Day Trade Journal – Day 11- June 12, 2023
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:
- 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.
- 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.
- 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.
- 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.
- 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”