Ok this month's green! And as u can see, its not totally smooth up all the way... there is bumps here and there on the way up. This month wasn't quite consistent as i have hoped. Inconsistent in terms of winning trades. Its almost 50/50. And there were quite a few mistakes that i realize i have made. Nonetheless the month was still green due to some "rules" that i practice.
Firstly, my Trade Profit is always higher than my Stop Loss. Meaning its always TP 50pips SL 40pips or TP 40pips SL 30pips. There is always a 10pips difference. SO even if its a 50% winning ratio on trades, these 10s and 10s of pips slowly can make a difference to your account in the long run.
Secondly, I always try to enter trade with my first "rule" in mind. Lets say if i want to place my SL for my Long trade right below the next Support level and it is like 50pips away. With a TP of also 50pips away at next Resistance level. I will often do a buy limit at a position more favourable to my first rule. Meaning i will place my buy limit 10 to 15 pips nearer to my SL. So if this Buy Limit is hit, my new SL will be 40pips away with a TP of 50pips or more. I find that its safer this way, lowering risk and stretching my profit.
Above is the good i did, now the bad. Bad thing is, i often kept in mind how many pips i wan to gain from a trade, its like so natural that i overlook some important stuff. The correct way is actually setting up TP/SL at a point where the price will hit and be resisted or supported and afterwhich is unknown, breakthru or not. And from a chart, we can see lots of these points. Be it Moving average Bollinger band or FIBO or Week high/low ( These are what i use but not sure about u yea?) But im sometimes blinded by the amount of pips i aim for and set a too high TP. Instead of choosing the one point that may get hit, i chose one that is too far behind. Quite often i miss it and it all went back. Sucking up my profit and worst, go all the way to SL without having the chance for me to close and breakeven.
I told myself, "Set ur TP at where the chart shows high chance will hit and not how much pips u want from it, the Forex chart dont give a damn on how much u want!"
I apologise if i did lots of talking but not much actual trade shown in this blog, was very busy recently with work and stuff ( family and love ones ). I will try to post up next trade of mine with picture presentation. Lol. Well i may not know if u guys understand what im blabbering about above u see. Ha and CNY is coming, got cleanings to do... Damn, more stuff building up..
Yup so this month i recover a total of 156 pips. Thats what 10s and 15s of pips can do in the long run despite low hit rate.