Forex Trading Journal Rules and Setup
Hello to all my friends and traders who have been following me on this blog. This is going to be the first trade in my personal Forex trading journal. So to help each one of us understand how this will work I am going to explain my trade rules and then I am going to explain how I will write record the data for each trade. Also a disclaimer these are not Forex Signals but rather an online forex trading log that will teach everyone how to properly implment a forex trading plan. If you are looking for more trades such as this then you should think about joining our premium trading room that has live trading with screen sharing, with a large group of Forex Traders.
My rules
- Enter trade on candle c loses only.
- Have a stop loss and a profit target in place .
- clearly identify why I took the trade in the journal.
- risk a maximum of 5% on my entire account at one time.
- I will exercise great patience and only enter trades that have a clear signal.
I think that is it so lets get started….
I am going to enter a short trade on the Gbp/Chf based on Sophias trade call that she made earlier.
So lets look at the daily chart
Daily Chart Gbp/Chf
So from this chart I can see that we could be looking at a good sell opportunity because of the support at 1.700 and because of the strong up move could be getting exhausted. The daily candle closed today lower than yesterday and that is a signal that we could be heading lower. However I do not want to forget about the strong up trend that we are in, nor do I want to forget about the support levels that could stop this short from taking hold.
So because of those potential pitfalls, I will be jumping down to a 4hr chart and I will be looking at the rising trendline.
gbp/chf 4 HR Chart
So you see now that we can run into some problems on the trend line if we go short now. So I am going to be exercising patience and then I will place a short trade at the break of the 4 hr trend line. Or if we get a bounce a that point I will look at taking a long position. The reason I am posting this now is to show how much patience it takes to enter a good trade. I will update this same post as the trade progresses so keep coming back here to see how it works out for you. I will be sending all of the updates via email so you can sign up on the form in my side bar. Also some time it takes some time for the email to be released so, you might want to follow me on Twitter so that you can get the updates as they happen.
Remember I am only going to be entering the trade on the break or bounce of the 4 hr candle so I only have a potential trade entry every 4 hours
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Hi Casey,
The support at 1.6850 should hold because this is where a support and trend line meet. Also it is a minor psych level. This could be a high probability trade with little risk. I will watch for a long here. Thank you for the analysis.
Love the Premium Trading Room. I have learned much and there is so much more to learned. The education exceptional and the live trade signals are the best there is.
Thank you.
Daryl
Hi Casey, very good article….i am looking at this pair. Hope to get a good trade fron this one.
I will follow this trade and hope it is profitable for me
Hi Casey, thanks for the journal, keenly following most of yours.
I think this is GREAT for this to be done. Will teach us all to learn some real important thinks
Thanks
hi cassey, you really give us a great insight of certain pairs. there could a very good potential set up on gbpchf if it break the support level at 1.6834, then there is a long downhill road all the way up to 1.6634 and after that 1.6300. great analysis cassey. keep it up.
Good…..gooood! Love this. You see, I'm more 0f a novice trying hard to get a handle on FX Trading.
Thanks.
Daryl,
Thanks for the positive comments that just helps me to work even harder.
I will let you all know when I make an entry to this trade.
I hope all of your trades are profitable
Vignesh, I appreciate all the visits and comments. I hope we can can both be a success.
CAsey
Mark,
I appreciate you comments and lets hope we can get our first trade in soon.
Thanks
Casey
Yes you are absolutley right I will be watching this trade closely.
Thanks
Casey
Pius,
Keep coming back and we will keep giving you the good info. I am so optimistic about seeing some profitable traders coming here.
Casey
I am new to this counter-trend trading, so everyone take this with a grain of salt.
I don't like what the ema's tell on Daily for a short. I would want to see down angle at least on the 20ema daily chart.
On the 4H, I would want to see break of TL AND the 40ema
Thanks for all you do Casey & God Bless. I am keeping my Premium membership — I am learning too much to stop!
Thanks Kimbo,
This particular trade was not a counter trend trade because I am waiting for the trend line to break before entering a trade. I appreciate your using our services if you need any help at all we will be here to help you.
Thanks
Casey
found your site on del.icio.us today and really liked it.. i bookmarked it and will be back to check it out some more later