Thursday, 9 May 2013

Mock Trading Journal - Entry 1

In a bid to record all my trading activities and look back on them. I will be screen-shoting all my buy sell orders in the forex market and show it to you guys. I have learnt how to use support and resistance levels, as well as the take profits function from this broker. I will not be recommending any brokers yet, but I am getting really comfortable with this broker for their easy to use system. You will not see any S/L (stop loss) or T/P (take profits) order in this entry as I have just recently learnt how to trade and only my existing open positions have these orders. With no further ado, here is my entry no.1:

If you noticed, I was making losses the first 2 days as I have literally no idea what I was doing at that time. I was just pressing buy sell randomly. Yet, as time passes, I have gotten used to the way the market moves, and started to make some really profitable trades. The fact that it is just paper money is irrelevant. This is because I strongly believe that if I cannot profit while trading paper money, I will not be able to perform while using real money. All in all, I am quite pleased with my performance.

To be honest, the only mistakes that I think I made was not putting stop losses level and take profits level. This has resulted in me viewing the chart constantly, which was stupid. However, if I did put stop losses level. I would not have profited in order #5899683 and #5903126. This was because the losses went up to almost $300 before it bounced back to profitable levels. This has got me thinking on what would I have done if this was real money. Logically speaking, I felt like I did not enter at the right time. I was doing scalping at that time and changed to holding the currencies when my losses piled. This is really not recommended as I would definitely be much more impulsive when trading with real money.

Moving on, I believe I will be taking a more long term approach to trading currency. Right now, all the analysis I have done is pretty simple, I buy and sell based on market instincts, seeing the chart and thinking how it will move. I have not really used any indicators or strategies. I do wish to use some strategies and will be learning about them soon.

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