Tomi's friendly market journal

[Tomi]

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[immy]

Oh one more thing, about your observation of PC. Don't forget its an aggressive entry technique and WE BECOME AGGRESSIVE ONLY WHEN THE TREND IS CONFIRMED.

I remember guru guru guru said this many times earlier (rofl) But seriously, when seeing W1 and W2 with PC there is not that big trend available yet. But I understood it more that if markets are moving and trending in general, I'm looking W2/PC formations.

Or are you actually saying that not to use PC in reversals?

No do use it, if you're looking for 1-2, it will confirm it for you. but don't use it when market is in a tight range. When trend not confirmed we DO NOT use add on entries. This is an add on entry. or attempt to re-enter into a trend. otherwise the good old S1 is the best followed by jolly s2 for add on. So no ADD ON Signals until TRENT is confirmed.

[Tomi]

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[Tomi]

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[immy]

What a wonderful day this was. So, it was a disaster. EU M5 is officially diverged now, so I'm out!

As writing of this...M5 diverged and could take long positions and immediately there was 33 pips spike! In EJ 86 pips...woohoo.

Summary on the day:
Trade1. I think that this sudden move was related to G20 meetings.
Trade2. M5 didn't show ABC but maybe it was still worth of trying. My opinion.
Trade3. This one could have skipped due to M5.
Trade4. I could have waited for M5 break of range.
Trade5. 2.2 pips slippage and SL should have been above alligator. Trade would have worked fine. Slippage freaked me out and I used too tight SL.
Trade6. Woohoo (rofl) (wd) B-) \m/

One thing to note that these rents didn't affect to me much. I was all the time in conclusion that one good trade and I'm in profit....veeery good trade, eh

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They are almost all good setups and you traded them rightly, unfortunately you got the rents only. Happens to me aswell from time to time.

The Most important thing is to ask. Did I trade the setup?

cheers Have a great weekend.

And sometime I miss setups like this....

[Tomi]

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[immy]

I learned from your journal that you just have to take the setups, no matter what. There's no point of waiting for perfect setup as there's no such. Sure some look better than others but winner trades start just from the setup. I try to keep this simple rule in mind. Today's rents were unfortunate, but if one doesn't take setups, there's no point of "trading" either. Monday again a normal day!

One note that I had a small profitable trade on EJ today, but it was an accident and not a setup. I closed it immediately even though it was going to my favor. I don't want accidental non-setup dirty money :ymsick: Learning learning learning...

Another note about the rents is that in order to take all the setups, you have to let the winners run. Otherwise +5 pips winners doesn't make any sense. This is something that I have understood only lately really well.

You have an excellent journal Immy and I'm amazed how many trades you actually take during the day. That's where I understood that trading is really taking the setups as they come and not waiting for perfect ones. I tried it today, but unfortunately the result was a disaster

Its a great observation. There will be many who tell you how to filter setups. there is no way but to define a set of criteria that actually works, understand it and apply it. It all depends on the strength of your "belief System". if you believe that taking setups will eventually put you in the positive in the long run , you will not hesitate to take all setups knowing that its a probability game.

A Setup is nothing but an indication of a higher probability of one thing happening over another. "

The setups that form in the direction of higher time frames however have higher probability of success. So we have already incorporated that "belief" or fact, if one can produce logical and complete evidence, (hard to find), that

"Higher probability setups are breakout in the direction of Higher Time frames".

WE know that following our setup will lead to over all success. WE must also believe that trading results are not calculated by taking a few trades or a days result. We need to take 100 trades into account. then sift through them, and see if all 100 were actually setups, or at least appeared to us at that moment as setups. those that were "errors" need not be counted out but they have another important role. So we then find out how many rents and average pipaages of it and how many winners out of the total and what is the average winner pippage. I can assure you from my trading results that this system has 50% success rate. And so in order to remain profitable, your winners MUST be at least 1.5 times as compare to your average losers.

The role of error trades is that it tells you how susceptible are you to errors. Everyone makes errors, some even go in our favor... woohoo like in your case today. ha-ha. But we must keep an eye on it and see what are the reasons for the errors and how often they occur. We can use a percentage wise number and allow e.g. 5% error trades and count them as your losing trades. Again error trades are no problem because as long as they remain within the average losing trade levels its ok.

So its NOT the losers that destroy your account. its the Winners that you either do not take, miss or cut short that are the culprits. I'm sure it must have happend to you that you see the market fly away in front of you and you are dazzled and then you find out it was a setup. You then cannot figure out how you missed it. Its because of our belief system and how our mind filters information based on our beliefs that we hold either consciously or subconsciously. That's why we FOCUS on CREATING Profits and ignore the losing trades.

In the end it all comes to Mind again. We let our losers become bigger because we don't understand how to control ourselves an we cut our winners short because of the same emotional and mental issues. As long as you experience FEAR, Anxiety, Anger and Frustration your mind will block information that lead to profitability (joy, knowledge, happiness, positive expectation) . Our minds will not remain "Objective" if we are fearful and become protective. If we are fearful it filters or blocks information that may lead you to take a setup or remain in a trade since it perceives (believes) that being in a trade is actually being exposed to RISK and Danger. So you don't see that the setup was there. You don't see that there is more to come and there is noexit signal.

On the flip side if you are too reckless and over confident your mind will "filter" ignore or block the information in the environment, the market i.e. our chart that help you to remain on the safe side. It may block information i.e. an exit signal.

So a Neutral, Joyful and relaxed mind is MUST for success. I suggest everyone to give the Setup ebook a fair reading. Understand the VERY SIMPLE Setup and then start working on their minds and start a life long journey of "knowing yourself". Your beliefs are yours, your mind is yours and only you know how to deal with it. The Secrete to Successful trading is not a system. It is Your MIND!

[Tomi]

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[immy]

How dare you call me a guru!

I shall delete my self from this forum! and become a normal premium member.... ME NO GURU! ME Learner! ME just simple idiot trader... ~x(

[Tomi]

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