Forex Trading Plan: 2010-June-3 Update
A few weeks into the new trading plan and things have changed to a point that an update and a new plan is needed.
First things first though a summary of the last month. The essence of the old plan was to capitalize upon changes in market strength that occur on session boundaries. Particularly London open.
Problems and Solutions
1) Too few entry opportunities.
This was a big one. The way the old plan was structured I had to get the entry at the start of the session. If I missed it, it was 24 hours before I could try again.
Solution: Change the Plan.
2) Scared to pull the trigger.
After months of sitting and watching I found myself too indecisive to enter the trade. The reason was that I had a lack of confidence in the entry signals. It could go one way, but then again could go another.
Solution: Spent a couple of weeks simply marking entries on the chart as they rolled across the screen. Then when I had that working moved to a demo account and tried it with orders and finally to a live chart.
3) Lack of a good entry strategy.
When I found myself on a live chart I found myself changing strategies mid stream. A sort of chaotic mix of Heiken Ashi trend change signals, Stochastic signals and varying time scales. In effect I was randomly clicking and hoping. That by the way is not trading, it is gambling.
Solution: Only trade using one strategy. Only trade on one time scale. If you change time scales you will find that what was an entry on one may well be an exit on another.
4) Staying alert: Not a problem if you are in the Northern Hemisphere, but from Oz the London session starts at 5:00 pm.
Solution: Roll my sleeping hours around – and lots of coffee and energy drinks.
July 10 2010 01:51 pm | Trading
