Day Trade Journal – Day 1- May 29,2023
Trading Conditions for Manual Execution
Entry
Trades must only be entered on trending markets; no trading on choppy markets
Exit & Stop loss
All manual trades will adhere to a STRICT 1:2 Risk-to-Reward ratio. However, the lot size will depend on the previous support and resistance zones that may impact our trades.
Lot Size
The minimum lot size is 1,000 units or 0.01 Standard Lot Size (micro lot). However, this will depend on the known support and resistance zones where price may react.
Risk Management
During the testing period, all manual trades will incur a STRICT $1 loss for each trade and a minimum gain of $2. However, this will depend on whether a trade is a good candidate for a runner.
TRADE #1 OVERVIEW
Forex (Oanda-MT4)
PAIR: EUR/USD
LONG/SHORT: LONG
LOT SIZE: 0.01 (1000 UNITS)
ENTRY: 1.07341
EXIT: 1.07542
STOPLOSS: 1.07242
PNL: -$1.01
Trade Analysis and Insights:
Entry
The entry for this trade is actually simple but you must have the discipline and quick execution of an experienced trader.
After the sudden break on the resistance line (yellow line), the next step must be waiting for the end of the pullback and give us a confirmation candle such as an engulfing candle. Not only this will give us a confirmation that the trend will continue, it will also give us a clearer picture on how the market will do in the next minute or hours.
Exit & Stop loss
For the first trade EUR/USD, there is a 10 pips stop loss and 20 pips take profit.
Lot Size
1,000 units or 0.01 Standard Lot or 1 micro lot
Trade #1 Result = Loss (-$1.01)
Reflection on Trade
There is a zone that formed around the peak of our trade, and it reversed and continued to have a downtrend for the next hour.
This trade has a high take profit to climb and has a major zone to be considered, might be better if increase allocation size to reduce travel time of the price action.
Improvements to be considered:
Set an alert for sudden drop of price action and see what the price will be doing in the next candles to minimize risk and losses.
TRADE #2 OVERVIEW
Forex (Oanda-MT4)
PAIR: USD/CAD
LONG/SHORT: SHORT
LOT SIZE: 0.02 (2000 UNITS)
ENTRY: 1.3606
EXIT:1.35929
STOPLOSS: 1.36130
PNL: +$1.91
Entry
Trade entry for this is a aggressive but with enough confluences to back it up. The trade is on a downward trend for 1H time frame and also forming stairs to the downside on 5m time frame.
I just waited for a confirmation candle and took a trade just under the upper regression trendline.
Exit & Stop loss
For this, there is a 7 pips stop loss and 14 pips take profit.
Lot Size
2,000 units or 0.02 Standard Lot or 1 micro lot
Trade #2 Result = Win (+$1.91)
Reflection on Trade
Great execution and even better placement of take profit.
Improvements to be considered:
Consider having at least 25% of original allocation to be a runner to take more profits without being greedy.
TRADE #3 OVERVIEW
Forex (Oanda-MT4)
PAIR: USD/JPY
LONG/SHORT: LONG
LOT SIZE: 0.02 (2000 UNITS)
ENTRY: 140.438
EXIT:140.576
STOPLOSS: 140.434
PNL: -$1.01
Entry
Trade entry for this is a aggressive but with enough higher timeframe indicator back it up.
The trade is on a upward trend for 1H time frame but forming downward trend on 5m. Entered on 200 EMA touch for a quick scalp.
Exit & Stop loss
For this, there is a 7 pips stop loss and 14 pips take profit.
Lot Size
2,000 units or 0.02 Standard Lot or 1 micro lot
Trade #3 Result = Loss (-$1.01)
Reflection on Trade
Should have adjust the stop loss to breakeven once the trade reaches 1:1 risk to reward ratio to avoid sudden drop in price action.
Improvements to be considered:
Set-up alerts on entry point after price reaches 1:1 to be added on consistent watchlist.
Always check the lower timeframe for trending behavioral change.
Conclusion
Overview of trades
Trades taken: 3 Trades
Win rate: 33% (1/3)
PnL: -$0.11
All the trades are executed according to plan and the risk are minimized to a controllable level, all reflections are also well documented and will give us time to improve and give us the confidence in the long run.
Quote for the Day
“Success in trading is not about avoiding losses; it’s about managing them and learning from them to become a better trader.”