Day Trade Journal – Day 7- June 6, 2023
TRADE #1 OVERVIEW
Forex (Oanda-MT4)
PAIR: EUR/USD
LONG/SHORT: LONG
LOT SIZE: 0.4
ENTRY:1.07181
EXIT: 1.07381
STOPLOSS: 1.07131
PNL: +$41.6
Trade Analysis and Insights:
Entry
I took an aggressive approach with this trade, considering the potential upward movement of this pair on both the 5-minute and 1-hour timeframes. The price action has been respecting both the EMA 21 and EMA 200, indicating a positive trend. Additionally, the pair is currently near a previous resistance zone, which presents a favorable entry opportunity. This level is expected to attract a significant number of buyers, providing additional support for the trade.
Exit & Stop loss
9 pips stop loss and 18 pips take profit.
Prior to trading, I analyzed two key factors: the EMA 21 and a prominent price zone on two levels. The EMA 21 indicated the market trend, while I studied price patterns and trends. To manage risks, I identified important price levels like the support zone and EMA 21. Considering all this, I aimed to make informed trade entries and establish stop-loss strategies.
Lot Size
40,000 units or 0.4 Standard Lot or 40 micro lots.
We allocated 40,000 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 (+$41.6)
Reflection on Trade
Having a zone for support is one of the key here and setting of stop loss outside that zone gives the trade a higher probability of winning.
Improvements to be considered:
Can have a better entry or add allocation near top of support zone.
TRADE #2 OVERVIEW
Forex (Oanda-MT4)
PAIR: NZD/JPY
LONG/SHORT: SHORT
LOT SIZE: 0.5
ENTRY: 84.767
EXIT: 84.823
STOPLOSS: 84.834
PNL: -$20.88
Trade Analysis and Insights:
Entry
I took an aggressive approach and so much anticipation with this trade, considering the potential downward movement of this pair on the 5-minute. The price action seems to be respecting EMA 21 a indicating a start of a new trend.
Exit & Stop loss
5 pips stop loss and 10 pips take profit.
Prior to trading, I analyzed the EMA 21 and the interaction with the EMA 200. I placed my stop loss above the ATR indicator and a resistance zone to manage risk effectively.
Lot Size
50,000 units or 0.5 Standard Lot or 50 micro lots.
We allocated 50,000 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 = Loss(-$20.88)
Reflection on Trade
Enhancing an anticipation trade by incorporating multiple confluences and waiting for sufficient information is indeed a prudent approach. By doing so, you increase the probability of success and reduce the risk of entering trades based on incomplete or unreliable signals.
Improvements to be considered:
Limit the use of market order trade to avoid jumping on the trade on both feet, make sure to have enough confirmation before entering so the trade will not be taken out in just a matter of minutes.
TRADE #3 OVERVIEW
Forex (Oanda-MT4)
PAIR: GBP/USD
LONG/SHORT: SHORT
LOT SIZE: 0.2
ENTRY: 1.24078
EXIT: 1.23878
STOPLOSS:1.24178
PNL: -$24.00
Trade Analysis and Insights:
Entry
I took a calculated approach since there was a 3 line strike (Star indicator), which mean a higher probability that this will continue to the downside, when used correctly, this will give me a 60% chance of going into my desired direction.
Exit & Stop loss
5 pips stop loss and 10 pips take profit.
Prior to trading, I analyzed the EMA 21 and previous high of the pair.
Lot Size
20,000 units or 0.2 Standard Lot or 20 micro lots.
We allocated 20,000 units, considering a 1% risk management strategy for each trade, and also factored in the possibility of a short-term sell-off. In order to accommodate this approach and mitigate potential risks, we adjusted our allocation size accordingly.
Trade #3 Result = Loss(-$24.00)
Reflection on Trade
If there is a clear consolidation and no more forming of lower lows, you might consider moving your stop loss to break even, so we can control the risk and move on to the next opportunity.
Improvements to be considered:
Ensure to carefully note your stop loss level since there’s a possibility of mistyping the number, and once the trade is executed and held overnight, you won’t have the opportunity to verify it.
TRADE #4 OVERVIEW
Forex (Oanda-MT4)
PAIR: EUR/AUD
LONG/SHORT: SHORT
LOT SIZE: 0.22
ENTRY: 1.60325
EXIT: 1.60055
STOPLOSS: 1.60460
PNL: -$20.16
Trade Analysis and Insights:
Entry
This trade was executed by market order and was taken at the instant I placed the order, there is a clear sign of a strong downtrend on the lower timeframe plus the 3 line strike indicator is showing as well.
Exit & Stop loss
13 pips stop loss and 27 pips take profit.
Before initiating the trade, I conducted an analysis indicating that the price had reached the EMA 21. Considering this, I decided to set the stop loss order slightly above the initial resistance level, as the second level was deemed too distant for a profitable take profit to be achievable.
Lot Size
22,000 units or 0.22 Standard Lot or 22 micro lots.
We distributed 22,000 units, taking into account a risk management strategy of 1% for each trade, and we also considered the chance of a brief decline in selling. To accommodate this approach and minimize potential risks, we made appropriate adjustments to our allocation size.
Trade #4 Result = Loss(-$20.16)
Reflection on Trade
When considering a market order trade, it is essential to carefully evaluate both the spread and the trend on a higher timeframe beforehand. It is crucial to note that this particular trade appeared to be occurring at the price’s lowest point on the higher timeframe.
Neglecting this aspect and entering the trade can pose challenges when attempting to exit, particularly if it is left open overnight.
Improvements to be considered:
Look for the spread of bid and ask plus the trend of the trade before entering the trade to ensure higher profitability.
Overview of trades
Trades taken: 4 Trades
Win rate: 25% (1/4)
PnL: -$23.44
When it comes to trading, don’t rush into market orders without considering important factors:
- Check market liquidity and bid-ask spread.
- Evaluate market volatility and adjust your order type accordingly.
- Consider the size of your trade relative to the market.
- Stay informed about news and events that may affect prices.
- Use technical analysis to identify suitable entry and exit points.
- Have a solid risk management plan in place.
Taking these considerations into account can help you make more informed and successful trading decisions.
“Success in day trading comes from disciplined actions, strategic analysis, and the ability to adapt swiftly to changing market conditions.”