Trade, trade, trade and more trade is the only way to internalise the mindsets and gain valuable experience, this is what we call "Training is in the trading itself".
Initially, at the end of each trading session, we have to review all our trades and complete our trade journal. The journal is a simple diary of the trade you had taken, stating the reason why the trade was taken and after the trade is done, what is the outcome and what was your thought. In the beginning, not much effort was usually put into the journal, especially when a trade goes wrong and I have to find reason to explain why I did the trade. However as time goes by, I realised that many things are learnt and pick up from the journal. Hence, when I have a winner, I would goes into detail on how I had identified the trade, what were the price action I saw that allows me to decide and took the trade. On a loser, what had I assumed that resulted in me taking the trade as well as where were the trade taken in respect to the support and resistance.
Over a period of time, doing the journal diligently and religiously, I realized that I had a better understanding of the price action as well as what are the price action development that allow me to make a winner trade. The journal also, in a way, allows me to track the type of trade that I take which usually turn out to be winner. With that, my statistic is formed and it allows me to take into consideration of the type of trade that I should generally take with higher confidence then the others.
Below are trade that I generally will take without much hesitation when the price action develop as what I had planned.
Initially, at the end of each trading session, we have to review all our trades and complete our trade journal. The journal is a simple diary of the trade you had taken, stating the reason why the trade was taken and after the trade is done, what is the outcome and what was your thought. In the beginning, not much effort was usually put into the journal, especially when a trade goes wrong and I have to find reason to explain why I did the trade. However as time goes by, I realised that many things are learnt and pick up from the journal. Hence, when I have a winner, I would goes into detail on how I had identified the trade, what were the price action I saw that allows me to decide and took the trade. On a loser, what had I assumed that resulted in me taking the trade as well as where were the trade taken in respect to the support and resistance.
Over a period of time, doing the journal diligently and religiously, I realized that I had a better understanding of the price action as well as what are the price action development that allow me to make a winner trade. The journal also, in a way, allows me to track the type of trade that I take which usually turn out to be winner. With that, my statistic is formed and it allows me to take into consideration of the type of trade that I should generally take with higher confidence then the others.
Below are trade that I generally will take without much hesitation when the price action develop as what I had planned.
The formation of two higher lows, and a move for the break of the previous high to form the third higher low.
Flag breakout indicating the continuation of the bull move. First, the price action break out of the channel, buildup and remain above the channel.
Market tested the bottom twice, forming a double bottom, and manage to buildup near/at the neckline before it breakout.
After the price reach a high and retraces, it buildup with a series of higher lows and test towards the previous high again.
Looking at higher time frame also helps to determine whether there are support or resistance ahead, this will give the potential of the trade. Generally, there should be a space of at least 1:3 ratio before the trade can be taken with ease. For example, targeting for a profit of 1 pip, there should be a potential space for the market to move 3 pips before the trade can be taken with ease.
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