Day Trade Journal – Day 3- May 31,2023

Rafhael S. on May 31, 2023

TRADE #1 OVERVIEW
Forex (Oanda-MT4)

PAIR: AUD/USD
LONG/SHORT: SHORT
LOT SIZE: 0.01 (1000 UNITS)


ENTRY: 0.64948
EXIT: 0.64751
STOPLOSS: 0,65052


PNL: +$1.97

Trade Analysis and Insights:

Entry

Aggressively entered near resistance zone, since the higher time frame (1H) and lower time frame (5m) are showing bearish trend and giving a great stair case pattern that cannot be ignored.

Exit & Stop loss

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

When entering a trade, it’s essential to prioritize the placement of your stop loss and take profit levels. For this case, set the stop loss just above the plotted zone level to limit potential losses. Keep in mind that reaching the desired profit may take time, but remember that a patient and disciplined approach often leads to success. Consider the risks and rewards before entering the trade, adjusting your levels accordingly.

Lot Size

1,000 units or 0.01 Standard Lot or 1 micro lot.

To effectively manage unforeseen price surges, we utilize a standardized allocation strategy for this trade.

Trade #1 Result = Win (+$1.97)

Reflection on Trade

It is highly recommended to step back and refrain from interfering after placing a trade. In the case of this particular trade, it took approximately 8 hours to reach the desired profit target. When you have a winning strategy and have executed it flawlessly at entry, it is crucial to have trust in your approach and allow the market to take its course.

By resisting the urge to micromanage or make impulsive decisions, you increase the likelihood of achieving successful outcomes.

Improvements to be considered:

In retrospect, adding extra allocation after the second sell-off could have been beneficial. Timing the market downturn and increasing investment during that period may have resulted in higher potential gains

TRADE #2 OVERVIEW
Forex (Oanda-MT4)

PAIR: NZD/CHF
LONG/SHORT: SHORT
LOT SIZE: 0.02 (2000 UNITS)


ENTRY: 0.54644
EXIT: 0.54555
STOPLOSS: 0.54690


PNL: -1.02

Trade Analysis and Insights:

Entry

Aggressively entered near resistance zone on lower timeframe, since the higher time frame (1H) and are showing bearish trend momentum and giving an end of the pullback formation and continuation of the pattern is highly probable.

Exit & Stop loss

For NZD/CHF, there is a 5 pips stop loss and 10 pips take profit.

Tight stop loss and take profit are being implemented in this trade since the pattern is showing weakness and a lot of bearish wicks, which suggests that the sellers is in control and not letting the buyers take control on the specific price.

Lot Size

2,000 units or 0.02 Standard Lot or 2 micro lots.

Higher lot size than usual since we’re anticipating there’s a reversal and the price action is giving us multiple signs that there might be a reversal happening soon.

Trade #2 Result = Loss (-$1.02)

Reflection on Trade

In the case of this particular currency pair, there is a significant difference between the current market price and the levels at which your stop loss and take profit orders are set. This creates a high spread between the actual price and the prices at which your orders would be executed.

For instance, the moment I got in the trade there is a 40% unrealized loss already. I also experienced an early exit from the trade despite the fact that the market price was at least 3 pips away from my initial stop loss level.

Improvements to be considered:

Look for pairs which has a lower spread and make sure that the bid and ask are identical or near the current price action to avoid disrupting the whole trading plan.

TRADE #3 OVERVIEW
Forex (Oanda-MT4)

PAIR: AUD/CAD
LONG/SHORT: SHORT
LOT SIZE: 0.02 (2000 UNITS)


ENTRY: 0.88424
EXIT: 0.88288
STOPLOSS: 0.88390


PNL: +$2.00

Trade Analysis and Insights:

Entry

The price has made a strong move into a resistance zone on a lower timeframe, coinciding with a touch of the 21-day Exponential Moving Average (EMA) represented by the white line. Meanwhile, the higher timeframe (1H) is indicating a bearish formation, suggesting that the pullback formation is likely coming to an end, and there is a high probability of the pattern continuing.

Exit & Stop loss

For AUD/CAD, there is a 7 pips stop loss and 14 pips take profit.

In this trade, a tight stop loss and take profit are employed. Since the entry price is close to the peak of the resistance zone, there is limited value in widening the range for potential price fluctuations. This approach increases the likelihood of reaching the take profit level since the distance to be covered is relatively short.

Lot Size

2,000 units or 0.02 Standard Lot or 2 micro lots.

We are increasing the lot size beyond our usual amount because we expect the trend to continue, and there doesn’t appear to be any significant risk of a reversal. The price action is indicating several indications that support the likelihood of the trend continuing.

Trade #3 Result = Win (+$2.00)

Reflection on Trade

Just like the first trade, once you set your take profit and stop loss there is no real reason to stare at your chart. This trade took almost 5 hours to complete and in those times it will be just a waste of time looking at the chart for too long.

Improvements to be considered:

By capitalizing on the opportunity to enter after the second pullback, one could have potentially achieved greater gains. Alternatively, waiting for the price to further develop its movement would have increased the risk reward ratio. This strategy could have been particularly beneficial considering the current price action and the recent announcement of the Canadian GDP growth rate, which had the potential to amplify profits

Overview of trades

Trades taken: 3 Trades

Win rate: 66% (2/3)

PnL: +$2.95


We diligently followed our trading plan for every trade, ensuring that we minimized risks and maintained manageable levels.

In addition, prior to executing any trade further down the road, we will consistently check the spread for the ask and bid prices, preventing any unexpected stop outs due to minor price surges..

Quote for the Day

“Day trading is a demanding endeavor that requires discipline, focus, and a comprehensive understanding of market dynamics. Success in day trading comes from meticulous planning, effective risk management, and the ability to adapt to rapidly changing market conditions”

Smith, John. “Mastering the Art of Day Trading.” Journal of Financial Markets, vol. 27, no. 2, 2019, pp. 45-61.

Day Trade Journal – Day 2- May 30,2023

Rafhael S. on May 31, 2023

TRADE #1 OVERVIEW
Forex (Oanda-MT4)

PAIR: GBP/USD
LONG/SHORT: SHORT
LOT SIZE: 0.02 (2000 UNITS)


ENTRY: 1.23459
EXIT: 1.2334
STOPLOSS: 1.23535


PNL: -$1.38

Trade Analysis and Insights:

Entry

Enter near zone, price reacts after touching resistance and showing confirmation bearish candle on top of the downtrend regression channel.

Exit & Stop loss

For the first trade GBP/USD, there is a 7 pips stop loss and 14 pips take profit.

It is important to consider the placement of your stop loss and take profit levels. In this case, the stop loss placement might be tight since it’s inside the resistance zone level. However, this placement allows for a lower travel time to reach your desired take profit.

Lot Size

2,000 units or 0.02 Standard Lot or 2 micro lots.

In order to accommodate the tighter stop loss and take profit set earlier, we have a higher allocation than usual. By doing so, we enhance our ability to wait for a second entry opportunity and increase the probability of winning the trade.

Trade #1 Result = Loss (-$1.38)

Reflection on Trade

Even though higher timeframe is giving signs of continuation on the downside, look more on the lower timeframe and see if the trade is on a reversal phase and act accordingly to what the lower timeframe is doing.

Improvements to be considered:

Wait for a 2nd entry opportunity to have a higher probability of winning the trade.

TRADE #2 OVERVIEW
Forex (Oanda-MT4)

PAIR: EUR/JPY
LONG/SHORT: LONG
LOT SIZE: 0.01 (1000 UNITS)


ENTRY: 150.030
EXIT: 150.311
STOPLOSS: 149.889


PNL: +2.02

Trade Analysis and Insights:

Entry

Enter near support level and confirmation reversal candle after near touching of 200 EMA (yellow line)

Exit & Stop loss

For EUR/JPY, there is a 13 pips stop loss and 30 pips take profit.

Stop loss placement is widen since the volatility for any JPY pair for this day is high, due to news and other economic factors.

Lot Size

1,000 units or 0.01 Standard Lot or 1 micro lot

We have a standard allocation for this trade, this is to accommodate the wide spread of JPY pair and have a cushioning for price and have a wiggle room for any sudden price movements.

Trade #2 Result = Win (+$2.02)

Reflection on Trade

Despite having a high pip target for take profit, it astonishingly took just one candle to reach our desired level and achieve a clean exit on the trade

Improvements to be considered:

To maximize your trade results, it may be beneficial to extend the holding period for this particular pair and aim to extract a minimum of 75% of the original allocation once the price reaches the initial take profit level.

TRADE #3 OVERVIEW
Forex (Oanda-MT4)

PAIR: EUR/USD
LONG/SHORT: SHORT
LOT SIZE: 0.01 (1000 UNITS)


ENTRY: 1.07329
EXIT: 1.07127
STOPLOSS: 1.07427


PNL: -$0.98

Trade Analysis and Insights:

Entry

As the price approaches a strong resistance zone, it presents an anticipation trade opportunity. This is due to the combination of an uptrend on a higher timeframe and a major downtrend on a lower timeframe. Additionally, the price action is forming a bearish double top pattern, further supporting the possibility of a reversal.

Exit & Stop loss

For EUR/USD, there is a 10 pips stop loss and 20 pips take profit.

This will give enough space for the price action to move around and also not be taken out on a sudden spike in price.

Lot Size

1,000 units or 0.01 Standard Lot or 1 micro lots.

We employ a standard allocation strategy for this trade to ensure we can effectively handle any unexpected price surges. This approach allows us to have a cushion and flexibility in the event of sudden price movements. By allocating a predetermined amount of resources, we can mitigate potential risks and adapt to changing market conditions more effectively. This strategy provides us with the necessary wiggle room to make adjustments and seize opportunities that may arise during the trade.

Trade #3 Result = Loss (-$0.98)

Reflection on Trade

Despite having ample room for our stop loss, we unfortunately experienced a premature stop out before the market eventually reached our intended take profit level. Nonetheless, this situation highlights our commitment to effective risk management. We demonstrated discipline by promptly cutting our losses without hesitation and not allowing the market’s movements to undermine our confidence in future trades. This approach is crucial for maintaining a resilient and focused mindset in the face of unpredictable market conditions.

Improvements to be considered:

Wait for a reversal first and enter on the second confirmation entry to have a higher probability of not taken out prematurely.

Conclusion

Overview of trades

Trades taken: 3 Trades

Win rate: 33% (1/3)

PnL: -$0.34


Every trade was executed in accordance with our well-thought-out plan, ensuring that risks were minimized and maintained at a manageable level. Furthermore, we took the time to thoroughly document and reflect upon each trade, which not only provides us with opportunities for improvement but also instills confidence in our long-term trading endeavors. By consistently following our strategies and diligently analyzing our performance, we can continually enhance our skills and achieve success in the future.

Quote for the Day

“Success in day trading requires discipline, patience, and a keen understanding of market dynamics. Embrace volatility as an opportunity, manage risks diligently, and let your strategies evolve. Remember, a single day’s trade does not define your journey, but each day’s trade contributes to your growth as a trader.

Day Trade Journal – Day 1- May 29,2023

Rafhael S. on May 29, 2023

Trading Conditions for Manual Execution

Entry

Trades must only be entered on trending markets; no trading on choppy markets

Exit & Stop loss

All manual trades will adhere to a STRICT 1:2 Risk-to-Reward ratio. However, the lot size will depend on the previous support and resistance zones that may impact our trades.

Lot Size

The minimum lot size is 1,000 units or 0.01 Standard Lot Size (micro lot). However, this will depend on the known support and resistance zones where price may react.

Risk Management

During the testing period, all manual trades will incur a STRICT $1 loss for each trade and a minimum gain of $2. However, this will depend on whether a trade is a good candidate for a runner.

TRADE #1 OVERVIEW
Forex (Oanda-MT4)

PAIR: EUR/USD
LONG/SHORT: LONG
LOT SIZE: 0.01 (1000 UNITS)


ENTRY: 1.07341
EXIT: 1.07542
STOPLOSS: 1.07242


PNL: -$1.01

Trade Analysis and Insights:

Entry

The entry for this trade is actually simple but you must have the discipline and quick execution of an experienced trader.

After the sudden break on the resistance line (yellow line), the next step must be waiting for the end of the pullback and give us a confirmation candle such as an engulfing candle. Not only this will give us a confirmation that the trend will continue, it will also give us a clearer picture on how the market will do in the next minute or hours.

Exit & Stop loss

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

Lot Size

1,000 units or 0.01 Standard Lot or 1 micro lot


Trade #1 Result = Loss (-$1.01)

Reflection on Trade

There is a zone that formed around the peak of our trade, and it reversed and continued to have a downtrend for the next hour.

This trade has a high take profit to climb and has a major zone to be considered, might be better if increase allocation size to reduce travel time of the price action.

Improvements to be considered:

Set an alert for sudden drop of price action and see what the price will be doing in the next candles to minimize risk and losses.

TRADE #2 OVERVIEW
Forex (Oanda-MT4)

PAIR: USD/CAD
LONG/SHORT: SHORT
LOT SIZE: 0.02 (2000 UNITS)


ENTRY: 1.3606
EXIT:1.35929
STOPLOSS: 1.36130


PNL: +$1.91

Entry

Trade entry for this is a aggressive but with enough confluences to back it up. The trade is on a downward trend for 1H time frame and also forming stairs to the downside on 5m time frame.

I just waited for a confirmation candle and took a trade just under the upper regression trendline.

Exit & Stop loss

For this, there is a 7 pips stop loss and 14 pips take profit.

Lot Size

2,000 units or 0.02 Standard Lot or 1 micro lot

Trade #2 Result = Win (+$1.91)

Reflection on Trade

Great execution and even better placement of take profit.

Improvements to be considered:

Consider having at least 25% of original allocation to be a runner to take more profits without being greedy.

TRADE #3 OVERVIEW
Forex (Oanda-MT4)

PAIR: USD/JPY
LONG/SHORT: LONG
LOT SIZE: 0.02 (2000 UNITS)


ENTRY: 140.438
EXIT:140.576
STOPLOSS: 140.434


PNL: -$1.01

Entry

Trade entry for this is a aggressive but with enough higher timeframe indicator back it up.

The trade is on a upward trend for 1H time frame but forming downward trend on 5m. Entered on 200 EMA touch for a quick scalp.

Exit & Stop loss

For this, there is a 7 pips stop loss and 14 pips take profit.

Lot Size

2,000 units or 0.02 Standard Lot or 1 micro lot

Trade #3 Result = Loss (-$1.01)

Reflection on Trade

Should have adjust the stop loss to breakeven once the trade reaches 1:1 risk to reward ratio to avoid sudden drop in price action.

Improvements to be considered:

Set-up alerts on entry point after price reaches 1:1 to be added on consistent watchlist.

Always check the lower timeframe for trending behavioral change.

Conclusion

Overview of trades

Trades taken: 3 Trades

Win rate: 33% (1/3)

PnL: -$0.11

All the trades are executed according to plan and the risk are minimized to a controllable level, all reflections are also well documented and will give us time to improve and give us the confidence in the long run.

Quote for the Day

“Success in trading is not about avoiding losses; it’s about managing them and learning from them to become a better trader.”