Litany of Woes

Its been a crazy trading week for me,a week where i flouted all my trading rules and decided to go for broke.The markets are a costly way to find out what indiscipline can do.In trading the only control you have are your rules and if that goes out the window,the broker gets paid and this week i wrote a big fat check to my broker.I'm now looking for ways to cope with my emotional trading pattern of trying to fly before i can run.Maybe i should set weekly profit targets which when achieved means trading stops for the week? One good thing that's come out of this is i have learnt how to combine daily and 4hrly charts to give good trading signals.I can also now see the essence of running a weekend diagnostic of the market since background noise is diminished.

05/02/2011

Forex analysis
 I am thinking of using orders to trade to avoid the stress of always trying to check up on the market.

Order Trade
During my weekend analysis i have singled out a currency pair for my order trade .The daily stochchastics and MACD and pipe formation on NZD/USD daily chart are all indicating a shorting opportunity.4hrly chart is still in downtrend.I am setting up an order trade as follows:

Trade direction: short

Stop loss:7754
Target price for exit: 7557

Distance between stop and target:197
Distance between stop and target/ 4: 50
Entry point for desired risk reward of 3:1-7704

Potential loss(risk):  £5
Trade size (£ per point) :£1

Comment:
Trade was closed out early for A 5o point profit because i had commitments for the rest of the week.

Verdict: loot

Trade 6

While looking at the charts i noticed that GBP/JPY was performing better than EUR/JPY and i placed an impulse trade on it at £1 a point.This is one of the problems i have when trading,although i have looked at the signals and they look ok(maybe i am subconsciously trying to get rich quick).I have decided to leave the trade on and ride the trend.

Trade direction: Long
Stop loss:13105
Target price for exit:13252

Potential loss(risk):  £50

Actual Entry point: 13155
Trade size (£ per point) :£1
Target profit: 100pips

Verdict : No Loot

Trade 5

The Euro is enjoying renewed interest and uptrend is signalled in the 4hourly chart but not the daily chart.Using 4hrly stochastics and MACD signals i placed my 5th trade on EUR/JPY as follows:
Trade direction: Long
Stop loss:11184
Target price for exit:11400 and 11430

Distance between stop and target: 254
Distance between stop and target/ 4: 64
Potential loss(risk):  £50

Actual Entry point: 11246
Trade size (£ per point) :0.60
Target profit: 154pips
Comment: Trade closed at a loss.

Verdict: no loot