journey to become quotTHE Professionalquot
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Thread: journey to become quotTHE Professionalquot

  1. #1

    This diary is another step in my quest to become the professional.
    Who's this professional you might ask yourself?

    Well basically the professional is a trader in my head whom I one day hope to be.

    Funily enough he retains a diary and has a network of traders he calls friends.
    So here I am at Foreign Exchange factory beginning a diary along with the travel to make Foreign Exchange connections!

    He does lots of other things of course, alot of which ive already started to perform
    but more on this later.

    So don't hesitate to drop by, say hello and join me on my quest!

  2. #2
    Welcome to the forum and good fortune. Be calm and use your mind not your own emotions when you exchange.


  3. #3
    Thanks for stopping by yilmaz!

    That is good advice which I mostly follow already thanks to my entry/ exit rules.

  4. #4
    Ok time for some charts and rules

    About 8 months ago I made a decision to choose 1 kind of entry and adhere to it. I wished to completely master that entry before even considering moving on to some other setup.

    So since then ive been trading a wedge/ Valve breakout installment exclusively and have made close to 15% in 2010, although small by some peoples standards I broke even in 2009 and lost 10% in 2008. So by my standards things are just improving

    THEORY -

    The notion behind the wedge breakout is the market is winding up tighter and tighter until eventually it has nowhere to move. The subsequent move is frequently hard and fast.
    This formation functions on all timeframes nevertheless the lower I move the greater the spread costs are and there is not as much time to organize and implement trades.

    This formation exploits the fact that the markets frequently go sideways leading up to important news announcements. Then when numbers come out different to the forecast there's frequently a sharp movement.

    The more evident the formation and the tighter it warms itself up, the more orders develop round the trendlines that form the wedge. More orders signifies a push when the breakout occurs.

    The best breakouts occur at big round numbers ie 1.0000 because you can frequently see price move 10-15 pips in only seconds as stops and breakout orders are triggered.


    -that I will only trade throughout the london open/ US open hours. I delete untriggered orders if I cannot monitor the pc

    -that I will always input buy or sell stop entrances outside the trendline

    -The trendlines will need a minimum of 3 touches to be confirmed

    -Max of 1 fictitious break of the trendline is permitted prior to having to redraw the trendline as long as the trendline have been confirmed

    -minimal spread is less than 15% of SL

    Stoploss is going to be placed behind the contrary trendline.

    -minimal period I use is the 5min

  5. #5
    1.I shall move my stop reduction in favour of the trade as price reaches predetermined areas or kinds new swing highs/lows
    2. I am able to shut out the situation if it's in drawdown rather than moving anywhere.
    3. I will not use take profits.
    4. I am able to move stop to Breakeven if trade is at profit and I am not able to monitor the trade, ie bed time.

    My main goal here is to let my profits run and cut my losers short. Ive experimented with taking partial profits, both live and in the simulator and the only thing it's done is make me feel great at the time.

    Getting stopped out at breakeven hurts when you have been in great profit but having a complete position get closed at 8x risk makes it rewarding.

    Cash management-

    I will risk no more than 1% of total account balance per trade.
    I will risk no more than 2% on any 1 setup. (a setup could have multiple entrances )
    If I've drawdown from my beginning balance at a calender month of 6% I shall stop trading until next month.
    After my drawdown reaches 4 percent I will drop down to 0.5% per trade.
    If I have a total drawdown of 20% I will cease trading until I figure out what is wrong and re do my trading plan

  6. #6

  7. #7
    Your Theory, Entry, Exit and Money Management look very solid!
    Looking forward to examples when you have time.
    Great Luck!

  8. #8
    ok a few charts coming up

    this initial one is occurring right now so its a fantastic opportunity to compose my ideas

    Therefore if I was going to exchange this installment that im NOT. . I would place a buy stop and sell stop. With stop losses in precisely the exact same loion as the other entrance.

    Im not going to exchange it because one of the lower trendline rolls was a friday day liquidity freeze with 25 pip spread in my broker..Also it could also readily bounce off the 9800. .

    Saying it is still an adequate setup with US retail sales out later today. Before amounts come out, these installments get me trades a while. In the event of sudden numbers I often get stopped out for Breakeven/small reduction OR the trade takes off.

  9. #9
    okay these following 2 charts are a trade from last month that made 8x risk. Showing off? Yeah sort of. . But its trades such as this that create the tiny losses worth .

    It's tempting to take partial profits and use targets because I dont want the trade to turn around and stop me outside for a reduction. That is an emotion based choice. NOT a profit based choice.

    This transaction might have easily given near 10-15 occasions risk but I dont dwell on the close misses and these.

    Note- the very first chart was the chart I stored after putting the orders

  10. #10
    whoops intended to post the chart with the result

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