Forex Trading Journal Rules and Setup

Written by on June 2, 2010 19 Comments

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

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

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

Categories: Casey Stubbs Forex Education Forex Trading Journal Latest Market Analysis Tags:

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  • http://www.winnersedgetrading.com caseystubbs

    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

  • Kimbo4X

    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!

  • http://www.winnersedgetrading.com caseystubbs

    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

  • http://www.winnersedgetrading.com caseystubbs

    Yes you are absolutley right I will be watching this trade closely.

    Thanks

    Casey

  • http://www.winnersedgetrading.com caseystubbs

    Mark,

    I appreciate you comments and lets hope we can get our first trade in soon.

    Thanks

    Casey

  • http://www.winnersedgetrading.com caseystubbs

    Vignesh, I appreciate all the visits and comments. I hope we can can both be a success.

    CAsey

  • http://www.winnersedgetrading.com caseystubbs

    I hope all of your trades are profitable :)

  • http://www.winnersedgetrading.com caseystubbs

    I will let you all know when I make an entry to this trade.

  • http://www.winnersedgetrading.com caseystubbs

    Daryl,

    Thanks for the positive comments that just helps me to work even harder.

  • Pius

    Good…..gooood! Love this. You see, I'm more 0f a novice trying hard to get a handle on FX Trading.
    Thanks.

  • nisar

    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.

  • Mark

    I think this is GREAT for this to be done. Will teach us all to learn some real important thinks

    Thanks

  • Vignesh

    Hi Casey, thanks for the journal, keenly following most of yours.

  • Mpontso

    I will follow this trade and hope it is profitable for me

  • Gerarfx

    Hi Casey, very good article….i am looking at this pair. Hope to get a good trade fron this one.

  • Daryl Koster

    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