21 as significant levels. I aimed to make informed trades and set appropriate stop-loss plans.

Lot Size

20,000 units or 0.20 Standard Lot or 20 micro lots.

We have distributed a total of 20,000 units based on a risk management strategy of 1% for each trade. Additionally, we have considered a feasible trade in our allocation process and made appropriate adjustments to accommodate this approach.

Trade #2 Result = Loss (-$22.6)

Reflection on Trade

It is important to take into account the news while making a trade, preferably at least 8 hours in advance, to allow for appropriate adjustments to the position and avoid being forced to exit with a stop loss.

Improvements to be considered:

Make sure to closely monitor the most recent news updates and pay careful attention to the forecasts given. Moreover, give appropriate thought to the anticipated trends in price increases.

TRADE #3 OVERVIEW
Forex (Oanda-MT4)

PAIR: NZD/JPY
LONG/SHORT:LONG
LOT SIZE: 0.28

ENTRY:86.843
EXIT:87.044
STOPLOSS:86.744

PNL: -$20.79
PIPS: 10/20

Trade Analysis and Insights:

Entry

With great care and anticipation, I closely monitored the price, displaying both patience and enthusiasm, as I eagerly awaited the opportune instance when it would align with the Exponential Moving Average (EMA) and approach the support zone during an upward trend.

Exit & Stop loss

10 pips stop loss and 20 pips take profit.

Before trading, I assessed two key factors: EMA 21 and important price levels. EMA 21 indicated market trend, while I watched price patterns. To manage risk, I identified support zones and EMA 21 as significant levels. I aimed to make informed trades and set appropriate stop-loss plans.

Lot Size

28,000 units or 0.28 Standard Lot or 28 micro lots.

We have distributed a total of 28,000 units based on a risk management strategy of 1% for each trade. Additionally, we have considered a feasible trade in our allocation process and made appropriate adjustments to accommodate this approach.

Trade #3 Result = Loss (-$20.79)

Reflection on Trade

It is important to take into account the news while making a trade, preferably at least 8 hours in advance, to allow for appropriate adjustments to the position and avoid being forced to exit with a stop loss.

Improvements to be considered:

Ensure you diligently observe the latest news updates and give significant consideration to the forecasts provided. Additionally, give proper consideration to the expected patterns in price rises.

Overview of trades

Trades taken: 3 Trades

Win rate: 0% (0/3)

PnL: -$63.8

There are several websites that provide news and analysis on Forex markets, including information on whether a particular currency pair is bullish or bearish. Here are a few popular options:

1. Forex Factory (www.forexfactory.com): Forex Factory offers real-time news, economic calendar events, and market analysis. Traders can access forums, read expert opinions, and track market sentiment indicators.
2. Investing.com (www.investing.com): Investing.com covers a wide range of financial markets, including Forex. It provides real-time quotes, charts, economic calendars, and news articles. Traders can also find technical analysis tools and sentiment data.
3. DailyFX (www.dailyfx.com): DailyFX is a popular website that offers Forex news, analysis, and educational content. Traders can access daily market insights, technical analysis, and live webinars conducted by experienced analysts.
4. FXStreet (www.fxstreet.com): FXStreet provides news, analysis, economic calendars, and educational resources for Forex traders. It covers major currency pairs, offers technical analysis tools, and publishes regular articles from industry experts.

When visiting these websites, look for sections or articles that provide insights into market sentiment, such as bullish or bearish forecasts for specific currency pairs. Keep in mind that market conditions can change rapidly, so it’s important to consider multiple sources and use your own judgment when making trading decisions.

“Success in trading is not about predicting the future; it’s about managing risk effectively in the present.”

TRADE #1 OVERVIEW
Forex (Oanda-MT4)

PAIR: AUD/USD
LONG/SHORT: LONG
LOT SIZE: 0.25

ENTRY: 0.67636
EXIT: 0.67804
STOPLOSS:0.67563

PNL: +$40.75
PIPS: 8/16

Trade Analysis and Insights:

Entry

I patiently waited for the price to align with the Exponential Moving Average (EMA) and touch the support zone. With the currency pair at a monthly peak, I exercised caution, anticipating any sudden downward correction.

Exit & Stop loss

8 pips stop loss and 16 pips take profit.

Before trading, I assessed two key factors: EMA 21 and important price levels. EMA 21 indicated market trend, while I watched price patterns. To manage risk, I identified support zones and EMA 21 as significant levels. I aimed to make informed trades and set appropriate stop-loss plans.

Lot Size

25,000 units or 0.25 Standard Lot or 25 micro lots.

We allocated 25,000 units, following a 1% risk management strategy for each trade and also have a attainable trade. To account for this approach and potential short-term sell-off, we adjusted our allocation size accordingly.

Trade #1 Result = Win (+$40.75)

Reflection on Trade

With a solid strategy, allocated resources, and disciplined risk management, you can let trades unfold naturally. Instead of obsessively studying charts, enjoy the process and review outcomes later.

Improvements to be considered:

None, this is a perfect trade set-up

TRADE #2 OVERVIEW
Forex (Oanda-MT4)

PAIR: AUD/CAD
LONG/SHORT: LONG
LOT SIZE:0.27

ENTRY:0.90371
EXIT:0.90571
STOPLOSS:0.90271

PNL: +$0.2(Breakeven)
PIPS:10/20

Trade Analysis and Insights:

Entry
I patiently waited for the price to align with the Exponential Moving Average (EMA) and touch the support zone. With the currency pair at a peak, I exercised caution, anticipating any sudden downward correction to have enough wiggle room for the price to move in.

Exit & Stop loss

10 pips stop loss and 20 pips take profit.

Before trading, I assessed two key factors: the EMA 21 and crucial price levels. The EMA 21 indicated the market trend, and I closely analyzed price patterns. To manage risk, I identified important price levels like support zones and the EMA 21.

Lot Size

27,000 units or 0.27 Standard Lot or 27 micro lots.

We have distributed a total of 27,000 units, taking into consideration a risk management strategy of 1% for each trade, and we also have a feasible trade opportunity. To accommodate this approach and potential temporary price increases, we have made appropriate adjustments to our allocation size.

Trade #2 Result = Breakeven (+$0.2)

Reflection on Trade

Great decision on taking the breakeven after hitting $20, since it shows multiple red candles.

Improvements to be considered:

Adjust to higher than breakeven after filling the 1:1 ratio in order to have a risk free trade plus some profits.

TRADE #3 OVERVIEW
Forex (Oanda-MT4)

PAIR: EUR/GBP
LONG/SHORT: SHORT
LOT SIZE: 0.2

ENTRY: 0.85929
EXIT: 0.85770
STOPLOSS: 0.86010

PNL: -$21.2
PIPS: 8/16

Trade Analysis and Insights:

Entry
I patiently waited for the price to align perfectly with the Exponential Moving Average (EMA) and touch the support zone, even though the EMA 200 is flat and EMA 21 is about to cross.

Exit & Stop loss

8 pips stop loss and 16 pips take profit.

Before trading, I assessed two key factors: the EMA 21 and crucial resistance levels levels. The EMA 21 indicated the market trend, and I closely analyzed price patterns. To manage risk, I identified important price levels like support zones and the EMA 21.

Lot Size

20,000 units or 0.2 Standard Lot or 20 micro lots.

We have distributed a total of 20,000 units, taking into consideration a risk management strategy of 1% for each trade, and we also have a feasible trade opportunity. To accommodate this approach and potential temporary price increases, we have made appropriate adjustments to our allocation size.

Trade #3 Result = Loss (-$21.2)

Reflection on Trade

EMA 200 must be taken into consideration when taking a trade plus the flatness must also be a factor, since this will be one of the more important indicators that shows that will determine the trend of the trade and the overall momentum of the price action.

Improvements to be considered:

Take note of the price action and execute trades solely when a clear trending direction is identified through the implementation of the EMA 200 indicator.

TRADE #4 OVERVIEW
Forex (Oanda-MT4)

PAIR: AUD/CAD
LONG/SHORT: LONG
LOT SIZE:0.2

ENTRY: 0.905
EXIT: 0.90765
STOPLOSS: 0.90364

PNL:-$23.52
PIPS:13/27

Trade Analysis and Insights:

Entry
I patiently waited for the price to align perfectly so I can re-enter from the previous trade with the Exponential Moving Average (EMA) and touch the support zone in mind.

Exit & Stop loss

13 pips stop loss and 27 pips take profit.

Before trading, I assessed two key factors: the EMA 21 and crucial resistance levels levels. The EMA 21 indicated the market trend, and I closely analyzed price patterns. To manage risk, I identified important price levels like support zones and the EMA 21.

Lot Size

20,000 units or 0.2 Standard Lot or 20 micro lots.

We have distributed a total of 20,000 units, taking into consideration a risk management strategy of 1% for each trade, and we also have a feasible trade opportunity. To accommodate this approach and potential temporary price increases, we have made appropriate adjustments to our allocation size.

Trade #4 Result = Loss (-$23.52)

Reflection on Trade

Sudden surge in price can make a big difference more specifically when news and interest hike has been released to the public, always take note of the possible outcomes when this happens.

Improvements to be considered:

Take note of news release, its date and time of publishing.

TRADE #5 OVERVIEW
Forex (Oanda-MT4)

PAIR: AUD/USD
LONG/SHORT: LONG
LOT SIZE: 0.2

ENTRY: 0.67764
EXIT: 0.67965
STOPLOSS: 0.67664

PNL: -$31.2
PIPS: 10/20

Trade Analysis and Insights:

Entry
With great patience, I awaited the opportune moment when the price would harmoniously coincide with the Exponential Moving Average (EMA) and reach the support zone.

Exit & Stop loss

10 pips stop loss and 20 pips take profit.

I conducted a thorough evaluation of two fundamental elements: the Exponential Moving Average (EMA) 21 and significant levels of resistance. The EMA 21 served as a reliable indicator of the prevailing market trend, prompting me to meticulously scrutinize various price patterns. In order to effectively mitigate risks, I strategically identified critical price levels such as support zones in addition to giving due consideration to the EMA 21.

Lot Size

20,000 units or 0.2 Standard Lot or 20 micro lots.

We have distributed a total of 20,000 units, taking into consideration a risk management strategy of 1% for each trade, and we also have a feasible trade opportunity. To accommodate this approach and potential temporary price increases, we have made appropriate adjustments to our allocation size.

Trade #5 Result = Loss (-$31.2)

Reflection on Trade

Whiplash of this kind of trade is the worst, just a wick and directly moving on your take profit in just 1 candle, this will also hurt your mental game and the best thing we could do is just move on and execute the next trade with ease of mind.

Improvements to be considered:

None, as this was news related price surge and all plan was executed perfectly.

Overview of trades

Trades taken: 5 Trades

Win rate: 25% (1/4) + 1 Breakeven trade

PnL: -$34.97

Price Surges in Forex Related to News

1. News-driven price surges: Significant news events can cause sudden price surges in the forex market.
2. Economic indicators: Pay attention to economic indicators like GDP, employment data, and interest rate decisions, as they can trigger price movements.
3. Central bank announcements: Statements or actions by central banks can lead to sharp price surges due to their impact on interest rates and monetary policies.
4. Geopolitical events: Political developments, such as elections or geopolitical tensions, can create price surges by influencing market sentiment.
5. Market sentiment shifts: News that alters market sentiment can cause sudden price surges, such as unexpected corporate earnings reports or mergers.
6. Reacting to news: Monitor news releases closely and be prepared to act quickly to capitalize on price surges that align with your trading strategy.

Tips for Utilizing Price Surges in Forex

1. Stay informed: Keep track of news and economic calendars to identify potential events that could trigger price surges.
2. Plan ahead: Develop a trading plan that includes strategies for taking advantage of price surges, such as setting entry and exit points in advance.
3. Use stop-loss orders: Protect your positions by placing stop-loss orders to limit potential losses if the market moves against you during a price surge.
4. Monitor market sentiment: Understand the overall market sentiment and align your trading decisions accordingly during price surges.
5. Use technical analysis: Combine news-driven price surges with technical analysis tools to identify entry and exit points and confirm the strength of the surge.
6. Manage risk: Maintain proper risk management techniques, such as position sizing and diversification, to mitigate potential losses during volatile price surges.

Remember, trading in the forex market involves risks, and it is essential to develop your own trading strategy and risk management plan before engaging in any trading activities.

“Embrace the volatility of the market, for within the chaos lies the opportunity to profit.”

TRADE #1 OVERVIEW
Forex (Oanda-MT4)

PAIR: AUD/USD
LONG/SHORT: LONG
LOT SIZE: 0.2

ENTRY: 0.67498
EXIT:0.67697
STOPLOSS: 0.67515
PNL: +$39.8

Trade Analysis and Insights:

Entry

I meticulously dedicated an immense amount of time sifting through an abundance of false alerts in order to secure this entry. It demanded considerable patience on my part as I patiently awaited the price to align with the Exponential Moving Average (EMA). Considering the fact that this specific currency pair is presently at a monthly peak, I exercised utmost caution, fully aware of the possibility of an abrupt downward correction.

Exit & Stop loss

10 pips stop loss and 20 pips take profit.

Prior to participating in trading, I performed an evaluation of two vital factors: the EMA 21 and an important price area on two distinct levels. The EMA 21 acted as an indication of the overall market trend, while I diligently observed price patterns and trends. To ensure risk control, I pinpointed significant price levels like the support zone and EMA 21. By considering all these aspects, my objective was to make informed trading decisions and implement suitable stop-loss plans

Lot Size

20,000 units or 0.2 Standard Lot or 20 micro lots.

We allocated 20,000 units, following a 1% risk management strategy for each trade and also have a attainable trade. To account for this approach and potential short-term sell-off, we adjusted our allocation size accordingly.

Trade #1 Result = Win (+$39.8)

Reflection on Trade

If you have a well-thought-out strategy in place, have appropriately allocated resources, and practice disciplined risk management, once you enter a trade, you can focus on other tasks and allow the trade to unfold naturally. Rather than obsessively studying the chart, enjoy the process and review the outcomes at a later time..

Improvements to be considered:

None, this is a perfect trade set-up

TRADE #2 OVERVIEW
Forex (Oanda-MT4)

PAIR: USD/CAD
LONG/SHORT: SHORT
LOT SIZE: 0.26

ENTRY: 1.33275
EXIT: 1.33075
STOPLOSS:1.33375

PNL:-$19.59

Trade Analysis and Insights:

Entry
I expected this trade as it’s pushing me down and touching the EMA 21, despite ATR and RSI not aligning with my bias.

Exit & Stop loss

10 pips stop loss and 20 pips take profit.

Before trading, I assessed two key factors: the EMA 21 and crucial price levels. The EMA 21 indicated the market trend, and I closely analyzed price patterns. To manage risk, I identified important price levels like support zones and the EMA 21.

Lot Size

26,000 units or 0.26 Standard Lot or 26 micro lots.

We have distributed a total of 26,000 units, taking into consideration a risk management strategy of 1% for each trade, and we also have a feasible trade opportunity. To accommodate this approach and potential temporary price increases, we have made appropriate adjustments to our allocation size.

Trade #2 Result = Loss (-$19.59)

Reflection on Trade

I should have taken note of the double bottom on and adjusted my stop loss to breakeven

Improvements to be considered:

Adjust to breakeven after filling the 1:1 ratio in order to have a risk free trade.

TRADE #3 OVERVIEW
Forex (Oanda-MT4)

PAIR: EUR/JPY
LONG/SHORT: SHORT
LOT SIZE: 0.15

ENTRY: 1150.025
EXIT:149.651
STOPLOSS: 150.214

PNL: -$20.50

Trade Analysis and Insights:

Entry
This is actually top picking on the higher timeframe (1H), and showing stairs pattern on a downward regression, and I was anticipating for it to go down, even though the 200 EMA is a little flat.

Exit & Stop loss

19 pips stop loss and 38 pips take profit.

Before trading, I assessed two key factors: the EMA 21 and crucial resistance levels levels. The EMA 21 indicated the market trend, and I closely analyzed price patterns. To manage risk, I identified important price levels like support zones and the EMA 21.

Lot Size

15,000 units or 0.15 Standard Lot or 15 micro lots.

We have distributed a total of 15,000 units, taking into consideration a risk management strategy of 1% for each trade, and we also have a feasible trade opportunity. To accommodate this approach and potential temporary price increases, we have made appropriate adjustments to our allocation size.

Trade #3 Result = Loss (-$20.50)

Reflection on Trade

EMA 200 must be taken into consideration when taking a trade, since this will be one of the more important indicators that shows that will determine the trend of the trade and the overall momentum of the price action.

Improvements to be considered:

Take careful note of the price action and execute trades solely when a clear trending direction is identified through the implementation of the EMA 200 indicator.

Overview of trades

Trades taken: 3 Trades

Win rate: 33% (1/3)

PnL: -0.$29

The Exponential Moving Average (EMA) is a widely used technical indicator in trading, and the EMA 200 specifically holds significant importance for many traders. Here’s a lesson on the importance of EMA 200 in trading and how it can assist in making trading decisions:

The EMA 200 is a moving average that calculates the average price of an asset over the past 200 periods, giving more weight to recent data points. Here are some key reasons why traders consider the EMA 200 valuable:

1. Trend Identification: The EMA 200 helps identify the overall trend of a market. By observing whether the price is above or below the EMA 200, traders can determine if the market is in an uptrend, downtrend, or ranging phase. This information is crucial as it helps traders align their strategies with the prevailing market direction.
2. Support and Resistance: The EMA 200 often acts as a dynamic support or resistance level. When the price is above the EMA 200, it can act as a support level, indicating potential buying opportunities. Conversely, when the price is below the EMA 200, it can act as a resistance level, suggesting potential selling opportunities. Traders often observe price reactions around the EMA 200 to make informed trading decisions.
3. Price Reversals: The EMA 200 can help identify potential reversals in a trend. When the price approaches or crosses the EMA 200, it may signal a change in market sentiment. Traders watch for instances where the price bounces off the EMA 200 or breaks through it decisively, as these can indicate shifts in supply and demand dynamics, presenting opportunities for trades.
4. Trend Continuation: Traders also use the EMA 200 to confirm the continuation of an existing trend. If the price remains consistently above or below the EMA 200 during an established trend, it suggests that the trend is strong and likely to persist. Traders may look for opportunities to enter or add to their positions when the price retraces to the EMA 200 in a trending market.
5. Timeframe Alignment: The EMA 200 can help traders align their trades across different timeframes. For example, if the price is above the EMA 200 on both the daily and weekly charts, it indicates a bullish bias in the longer-term trend. This alignment of the EMA 200 across multiple timeframes can enhance the probability of successful trades.

Remember, while the EMA 200 is a valuable tool, it should not be solely relied upon for making trading decisions. It is advisable to use it in conjunction with other technical indicators, chart patterns, and fundamental analysis to increase the accuracy of your trading strategies.

Always practice proper risk management and consider factors beyond the EMA 200, such as market conditions, news events, and overall market sentiment, to make well-informed trading decisions.

“Trade with the trend and let the EMA 200 be your guiding light”

Weekly Report Overview

Forex – 12 Trades

Platform: Oanda MT-4 Webtrader

3 Wins
9 Loses

Win Rate: 25%
PnL for the week: -$136.95

*Full Breakdown of each trade can be seen on previous blogposts

Daily Overview

Day 6 – June 5,2023

Trades Taken: 2

Win Rate: 0%

Trade 1: USD/CHF- LOST
Trade 2: CAD/CHF – LOST

PnL: -$42.54

Day 7 – June 6,2023

Trades Taken: 4

Win Rate: 25%

Trade 1: EUR/USD- WIN
Trade 2: NZD/JPY- LOST
Trade 3: GBP/USD – LOST
Trade 4: EUR/AUD -LOST

PnL: -$23.44

Day 8 – June 7,2023

Trades Taken: 2

Win Rate: 0%

Trade 1: USD/JPY- LOST
Trade 2: EUR/GBP- LOST

PnL: -$106.28

Day 9 – June 8,2023

Trades Taken: 2

Win Rate: 50%

Trade 1: USD/CAD- WIN
Trade 2: EUR/AUD- LOST

PnL: +$18.44

Day 10 – June 9,2023

Trades Taken: 2

Win Rate: 50%

Trade 1: AUD/USD: WIN
Trade 2: GBP/JPY: LOST (Finished June 12)

PnL: +$20.11

TRADE #1 OVERVIEW
Forex (Oanda-MT4)

PAIR: AUD/USD
LONG/SHORT:LONG
LOT SIZE: 0.2

ENTRY:0.67112
EXIT:0.67312
STOPLOSS:0.67012

PNL: +$40.40

Trade Analysis and Insights:

Entry

I invested countless hours filtering through numerous false alerts to secure this entry. It required patience, as I waited for the price to approach the EMA. Given that this particular pair is currently at a monthly high, I exercised caution, recognizing the potential for a sharp downward correction

Exit & Stop loss

10 pips stop loss and 20 pips take profit.

Before engaging in trading, I conducted an analysis of two crucial elements: the EMA 21 and a significant price zone on two different levels. The EMA 21 served as an indicator of the market trend, while I carefully examined price patterns and trends. In order to effectively manage risks, I identified significant price levels such as the support zone and EMA 21. Taking all these factors into consideration, my goal was to make well-informed trade entries and establish appropriate stop-loss strategies.

Lot Size

20,000 units or 0.2 Standard Lot or 20 micro lots.

We allocated 20,000 units, following a 1% risk management strategy for each trade and also have a attainable trade. To account for this approach and potential short-term sell-off, we adjusted our allocation size accordingly.

Trade #1 Result = Win (+$40.4)

Reflection on Trade

As long as you have a great plan, and allocated the right size plus disciplined risk management. After taking the entry you can just get on with other things and just let the trade playout. Instead of looking into the chart like a madman, have some fun and see the results later.

Improvements to be considered:

Can have a better entry or add allocation near top of support zone.

TRADE #2 OVERVIEW
Forex (Oanda-MT4)

PAIR: GBP/JPY
LONG/SHORT: LONG
LOT SIZE: 0.09

ENTRY:175.296
EXIT:175.916
STOPLOSS:174.986

PNL:-$20.29

Trade Analysis and Insights:

Entry

I entered this trade because the price was approaching a significant price zone and showing upward continuation on a higher timeframe, despite nearing price discovery.

Exit & Stop loss

31 pips stop loss and 62 pips take profit.

Before engaging in trading, I conducted an analysis of two crucial elements: the EMA 21 and a significant price zone on two different levels. The EMA 21 served as an indicator of the market trend, while I carefully examined price patterns and trends. In order to effectively manage risks, I identified significant price levels such as the support zone and EMA 21. Taking all these factors into consideration, my goal was to make well-informed trade entries and establish appropriate stop-loss strategies.

Even though the stop loss pips are high this will ensure that the trade will more likely to be in our favor and eliminating sudden stop outs on price surges.

Lot Size

9,000 units or 0.09 Standard Lot or 9 micro lots.

We allocated 9,000 units, following a 1% risk management strategy for each trade and also have a attainable trade. To account for this approach and potential short-term sell-off, we adjusted our allocation size accordingly.

Trade #2 Result = Lose (-$20.29)

Reflection on Trade

This trade has been ongoing for almost three days since it was initiated, which was four hours before the market closed for the week. Based on the current progress, it is reasonable to assume that once the price reaches $20 in unrealized profits, we can adjust the stop loss to breakeven. This adjustment will allow us to implement better risk management practices and increase the probability of this trade becoming a winning one.

Improvements to be considered:

Set stop loss to breakeven after it reaches 1:1 risk to reward ratio, to avoid further losses.

Overview of trades

Trades taken: 2 Trades

Win rate: 50% (1/2)

PnL: +$20.11

Breakeven in forex trading refers to the point at which a trade neither makes a profit nor incurs a loss. It is the price level at which the trader’s initial investment is recovered, resulting in a risk-free trade.

To calculate the breakeven point, consider the entry price, position size, and transaction costs. The formula is: Breakeven Point = Entry Price +/- Transaction Costs.

For effective breakeven trading:

1. Use Stop Loss Orders to manage risk.
2. Trail your stop loss to lock in profits.
3. Consider multiple profit targets.
4. Avoid overtrading and focus on high-quality setups.
5. Practice proper risk management.

Remember, while breakeven trades provide security, overall profitability depends on your trading strategy and risk management.

“Success is not final, failure is not fatal: It is the courage to continue that counts.”

Winston Churchill

TRADE #1 OVERVIEW
Forex (Oanda-MT4)

PAIR: USD/CAD
LONG/SHORT: SHORT
LOT SIZE: 0.26

ENTRY:1.33593
EXIT:1.33397
STOPLOSS:1.333706

PNL: +$38.58

Trade Analysis and Insights:

Entry

I adopted a bold strategy for this trade, taking into account the possibility of the pair’s upward movement on both the 5-minute and 1-hour timeframes. The price movement has been following the EMA 21 and EMA 200, showing a positive trend. Furthermore, the pair is presently close to a previous support area that became resistance , which offers a favorable chance to enter the trade. This level is anticipated to draw in a substantial number of buyers, further strengthening the trade..

Exit & Stop loss

10 pips stop loss and 20 pips take profit.

Before making trades, I looked at two important things: the EMA 21 and a special price area on two different levels. The EMA 21 showed which way the market was going, and I studied how prices were moving and changing. To keep myself safe from risks, I found important price points like the support zone and EMA 21. With all of this in mind, I tried to make smart trades and set up plans to stop losses if things didn’t go well.

Lot Size

26,000 units or 0.26 Standard Lot or 26 micro lots.

We allocated 26,000 units, following a 1% risk management strategy for each trade and also have a attainable trade. To account for this approach and potential short-term rally, we adjusted our allocation size accordingly.

Trade #1 Result = Win (+$38.58)

Reflection on Trade

Having a resistance zone instead of a single resistance line makes trading easier. It allows for flexibility and accounts for minor price fluctuations. Unlike relying solely on a line, a resistance zone reduces the risk of false breakouts and provides a more realistic assessment of market dynamics. It also encourages a holistic approach to technical analysis, improving trading strategies. In summary, a resistance zone enhances trading by considering a wider range of price points and market behavior.

Improvements to be considered:

Double check if the take profit is exactly twice of the risk, this is to ensure that risk management will always have a known outcome.

TRADE #2 OVERVIEW
Forex (Oanda-MT4)

PAIR: EUR/AUD
LONG/SHORT: SHORT
LOT SIZE:0.18

ENTRY: 1.60616
EXIT: 1.60278
STOPLOSS: 1.60781

PNL: -$20.14

Trade Analysis and Insights:

Entry

I adopted an aggressive entry for this trade, and relying on zone level on both parallel channel and horizontal, since higher timeframe is showing price continuation on the downside, I pulled the trigger for this trade.

Exit & Stop loss

17 pips stop loss and 34 pips take profit.

Before making trades, I looked at two important things: Downward zone channel (yellow diagonal box) and, resistance zone (green box), and the exit is before the bottom part of the regression channel.

Lot Size

18,000 units or 0.18 Standard Lot or 18 micro lots.

We allocated 18,000 units, following a 1% risk management strategy for each trade and also have a attainable trade. To account for this approach and potential short-term rally, we adjusted our allocation size accordingly.

Trade #2 Result = Loss (-$20.14)

Reflection on Trade

Never rely on zones only, make sure that the moving averages are also in line with the trade to make sure that the pair we’re trading will have some direction and not on a consolidation phase where range market exists, and as a day trader, ranges are the one we must avoid if we want to make a profit.

Improvements to be considered:

Double check EMAs if they are trending to make sure the trade will have volatility.

Overview of trades

Trades taken: 2 Trades

Win rate: 50% (1/2)

PnL: +$18.44

Exponential Moving Averages (EMAs) play a crucial role in trading for several reasons:

1. Trend identification: EMAs are effective tools for identifying and confirming market trends. By smoothing out price fluctuations and placing greater emphasis on recent price data, EMAs provide a clearer picture of the underlying trend. Traders often use the crossover of shorter-term EMAs (e.g., 20-day or 50-day) with longer-term EMAs (e.g., 100-day or 200-day) to determine trend changes and potential trading opportunities.
2. Support and resistance levels: EMAs can act as dynamic support and resistance levels. When a stock or asset price approaches or bounces off an EMA, it can indicate a potential reversal or continuation of a trend. Traders often watch for price reactions near EMAs to make informed decisions on entry or exit points.
3. Entry and exit signals: EMAs can generate trading signals when certain conditions are met. For example, a bullish signal may be generated when a shorter-term EMA crosses above a longer-term EMA, indicating a potential upward price movement. Conversely, a bearish signal may occur when a shorter-term EMA crosses below a longer-term EMA, suggesting a possible downtrend. These EMA crossovers are commonly used by traders to enter or exit positions.
4. Volatility measurement: EMAs can help measure market volatility. By adjusting the smoothing factor based on recent price movements, EMAs are more responsive to changes in volatility compared to simple moving averages (SMAs). Traders can use this information to adapt their strategies accordingly, such as widening or narrowing stop-loss levels based on the current market conditions.
5. Trade management: EMAs can assist in managing trades effectively. Traders often use EMAs as trailing stop-loss levels, adjusting them based on the EMA’s progression. This allows traders to stay in a trade as long as the trend remains intact while protecting their profits if the trend reverses.

In summary, EMAs are important in trading due to their ability to identify trends, act as support and resistance levels, generate entry and exit signals, measure volatility, and aid in trade management. Incorporating EMAs into technical analysis can provide valuable insights and help traders make more informed trading decisions.

“Success in trading is not about predicting the future with certainty, but about managing risk and adapting to changing market conditions.”

TRADE #1 OVERVIEW
Forex (Oanda-MT4)

PAIR: EUR/GBP
LONG/SHORT: SHORT
LOT SIZE: 0.84

ENTRY:0.86043
EXIT: 0.86004
STOPLOSS: 0.86059

PNL:

Trade Analysis and Insights:

Entry

After identifying five confluences or indicators suggesting a potential continuation to the downside, I decided to adopt an aggressive approach and entered a trade at the same level as the last candle where the three-line strike pattern appeared (Orange star), but due to spread, I was filled at a lower price than expected.

Exit & Stop loss

3 pips stop loss and 6 pips take profit.

Before trading, I analyzed three crucial factors: the EMA 21, ATR, and a significant price zone at two levels. The EMA 21 helped me determine the market trend, while I closely examined price patterns and trends. To mitigate risks, I identified key price levels such as the support zone and EMA 21. By taking all these factors into account, I aimed to make informed trade entries and establish effective stop-loss strategies.

Lot Size

84,000 units or 0.84 Standard Lot or 84 micro lots.

We allocated 84,000 units, following a 1% risk management strategy for each trade and also have a attainable trade. To account for this approach and potential short-term sell-off, we adjusted our allocation size accordingly.

Trade #1 Result = Loss (-$80.39)

Reflection on Trade

Always consider the pips, spread, and, most importantly, the numbers you input for your allocation size. By doing so, you can avoid moving your stop loss unnecessarily to accommodate your trade. Planning ahead and cutting losses quickly is crucial to prevent significant losses. It’s important to maintain emotional control and be both ruthless and disciplined when it comes to your price points.

Improvements to be considered:

Must not let emotions takeover, practice cut losses and never add on your losing trade.

TRADE #2 OVERVIEW
Forex (Oanda-MT4)

PAIR: USD/JPY
LONG/SHORT: SHORT
LOT SIZE: 0.21

ENTRY: 139.250
EXIT: 139.990
STOPLOSS: 139.366

PNL:

Trade Analysis and Insights:

Entry

After identifying major stop loss zones and considering the higher timeframe for trend continuation, I entered on the same level as EMA 21 and have my stop loss level 2 resistance points zone above to accommodate any sudden price movements that might take me our prematurely.

Exit & Stop loss

13 pips stop loss and 27 pips take profit.

Prior to engaging in trading, I carefully evaluated three essential elements: the EMA 21, ATR, and an important price range represented by two levels. The EMA 21 was instrumental in identifying the prevailing market direction, while I diligently observed price patterns and trends. To minimize potential risks, I pinpointed significant price levels, including the support zone and EMA 21. By considering all of these factors, my objective was to execute well-informed trade entries and establish robust stop-loss strategies.

Lot Size

21,000 units or 0.21 Standard Lot or 21micro lots.

We adjusted our allocation size to 21,000 units, adhering to a 1% risk management strategy for each trade, while also considering an achievable trade. This adjustment was made to accommodate our approach and account for any potential price reaction on plotted zone levels.

Trade #2 Result = Loss (-$25.49)

Reflection on Trade

Always consider the zones where prices might react and observe if the price fails to break through those levels. This can potentially indicate an impending reversal, prompting you to consider taking profits even if the price doesn’t reach your desired take profit level. Failing to do so could turn a winning trade into a losing one and impact your mental capacity for trading effectively.

Improvements to be considered:

Set stop loss to breakeven if prices fails to break on major zone levels to minimize risk.

Overview of trades

Trades taken: 2 Trades

Win rate: 0% (1/2)

PnL: -$105.88

Managing emotions while trading and avoiding costly mistakes, such as moving stop-loss orders, can be challenging but crucial for successful trading. Here are some tips to help you handle emotions and make more rational decisions:

1. Develop a Trading Plan: Having a well-defined trading plan that includes entry and exit strategies, risk management rules, and profit targets can provide structure and help reduce emotional decision-making.
2. Stick to Your Plan: Once you have a trading plan in place, discipline yourself to follow it consistently. Avoid making impulsive decisions based on fear or greed. Trust in your strategy and the pre-determined rules you set for yourself.
3. Set Realistic Expectations: Understand that losses are a part of trading and that not every trade will be a winner. Set realistic expectations and accept that there will be ups and downs. Avoid chasing unrealistic profits or trying to recover losses quickly, as this can lead to emotional decision-making.
4. Use Stop-Loss Orders: Implementing stop-loss orders is a vital risk management tool. It helps limit potential losses by automatically closing your position if the price reaches a predetermined level. Once you set a stop-loss order, avoid moving it unless there is a valid reason based on your trading strategy, not emotions.
5. Practice Proper Position Sizing: Determine the appropriate position size based on your risk tolerance and the size of your trading account. Avoid risking too much on a single trade, as it can lead to increased emotional stress. Use position sizing techniques such as the percentage risk per trade or the fixed dollar amount approach.
6. Take Breaks and Manage Stress: Trading can be mentally and emotionally demanding. Take regular breaks, both during trading sessions and between them, to clear your mind and reduce stress. Engage in activities that help you relax and maintain a balanced mindset.
7. Analyze Your Trades: Regularly review your trades to learn from both successes and failures. Analyzing your trades objectively can help you identify patterns, refine your strategy, and reduce emotional biases.
8. Seek Support and Education: Join trading communities or find a mentor who can provide guidance and support. Educate yourself about trading psychology and emotional biases to better understand your own behavior and develop strategies for overcoming emotional challenges.

Remember, emotional control and discipline are key to successful trading. By implementing these tips and continuously working on your mindset, you can improve your ability to make rational decisions and avoid costly mistakes.

“Emotional control is the foundation of successful trading. Without it, even the best strategy can crumble under the weight of impulsive decisions.”

John Smith

TRADE #1 OVERVIEW
Forex (Oanda-MT4)

PAIR: EUR/USD
LONG/SHORT: LONG
LOT SIZE: 0.4

ENTRY:1.07181
EXIT: 1.07381
STOPLOSS: 1.07131

PNL: +$41.6

Trade Analysis and Insights:

Entry

I took an aggressive approach with this trade, considering the potential upward movement of this pair on both the 5-minute and 1-hour timeframes. The price action has been respecting both the EMA 21 and EMA 200, indicating a positive trend. Additionally, the pair is currently near a previous resistance zone, which presents a favorable entry opportunity. This level is expected to attract a significant number of buyers, providing additional support for the trade.

Exit & Stop loss

9 pips stop loss and 18 pips take profit.

Prior to trading, I analyzed two key factors: the EMA 21 and a prominent price zone on two levels. The EMA 21 indicated the market trend, while I studied price patterns and trends. To manage risks, I identified important price levels like the support zone and EMA 21. Considering all this, I aimed to make informed trade entries and establish stop-loss strategies.

Lot Size

40,000 units or 0.4 Standard Lot or 40 micro lots.

We allocated 40,000 units, following a 1% risk management strategy for each trade and also have a attainable trade. To account for this approach and potential short-term sell-off, we adjusted our allocation size accordingly.

Trade #1 Result = Win (+$41.6)

Reflection on Trade

Having a zone for support is one of the key here and setting of stop loss outside that zone gives the trade a higher probability of winning.

Improvements to be considered:

Can have a better entry or add allocation near top of support zone.

TRADE #2 OVERVIEW
Forex (Oanda-MT4)

PAIR: NZD/JPY
LONG/SHORT: SHORT
LOT SIZE: 0.5

ENTRY: 84.767
EXIT: 84.823
STOPLOSS: 84.834

PNL: -$20.88

Trade Analysis and Insights:

Entry

I took an aggressive approach and so much anticipation with this trade, considering the potential downward movement of this pair on the 5-minute. The price action seems to be respecting EMA 21 a indicating a start of a new trend.

Exit & Stop loss

5 pips stop loss and 10 pips take profit.

Prior to trading, I analyzed the EMA 21 and the interaction with the EMA 200. I placed my stop loss above the ATR indicator and a resistance zone to manage risk effectively.

Lot Size

50,000 units or 0.5 Standard Lot or 50 micro lots.

We allocated 50,000 units, following a 1% risk management strategy for each trade and also have a attainable trade. To account for this approach and potential short-term sell-off, we adjusted our allocation size accordingly.

Trade #2 Result = Loss(-$20.88)

Reflection on Trade

Enhancing an anticipation trade by incorporating multiple confluences and waiting for sufficient information is indeed a prudent approach. By doing so, you increase the probability of success and reduce the risk of entering trades based on incomplete or unreliable signals.

Improvements to be considered:

Limit the use of market order trade to avoid jumping on the trade on both feet, make sure to have enough confirmation before entering so the trade will not be taken out in just a matter of minutes.

TRADE #3 OVERVIEW
Forex (Oanda-MT4)

PAIR: GBP/USD
LONG/SHORT: SHORT
LOT SIZE: 0.2

ENTRY: 1.24078
EXIT: 1.23878
STOPLOSS:1.24178

PNL: -$24.00

Trade Analysis and Insights:

Entry

I took a calculated approach since there was a 3 line strike (Star indicator), which mean a higher probability that this will continue to the downside, when used correctly, this will give me a 60% chance of going into my desired direction.

Exit & Stop loss

5 pips stop loss and 10 pips take profit.

Prior to trading, I analyzed the EMA 21 and previous high of the pair.

Lot Size

20,000 units or 0.2 Standard Lot or 20 micro lots.

We allocated 20,000 units, considering a 1% risk management strategy for each trade, and also factored in the possibility of a short-term sell-off. In order to accommodate this approach and mitigate potential risks, we adjusted our allocation size accordingly.

Trade #3 Result = Loss(-$24.00)

Reflection on Trade

If there is a clear consolidation and no more forming of lower lows, you might consider moving your stop loss to break even, so we can control the risk and move on to the next opportunity.

Improvements to be considered:

Ensure to carefully note your stop loss level since there’s a possibility of mistyping the number, and once the trade is executed and held overnight, you won’t have the opportunity to verify it.

TRADE #4 OVERVIEW
Forex (Oanda-MT4)

PAIR: EUR/AUD
LONG/SHORT: SHORT
LOT SIZE: 0.22

ENTRY: 1.60325
EXIT: 1.60055
STOPLOSS: 1.60460

PNL: -$20.16

Trade Analysis and Insights:

Entry

This trade was executed by market order and was taken at the instant I placed the order, there is a clear sign of a strong downtrend on the lower timeframe plus the 3 line strike indicator is showing as well.

Exit & Stop loss

13 pips stop loss and 27 pips take profit.

Before initiating the trade, I conducted an analysis indicating that the price had reached the EMA 21. Considering this, I decided to set the stop loss order slightly above the initial resistance level, as the second level was deemed too distant for a profitable take profit to be achievable.

Lot Size

22,000 units or 0.22 Standard Lot or 22 micro lots.

We distributed 22,000 units, taking into account a risk management strategy of 1% for each trade, and we also considered the chance of a brief decline in selling. To accommodate this approach and minimize potential risks, we made appropriate adjustments to our allocation size.

Trade #4 Result = Loss(-$20.16)

Reflection on Trade

When considering a market order trade, it is essential to carefully evaluate both the spread and the trend on a higher timeframe beforehand. It is crucial to note that this particular trade appeared to be occurring at the price’s lowest point on the higher timeframe.

Neglecting this aspect and entering the trade can pose challenges when attempting to exit, particularly if it is left open overnight.

Improvements to be considered:

Look for the spread of bid and ask plus the trend of the trade before entering the trade to ensure higher profitability.

Overview of trades

Trades taken: 4 Trades

Win rate: 25% (1/4)

PnL: -$23.44

When it comes to trading, don’t rush into market orders without considering important factors:

1. Check market liquidity and bid-ask spread.
2. Evaluate market volatility and adjust your order type accordingly.
3. Consider the size of your trade relative to the market.
4. Stay informed about news and events that may affect prices.
5. Use technical analysis to identify suitable entry and exit points.
6. Have a solid risk management plan in place.

Taking these considerations into account can help you make more informed and successful trading decisions.

“Success in day trading comes from disciplined actions, strategic analysis, and the ability to adapt swiftly to changing market conditions.”

First day of implementing 1% ($20) risk per day.

TRADE #1 OVERVIEW
Forex (Oanda-MT4)

PAIR: USD/CHF
LONG/SHORT: LONG
LOT SIZE: 0.2 (20,000 UNITS)

ENTRY:0.91099
EXIT: 0.91274
STOPLOSS: 0.91008

PNL: -$20.76

Trade Analysis and Insights:

Entry

I took a patient approach with this trade, since this pair is showing potential (on both 5m and 1H timeframe) to the upside and respecting both EMA 21 and EMA 200.

Exit & Stop loss

For the first trade, USD/CHF, there is a 9 pips stop loss and 18 pips take profit.

Before trading, I analyzed two factors: the EMA 21 and a prominent price zone. These were crucial in my decision-making process. The EMA 21 indicated the market trend, while I observed patterns and trends in the price action. To manage risks, I identified important price levels, including the support zone and the EMA 21. Considering all this, I aimed to make an informed trade entry and establish a stop-loss strategy.

Lot Size

20,000 units or 0.2Standard Lot or 20 micro lots.

We carefully allocated 20,000 units for this particular trade, considering the implementation of a 1% risk management strategy for each trade. By adhering to this risk management approach, we recognized the need to increase our allocation size accordingly. Furthermore, we strategically opted for this size in anticipation of a potential short-term sell-off that would promptly offset our position and have our risk manageable.

Trade #1 Result = Loss(-$20.76)

Reflection on Trade

The recent sell-off resulted in a quick implementation of our stop loss strategy, helping us limit losses and regain trading confidence for future opportunities. By cutting losses promptly, we protected our capital and demonstrated disciplined risk management. This experience highlights the importance of incorporating stop loss orders during volatile market conditions.

Improvements to be considered:

Once there was a triple top pattern occurring, we might have to adjust our stop loss to break even to control the risk even more.

TRADE #2 OVERVIEW
Forex (Oanda-MT4)

PAIR: CAD/CHF
LONG/SHORT: LONG
LOT SIZE: 0.18 (18,000 units)

ENTRY:0.67738
EXIT:0.67939
STOPLOSS:0.67634

PNL: -$21.48

Trade Analysis and Insights:

Entry

I took a somewhat aggressive approach with this trade but still waited for it to come down to my desired price level, since this pair is showing potential (on both 5m and 1H timeframe) to the upside and respecting EMA 200 and the noticeable support zone in the yellow line.

Exit & Stop loss

For the first trade, CAD/CHF, there is a 10 pips stop loss and 20 pips take profit.

Before trading, I meticulously analyzed two key factors: the Exponential Moving Average (EMA) 200 and a well-established support zone. These factors played a pivotal role in shaping my decision-making process, particularly because I employed a first entry strategy. This approach involved entering the market assertively without waiting for a second entry at a higher price. By doing so, I aimed to secure an earlier take profit, surpassing initial expectations.

Lot Size

18,000 units or 0.18 Standard Lot or 18 micro lots.

We allocated 18,000 units for this trade, taking into account a 1% risk management strategy. By following this approach, we understood the importance of adjusting our allocation size accordingly. Additionally, we chose this size strategically, anticipating a possible short-term sell-off that would quickly offset our position and maintain manageable risk.

Trade #2 Result = Loss(-$21.48)

Reflection on Trade

Just like in the first trade there was a sell-off for CHF pair. However, implementing a controlled stop loss proved beneficial in minimizing the trade’s negative impact.

Improvements to be considered:

Have an alert set up on the $10 loss mark so we can see what is happening and what is the behavior of the pair so we can have a better informed decision.

Overview of trades

Trades taken: 2 Trades

Win rate: 0% (0/2)

PnL: -$42.54

The importance of utilizing a stop loss, particularly during news-driven catalysts that trigger significant sell-offs or rallies in currency pairs within a short time frame, cannot be overstated. Implementing a stop loss serves as a valuable risk management tool, allowing traders to limit potential losses and protect their capital in volatile market conditions. By setting a predetermined exit point, traders can mitigate the adverse impact of unexpected market movements and ensure that their trading strategies remain disciplined and consistent. Ultimately, incorporating stop losses into trading plans enables traders to preserve capital, maintain emotional composure, and increase the overall probability of long-term success in the dynamic world of currency trading.

“Stop loss orders serve as vital shields, safeguarding traders from the unpredictable whirlwinds of news catalysts that can swiftly trigger sell-offs or rallies in currency pairs. They offer a prudent means to limit potential losses and maintain control over one’s trading strategy, ensuring resilience in the face of rapid market fluctuations.”