I had quite a bad month for FOREX trading. It wasn’t the market but myself to blame.
Stock Trading Plan
Since the market hasn’t been moving much, I decided to take the back seat to watch the market movement. I became more strict with entries and hence, very few trades have been made this month. In fact, 3 trades were made only during the last week of the month and they are mainly commodities related. All entries were due to low k-line, rising volume and breaking of resistance.
Results
SATsvcs was a trade carried forward from previous month. It broke support and was closed with a -S$200 loss. Epure was exited on 30/11/09, which was expected as SGX open in the shadow of Dubai debt problem. I am glad that at least I have 2 counters still open.
| Counter |
Date In
|
Date Out
|
Action
|
No. of Shares
|
Price In
|
Price Out
|
Profit/Loss
|
| SATsvcs |
15/10/09
|
05/11/09 |
Long
|
1,000
|
S$2.560
|
S$2.360 | -S$200 |
| Epure | 24/11/09 | 30/11/09 | Long | 4000 | S$0.625 | S$0.580 | -S$180 |
| IndoAgri | 23/11/09 | Long | 1000 | S$1.850 | |||
| Olam |
26/11/09
|
Long
|
1,000
|
S$2.720
|
|||
|
Total
|
-S$380 | ||||||
FOREX Trading Plan
With 3 strategies of varying time frame, I decided to focus on the longest one – swing trade (close trade within days). The reason is because I do not have time to monitor the hourly chart everyday, hence the time frame of a swing trade is more suitable for me.
Results
I would give myself a big F for FOREX trading this month. It was as good as a newbie driving on the expressway ignoring all the traffic rules, killing myself in the end. None of the trades were made by following the rules. I am so angry with myself.
Firstly, the first 2 trades were entered based on Shifu’s directions (he did mentioned it was purely educational before hand). Instead of finding out the meaning of the trade and what prompted the entry, I just followed blindly. Worse, I was greedy and traded 5 minis on USD/CHF on my stock CFD account. It became a big loss and depleted my capital for stock trading. I must have the discipline to trade only 1 mini until I can make positive expectancy from my trades.
Secondly, after the losses, I lost control of myself and wanted to get “revenge” on the market. Good traders know that revenge can only make things worse. True enough, I lost 2 intraday trades. I told myself to trade for the longer time frame yet I traded the hourly charts and I entered without checking some of the rules. I did not check the 4 hourly stochastic and MA direction before I entered. I did not check the 20 pips rule. I was just too anxious to get something bad from the market.
| Counter |
Date & Time In
|
Date & Time Out
|
Action
|
No. of mini contracts
|
Price In
|
Price Out
|
Profit/Loss
|
| AUD/USD | 06/11/09 | 19/11/09 | Long | 1 | 0.9143 | 0.9169 | +US$26 |
| USD/CHF |
09/11/09
|
20/11/09 |
Short
|
5 | 1.0125 |
1.0193
|
-US$340
|
| USD/JPY | 27/11/09 | 27/11/09 | Short | 1 | 85.96 | 86.26 | -US$34.79 |
| AUD/USD | 27/11/09 | 27/11/09 | Short | 1 | 0.9002 | 0.9032 | -US$30 |
| Total | -US$378.79 |
I must remember this lesson and also hope that this can help other traders learn on my expense. I am contemplating to post individual trade and provide more details. Doing it monthly like this is difficult to evaluate whether a trade is a good trade. Let me think about it what is the best way to do it.
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{ 3 comments… read them below or add one }
hey bro,
I am sure you’ll do better next month.
Cheers!
dream
Thanks. I will do more homework. Hope the market will be good for you too!
If you want to find out more about forex trading, you can take a look at my website. Actually trading forex is more simple than trading stocks.
Most of the time I am asking yourself:
Am I bullish or bearish on USD.
If you are bearish on USD, next question is:
Which currency will have the most strength against the USD.
Next you identify a support level. And you try to buy next to the support level.
Place your stop and target level.