Importance Of The Journal of Forex Trading For Forex Traders

As you know, a professional diary is something I always stress. Your forex trading journal, actually you book entirely your transactions, including good and evil on the exact dates of entry / exit times and also figure screen-shot for every job that is more significant than anything. From time to time you sit down and look all your excellent shots and bad which you have stored in your personal trading and see how come a transaction was a nice deal and why a second was a risky trade. After a while, actually you find that your negotiating agenda is the finest teacher and most of you may ever have. That saves you more time and assists you to be a good forex trader very quickly. Whenever you made a risky deal, don't run from him.

You are able to learn many aspects from a bad deal. Analyze your job wrong and try to avoid making the same faults the next time you would like to take a stand.

I also made an Excel spreadsheet which allows you to save their positions and study the reasons for their success and mistake within various operations. If we are in the beginning of year, I advise you start your daily trading and enter all your positions and examine the performance of each week. The Excel spreadsheet I created that has twelve sheets each of which is for a month. To download the file, click here.

During August 18, 2009, we had companies that did not work properly. We have taken a USD CAD, then I e-mailed and asked customers to shut up when we were at a loss of eighty to ninety pips.

Today I will analyze the trade and find out why it did not work and the faults I made.

The thick magenta line presents our incoming and exit 4 hours graph. We took a short position in paragraph 1 and paragraph 2 is out

Why do we go soon? The important reason was the strong differences between the MACD noticed 4hrs chart. Also, if you choose to previous reports, you'll look that it was said that the USD CAD were broken below the support of a strong weekly and daily graphs, and has already been tested to support re-broken line. Both day by day and every week graphs, sell signal has been below the support line broke. Thus that was the best moment to go short, particularly if there was a comparatively strong differences between the MACD on the 4 hours chart.

MACD divergence had seen the day before, but I experienced that we need to wait a bit for bars MACD down. As you know, I all of the time recommend that act from a MACD departure, if affirmed by a break of support. And there was no discussion not yet support, but the short position has been fully confirmed by the daily and weekly charts, I decided to take it even though with no ventilation support. We could take a front light. We took the opposite Bollinger Band East, that isn't a great idea and it was the first fault I made in this trade. The jump as soon as we accepted it and hit the middle Bollinger Band. Our stop loss is in a excellent position and good. When I ascertained the position of 3 candles later, and saw the great light attack (on 19/8/2009 08:00), and its following fire, which was also up sharply, I determined to end the position when the following candle also rises.

When the candle was formed, was in stocks of crude oil in the news, thus I decided to stop that before it hits the stop loss.

Once broke sharply and closed below support of small and newly created in the 4 hour chart. We may take this position after the escape of support, but I wouldn't, because the candle that broke below the abide line was a large candle and commonly after large candles, we have another strong test.

Therefore what was my fault in this job? When the short position was perfectly correct, because as I said was a hundred percent confirmed on day-after-day and each week candles (see photo below). When the position right above the Bollinger Middle Band was a bad mistake.

The 1st mistake was to assume the position on the Middle Bollinger Bands and the 2d error was the closing of the position. I need to let him do what he wanted. Could become very close to the end loss but may not hit him. We had this type of business and hadn't closed any of them.

Scroll down and look for the day-to-day and every week graphs also.

Daily Charts:

The 1st pointer shows the signal to sell first, which I always ignore. If the lights go down and touch the upper Bollinger Band for the first period when they began their up movement, they are a sell signal. I always dismiss that sell signal since it would be accompanied by a firm upward movement, that is also the second wave Elliott. Second wave is the single most profitable. That is why we shouldn't go running after the signal to sell first. We need to wait for a buy signal to form after a long time.

Two small green pointers for the purchase of a signal which we must take a stand for a long time after. This price usually buy signal some candles, but this time could not do, because the support line was broken in front of that and act against them, and do not let it arise. The 2d red pointer pointing to the candle, which was the sell signal. This candle is found that the support line was broken as a firm resistance (even though the previous candle stick over it). Therefore I called back which the new test has been completed and failed, and goes down. We went right after a short candle # 2 was about to end, and as you can see that was a great decision for it has fallen sharply over the next 3 candles, and you could go even lower.

Weekly Chart:

The last light is formed since we went to court. It wasn't yet closed, but he had already received support and was broken down. The upper shadow was formed, and he had a red body. Because that came down as soon as he touched off the support, I discovered that the support dotted worked as a high resistance. Simultaneously, the MACD is declining fast.