- Took 4 trades on Wed. All of them were going fairly nicely. Unfortunately there were some unscheduled “ECB sources” comments that worked against all these trades. This was just a bit unlucky – it could have just as well worked in my favor – so I am not upset about this. I am aware that comments like this occur from time to time – it’s simply part and parcel of FX trading. The final result for the the day was 1W-3L for a loss of 1.51R.
- Only took valid setups – management was okay, the execution was good. I utilized the “legging into” approach on most of my positions. With this approach I enter 1/2 the position on the close of the 15M candle that confirms the setup. And I use a pending order to enter the remaining 1/2 of the position on a retracement to the EMA10/20 levels. This means I get to use more volume on the 2nd half, and am trading with a higher RR ratio. See earlier blog posts for more discussion on this.
- On Thursday, I took two trades in the afternoon on USD pairs – and then realised that I had forgotten about USD Tier-1 news at 3pm – once I realised this I closed both trades immediately (though was able to re-enter following the news). This shows I am becoming more disciplined – good. On the downside – I failed to remember the news!
- Geopolitical comments – all relating to Ukraine/Russia – drove most of the volatility in the market – it’s slightly irritating when there headlines driving the market one way, only to be labelled as ‘inaccurate’ an hour later and for the market to reverse. But again, this is just a part and parcel of the financial markets.
- Monetary value of R – have increased this from £30 to £50
- All in all, Going well thus far this week – being stringent with setups, and being prepared to close positions if I assess the setup as sub-par – though ideally I want to avoid getting into the trades to start with. Overall I am finding the sessions less stressful and I worry less when I have open trades – I believe this is because I am only taking high-quality setups.