Forexwatchman
Sergeant
- Messages
- 198
So 2 and a half weeks ago I reached a critical low point which I publicly expressed on here as the "My Own Forex Journey" threads. I want to thank Ricex and MusicMan for their contributions, but I was sure hoping to see more than just 3 replies to my 2 threads (then again who the hell am I anyway).
I do want to update the forum with the progress that was made as a result of my reevaluation of myself and my strategy (or lack thereof) and see what others have to say about it. Let me also express the importance that doing an inventory of not only your strategy but also yourself has on your forex career. Had I not done this, I would have sunk to the point of quitting this venture way too soon! What I discovered had happened and what I knew all along looking back, was that I had given up on sticking with any solid strategy because of a few big wins on random trades. Meaning I choose a buy or sell and set a generous T/P and it worked out and so I thought "I got this, no problem, forget about indicators, and support/resistance, etc. just go with what you think is the right decision." That will open the door to emotion and emotion should NEVER be involved in placing or exiting any of your trades.
So now I have a strategy that goes as follows and since last Monday (11/23) to today has produced a profit of 138 pips on 11 total trades.
On my chart I use the alligator for my moving averages plus the 21 moving average which I set a standard deviation envelope around it in order to follow overbought/oversold conditions (this is my favorite addition to my strategy and I highly recommend it). Also I have weekly and daily pivot points and support/resistance lines which I determine using the 1 hr timeframe.
For indicators I use the ADX to determine if the market is trending or ranging, then if it is trending I look for a crossover on the MACD as my entry signal or if the market is ranging I look for overbought/oversold on my OsMA for entry (though I currently do not trade at all if markets ranging, just observe). Lastly once my MACD or OsMA tells me its time I zoom in to the the 15 min timeframe and look for my actual entry. Once this has happened I set a realistic T/P and S/L and I'm done.
One more crucial thing, I now only trade the EUR/USD. Scanning the currencies for the best option at whatever time of day you just happen to decide to trade is too advanced and should not be done. Learning one currency at a time makes the most sense. I watch the EUR/USD at least 10 hours out of the day, so I'm getting pretty good at understanding its volitility and reactions to news events though I got a ways to go.
Now I in no way feel like a pro here, far from it, but my degree of stress and anxiety over placing a trade has diminished so much now, and especially after I place the trade, that I sincerely look forward to the process now instead of dreading it. Now if I'm wrong I examine the facts: what were the indicators I used, were they the right ones to be using, etc. and I feel better knowing that this system works well and I should simply become a pro at using and adapting it, but there's no emotion involved. Let me hear what you think.
I do want to update the forum with the progress that was made as a result of my reevaluation of myself and my strategy (or lack thereof) and see what others have to say about it. Let me also express the importance that doing an inventory of not only your strategy but also yourself has on your forex career. Had I not done this, I would have sunk to the point of quitting this venture way too soon! What I discovered had happened and what I knew all along looking back, was that I had given up on sticking with any solid strategy because of a few big wins on random trades. Meaning I choose a buy or sell and set a generous T/P and it worked out and so I thought "I got this, no problem, forget about indicators, and support/resistance, etc. just go with what you think is the right decision." That will open the door to emotion and emotion should NEVER be involved in placing or exiting any of your trades.
So now I have a strategy that goes as follows and since last Monday (11/23) to today has produced a profit of 138 pips on 11 total trades.
On my chart I use the alligator for my moving averages plus the 21 moving average which I set a standard deviation envelope around it in order to follow overbought/oversold conditions (this is my favorite addition to my strategy and I highly recommend it). Also I have weekly and daily pivot points and support/resistance lines which I determine using the 1 hr timeframe.
For indicators I use the ADX to determine if the market is trending or ranging, then if it is trending I look for a crossover on the MACD as my entry signal or if the market is ranging I look for overbought/oversold on my OsMA for entry (though I currently do not trade at all if markets ranging, just observe). Lastly once my MACD or OsMA tells me its time I zoom in to the the 15 min timeframe and look for my actual entry. Once this has happened I set a realistic T/P and S/L and I'm done.
One more crucial thing, I now only trade the EUR/USD. Scanning the currencies for the best option at whatever time of day you just happen to decide to trade is too advanced and should not be done. Learning one currency at a time makes the most sense. I watch the EUR/USD at least 10 hours out of the day, so I'm getting pretty good at understanding its volitility and reactions to news events though I got a ways to go.
Now I in no way feel like a pro here, far from it, but my degree of stress and anxiety over placing a trade has diminished so much now, and especially after I place the trade, that I sincerely look forward to the process now instead of dreading it. Now if I'm wrong I examine the facts: what were the indicators I used, were they the right ones to be using, etc. and I feel better knowing that this system works well and I should simply become a pro at using and adapting it, but there's no emotion involved. Let me hear what you think.