Day Trade Journal – Day 10- June 9, 2023
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:
- Use Stop Loss Orders to manage risk.
- Trail your stop loss to lock in profits.
- Consider multiple profit targets.
- Avoid overtrading and focus on high-quality setups.
- 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