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.

Monday, July 27, 2009

27 July 09 EURUSD Using Momentum for entry not exit

Did a short in the morning. Result of 7pips. Potential profit of 40pips if kept longer.
Another 7pips taken off the table from Euro for short.


Entry when indicators are in favour. Use momentum for establishing the strength of trend. Exit only if indicators are weakening, not just momentum alone. Profited 2 pips - could have been 10pips.

Took a look at the market in the afternoon. Eur surging to price of 80pips from my entry price! What a miss of huge profits. Oh well, that's just one of those days.





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