Hi , this is my first diary, I have waited much, too much to begin a trading journal, that is among the keys to success because with it you have to follow your personal egy, have discipline to apply it and find out about your mistakes.
I have 1 year of expertise Forex, after blowing up several accounts I know today what are my principal mistakes: overtrading and let emotions trading for me personally. In last month I used to make 5 trades at day, but a few days, in the beginnig, I get to make until 100 trades at day, this is completly mad and the most important, I have found I have lost with the spread and the commissions than with the losses of my trades.
Forex is an overly simple market when you see it in historical perspective, therefore, why 95 percent of individuals lose like me? Since we all make the same mistakes, we kill ourselves overtrading and let our emotions take the constraint of our trades.
I am inspired by the thread Forex House of Pleasure and Pain of Jacko and by the book Trading for a living of Elder, in fact, you don't want much more to became a profitable trader, only a good book and good advices to begin.
So, these are going to be my untouchable principles:
1. - No emotions.
2. - Larger timeframes, from 4H to Weekly.
3. - Tight SLs, between 20 and 30 pips and large TPs, between 100 and 200 pips.
4. - 50 percent of Fib Retracement.
5. - Sell in Resistances, Buy in Supports.
6. - Take a look to fundies and news.
After a single year trading I think that is far better to seek out a trade that you believe that could be perfect and utilize with it all your margin with the maximum leverage than open a lot of impulsive trades with less leverage.
That is all, my goal is to loe this summer, using an average of 150 pips every one. That is an average of 3 trades per month using 450 pips each month. I don't need more. Along with the golden rule isif I can not find a potential perfect trade, I will not open any place. It is likely that I will not open any trade in next 3 weeks, and it's likely I start more than 10 trades, this doesn't matter, the secret is that every trade must be a canditate for an ideal trade.
Sorry for my poor english..., and let us go! I will update the thread once I find the first candidate to became a perfect trade, see you until then.