Day Trade Journal – Day 12- June 13, 2023
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
- News-driven price surges: Significant news events can cause sudden price surges in the forex market.
- Economic indicators: Pay attention to economic indicators like GDP, employment data, and interest rate decisions, as they can trigger price movements.
- 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.
- Geopolitical events: Political developments, such as elections or geopolitical tensions, can create price surges by influencing market sentiment.
- Market sentiment shifts: News that alters market sentiment can cause sudden price surges, such as unexpected corporate earnings reports or mergers.
- 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
- Stay informed: Keep track of news and economic calendars to identify potential events that could trigger price surges.
- Plan ahead: Develop a trading plan that includes strategies for taking advantage of price surges, such as setting entry and exit points in advance.
- 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.
- Monitor market sentiment: Understand the overall market sentiment and align your trading decisions accordingly during price surges.
- 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.
- 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.”