This series of journal is to record my Forex day trade system. I am not going to describe the details of my system, since, it is customized to suit my trading style. Basically, it is a SAR (Stop and Reverse) system. And there is no guarantee of success.

Anyway, I made a mistake today, I miscalculated my stop loss, though it did not cause any problem today, it is still a mistake.

I went Short of GBP/JPY, and I was stopped out with -1 R loss. I went long immediately and my profit target 100 pips was achieved, I closed the position with +2.5 R gain.

Summary:

• Short GBP/JPY; Result: -1 R
• Long GBP/JPY; Result: +2.5 R

[photopress:GBPJPYDayTrade03April07.PNG,full,pp_image]

Trust me, a real man trades Futures, his son trades Forex. I am trading both, for my wife. LOL

After spending the weekend to draft out my trading plan, I start my Forex trading this month. I did that before, and now I am trying again with totally different style and strategies. The reason of picking up this trading vehicle again is to utilize the advantage of staying in Asia (since I have no interest to trade stocks in Singapore market). Yes, I will trade during Asian and European session , and continue in U.S session if I see opportunity. Thanks Vincent who encourages me to look into currency trading seriously (Though he was talking about currency futures). I am not talking about trading in demo account, I did my testing of strategies in demo account, and now I am going live. For the time being, the risk amount is half the size of my normal R.

I am focusing on two strategies where one of them requires me to hold my position over days with maximum a week, while the other is a day trading strategy which will last for hours. Both of these strategies do not require me to stare at the screen every minute. No dummy trading in FX, as I find it to be difficult in FX trading and I got stopped out frequently during my testing in demo account, well, maybe later I will try it again, since I am a BIG DUMMY Fan.

I am planning do a weekly review of my Forex trading process. Of course, my main focus is still Futures trading during U.S market hour. This is something that I really love to do.

uhm…am I now a ‘full-time’ trader? LOL

Let’s see how it works.

As mentioned in my twitter, I am trading spot forex in demo account to get familiar with the platform and position sizing. This is a dummy trade of USD/JPY. Long position was established around 1am NY time @117.1199. Stop loss was set at the recent swing low 117.056. First target of 117.346 was achieved, stop loss was trailed to 117.279 and triggered.

Closed 2/3 of position at 117.346

Closed 1/3 of position at 117.279

One paper trade with + 1.48 R

[photopress:USDJPY1hour29Mar2007.PNG,full,alignleft]

Journal note: Apparently, the exit was premature. I was over aggressive when trailing stops. To lock in some small profit, I am missing the forest. Well, lesson learnt.

I am starting trading live tomorrow. The risk amount for forex trades are half  of my normal R size, until I see convincing result I will get back to my normal R amount.