You know that having the trading paper is something, which I forever highlight. On forex trading paper, you must record your all trades, including good & bad as well as bad with precise entry/exit date & time as well as too the screenshot of chart for every trade, that is very vital than anything. Every now & then, you must sit as well test all your bad and good trades, which you’ve recorded on your trading paper as well observe that why the trades have been the good trade & why another has been the bad trade. Eventually, you’ll observe, your trading paper is good and well as main teacher that you could ever contain. It keeps you many time as well as assists you turn out to be the good trader very quicker. If you created the bad trade, so don’t escapee from this. You may study many things from the bad trade. Examine the bad trade as well as try that don’t make the similar mistakes in future, which you wish to get the position.
I’ve also created the MS Excel spreadsheet, which assists you to keep the yours positions as well as examine the cause of your failure and success in your various trades. At present we’re at the starting of the year, I propose you to begin your trading paper as well as record your all positions and also examine your performance weekly. The MS excel spreadsheet that I’ve made has twelve sheets, which every one of those for 1 month.
On 18-08-09, we had few trades, which did not work correctly. We took the USD-CAD position as well as after that, I emailed & asked subscribers to finish it, whereas we were on eighty to ninety pips loss.
Nowadays, I wish to examine that trades as well as observe why it couldn’t work & what fault I made.
I had observed MACD Divergence from last day however; I realized that we require to little wait for MACD blocks to move down. You know that I always suggested to trade supported on the MACD Divergence but it’s confirmed by the support breakout. As well as, there wasn’t support breakout yet, however as the small position was fully confirmed by daily as well as weekly charts, and I give preference to get it even devoid of having the support breakout. And we could get it 1 candle earlier. We took this right over the Bollinger center band that isn’t the good idea as well as this was first fault I made with this trade. This bounced up once we took this & it touched Bollinger center band. The stop loss (SL) was in good as well as right position. At what time I tested the position 3 candles later as well as I looked the huge bullish candle (2009.08.19 08:00) & the next candle, which also moving up greatly, I made a decision to close option if next candle as well moves up. At what time the candle was shaping, there was a Crude Inventories updates imminent as well as therefore I made a decision to close before it strikes stop loss.
Once we closed, it gone down greatly as well as ruptured below the little and newly shaped support row on the four hours graph. We could get this position subsequent to this support gateway as I wouldn’t do it due to the candle, which the broke is below this support row was the huge candle as well as generally after this huge candles we’ve a great rechecking.
Therefore, what was the mistake in such trade? Getting the small position was totally right, because I said that it was hundred percent confirmed by daily & weekly candles. Getting the position, correct over the Bollinger center band was the major mistake.
The initial mistake was getting the position over the Bollinger center band as well as the secondary mistake was the closing of position. I must have allowed it to do whatever it desired to do. This could become very close to stop loss as it couldn’t strike it. We previously had this sort of trades as well as we hadn’t closed anyone of them.
The first line shows that first vend signal, which I forever ignore. At what time the candles moves up as well as touch Bollinger Higher Band for first time as they’ve begun their movement, and they shape the vend signal. I forever ignore that the vend signal as it’ll be pursued by the strong uphill movement that’s indeed the 2nd Elliott wave. The 2nd wave is very gainful movement. Therefore, we must not move little after first vend signal. We must wait for the purchase signal to shape next to move long.
The 2 small green lines shows that the purchase signal, which we’ve to get a long position next. That purchase signal generally gets the price high for many candles because at present it could not that as broken support row was opposite it as well as acted like resistance as well as acted like resistance & did not allow it move high. The 2nd red line shows that candle that shaped the vend signal. Such candle point to that broken support row was acting like strong candle. Therefore, I considered that rechecking is closed as well as failed & it’ll move down. We moved short right at what time candle # 2 was regarding to close as well as you look it was the good decision. It moved strongly for next candles strong for next 3 candles as well as it move eve.
Last candle was shaping at what time still it had touched broken support as well as moving down. Its higher shaded shadow has been shaped as well as it’d the red body. Because it moved down once it touched broken support row, I search out that broken support row was working like strong resistance. Simultaneously, the MACD was greatly moving down.
