Strategy: Harmonic Pattern Trading

Target profit: 75pips per week
Indicators: Channel Movement, Harmonic Patterns, RSI
Important chart pattern: double-top/bottom and Head & Shoulder, divergence and convergence
Important candlestick: Doji, bullish/bearish engulfing

My Trading Mantra

1. Objectively identify my edges - I have a system here that works.
2. Pre-define the risk of every trade.
3. Completely accept the risk. Consider the money GONE.
4. ACT on my edges without reservation or hesitation. Follow the rules and take every trade that meets the conditions.
5. Pay myself as the market makes money available. Take the profits and be happy. Even if compounding my account, pay myself something out of my profits each month.
6. Continually monitor my susceptibility for making errors.
7. Understand the absolute necessity of these principles, and therefore I never violate them.

Friday, July 3, 2009

2 July 09 Follow the Rules for Gods Sake


Past 2 trades are bad. Indicator looks ok yet trade still ended up loss. Is it market choppy? Nope. Because I tried using trending tactic on a market that goes ranging 90% of the time? Nope.



Because I enter before all the rules are fulfilled. Loss more than I earn for this week.....

Your trade results will show if you are doing what is correct or you are doing what you like
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1 comment:

  1. Alex KohJuly 3, 2009 at 1:36 PM

    Asia timing movement is usually opposite of US timing. The Big bar in the early hours of the day signal a potential exhaustion of the downtrend leading to the bounce that it is experiencing since then.

    Overall i will still be looking to short but it will most probably move in a channel till 4-5pm Europe timing afterwards

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