Yo yo! As you all know, I recently got into the world of Forex swing trading, and I have decided to log all my trades on the blog in order to share my journey with you all. Last week I posted my second log, which chronicled my second week in the exciting currency-exchange market.
Today I bring you my third forex trading log, which covers my trading activity from 11/8/2015 to 11/13/2015. Hope you enjoy it!
|RISK/REWARD||1 : 2.5|
|ENTRY TIME||6:17 AM|
|EXIT TIME||2:10 AM|
This trade was based on a high-probability signal near a strong resistance level. A bearish pin bar formed after a strong upward trend, so I set a sell stop order a few pips below the low of the pin bar and a stop loss a few pips above the high of the pin bar, just above the resistance line.
My target was set right above the 132.25 level, where the price had recently been consolidating quite a bit. This seemed like a good exit point and gave my trade a fantastic 1:2.5 risk/reward ratio.
The price did eventually fall down enough to trigger my exit, leaving me with a net profit of $26.06.
That’s it! Yep, I only placed one trade this week. I’ll be honest, after the fantastic second week of trading that I had, I definitely felt a little nervous this week in the sense that I was really protective of my gains, and didn’t feel comfortable taking trades that I felt didn’t have extremely high-probability setups. And since it was a really busy week for me with a lot of freelance work on top of my day job, I didn’t have much time to look at charts and as such didn’t feel comfortable placing trades just for the sake of trading.
Now, taking less trades isn’t a bad thing. You could be a very profitable trader taking even just one trade per week. If anything, I actually think that I’ve been taking too many trades on a weekly basis so far. With that being said, this week was a good lesson in emotional management. It’s good that the previous week’s winning streak didn’t inflate my confidence and cause me to become reckless, but at the same time I can’t let strong winnings make me become totally risk-averse. After all, you can’t make money if you don’t trade. So I definitely need to work on detaching myself from my earnings more.
Anyway, that’s all I’ve got for you this week. Onward to week 4!