12 December 2008

My Trading Plan

Here is my trading plan. It is a work in progress and needs a lot of refinement.

How I Trade
  1. I trade off of the. H1 for trade setup.M15, H4 for confirmation
  2. Trade on Price movement. Utilizing the Shi Channel, Linear Regression Channel, Barrys Support and Resistance and Fibonacci.
  3. Trade after retracement starts and looks like its almost complete.
  4. Looking for (re)entrance in the .382 or .500 range.
  5. Utilize SL on a previous resistance level (ex, if entrance at .382 use .500 as SL)
  6. Trade in the direction of the market
  7. Trade only on EURUSD, GBPUSD, USDJPY and USDCHF. Main focus on EURUSD, especially for GBP setups. No COMDolls or blends.
  8. Never risk more than 3% on the SL, if I need more pips then I will reduce my lot size

Trading Routine
  1. Primarily look for setups around 9am, and through the rest of the US day.
  2. Never trade Sunday nights or Friday after noon.
  3. Never trade around news.
  4. Never trade on Holidays.
  5. Check daily news release times before setting up. Use the releases as guidance
My Mindset
  1. I will see what is on the charts and not what I want to see.
  2. No matter how biased I am towards a direction, I will make sure to trade only what my eyes see and not what my feelings tell me.
  3. I will not get “revenge” on the market if I lose on a trade.
  4. I will not trade when there are no setups. I will be weary when the trends are not being followed.
  5. I will not beat myself up if I make a losing trade. Instead I will take it as a learning experience and move on.
My Weakness's
  1. Finding trades when they are not there.
  2. Trading outside of my normal style.
  3. Watching the market too much and second guessing/Hedging myself.
  4. Testing new systems on “live account”.
  5. EA’s
My Goals
  1. Initial goal is to trade for 2 months with demo account and have positive equity.
  2. Learn how to trade on price action, being able to understand where the market may go.
  3. I will shoot for at least 25% monthly return.
  4. Devise EA and test. Never allow too big of draw downs.
  5. Read Japanese Candlestick Charting Techniques, Second Edition (Hardcover)

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