SS-ADR-v502 Diary Entry for 10-14 Sep 2018

Summary

I had 4 good trading days where the trading rules were followed and 1 day where the trading rules were not followed and account sabotage occurred on Wednesday. The system had 4 wins and 1 loss a total of 190pips up and 49pips down for a balance of 141pips up for the week. Going forward the plan is to trade lotsize calculated by dividing equity by 10,000. For an equity of $1200 the lotsize will be $1200/10000=0.1200 or 1200 units; for a balance or equity of $946 this will be rounded to 0.0950 or 950 units. The lotsize will increase or decrease depending on the size of the remaining equity, which will depend on the success and failure of subsequent trades. It’s important to manage lotsise to maintain the account equity. Account Longevity is key to success.

There is a need to determine whether trading Friday’s is profitable in the long term. Fridays are often days where the weeks direction is reversed, this is typical of the weekly candle. All Forex candles follow the same fractal pattern of Monday reversal, Tuesday-Thursday weekly preferred direction and Friday reversal; where typically the weekly candle wicks occur on Monday and Friday’s.

Monday 10th September 2018


The day started well. I entered the trades and obeyed my rules by not looking at them again until the following morning. I was in profit from the beginning so the temptation to look at the trades was not there. The trade won 38 pips. I felt disappointed because if I had taken the trade to the top of the wick i could have doubled that. This disappointment soon ended on the following day. Joining the Senior citizens and playing cards for a major part of the day was helpful in keeping me occupied. Remembering that the trading system is a day trading system and must be left alone till the next day is critical for it’s success.

Tuesday 11th September 2018


Another successful day 62 pips. My trades were in profit immediately after placing my trades in the morning. This gave me confidence and after the previous days success I was determined to refrain from looking at my trades. Sad news of my friend Jody Simpson’s death kept me distracted for most of the day. I wrote her obituary and went back to the Senior Citizens club. Thankfully I refrained from looking at the trades and they were successful even though GBPUSD took a massive dive after hitting the profit stop. Maybe there was a fair slice of luck with this trade.

Wednesday 12th September 2018


I made 3 mistakes this day.

  1. The day started early. I opened my laptop and was looking to enter my daily trade at 7:10am. It was earlier than normal and there was some volatility. The trade started to move in the preferred direction then took a dive in the bearish direction towards the stop-loss. I should have waited until 8am to see how the hour would look. As it is I put my trade on early and was dismayed that it was in negative territory almost immediately. I kept telling myself throughout the day that it can still come back from here. The stop loss was over 40 pips from the days opening price and that will give it enough room. As it turns out I was right but I didn’t believe my own self talk.
  2. My next mistake was taking the occasional look throughout the day. Every now and again the price would rally giving me a little hope then crushing me later on. This emotional roller coaster is bad health wise and sets up temptation for self sabotage. I was cursing myself for getting in earlier than I felt I should have and for not being patient enough to wait get in a little later, so that the risk : reward would be more favourable. I was tired and spent most of the day sleeping.
  3. My next big mistake was thinking that as the system had had 7 wins in a row today was going to be a losing day. Trading is not gambling and it doesn’t work like that.
  4. My next big mistake was to open the charts and look, at around 4pm with the underlying thought that at London open it will start to move in the preferred bullish direction. In the back of my mind I was preparing to self sabotage the thought being that if it doesn’t rally during London open then intervention will be necessary. I saw an engulfing bull candle and I thought this is the turn around. I made the cardinal mistake of coming to a conclusion before the candle had completed. The next candle reacted to the down side and my immediate conclusion was this was a minor retracement and a good opportunity to make some extra profits with a small 2 micro lot bull trade. The candle had not completed when making this trade and to my horror and dismay became a bear candle with a long wick. I kept telling myself it will come back. I placed a stop loss below the nearest low. I remember the thought if it hit’s this stop loss I’ll pull the pin and cut my losses.
  5. The biggest mistake of all was the easiest. I watched on the 15minute chart and fast moving bearish candle drive down past my 2 microlot trade’s stop loss like it wasn’t there. Even though there was still some distance to the daily trades stop loss I reacted on the fear of losing and pulled my daily trades suffering a loss. I shut the laptop in disgust knowing I had disobeyed my own rules. From then on I didn’t want to look and convinced myself that the trades were going to lose anyway. Surely I couldn’t expect more than 7 wins in a row.

To my amazement the trade did turn around missed my stop loss and hit the take profit for a win of 48 pips. Not only did I lose out on this win I lost extra pips from an extra intra-day trade that would have won if I’d set the stop loss to the daily stop loss and lost by closing out my trades early.

I must learn to back myself and have confidence in my decisions.

The moral of the story is to obey my own rules no matter what and don’t even look at the trades entered until the following day!!!!!

Thursday 13th September 2018


A good day 42 pip win. The system has had 9 wins in a row, much better than I thought I’d get.

I did the right thing. I didn’t look at the trade until the morning of the next day. It didn’t immediately head into negative territory like it did on Wednesday, but I think I’ve learnt my lesson.

Generally in trading things go down before they go up. You have to expect to be in the negative, sometimes for most of the trade you have to back yourself. It’s about learning to be confident in your own abilities. The system has produced 9 wins in a row. Although I have only profited from 5 of them and attempted sabotage during the other days because of a lack of courage on my part, the account is steadily rising. A good sign i’m on the right track.

Friday 14th September 2018


Today was a loss of 49pips first loss out of 10 trades. And it didn’t miss out by much. The profit stop was 6 pips too high and the stop loss was 1.3057 the low point was 1.30565 it hit the stop loss by half a pip then rose. It was a good day because I had the strength of will to refrain from looking until Saturday morning. The day closed at 1.306969 effectively 1.30697 about 13 pips up.