New Year just round the corner. Wish everyone a prosperous Year ahead and may everyone do well in the market.
It'll be a year of sharing for me ahead, to share my journey in trading, with this journal.
The past few weeks is too good to be true. Did I discovered the winning formula? The accuracy of trade is way too good to believe at 100%. The risk/reward averaged about 3.5R.
This is the first time that I trade with an perceivable target in mind, its a good feeling when you do have a predetermined Stop and Target in sight, you feel that you're in control. This is a total change from my earlier endeavor in the market, where I was thought to take fixed 1 point target and fixed 1 point stop or logical stop at last support/resistance. Market is dynamic, Fixed target/stop is not realistic, market don't swing with fixed magnitude, the swing could ranges from 0.5 ticks to 2 points. With fixed stop/target, I often got stop out before market move in flavor of my trade when the swing is big. A side effect is also leaving lots of money on the table, seeing price move many more points in my flavor and not riding it.
With help of Fibonacci, I'm now able to set realistic stop/target, often hitting 2-3 points target with 0.5-1 point stop. I'm happy so far.
Having traded long enough, I know that market changes in behavior over time. What works now may not work 2 months down the road. Well, I'll need to keep my fingers crossed and try this out for some more time.
It'll be a year of sharing for me ahead, to share my journey in trading, with this journal.
The past few weeks is too good to be true. Did I discovered the winning formula? The accuracy of trade is way too good to believe at 100%. The risk/reward averaged about 3.5R.
This is the first time that I trade with an perceivable target in mind, its a good feeling when you do have a predetermined Stop and Target in sight, you feel that you're in control. This is a total change from my earlier endeavor in the market, where I was thought to take fixed 1 point target and fixed 1 point stop or logical stop at last support/resistance. Market is dynamic, Fixed target/stop is not realistic, market don't swing with fixed magnitude, the swing could ranges from 0.5 ticks to 2 points. With fixed stop/target, I often got stop out before market move in flavor of my trade when the swing is big. A side effect is also leaving lots of money on the table, seeing price move many more points in my flavor and not riding it.
With help of Fibonacci, I'm now able to set realistic stop/target, often hitting 2-3 points target with 0.5-1 point stop. I'm happy so far.
Having traded long enough, I know that market changes in behavior over time. What works now may not work 2 months down the road. Well, I'll need to keep my fingers crossed and try this out for some more time.
