TradingJournalHenryE

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SCORE: 8/10


What I did right
Stochastics were going down or flat on the floor
Fence was nice and wide
Moving averages were wide apart and going down
Williams pulled back in the opposite direction and there was gap between magenta and blue
There was small retracement of price

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SCORE: 6/10


What I did right
Stochastics were going down or flat on the floor
Moving averages were apart and going down

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SCORE: 9/10


What I did right
Stochastics were going down or flat on the floor
Fence was nice and wide
Moving averages were apart and going down
There was nice small pullback of price
Williams pulled back in the opposite direction to the trend and there was nice gap between the magenta and blue

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SCORE: 4/10


What I did wrong
Moving averages were not wide apart
Fence was not wide apart
There was no clear pullback of price or Williams

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SCORE: 6/10


What I did right
Stochastics were flat and some were on the floor
There was small pullback in price
There was small pullback by the Williams

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SCORE: 8/10


What I did right
Stochastics were going down and some were flat on the floor
Fence was nice
Moving averages were going down
There was small pullback of price
There was pullback by the Williams and there was gap between the magenta and blue Williams

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SCORE: 8/10


What I did right
Stochastics were going up
Fence was wide and nice
Moving averages were wide apart and going up
There was tiny price pullback - not visible on the chart

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SCORE: 4/10


What I did wrong
Fence was tight
No clear pullback in price or the Williams

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SCORE: 8/10


What I did right
Stochastics were going up
Moving averages were wide apart and going up
Fence was wide apart
There was pullback by the Williams and there was gap between the magenta and blue
There was small pullback in price (small candle of the opposite colour)

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SCORE: 7/10

What I did right
Stochastics were going up
Fence was wide apart
Moving averages were wide apart and going up

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SCORE: 8/10


What I did right
Stochastics were flat on the roof
Fence was wide apart
Moving averages were wide apart and going up
There was pullback by the Williams and there was gap between the magenta and blue
There was small pullback of price (doji)

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SCORE: 4/10


What I did wrong
Some blue stochastics had turned down
Fence was not wide apart
Moving averages were not wide apart

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SCORE: 4/10


What I did wrong
There was no clear pullback of the Williams
There was no clear pullback of price

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SCORE: 8/10

What I did right
Stochastics were flat at the roof
Moving averages were wide apart and going up
There was small pullback in price
There was pullback by the Williams and there was gap between the magenta and blue

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SCORE: 5/10


What I did wrong
Some stochastics had slowed down
Candle before the signal candle was too long and the possibility of a reversal to touch the orange stochastic was too high

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SCORE: 8/10


What I did right
Stochastics were flat at the roof
Fence was wide apart
Moving averages were wide apart and going up
There was small pullback in price forming a doji

Hello Henry,

I just scrolled through here and I see one common thing with your lose trades.
When you see 2nd, 3rd bullish or bearish candle forming after one another it shows a trend (no weak or very short weak) but when a longer candle (double or triple in size then previous) appear it shows a climax in price. 80% of the times sudden death in trend follows this sign. (price will fall back into the opposite direction = correction, price is correcting its course back to the moving average, thus from extreme back to normal.)
Climax means, late comer traders make entry into the direction of the trend (micro trend!) which accelerates the price to make one last big pump up, this pumping up is an extreme, but at that point will experienced traders sell, so late comers get the lose, experienced trader close position with profit.
The larger volume in the sell makes price to drop.
Conclusion: After extreme long candle expect a fall back (after such long candle if the next one does't touch the moving average EMA 4 at all always opposite direction is the right entry or no entry at all.) 
Williams also shows you the same.

One more thing.
When running backtests of different trading strategies I noticed an interesting correlation between win/lose ratio and trading frequency (how many entries were made in certain time). This really sat my mind straight. Before this I was searching how could I make an entry on every single 1 min candle and make good win ratio, because I usually don't have much time for trading and I hated when waiting for even 5 min before making a trade. So I would get inpatient and make an entry anyway which looked good. Thus I made more losses.
Conclusions:
1. We want to make money.
2. We hate losses.
3. Cutting down on frequency and making a trade only which has high winning potential is the way to go.
4. Therefore better not to make a trade which we are not certain about but wait for next entry setup instead.

I am still working on this discipline, so better I jump in to trade 2-3 and exit the platform then come back later maybe, then keep on going for 30 min and let my emotions overtake, then lose money.

I wish you good trades!
Cheers

Hi Gihon,

Thank you very much for those comments. I really appreciate your help with this. Shaun has warned me about taking too many trades but I am still struggling to discipline myself enough to achieve that. I have noted what you said about the long candle. I have added that strategy to my trading portfolio. I will look out for those long candles next time.

Best regards and good trading.


Henry

Hello Henry,

Few more encouraging words:

There is a strategy which only waits for the long candles and applied for retracement only. 
You use 4 EMA and price actin only which is to observe the candles.
Retracement is not as same as reversal!!! [You must be registered and logged in to see this link.]
However pls read carefully what else I am saying here.

Maybe you are like me and you really want this trading work for you, maybe it is really important that with trading you generate an extra income, maybe the numbers are keep on running in your imagination...
This is which can strongly drive you to make entries often rather then once - once.
Truth is, better trade for short duration then to extend that. Your results will prove this.
Try it. Sign in, wait for entry signal, enter. If win, go for one more win. If you got the 2nd win in the raw sign out and keep some break. If you make 2 losses in a raw do the same. If you make like lose, win, lose, win... trade only 5 times regardless of outcome and then keep a break. (At least skip 30 min before trading again.) Do this for a time and check your results if they were improving or not! (Easier to remain rational and focused, especially for a beginner...)
I do this because I hate waiting for signals, although if I know I am hunting for the high probability signal I would wait. (I am building a system for that where I want to hunt for the highest probability entries.)

My advise you learn a few type of entries only and practice practice until you really mastered it. If you take my advise and trade for short duration with breaks you will not get bored.  
Once you mastered this you can add one more tool into your toolbox. (later on maybe one more, and so on.)

The long candle strategy has its tricks. After long candle best entry is always into opposite direction but often after one long you would get a spinning top type candle, a short candle which is not connected to the 4 EMA, like floating in the air. After that you have around 80% probability that next candle is into opposite direction. If you are bold and want more frequency after extreme long you can always enter into opposite direction but this one has around 55-60% probability only for the win. At times you would get even 2-3 long candles... (News release for example when price kicks off into strong trend.) Remember we do not have 100% probabilities in trading, so it is normal to get some losses here and there but your goal must be to avoid losses in a raw (max 3 but better 2 consecutive losses in a raw). You do this buy cutting down on frequency...

Hope it helps. You win or lose is determined in your head. Mindset is the major key for successful trading.

Thanks again Gihon. That helps a lot. I watched some trades very closely today and I saw that the long candle strategy works a lot of times. I will trade tomorrow using that strategy and see how it goes. I will post the trades for you to see. 
I liked your comments about cutting down on the frequency of trading. I will work on that a bit more. I am usually tempted to trade all the time.

Cheers,

Henry