Notice that the gradient of my December's trade is kinda straight yea... Most prob due to low confidence after the account shattering November. I went in and came out with little or no profit for alot of trades. Fearing that i might get bite again u know? That kinda feeling i guess all new guys have? Yup but fortunately the overall for the month is green. And thats gooooooood news.
Ok now for the first trade of the year 2010! Some information on the above scenario. Its USD/JPY pair in 4H timeframe. Its a short trade with the first circle as entry and second as my profit target.
Weapons used : Bollinger Band , Stochastic and candlestick patterns. ( + some Ema as well)
It all begins with the first green circle showing a Doji star lookalike candlestick. Its at the top of the Bollinger Band, looks like there is some indecisiveness here i suppose? The next bearish candlestick results in the Crossover of Stochastic in overbought zone. That looks very delicious...
Price was at around 92.93 when i am starting to make a decision. Should i go in now or should do it the more disciplined way? The more disciplined way will be at the near of Bollinger Band top where price will try to break up. Its at 93.16. Thats about 20pips away and the current market im watching that time is like u know... " Tug O War". No one is giving in, what if i go in late and miss the boat?? In the end, i manage to supress my inner devil (who has been asking to go in now lets not wait anymore!!) and set Sell Limit @ price 93.16. SL 40pips away and TP at 20EMA as support. Though i believe there is a chance that it might go all the way to Bollinger Band 30EMA. I chose 20EMA to play safe and not be greedy. Afterall its about 61pips if hit.
And there i thought it will be hard to hit my Sell Limit which is 20+ pips away, the next moment just after my lunch, im in a trade already. It went against me for a few pips and thereafter it proceeds towards my desire direction. The feeling is....... great
WHAT IF! I choose to go in earlier... i'll be having 20+ pips floating loss. It will affect me emotionally. I will tend to close at break even even though i analyse it correctly. I will have to go through the agony of floating loss unnecessary, no doubt it will affect my trading journey in the long run. Fortunately i chose the right path and end up having that extra 20pips that might just happen to be my floating loss if i went in earlier.
Still, there will be chances that i will miss the boat by doing the above... But i choose to take the trading system is set for myself seriously and follow it strictly. The system that i think can maximize my profit(more pips) and minimize my risk (further SL). I have much to learn.
First trade of the year = Profit = Good Sign!!! LOL!! Lets hope we can keep it this way.