David's journal

[azadar]

The hardest thing about trading is not applying a strategy but having the right mindset to be consistently profitable. Once you got your mind right, just about any strategy can be profitable (some more than others of course). Therefore lately I have been focusing on the mind aspect of trading.

Due to all the recommendations from Immy and other AIMSters I read the book "Trading in the zone" and its been of great help. I strongly recommend it to anyone looking to become a consistent winner.

In order to practice trading in a care free state of mind, I started doing backtesting using Forex Tester 2 (its a great tool to quickly gain experience, especially during the weekends when the markets are closed). Since the MT4 AIMS indicators dont work with the software, I used a very basic strategy of reversals on higher time frame using candlestick patterns (no indicators). The strategy doesn't really matter here, my only goal was to learn how to consistently enter and stay in the zone while trading.

I started backtesting in small sessions of at least 20 trades (the exercise described at the end of the book). After a few sessions (some good, some bad), what I realized is that by concentrating on the execution of my trades (and not thinking about my previous trades or my equity curve) I am able to dramatically improve my trading results.

I still got a long road ahead but at least I see improvements and im one step closer to my goal of trading for a living

That is whats been going on lately with me. Hopefully this will help some of you guys or maybe motivate some to read the book.

[KrisL]

Couldn't agree with you more regarding Mark Douglas' book! I've just finished my second time through and it is by far the most valuable trading resource I've come across so far. I now read it for 10-15 minutes before trading as part of my routine - this is a big help in getting my mind right prior to trading. I saw on his website that he is planning to release another book this year. I'll definitely be pre-ordering it!

I also recently had a similar revelation as you regarding focusing on the execution of my trades rather than the profit/loss or equity curve. I now only look at the pip value of my trades (not the $ value), and only to find out when the trade is 1:1. I can't stress enough how much just focusing on the setup has improved my trading, and I highly recommend a similar approach to anyone reading this!

[azadar]

Not proud of the AUDUSD trades:

fail_20.jpg

The eurjpy trade was very nice. I wish I could say my exit was mad skillz but I got lucky as I was getting late for work

InDaZone20.jpg

The gold trade turned out to be a monster (well for me anyway since im not used to executing trades with such high R:R) Aims box was super tight compared to the size of the move.

InDaZone22.jpg

[Dave]

You said it yourself, Dave, the AU entries were too late. But that EJ was spot on! Well done! Remember to catch the early break in the fractal sequence. Check out pg 2 of Nikita's journal for a heap of photo examples of this.
Dave

[azadar]

Thanks for the feedback Dave. Will look at the screenshot in Nikita's journal.

Today started out with a small mistake because I put in wrong SL and it was hit immediately. I entered the trade again and made a small profit overall

2014-01-23_2207_MissedPotential.png

At the tokyo open I took a late entry but got stopped out at BE:

2014-01-23_Late_BE.png

[azadar]

Got up late this morning and took 2 trades in the limited time I had before going to work. Im break even for the day.

2014-01-24_Fakeout.png

2014-01-24_LateEntryWithGoodExit.png

[Dave]

Hi again Dave, nice EU short mate, but just remember to get the first break after the setup. I promise I won't harp on about this forever but it really is an important part of correctly timing the entry, catching the early break and riding the wave from its beginnings....

2014-01-24_LateEntryWithGoodExit.png

[azadar]

Hi Dave,

Thanks for your feedback

Looking back at the charts I do think I was there while it happened but I did not take the trade at the first break (probably waited for M5 break). You are right, I should have taken that first break out of M1 since M5 was 10 pips away. Its good advice and I will pay attention to that in the future.

I will also put in more time from now on in order to increase my screen time. By getting up an hour earlier in the morning, it should give me enough time to let my winners run and also give the market more chances to offer me setups to take.

Thanks again!

[immy]

Hi again Dave, nice EU short mate, but just remember to get the first break after the setup. I promise I won't harp on about this forever but it really is an important part of correctly timing the entry, catching the early break and riding the wave from its beginnings....

2014-01-24_LateEntryWithGoodExit.png

Dave, if you ask me, I'd say, please "harp" about it on a daily basis. There are still many people who do not pay attention to this very important aspect. For me its natural, I have almost forgotten that I do this analysis, but I know I do, its just become a habit. AIMS Boxes create lovely patterns and we can easily create and take advantage of this edge on a daily basis. Not many people out there sees the market structure as we do with the help of the AIMS boxes. Its our own private dimension.

Cheers again!

[azadar]

Yes Immy, I will focus my attention on catching the first breakout. Although its not always possible as my trading time is limited and sometimes when I get in front of the screen the move is already started. I then must decide if I risk getting late entry or not get in at all.

I am writing this journal entry to make sure I dont forget the valuable lessons I already knew but forgot or failed to apply in the last few days.

First thing: Successful trading requires a clear mind and positive attitude. Last night, I was tired and angry (the source of that not being related to trading) but I still decided to spend some time trading. You can guess the kind of results I got... (lost 40 pips). From now on, if my mind is not clear I will not trade. Trading while under the influence (of a bad state of mind) is dangerous!

Second thing: Only trade during high market activity. Last night I spent a lot of time waiting for price to move in the direction of my trades. Since it was in the middle of the asian session there was not much activity and all price movements were rather small so it makes it hard to get a decent profit during those times. This morning at the NYO I made 20 pips in 20 minutes. It was so easy compared to last night simply because there was enough activity in the market to make breakout moves. From now on, I will only trade around news events or market openings.