You can find my original thread here:
http://forums.babypips.com/newbie-is...iscipline.html
For those who don't want to read up on my background, I'll summarize it here. I have traded live for 3 months, with my traders mindset being the one thing thats consistently holding me back. Starting this monday I will update this thread everyday with my full analysis, entry/market orders, and whatever battle is going on through my mind. I welcome encouragement and critisms as I travel the second step of the forex traders journey, when you are no longer a newbie, but you just don't trade good enough to be labeled good or pro. The limbo level.
I will be keeping track of my weekly returns and trades, will update my weekly results on this first post for all the new guys coming in. Look forward to chatting with you all
(My) IRON CLAD rules to never break when trading:
1) always know economic events that are potentially going to affect your trade.
2) Be aware of strong/significant Support/Resistance lines, NO HALF-A$$ing it
3) Pick the direction of the daily trend. DO NOT trade the fence!
4) Do not trade if feeling emotional
5) Do not trade if you do not know your entry, stop, AND take profit region
6) know your risk before entering the trade
7) WRITE THE SETUP IN THIS BOOK BEFORE ENTERING THE TRADE
8) Pay attention to volatility for range vs trend trading
9) DONT CHASE A TRADE. Best Price or NO price.
10) complete objectivity, complete faith in entering every trade. Believe in the stops you place
11) NO CALL OF DUTY DURING TRADING SESSIONS!
12) In regarding take partial profits, there will be two sets of rules. Under low volatility environments if trading inside a box I will take profit at roughly 80% of the range, not at the very end. If trading breakouts, I will take partial profit (half my position) at +20, take full profit at +30-40. When trading high volatility environments, I will take partial profit (1/3) at +40, and set to breakeven + trailing stop at +60. To cliffnotes this rule, I must TAKE something at either +20 or +40, no exceptions!.
My daily ritual:
Here is my more or less- Daily checklist.
1) Just waking up, win or lose (trade entries), I WILL NOT ENTER THE MARKET FOR AT LEAST 2 HOURS. I find that these first two hours is what is costing me profits consistently every week.
1a) Review COT data, Bond yield data, Economic Calender
2) Mark all relevent High- Lows from Monthly, Weekly, Daily. Also mark Daily Open. Must also label previous 2 sessions High/Low
3) Draw my breakout boxes for Daily, 4H, 1H
4) Sl will be set between 25-30 pips. I will have half my entries at break-point, and half my entries at break-point +15, if I'm trading in a kill zone
5) I will take partial profits (1/2) at +30 or +50, depending on level of volitility upon breakout. For range plays, I will take half profit at +20, and full profit at +40 no matter what.