Day Trade Journal – Day 5- June 2,2023
TRADE #1 OVERVIEW
Forex (Oanda-MT4)
PAIR: USD/JPY
LONG/SHORT: SHORT
LOT SIZE:0.02 (2000 Units)
ENTRY:138.868
EXIT:138.731
STOPLOSS:138.941
PNL: +1.96
Trade Analysis and Insights:
Entry
I took an aggressive approach to enter the trade when the price approached a pullback. My decision was driven by the recognition of a trend reversal on a smaller time frame, suggesting a possible opportunity. Furthermore, after conducting an analysis, I concluded that the take profit area would be reached prior to reaching a significant zone. This analysis was further validated by an EMA crossover, which served as confirmation for the expected continuation of the trend.
Exit & Stop loss
For the first trade, USD/JPY, there is a 7 pips stop loss and 14 pips take profit.
Before entering the trade, I considered the EMA cross of 21 and 200 and also the price action behavior after it touches the middle of the regression trend and EMA 21. These are some of the stop loss levels I considered which makes this trade valid and have a higher probability of continuing to the down side.
Lot Size
2,000 units or 0.02Standard Lot or 2 micro lots.
We allocated 2000 units for this trade, anticipating a short-term sell-off that will quickly cover our position.
Trade #1 Result = Win (+$1.96)
Reflection on Trade
The success of this trade demonstrates the importance of having a strategic and patient approach. By waiting for the second entry, where a double top pattern was taking shape, I was able to make a well-informed decision.
Improvements to be considered:
We can set our take profit to a higher target if we can see that 70% of the trade is going our way.
TRADE #2 OVERVIEW
Forex (Oanda-MT4)
PAIR: USD/CHF
LONG/SHORT: SHORT
LOT SIZE: 0.02 (2000 Units)
ENTRY:0.90441
EXIT: 0.90350
STOPLOSS: 0.90486
PNL: -$1.24
Trade Analysis and Insights:
Entry
I took an aggressive approach to enter the trade when the price approached a pullback and anticipating a 2nd entry. My decision was driven by the recognition of a trend reversal, price rejection on EMA 21 on a smaller time frame, suggesting a possible opportunity.
Exit & Stop loss
For USD/CHF, there is a 5pips stop loss and 10 pips take profit.
Before entering the trade, I considered the EMA cross of 21 also the price action behavior. These are some of the stop loss levels I considered which makes this trade valid and have a higher probability of continuing to the down side.
Lot Size
2,000 units or 0.02Standard Lot or 2 micro lots.
We allocated a quantity of 2000 units for this trade, with the expectation of a brief decline in price followed by a rapid recovery, which would allow us to close our position profitably within a short time frame.
Trade #2 Result = Win (-$1.24)
Reflection on Trade
This trade endured a double whiplash, leaving us with no choice but to acknowledge that certain trades will exhibit this kind of behavior. It is advisable to set a stop loss and promptly exit the trade once it reaches the predetermined price point. By doing so, we can limit potential losses and mitigate the impact of volatile market movements
Improvements to be considered:
Could have waited out on the zone level after it formed a strong resistance on that price point.
TRADE #3 OVERVIEW
Forex (Oanda-MT4)
PAIR: EUR/USD
LONG/SHORT: LONG
LOT SIZE: 0.02
ENTRY: 1.07664
EXIT:1.07764
STOPLOSS: 1.07584
PNL: +$2.00
Trade Analysis and Insights:
Entry
I made a bold move by entering the trade when the price retraced, expecting to enter again at the bottom of the regression trend. I based my decision on the observation of a trend reversal and the price being rejected at the 21-day Exponential Moving Average (EMA) on a shorter time frame, which indicated a potential opportunity.
Exit & Stop loss
For EUR/USD, there is a 10 pips stop loss and 20 pips take profit.
Before entering the trade, I considered the EMA cross of 21 also the price action behavior. These are some of the stop loss levels I take consideration in order to not get whiplashed.
Lot Size
2,000 units or 0.02Standard Lot or 2 micro lots.
In this particular trade, we assigned a quantity of 2000 units, anticipating a temporary price drop followed by a swift rebound. Our goal was to capitalize on this quick recovery to exit the trade at a profit within a short period.
Trade #2 Result = Win (-$1.24)
Reflection on Trade
This trade is a perfect example on why you should have enough room for a stop loss and achievable take profit. After some consolidation our price target has been reached in under an hour after only a few candles on a rally.
Improvements to be considered:
Could have waited out on the 2nd zone level of support and get a better entry.
Overview of trades
Trades taken: 3 Trades
Win rate:66% (2/3)
PnL: +$2.72
Despite experiencing a loss the other day, we were able to bounce back and maintain an unbothered mindset.
Experiencing losses is a common part of trading, and it’s important to maintain a positive mindset and learn from those experiences. Here’s a tip for new traders:
Tip: Embrace a Growth Mindset and Learn from Losses
- Embrace a growth mindset: Understand that trading is a learning process, and setbacks are opportunities for growth. Instead of getting discouraged by losses, adopt a growth mindset that focuses on continuous improvement and learning from mistakes.
- Analyze your losses: After a loss, take the time to analyze what went wrong. Identify the reasons behind the loss, such as poor trade execution, flawed strategy, or lack of risk management. Use this analysis to gain insights and refine your approach.
- Learn from experienced traders: Seek knowledge and guidance from experienced traders. Read books, attend seminars, or join trading communities to learn from those who have successfully navigated the markets. This can provide valuable insights and help you avoid common pitfalls.
- Maintain emotional balance: Developing an unbothered mindset is crucial for long-term success. Emotional reactions to losses can cloud judgment and lead to impulsive decisions. Practice discipline, patience, and emotional control to make rational trading decisions.
- Implement risk management strategies: Losses are inevitable, but effective risk management can limit their impact. Set appropriate stop-loss orders, diversify your portfolio, and avoid risking more than you can afford to lose. Consistently following risk management principles can help protect your capital and reduce the emotional impact of losses.
Quote of the day
Remember, trading is a journey, and setbacks are part of the process. By maintaining a growth mindset, learning from losses, seeking guidance, managing emotions, and implementing proper risk management, you can position yourself for long-term success as a trader.