- It will guide me to where I want to go and to stay in track
- It helps me to already know how to react to different scenarios
- It helps me to keep the emotions in check and trade more disciplined
- It will keep me from making too many impulsive decisions
- It will also aide me in forming more constructive trading habits.
- It will help me to focus on the process of trading and not only the outcomes.
- A plan is necessary if I want to trade for a living or to manage funds - Take it seriously.
- Helps me build my skills and knowledge
My current GOAL is to:
- Improve my family lifestyle
- Reinvest
Becoming CONSISTENT in following my TRADING PLAN for every trade and growing my invested amount by at least 10% per week and becoming as experienced as a professional Trader
My current trading GOAL is to:
- Improve my trading STYLE, RISK and MONEY management - ALWAYS follow my Trading Plan ON EVERY TRADE
- Win a CONSISTENT number of pips :
- Per trade: 3 - 7 pips in 15 min OR 7 tp 30 pips in 30 min
- Per Day: 40 - 60 pips
- Per Week: 200 - 300 pips
- Improve my trade success rate / trade efficiency
I will spend 1h per day for my FOREX trading charts ANALYSIS (23h-00h) - From Monday to Friday.
I will invest additional money every month in a trading Account:
- Broker Swissquote:
- Account 622021, Leverage 1:100
- Broket IC Markets:
- Account xxxxxx
I will continue to improve my trading practice by spending 5-7h per week on:
- Reading highly recommended Books on FOREX Trading,
- Watching video lectures explaining how to become a professional Trader
- Learning by following analysis from famous professional Forex Traders on social networks
- Learning from Traders in Paid groups of traders sharing analysis and signals
At the end of each week/month , I will review my trading journal (provided by Brokers) to determine whether any modifications to my trading plan seem warranted by the results it obtained over the preceding weeks/months.
To bring consistency and predictability, i will verify that:
- I am in a confortable environment and quiet, without stress, less emotions to make better decisions and better profits
- NZD, AUD, JPY - 15 mins
- GBP, EUR, CAD, USD - 30 mins
- OPEN Market Vs CLOSED Market
- OPEN Market Vs OPEN Market
- CLOSED Market Vs CLOSED Market
LONDON: (08:00 - 13:00): Look for pairs GBPUSD, GBPCAD, GBPNZD, GBPAUD, GBPJPY, EURUSD, EURCAD, EURNZD, EURAUD, and EURJPY
- OPEN : GBP, EUR
- CLOSED: USD, CAD, NZD, AUD, JPY
NEWYORK/LONDON : (13:00 - 17:00): Look for pairs EURUSD, EURCAD, EURGBP, GBPCAD, GBPUSD, USDCAD
- OPEN: USD, CAD, GBP, EUR
- CLOSED: NZD, AUD, JPY
NEWYORK: (17:00 - 22:00): Look for pairs EURGBP, EURNZD, EURAUD, EURJPY, GBPNZD, GBPAUD, GBPJPY, NZDJPY, AUDNZD
- OPEN: USD, CAD
- CLOSED: GBP, EUR, NZD, AUD, JPY
Identification of the Optimal Pairs to Trade and Optimal Entry
-
All 8 Major FX pairs: (AUD, CAD, CHF, EUR, GBP, NZD, USD, JPY) and their corresponding Baskets:
- AUD Basket : ------, AUDCAD, AUDCHF, EURAUD, GBPAUD, AUDNZD, AUDUSD, AUDJPY
- CAD Basket : AUDCAD, ------, CADCHF, EURCAD, GBPCAD, NZDCAD, USDCAD, CADJPY
- CHF Basket : AUDCHF, CADCHF, ------, EURCHF, GBPCHF, CHFNZD, USDCHF, CHFJPY
- EUR BAsket : EURAUD, EURCAD, EURCHF, ------, EURGBP, EURNZD, EURUSD, EURJPY
- GBP Basket : GBPAUD, GBPCAD, GBPCHF, EURGBP, ------, GBPNZD, GBPUSD, GBPJPY
- NZD Basket : AUDNZD, NZDCAD, NZDCHF, EURNZD, GBPNZD, ------, NZDUSD, NZDJPY
- USD Basket : AUDUSD, USDCAD, USDCHF, EURUSD, GBPUSD, NZDUSD, ------, USDJPY
- JPY Basket : AUDJPY, CADJPY, CHFJPY, EURJPY, GBPJPY, NZDJPY, USDJPY, ------
-
Commodities: XAUUSD (Gold)
-
Indices: US30, SP500, ...
Browser zoom at 67%
- EURAUD, EURCAD, EURGBP, EURNZD, EURUSD
- AUDJPY, CADJPY, EURJPY, NZDJPY, USDJPY
- GBPAUD, GBPCAD, GBPJPY, GBPNZD, GBPUSD
- AUDUSD, USDCAD, USDJPY, NZDUSD, EURUSD
Exple AU/ and UJ/
-
Before Asian Session:
- Sunday: 20:00 - 22h00 - Fundamental Analysis (FAL)
- Sunday: 23:00 - 00h00 - Review Big Belt Strategy Results
- Monday - Friday: 5h30-6h30 - Scalp + Currency Strength Analysis (Execution) + London Brakeout Strategy (preparation)
-
Before London Session:
- Monday - Friday: 22h00 - 00h00 - Charts Analysis (preparation)
-
London + New York Sessions:
- Monday - Friday: 10h00 - 11h00 - London Breakout Strategy (Execution)
- Monday - Friday: Management of Swing trades
-
Before End of New York Session:
- Friday: 22h:00 - Big Belt Strategy (preparation)
DO NOT ENTER TRADES DURING OTHER SESSIONS
- 1H
- 4H
- Daily
Open 3-Charts Layout screen for the currency pair to trade (1H, 4H, and Daily) to analyze price movement against the trend
-
check Economic Calendar for any impact News for the WEEK about the Pair and trading session
-
Research and Analysis:
Look for reasons WHY prices are moving in a specific direction
> Preliminary GDP
> Retails Sales
> CPI
> PPI - New Homes Sales
> Official Bank Rate,Asset Purchase Facility, Interest Rates
> Claimant Count - Non Farm Payrool (NFP)
> Manufacturing PMI
- Look for daily RED Flag news (economic data, policymaker speeches and news releases) relevant to either currency in a currency pair and the corresponding hour.
- Logistics:
- Look at the ForexTrack application for Currency Strength Analysis: https://tracking.csa5steps.com/
- Market weekly/daily view records = What market has been doing
- Currency Cycles Records
- Tracking currency cycles, strength or weaknesses every 5 min, 30min, 1H, 4H (For selected currencies)
- Trading Records
- Track every trade (Demo, Live): all information about the trade including why I got IN and OUT to understand its performance
- Trading Plan (To FOLLOW)
- To understand my performance as a Trader
Single Currencies analysis Strength Vs Weakness Optimal Pairing Currency Cycles
Price can be manipulated (We need to make the difference : Manipulation of price Vs real Volume) Volume cannot be hidden Volume of Transactions move Price BIG Money tracks Volume
Highly Sophisticated Volume Analysis More than 400 nuances of Volume Behaviour For Professional traders Requires dedicated learning and expensive tools
Attempt to identify FUTURE PRICE movces by evaluating price charts. This involve studying patterns on the charts which indicate possible future price direction:
- Price Action on chart
- Support Resistance
- Fibonacci Tools
- Technical Indicators (MAs, Parabolic SAR, Stochastic, Bollinger Bands, RSI,etc..)
- Can I identify the main themes that drove the markets yesterday?
- Are there any clear identifiable strong and weak currencies at present?
- Will my trade ideas be pairing a STRONG currency with a WEAK currency?
- What type of important economic data is coming up that I should be aware of?
- Does my technical analysis give me a suitable entry location?
- Am I sure the sentiment in the market is enough to move price in my direction?
-
Switch to WEEKLY Chart: Draw Trendlines only touching at least 2 wicks (parallel)
-
Switch to DAILY LINE CHART: Draw Major & Minor (INTRA) Support & Resistance Zones
- IF current Price > 200 EMA THEN UPTREND. => Look for a BUY (The Trend is MY Friend!!!!!)
- IF current Price < 200 EMA THEN DOWNTREND => Look for a SELL (Don't Trade against the trend)
look for DOUBLE BOTTOM : MAJOR SUPPORT + MAJOR SUPPORT TRENDLINE look for DOUBLE TOP: MAJOR RESISTANCE + MAJOR RESISTANCE TRENDLINE
ALWAYS TRADE NEAR AN AREA OF SUPPORT / RESISTANCE
- Beginning
- Ongoing
- Ending
Take the appropriate risk for the trade (Not too High, Not too Low). This is the number of lots (micro, mini or standard)
-
Account Risk (Account risk limit per trade): 10% weekly,
-
Trade Risk: 3% per trade (Max 6 Daily trades). - Pips at risk on each trade:difference between ENTRY and STOP LOSS
SL is 30 pips
$ at risk = Pips at risk X Pips Value X Lots traded. => Lots Traded = $ at risk / (Pips at risk X Pips Value)
Example:
- Account size : $1k ( account in USD)
- Pips at risk on trade: $30(3%)
- Pips value = 25 pips SL Pair: EURUSD
Lot traded = $30/(25 x $1) = 1.2 => Take:
- 1 trade with lot 1.2
- 3 trades with 0.4 lot size each
USE : https://www.myfxbook.com/forex-calculators/position-size
- Check daily, weekly, monthly drawdown => lot size calculation (generate SL, TP1,TP2 and TP3)
- Risk 3% of account balance per trade
- Minimum Risk/Reward ration 1:3 or greater
- ALWAYS WAIT FOR THE PREVIOUS DAILY CANDLE TO CLOSE
- Add new trade to journal : https://drive.google.com/drive/folders/1DYp9zuLJZ5bxZBdvmD7DJhnc7vrzpv3G?ogsrc=32
- Video record my trading decision process and review it after.
- Take a screenshot of the trade at market CLOSE (BEFORE) in Trello: https://trello.com/b/Jj6QDSv2/trading-journal-2018
Upon +10 pips in profit =>
- Move STOP LOSS to breakeven and repeat it every 20 pips
- Enter another trade with bigger lot size (To increase PROFIT)
Upon STOP LOSS =>
- Close trade (To reduce LOSSES)
The most important thing to do as a trader. Not every trade is a winner.
Method1. TP at nearest Support/resistance zone inside previous bar range (Low Risk) - (FAKE, easily broken. too early)
Method4. Parabolic SAR: Hold Trade in Profit until the DOT of the Parabolic SAR appear in the reverse direction of the current trend
- Take 50% of profit at TP1
- Take 75 - 100% profit at TP2 or TP3 (Only do this after moving STOP LOSS to BREAK EVEN)
- Zone Exit (hit profit target or stop loss or breakeven).
- 3-Bar Exit
- Trailing Stop Loss (stop loss to breakeven, Lock in profit to leave trade unattended)
- Take a screenshot of the trade (AFTER) in Trello: https://trello.com/b/Jj6QDSv2/trading-journal-2018
- Update trade in Journal (https://drive.google.com/drive/folders/1DYp9zuLJZ5bxZBdvmD7DJhnc7vrzpv3G?ogsrc=32)
- Volume is dropping in my move
- Trade turns agains me and volume rises
- Minimal price movement at 7.5 min
- Volume is raising in my move
- Trade turns agains me anf volume drops
- Chart is moving strongly in my direction, supported by Volume
- prepare for the next session
- trade journal review
- review broker accounts
- review recordings
- Price ENTRY
- Price Exit
- Time Entered
- Time Exit
- Pips Gained/Lossed
- Long vs Short
- Lot Size
- Market Traded
- Chart TimeFrame
- Major Economic News
- Notes pon Mindframe
- Major Events in personal life
- Emotion during the trade
- What made me get in
- What made me get out
- Error in Identification/Execution/Management
- Monthly Max Drawndown: 40% (max 120 monthly trades)
- Weekly Max Drawdown: 10% (max 30 weekly trades)
- Daily Max Drawdown: 2% (max 6 daily trades)
Example: Account 1000 CHF Monthly Max Drawdown: 400 CHF, Weekly Max Drawdown: 100 CHF, Daily Max Drawdown: 20 CHF
- Analyse Daily, Weekly, Monthly results
- Rate if the trades meet my expectations BEFORE MOVING TO THE NEXT STEP
- Possible Improvements to Test Later:
- STOP Trading
- BackTest the system
- Reevaluate my trading statement
- Decide if my trading system still work
- Review my psychology when trading (Positive Mindset, Be Fit to Trade)
- Adding to a loser trade
- Breaking the rules
- Taking Too much risk
- Widening a stop loss
- Moving a stop loss to break-even too noon
- Following the rules
- Steeting a STOP LOSS
- Sizing correctly
- Taking the LOSS
- Moving ON
UNDERSTAND PLAN EXECUTE
1- PREPARE (1 Week)
- Look & Observe
- Listen
- Learn
- PRACTISE (7 Weeks)
- Demo Account
- Losses are Natural
- PROVE (4 Weeks)
- Consistent Cashflow
- Go Live