It's safe to say that trading is difficult. Many new and aspiring traders are on the quest to gain the wisdom and knowledge in order to claim the title "Trader" as their "job" description tab.
Most will acquire knowledge and anticipate that they have what it takes to trade.
However, the brutal reality is the majority do not survive, more so, they lack the patience to embrace and acquire the wisdom that the market has to offer.
One of the most common mistakes is, new traders take for granted the idea of trading and disregard the importance of understanding how the market works, more importantly, not recognising the psychological patterns that lead up to making mistakes. Which in my opinion is all that needs to be studied.
The Trading Industry is all about finding the right indicators that are capable of making successful calls, or, finding a system that is worth buying based on it's back test results.
I would beg to differ...
It's simple, understanding how the market works will allow you to be in tune with the ebb and flow of price behaviour. The only indicator you need is price and where it is.
I am not saying that indicators don't work. They probably do. In my experience, what I was missing was simple:
Every indicator I tried, I studied religiously, however there was something that was missing. I knew it. It lingered like a shadow. I always asked myself, "this can't be all there is to it?"
I have decided that the only way I can help traders is to show them what is actually happening when it comes to trading. So many scams are lurking on the net. However there are a handful of traders that actually try to help you. Now if these traders help you and charge a fee, it is fractional compared to going to university and paying thousands just to come out with a job that pays you less than the amount of money you borrowed.
The Bigger Picture
My goal for the coming posts is to share my approach. To be frank, it will be my attempt at transitioning from paper journals to online.
The posts will include a variety of thoughts about trades, entries exits. Pre, post trades.
The posts will include, in my opinion, important information. I wont just talk about it, "price closed above the 50 day" I will be talking about my thoughts that are happening during the trade, did I feel any emotional imbalances. You get the idea.
So I have decided that I will trade with £1000 deposit. Plus taking advantage of a 100% bonus added to the account. ( If used correctly, you can trade and this balance will be paid back to you. Similar to Poker rake back. The good old days I used to grind 24 tables online poker and made most of my bread and butter off the rake back)
My balance in dollars comes to $1277 approx. The current report does show the equity curve going up and a position I am currently holding.
I will post trades that I have taken during the week with pictures and brief explanations of what is happening.
Some will challenge my approach and state it is too risky. Usually I would agree and say maybe a 10-20% risk exposure is a recipe for account failure, however, based on my understanding this pair, if I experience a stop hunt, usually I can gauge an area where the stop hunt will stop, and my attitude to risk allows me to be completely detached. I will close a trade that is losing no problem, so If you feel that my approach is questionable, then I do apologise. I guess my understanding of the market allows me to make systematic, objective choices. Good or bad.
I have traded USDJPY for a long time. I have been accustomed to understanding how this pair behaves at key levels. I only ever trade this pair. I have no interest trading anything else. Some will say that I am losing more opportunities but I guess its because I have watched USDJPY for nearly 8 years. I know her behaviour very well.
Trade well friends.