"Take Risks: If you win, you will be happy; if you lose, you will be wise. Nothing ventured, nothing gained."

Wednesday, February 10, 2010

Monthly review for month of January 2010!

Yes it has been a great weekend like Black had posted. Its good to get urself away from everything else totally for occasionally. It feels great, feels charged.

Yup this post is mainly on my review for the month and some tactics or strategy that keep me floating/green for the month. Its always good to share and hope there maybe some pointers n tips from people as well.

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.


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