EUR/USD (21Aug) planned trade

I have placed another stop order trade for EUR/USD with the order to open at the break of the low as shown on daily chart. The price seems to be rejecting the recent top and seeing a long pin bar reversal, it might show that the currency might be on going on a downward direction..  Based on my
risk management guideline, my risk set for the trade is 2.6%

Pin bar Fakey (0.5 weightage)
Showing rejection on resistance (0.1 weightage)
Carry interest negative (-0.07 weightage)
Total risk = 2.6% (0.53 weightage)

This gives me a total of about 2 mini lot position, taking the leverage to around 2X.. The stop set is 108 with the limit set for the 2 position 160 (first support) and 362 (Second Support). I am adopting a single stop multi exit strategy because I think there's more room for downside movement and even if my deduction turns out to be wrong, I will have at least one profitable position.

The stop for my second position will be adjusted accordingly once the first Target profit is hit.. It will     probably be set at the resistance of the most recent trading areas...


     This trade will automatically expire should it be not opened by next day.

AUD/USD Aug 20 2nd trade

I have closed the earlier trade and opened a "long" position on AUD/USD.. This is on speculation that it will be going in range but since this might be a counter trend trade in nature, i have minimize the risk as follow :

Pin Bar reversal (0.3 weightage 1.5%)
Stop less than 35 (-0.1 weightage -0.5%)

Trading on pivot point ( 0.2 weightage 1%)

 MArket order (-0.05 weightage -0.25%)

Risk : 1.75%

I have set my exit at the other pivot point which is the resistance as shown above. The R:R is about 5 and my stop is 34 pips below the support.!

My trade was stopped out.. I am very tempted to open another random poistion, with hope that I can recoup but I have constantly myself to follow the plan and stay calm... I reminded myself not just to think of the "money" but rather, I should focus on the amount i will lose (Risk) and the process. 

An update on trading

Its been very long since I last blogged and when I looked on my past posts, it seems that I did not change much or either improve in my trading ways.. I am still trading impulsively, with making money set as my first goal instead of focusing on trading... This usually leads to poor decisions like doubling down, taking excessive risk and thinking price will revert back to me cost... its just a matter of time.. My record has proven me otherwise many times but still, greed prevented me from seeing the clear picture... I have lost another 10% of my account in a very reckless manner.

I promise myself this will be the last time.... I must start to focus trading correctly rather than expecting things from market... In the past, I have been always trading in a panic manner... taking large leverage, checking prices every min and when the price move against me, I will open another position to average down.. My heart will move very fast and I will stare at the price every second hoping it will go in my direction and when it indeed goes in my direction, I will fear my profit creeping away so sometimes I will just close immediately...  I am trading in a very difficult and stressed manner which makes trading additionally difficult.

I want to take a different approach for trading.. A more relaxed, methodical and stress free approach. I will be focusing more on the risk rather than the amount of money I can make.. Secondly, rather than trading on low time frame chart, I will trade higher time frame (4hours, daily and weekly).. Lastly, I will only trade when I have the clear signal.. I will remind myself to be patient and in any case if I lose my trade, the key will be capital preservation rather than recouping!..

It is a long journey and I really hope I can make it one day.

Trading 19 Aug 13 (AUD/USD)

I am currently experimenting with a new money management system.. The system might be still bias in nature as it needs my subjective assessment on the chart therefore as much as possible, I will make my rules and guidelines strict so that it will be easy to adhere.

Below is the daily chart of the AUD/USD.. My system will be mainly based on higher time frame chart (daily and 4 hour)... Basically I am giving a point system to the cues I get from the chart before deciding on the risk to take... My max risk [no matter how confident I am] per position will be 5%...

I have started off with an ac of 7800 USD thus my max risk will be 390 USD. Based on the chart, theres some cue i taken...

 a) price surge up over the past few sessions and the price broke the recent high but reversed strongly to the low.. [pin bar fakey - weightage 0.5 [2.5%]

b) the trend of the currency is downwards and  my trade is opened in accordance to trend. 0.15 [0.75%]

c)  I have used market order so seeing this as a bad entry, I want to reduce my risk... weightage -0.05 [ -0.25%]

Total Risk taken : 3%

Since the currency is trending downwards, I have set my limit to 2X of my risk (160 pips target).. I have checked against the chart and the limit is still some distance away from the reversal point (0.88) which is a possible "target"

My observations from trading (19 Nov 12)

I have not learned well from my past lessons. I am still trading recklessly, opening positions (not following money management rules) and similar to before, I am overwhelmed by my own desires... own ego to win every trades and if the trade turns out to be a loss, I will open a new position, double it and hope to recoup.. Base on my own history, its just a matter of time before I blow my whole account again.. I am trying to look deeper into the problem..... on why I am committing the same mistake again and again.

It always start from a trade, with conviction and mentality that I should profit... If it turns to loss, my mentality is still "pixated" on the "potential profit" so with this mindset, I always take another position,  with a desire to recoup fast... This cycle repeats till I blow my account... All this actions is done on the BELIEF that I am always right.. I am just wrong on the timing.... Its the EGO and the GREED thats lead me to take such actions.. As for now, there isnt any day where I just take a loss, monitor the market and replan again.. Many times, I just trade and only stop till I reach the point of recouping/breakeven.

I think the key to trading isn't as much as my own personal profit/loss but rather more on putting mysel to the market and following the flow.... Many times, I just made things more difficult by inserting "I" into to the trading equation and this leads to irrational decisions stemmed from my own greed, fear, ego and etc.   I always tried to average down when my trades went wrong but as soon as I recoup on my losses, I sold it but if it goes other way, I will just hold and hope it turns around... I know clearly the market dosent work this way but still I hold to this mentality cos of fear... Fear the market turning around.. Fear of being wrong but sometimes being "wrong" is not as bad as it seems."

Regret, disappointment, pain , fear and greed are the common emotions which arise from my trading.... Losses/Profits definitely occur in trading but the key to succeed in trading is to minimize the aftermath.... Like regretting... thinking on hindsight.... Best is to leave the trade as it is regardless the outcome. Move on and trade accordingly to the plan again...

Goalless pursuit in life

These few days, I feel goalless in my life.... just feel like I am pursuing it without any clear direction... This might be attributed to various reasons...... 1) feeling regretful over the large losses I accumulated over the past few years.... depleting 70% of my account .. 2) many things on my mind... be it personal or work.. 3) working as a broker.... too much time in hand.....

I just feel that I am wasting my time everyday..... letting day by a day to get by... Time should be something precious by yet, I am treating it as dirt... a cheap commodity.  Life is uncertain.. and I can only live once but with my current attitude, I am sure it is not something what I want when I look back 20 years forward... Life is about experiences... experiencing moments, expanding horizon but I know I am not fully utilizing it yet... 

Living a life without pursuit is miserable.... very miserable. I need to utilize my time more.. have a more defined direction in life...  I should not live with an attitude "live to exist" ... I should strive for a more meaningful life....   Since my passion has already been trading, this is something I should work hard on.  I always have a desire to connect with likeminded people, sharing ideas but somehow i find it very difficult to start.. After going through many account blowups, my personal perspective to the trading holy grail is "Mindfulness"...  I believe the chances of succeeding will be higher with a trained mind... going in with an empty state but yet again analyzing throughly..

A deeper question to myself...... I always associate "doing many things" to achieve a sense of direction in life but in fact it is just an illusion... It will just be a cycle where I will be attached to things.... The key to happiness is to discover more about myself and seek inner peace... I just need to focus and DO things I really like instead of trying to DO things which looks good..... 

My personal trading challenge

Its still very difficult for me to overcome my past mistakes.... I have been dwelling over it whenever I look at my portfolio.. I cant stop feeling regretful over my past actions... This might be also because of the immense pressure I am facing... I have been trading on borrowed money thus after encountering large losses, its more difficult for me to make the interest payments.

The rationale move is to stay calm and distract myself from the DESIRE to recoup but the "evil" thoughts have been fleeting on my mind.... trying to recoup losses as fast as possible but in meantime, not considering the potential losses... This is a mistake which I am always committing... A wrong mindset that leads to a whole vicious cycle triggered.... My perception of risk taking is skewed... My brain was always tuned to look at the profits... the gains but never one time, I consider the risk too... This might be because my brained is trained too long towards this direction so in order to fix it, it will definitely take much much longer.

My first challenge is to look positive in face of adversity.. Only by doing this, I might have a chance to tweak my mindset again... As i emphasize on my previous posts, for myself, its very difficult to "force" rules without understanding... I tend to break it whenever i try very hard to resist...... The harder I try to resist, the more I will break the rule..  I can give myself some comfort by thinking that my account is not totally blown out... Though 70% is lost but on the other hand, I still have 30% left so if I try hard enough and disciplined, I might still recoup the loss.... Also at same time, if I continue my old ways, gambling recklessly, i will lose everything and chances of recouping will be much much lower..

My trading situation is currently at EMERGENCY state where it requires immediate action.....I need to keep my foolish "GREED" in check...  Such emotions arise also due to occasional envy of other people doing better so most importantly, I need to train my mind..... A mind of contentment, virtuous is something I am striving for....

This is a very tough personal challenge due to my proneness to emotions but I believe theres hope as long as I practice mindfulness.. observing all my thoughts.. actions and etc.... analyze them and assess if theres better way to improve my "thinking".