J Moore Trade Journal

[mooreart]

About 2 months ago I had another (yes, ANOTHER) margin call that took my account down to just under $5. I finally decided to stick to a trading plan (although I use that term loosely) and have been able to bring my balance up to $57 and change. I've been placing breakout trades, mostly on the EUR/JPY and have been very pleased with results. Now I plan on keeping better notes of my trades in this journal.

[mooreart]

Well, isn't it ironic that once I start keeping a journal and letting the whole forex world see what I'm doing that I break from my plan and get another margin call. Next time somebody punch me BEFORE this happens. Greed sucks.

I entered four trades at once and that was just too many since my account is not large enough to handle four major simultaneous drawdowns. Had I picked only one of those I would be in the money. Lesson learned.

Alright, alright, from now on I'm sticking to my plan.

Like I said before I've been trading breakouts and of course I keep track of the ASH FX II method and occasionally enter a trade with it.

One trade at a time, one trade at a time.

[awilcox]

how is it going for you mooreart??

sticking to the plan is tough tough tough, at least for me it has been. please don't give up!

best,
hadley
:)

[herry_fxhope]

thank you about your share information

[mooreart]

Well at the moment i am waiting until payday to get some funds to cushion my account, so hopefully by the end of this or the beginning of next I'll be back in the saddle. I just need to remember to keep my feet in the stirrups.

Jerry

[awilcox]

having been there many too many more times than i want to display publicly, i can totally understand. but please don't be shy about asking for help. please.

best,
hadley

[tomo1]

Originally Posted by herry_fxhope

thank you about your share information

What online sources do you use for trading signals and tips?

[mooreart]

I don't really use any type of signal service. I do occasionally look at Postcards from the Right Edge to see what trades Rob Booker and his guys are placing, but I don't view that as a signal service as much as an idea generator. I guess my issue with signals (and I'm not necessarily opposed to them) is that most of them just tell you when to enter and exit without explaining why. I believe it is far better to understand the trades I place and learn to make decisions based on my own experience and knowledge.
On the other hand, as long as the signals work, there's nothing wrong with making some dough.

Jerry

[mooreart]

Well, it's been a few months, but I finally put a small amount into my account. I will keep this journal updated with the results of my trades so others can see what I'm doing and also to get other opinions about my decisions, both good and bad. I will be looking at three different setups (independent from one another): breakouts, pivot points, and ASHFX II setups.

[mooreart]

Well I've taken some minor trades and one big one that is open and still in the money. All of them have been using the indicators from ASH FX II, but I will usually look at the 4 hour chart and also usually take a preemptive strike when I open the trade. The stochastic is probably the indicator I rely on the most, with the others just being extra support.

The smaller trades were all around 10 pip gains, the theory behind such a small profit being that 10 pips is actually pretty easy to get even if the trade setup starts in the right direction and then reverses.

The big trade (at least big for me) was a also preemptive strike on the GBP/JPY. At the beginning of the month, March 1st, I noticed on the Daily chart, the stochastic was below 20 and preparing to go up. Looking at the Weekly and Monthly charts, they were also below 20, although still moving slightly down. The 4hour, and at the time the 1 hour chart, were setup for a buy. I entered the trade and watched it range around my entry all this week. I could have taken a profit of 50 or 100 pips earlier this week, but I kept my eye on the daily chart for more confirmation about the bullish movement that was coming. Sure enough, this morning i noticed the AO and AC went green; the SAR is the only one left.

So as far as the entry by following the ASH FXII method, today would be a good day to enter the trade.

I guess the good new for me is that because I was already in the trade, I am currently up over 300 pips. I moved my stop to a 50 pip profit point to lock in some profit but still allow plenty of movement. My own analysis puts a profit target at 140.00 which is the weekly pivot point resistance (at least as far as my calculations go, I could be wrong).

So, I'm feeling good about all this. Hopefully I can maintain my composure and keep the previous greed problem buried.

[mooreart]

Well, so far so good. I have been sticking to smaller profit targets (10 pips) unless there is a potential big movement that looks promising. The reasoning behind the smaller target, like I mentioned in the previous post, is partly due to the ease of getting it. I have been getting a better grasp on a certain trading vision. Nothing new, essentially that slow and steady wins the race. Several big names in the forex world talk about it, Rob Booker being the one I recall at the moment. The idea is to curb greed by understanding that 10 pips a day is easy and even though it sounds small, it all adds up in the end. So here is some math that makes sense to me. Now the disclaimer is that this is all idealized. Perfect conditions are rare, but the math is sound. The reality is that it will probably take a little longer than what the numbers say, but it still makes sense.

In any type of investment, the rule of 72 (or 69,69.3, etc) can give you an idea of how long it will take that investment to double at a specific and constant interest rate. If you are not familiar with the formula, google it.

Typically, this is used for long term investing in stocks, mutual fund, etc. Typically, the rate of return is 10-20% each year. So for an investment with a 10% annual yield, it would take 7.2 years for the initial capital to double. and if it were 20% it would take the same initial capital 3.6 years to double.

For my forex account I have adjusted those numbers to work with what I believe to be a feasible plan. My goal is to gain 1% a day. So all I have changed is the percentage and the time it takes to earn that percentage. Considering that most people look to risk between 1-5% in forex, their profit target is typically higher than mine, which is 1%.

According the the rule of 72, earning 1% each day (20 trading days in a month), it would take about 3 1/2 months to double. In 7 months, it will have quadrupled (from the original amount), and at the end of a year it will be 8 times the initial balance.

With that type of growth, if you started a micro account with $100, in less than 5 years, earning 1% a day, your account would be worth over $1,000,000.

Again, this is idealized. Nevertheless, if you are going to dream, DREAM BIG.

This vision is where I am at. I set small profit targets, and watch them grow together to one gigantic whole.

I welcome any comments and criticisms.

[mooreart]

Still at it. I have been fortunate enough to make at least 1% a day, some days a little more so it puts me ahead of schedule.

I have attached a spreadsheet that maps out the info from the previous post. It is called "Pivot Point Calculator" because that is how that file started out. It is still part of the spreadsheet, but the main part of it is the table.