Friday, May 30, 2008

May 2008. results

I don't want to trade today, I want to rest from trading and finish the month on good note.

+90 pips

+ 3.5 %

Smaller than last month but it's good enough. I have now 9 consecutive profitable weeks, 2 months. Let's move on with consistency. It's rebound from the low point more than two months ago when I asked my readers for an advice and chose to stick with exclusively scalping. Thanks all of you on comments and emails.

From next month I will up my size for about 50%. It's just getting back to the point where I've been before cutting the size. Leverage will be about 5.5 for full size positions and half that for half size. I will set up platform to only open half size trades. I stick to calling that half size, I explained my mind game few post before. So let it be, let's cut everything in half it's easier to have 90 pips of profit than 180 pips that I had this month lol. I still average a lot and I have to consider that so when I add position it's full position, it's just money management suitable for me.

This month market was little different and not so good for my taste. Little to slow and rangy intraday. I had few bad days with bad decisions. I was to much looking for swing trades in scalping market. In the end it's profitable and I'm satisfied.

Scalping showed as profitable and successful way of trading. It's easier for me to read next 10 pips than next 50. Also I don't have staying power for longer profitable trades. I chose not to fight with that. The best is when I'm in strong goal oriented structure in my mind to take the profits fast and run away.

We will see how will I react to bigger leverage, the best would be to have no reaction and just trade pips and not dollars.

Good trading next month to all of you.

Thursday, May 29, 2008

Bad trading lead to more bad trading

The sad thing is that I pretty much understood today's morning action but I showed bad scalping skills.
It was clear to me that 610 is important level. I had first short just on 10sec chart reading. Second trade was great but I abandon it not leaving it enough room. It was hesitating going up and I exit. Than I started shorting prematurely. I couldn't wait 610. Being in loss and averaging bring bad emotions. I couldn't stop trading while ahead.
I had totally bad trades against the trend. I try to short gbp/usd to hedge but I took just 3 pips probably because it was full size position. One factor for averaging was that there really was buying into the lows so I hoped for reversal. I got out on good spot, good thing that I didn't wait for b/e.

When I'm in mind frame like this going against the strong trend is the most attracting thing to me. Seeking reversals is like holy grail.
So from that I shorted strong gbp/usd, again before the short on higher t/f it looked to me that 780 is gravitation point. But I short at 757, very bad trade. Very good place for long trade. Averaging and out at around b/e.

There is no point in trading more because my reasoning is now totally flawed. It's funny how need to trade is so big. Like I have to trade now, like there will be no tomorrow, like I will feel empty and unsatisfied from now on. More trading would be just to cover that need of getting out of emptiness and dissatisfaction. That is not reason to trade it's just emotional override.
So I chose to write this instead.
I'm at -3 pips for a day which is great for this kind of bad performance.

I have kind of problem with taking losses, it was shown today. I use too much trade management just to escape simple loss. It's insecurity in my own ability. I know that but it's slow work and slow advance. My trading is now mostly based around my good points so this doesn't affect me too much, it's the process it's not overnight thing.

After all this and coffee brake I came back to the screen and saw usd/chf perfectly setup for long, also chf the weakest against usd of all currencies. I used little retracement for entry and fast scalp exit. So in the end I got my b/e for the day but based on good thinking not needy emotions.

Wednesday, May 28, 2008

Scraping pips

Today was in the end strong trend day, I wasn't in my swing mood. I was aggressive in scalping, too aggressive in the beginning. I was against the trend up in the morning. I made bunch of scalps.
Gbp/usd trade was questionable but market gave me opportunity for profit.
First trade in eur/usd I managed to get scared away. Momentum just started and I had fast entry with full size, but market ticked back and I run out at b/e and left nice 10 pips in a minute. Probably because of full size. Than I decided to go short, decision not so based in reality. Finally after news at 10 market started slow to tick down, I was patient to wait for little bounce because there is usually try for the high. I shorted immediately, unfortunately I made an exit immediately also with some scalp pips. I didn't expect so big downtrend, I don't know how it developed so strong because market was previous to that in healthy up mood.
After that I made three pure scalps against the trend based on reactions on10sec chart. I didn't have time for trading whole time. In the end I scraped +10 full size pips.

Tuesday, May 27, 2008

Can't take the scalper out of me

Again today I had swing trading bug. Immediately when I came to work in the morning I saw big sell of and it was signal in my mind of big down day. I took two positions with intention to have them till the end of day or more. Pure swing trading, no immediate action on 1min t/f to validate continuation. Positions went against me, but that is cool, it's big down day they will come back. I was watching the gbp/usd also but unfortunately didn't catch it. Eur/usd show big profit very fast and I instinctively just took it. It was the best decision so far. There was reversal and I would lose big.
+ 11 pips

Friday, May 23, 2008


First trade in eur/usd after the news momentum started and stop just when I got in. I wanted to finish that trade at b/e but after a while it didn't fall so there was possibility of up side. I'm this days to much in swing trade ideas so I decided to let it go if it want. It spiked to b/e.

Second I tried to play range in gbp/chf but it went against me. Later I gave it again chance for bigger profit but I got shaken out.

Finally in gbp/usd I gave up on idea of swing trading and took nice profit.
It would be better if I took scalp on all three of them.
+9 pips

Thursday, May 22, 2008

Psychological Swing Trading Mood

Today I was into swing trading and that usually means that I'm counter trend oriented. Market was biased down in direction of usd strength all over. Gbp/usd had news and spike up. My idea was that it will get back down, than down big as all other currencies. So that was my counter trend idea. If I'm in getting profit than I look where will next ten pips be so I try to take them, it's usually in the direction of trend. I was more in thinking and trading today.

After one small trade that spiked back up just when I was taking profit so it cut it in half I had another short. Gbp/usd was in the range which can be good and bad. So I stayed most of the time in small loss. I re shorted an market came down to my break even point. Than I had idea that I'm ashamed to confess that it occurred now after so many trades and not before. Why I don't take the profit from that second trade. In that way I would buy little insurance, lighten up on position and easily ride it on. Before I would just add, average up 2, 3, 4 times. Emotions would take over and it's way to disaster. All that just because of greed. If my idea is correct I would gain massively on that big position. I never do. So this way with taking profit I can still stay with my idea and first position and it would be big profit if I'm correct and that one position. Why would I need 2, 3, 4 positions one is enough. Well that simple thing I realized just now, all because of greed.
So when I had second chance to take down second position with around 10 pips of profit I took it.
I stayed 7 more minutes in first trade but when it started to come back I changed my mind. There was another news at 12:00 so I figured that market will wait in that range. At this point I was at +6 pips.

Later I got totally emotional overwhelmed and started to average down in gbp/usd again. I was at one point more than 50 pips combined in the loss. I got out at some point. Than I was about 20 pips in the loss, so I started scalping gbp/chf to cut down the loss, never mind the risk in that state of mind. And finally I'm at -1 pips for the day. I was playing old tune let's put gbp/usd at rational level because it's now irrational. Everything was falling slowly against the dollar but pound that was in crazy rally against it all.
In the end I had need to get to break even at all cost. It's text book psychology degree case of emotion driven trading
This is me, I expect this from time to time. I don't get all that exciting any more about this bad behavior. The important thing is that there is good trading the majority of the time. I can't run or hide from me. I got the accept this occurring.

Wednesday, May 21, 2008

Positive day

Slow but explosive market hard to trade. Unfortunately I exit those first eur/usd trades that were later slowly trend up.

Try in gbp/usd that was weak today.

Later I was into idea of weak gbp/usd and possibility of big break down. So I had 1/3 size trade for swing trade. It makes me crazy especially when it's not in the profit.

News trading in eur/usd. Half size, when I exit I accidentally opened short at the same time luckily it fall back and I was out.

I had one more gbp short that I was shaken out, but it's so slow and no big brake. Check o ut from 11:30 to 14:30 gbp/usd was in 15 pips range. Totally low volatility. In the end +11 full size pips which is good for this kind of market and my scalping.

In the morning I was crazy by internet connection but it looks now that after I tweaked it a little it's stabilized, so I will be able to trade without the fear of disconnecting.

Tuesday, May 20, 2008

Forcing the trades

I need to adapt to trading at work. I was forcing today and got -4 pips. It's better not to trade when things are not perfect out of the market, nobody is pushing me so I should stop pushing myself. I need to lose some like today to be reminded.

Monday, May 19, 2008

Break even

Last week I wrote about the way I'm trading and now things will change. I shouldn't write anything lol. I'm going to be busy for few months now so I will not be able to trade from home in the morning. I will trade from work with notebook and shaky wireless internet connection. Oanda is disconnecting and reconnecting all the time on that connection so it will be hard to scalp. Also I will not be in the position to be relaxed and concentrated as I'm at home. So I'm thinking that I should trade less and leave trades to pick up some bigger profit. Wait just for the best and obvious trades and give them some room. In the end who knows, probably I will in the end just scalp. Well today I put one trade for wrong reason at the wrong time and got out at b/e, but if I left that trade on I would have nice profit. It's only wishful thinking. In the end I feel like summer slowness is coming into the market, 5 hours for 100 pips is way too slow. Slow moves are not for me, I don't have patience for that.

Thursday, May 15, 2008

Difficult day

I wasn't in the mood, market was slow and weird. Too bad that I didn't stay in last long trade and got some pips on that reversal. +1 pip

Wednesday, May 14, 2008


First trade in eur/usd I faded the breakdown because it just didn't seem right speed for it. First I wanted to go short but I changed my mind and went long. I added position in gbp/usd as add on direction but it immediately went against me. Eur was just sitting there. So when I had chance I just got out because gbp/usd came back.

Then there was 10:30 time for gbp news and I decided to short eur/usd because it was now 45 minutes and it didn't move 10 pips. So I thought that now would be good time for bears to push it down. I exit it little prematurely.

Next was long eur/usd trade and immediately add long gbp/usd because it nicely rebounded after sell of from 10:30 news so I thought that it will break fast through previous high. It just stop. Eur/usd was gaining little but gbp nothing. I knew that something is bad. I had +6 on eur and -6 on gbp when I take out eur/usd trade. There I made big mistake. I didn't trust the tape. I should get out of gbp/usd also or even reverse it. I let it go against me more than 20 pips. That was overconfidence like I can't lose. Like it will reverse back just to make me profit.
Than I said ok let's reverse. I did and it was just before it stop again. So it really tricked me well. I averaged but that wasn't wise. I didn't gain anything but bigger risk. I took small loser. Now I was from 7 pips up for the day down 7 pips for the day. Just because stubbornest and overconfidence.
At 11:30 there was again important gbp news. Funny Oanda didn't widen the spread. I don't know why, they do mistakes also. Usually spread for gbp/usd at news time is 20, so totally big for minute or two. So I took advantage of that and started to trade in the direction of the movements. It started to bounce from 400 level so I got out. It went than 20 pips down and I was angry. Than after another bounce it started to fall again. Gbp/usd is pretty much directional in fast market so I took another chance. I got out because of big profit just at the low.

I was in the end super aggressive because of the loss for the day. It would be better that I didn't made mistake with gbp/usd in first place and just took little loss. There wouldn't be extra risk exposure.

So now +9 full size pips for the day and I'm out.

Tuesday, May 13, 2008

My psychological trading setup

The best way for getting profits for me is to be in structured goal oriented mental mode. By that I mean that when I have a plan and it's now of getting around 50 pips per week than I go and deliver that. I go and try to deliver it first and than it really happens. It's concept that is main idea in various Ari Kiev books which I highly recommend. When you have a goal and put yourself out there to accomplish it you commit and things go where they suppose to go.
I'm not much different trader when I don't trade like that, I take as many trades but in the end result is so different. When I'm in goal oriented mode I do what is most natural for me to get and lock the profits. For me personally it's scalping in times of strong momentum, just when the move is started or is about to continue. I like to have gratification very fast and so when I have profit I take it. It's in the line with my current goal of 50 pips/week. That goal is small enough so scalps when add up accomplish that goal.
I got to say here that sometimes I get too money oriented or percentage oriented with my goal. But it's not intend of it. That figure is just a figure and helps me to get orientation where I am and where I'm heading. Nothing else. But when mind have figure and a goal it's much easier to stay focused and not to astray in who knows which idea that comes daily or hourly.

In my current goal structure one more element is implemented and that is quiting as early as possible for the day. Again, that's here because it fits me well. When I'm in that time restrained mode I tend to be more concentrated and can more easily grasp current situation in the market. I can see on time what is going on, I can notice slight changes in ways things develop and can get an early clue about direction and beginning of the move.
On the other hand if I just trade for whole day or as many hours I have free than I prolong things. I don't take some setups, I wait to long. Than I regret on missed opportunities and maybe enter some other just because of regret. Or I don't trade at all, just watch and surf the net. So I don't use that time and don't have good trades in it. Or maybe I enter some swing trading ideas and wait in them for too long and get nothing but bigger risks if I average down.

Another thing is that when I trade to quit as early as possible I lock the profits if I have them. I just feel that it's enough for the day. It looks that if I stay in longer I can get 5X more later but I never do. So why to kid myself and risk losing gained profit for the day in some more trading. The point is that my concentration is limited and later I'm not in the peak as before. My aggressiveness for profits is spent on profits gained before. When I don't have the profit for the day I'm aggressive and on the watch to get some for a long time until I see opportunity. With profits there isn't that element any more. Last thing is that now I'm in changed emotional state. Maybe profits give me feeling of strength and invincibility and on next trade if it start to go against me emotions violently swing in opposite directions and I have fear and anger. Emotional swings are easier to have if you are not in balanced state. So anger, regret in losing trades are much bigger after good emotions that came from profits than when losing trade come first in the day.

So, all can be distilled to few words. My current setup is organised around goal of 50 pips per week. I aggressively enter and exit trades in scalp mode. Small profits daily are enough to accomplish weekly target. I try to finish the day as early as possible to maintain myself emotionally balanced and to lock gained profits.

Now when I'm all psychological I would like to add one more theme that's going on. That's about the size of the trades. My current setup is that full size trades have leverage around 6. When I have bigger loses I cut that leverage to around 4.
For that full size trades I risk about 15 pips in another words in range of 0.7-0.9% per trade. I tend to average in my trading. So it's better for me to take half size trades and have less risk if I average and be more emotionally calm. Other aspect in my trading is that I cut my trades too fast. It's hard to change it so it's better to adapt. When I have half size trade I count my profit as half size, so it's easier to stay longer for meaningful profit. I don't get out with 3-5 pips profit often which I would do if I trade in full size. Profit side came to even out either way. But when I'm losing it's far easier to stay mentally and emotionally calm with half size trade on. If it's full size emotions are so strong that they take over and I do bad trading choices and can't grasp objectively what's going on in market and with the trade. So with half size trades I can exit with a loss or average down and manage more easily my position and stay emotionally enough sound till the end of that trade.

Maybe I should just cut my leverage in half and call things with real name. I now trade 90% half size so it's my size. But I'm afraid that than I would get used to the idea that it's my now regular size and again take profits too, too early and lose myself emotionally when I average or have bigger unrealised loss on. So I stick to that little manipulation of my mind and it works. I don't want to fix it if it ain't broken. I know that in my mind getting 100 pips a week would be too big, so I aim just for 50 but full size pips. It's the same thing, it looks stupid, whatever. I don't mind to pretend, if I need that simple mind manipulation and trick on myself so be it.

That is now the base of my psychological setup for trading. I think that it's harder to setup that than pure technical analysis trading method. I know that now when I have it I trade more in the direction of the trend which is imperative in trading. Readers who follow me for some time now know that before my trading was counter trend with big risks and averaging. Sometimes I would get saved by averaging and get few pips of profit, other times I would get blowup and lose big time.

My trading method is discretionary and based on my screen time. I developed understanding of movements just by watching them. Now I try to exploit that understanding. I can easily spot right moments for scalps. It's in line with my nature so I try to stay with that and commit to it as my niche. For longer term trading I spot too many opportunities to really be on right track. For me everything looks like beginning of 50-100 pips trend. When I enter I can see it just like that, but I try to exit quick because I don't have capacity for many b/e and small loss trades to get few big winners. I don't stay in winners any way, so why bother with trying.


First gbp/usd trade was scalp with lucky spike in my direction so I got nice profit very fast. I wasn't fast enough to exit it at top, that's how fast it was.

Action started after 10:30 gbp news time , spread was wide and it's now 30 minutes later still 4.5 vs. 2.5 usual for gbp/usd. Well eur/usd started to go down. I entered the trade but wasn't so sure in break down because yesterday was really big up day for eur so I feared that support will kick in and spike fast against me. So I was out of the trade few seconds before it really started go down. I felt bad but after few minutes I took another trade luckily in the same direction and closed it as a scalp. Before I would most certain after such bad call of closing trade just before big profit open trade against the trend. Start averaging...
Later eur/usd bounced of fibb level so I got in for another scalp.

It's better to get back in scalping mode without much thinking. I noticed that in last few days I spend too much time in some action to get bigger profits and with no results. That's proved before, so better to stick to scalps and keep my mind in that aggressive taking profit mode. It just works for me. But it's so easy to start thinking of where will things go and what is best overall strategy. No, no, it's better just to stay with my guerrilla tactic because my strategy even when it's right I never trade it for full potential.

+12 full size pips on 4 half size trades.

Monday, May 12, 2008

Wrong direction

The main reason that I was trading against the trend was that there was no real strength showing on small t/f like 10sec. But it's hard going against the trend because reversal is not so big probability. So there was enough strength to go slowly up. Trades were half size.
+4 pips

Friday, May 9, 2008

One more trade today

I just had to take it. It looks good for swing trade but I exit it as a scalp. Bigger value per pip in eur/gbp so +9 more pips for +17 today.

Tricky market

I had trade in eur/usd but I was nervous from the start so I exit it prematurely. Than I shorted it prematurely, all with half size trades.
Later I was bullish about gbp/usd that was trading in very tight range. There was clear signs of buying so I was long waiting for break out. Than something changed and I didn't understand what. I found out that strong sell of begin in gbp/jpy that took gbp/usd down. I did unwise thing of averaging with gbp/jpy that is usually very fast. I was lucky and got out at around b/e for those two half size trades.
+8 full size pips today

Thursday, May 8, 2008

First scratch than greed

I had trade in eur/usd hoping for spike down before the news. Spike was up so I was out at b/e.

Than later I had pure greed trade in gbp/usd. Just because some momentum started down after some news event I entered with full size at the bottom of the wave. I was getting -15 in next 10 seconds. So I was regretting my fullish greed to jump in with full size without thinking and was very happy when it came back down. I waited for a moment will it break down with speed, when it ticked back up I got out for about +2 pips.