Za7 Blog

Goal: $50,000 Currently: $17,597 Profit thus far: $5343 Daily avg: $356

I am past my monthly goals and there is still 6 more trading days to go. I am attempting to update my results on this blog every week. I only forecast a monthly target of $3600, but now, with my trading improving, I could see much more. I am excited to see these results because I wanted a minimum of $5000 per month before I move back to Seattle. I thought it would take me 2 more years to accomplish this. I am running at an average of 55% ROI per month with an average of 13% ROI per week. This is taking into account 2 weeks I was negative. I have had a 30% ROI week and even a 35%. Its nice hearing about me, but wouldn’t YOU like to do this too? Wouldn’t YOU like to be able to stay at home and make more money than university graduates? I hope I can help by explaining what is working for me and what mistakes I have improved upon. I would love to say that I am a good trader and that these results are sure to continue, but I can’t. Because I am not a good trader yet and thus these trades are not 100% sure to continue. But the only thing I can do is continue learning and improving. I have noticed improvements in my trading each week. Each week, I keep myself from repeating a habit, each week I build upon successful habits. Its a process of learning and focusing on improving. If you love to learn and figure things out, then trading is for you. If you expect people to tell you “secrets of trading” and you feel entitled to a big monthly profit because you spent $3000 on a Forex system, then I suggest you don’t pursue trading a source of primary income. I have been sacrificing my life studying only trading full time at least 6 days a week for 2 years straight. My only goal that I can actually work on is to keep improving. That is it. I cannot generate a profit everyday, nor I am not entitled to these profits. I would love to hear how your trading is going and help you improve if I can.

So far this month, the best thing I have done is stop chasing trades! This is taking a long when price has been moving up, or a short while price is moving down. When I enter a trade after price started moving it is for only one reason: I am scared to miss out on the move! Afraid to miss out on potential profits is more likely to cause anti-profits. Last month, I chased trades and took poor entries, these led to the typical long at the very top price on a huge price spike. See that spike on the hourly chart, yep that’s me with the long on the top… I didn’t discriminate against shorts, I took bad shorts too. In fact, most of the trades I had to hold overnight or 2-3 days, were these poor entries. So, I decided that my entries need to be planned. I take mostly reversal trades or simply a buy low, sell high in a range. Simple stuff. I will target a range to make entries in. I look for price to slow and start ranging or put in a bit wick. I try to get an entry on the second time it hits that lowest low, or highest high. I only trade on the EUR/USD and I don’t use stop losses. I am OK with the trade going into drawdown against me, I have a plan for the trades and if price decides to continue against me, 99% of the time, my entries are at a point where price will be visiting again and I can safely exit with at least a small profit. This trading style works for me.

I am also currently trying to keep my winning trades open longer when it looks like the move will continue. I typically take the profits on an intraday basis, but I have 3 winning trades open that I will hold til price tops out before Wednesday’s FOMC decision. I am looking to exit these trades at a top of the E/U and start taking shorts for a possible swing trade that could last 1 week or 1+ months. Price might not be back at these levels again in the near future, so I am not adding longs above the 5800 level, probably not even above the 5650 level, but we shall see as price action helps guide my entries.

My goal for the rest of the month is simply to maintain my daily profit average and improve my trading. So far, this has led to utterly ridiculous profits. This amount of profit might be small or really big to you, its all relative. For me, its huge since I use to have to work very hard to make this amount of money, but now I have a chance at making more and actually enjoying it. Email me at adam@za7.org with your questions or just leave a comment here. I would love to hear how your own trading is doing.

I have shown just the new trades after the last blog post. The total reflects all the trades starting June 1st. I calculate my ROI from the beginning balance of June.

This entry was posted on Saturday, June 21st, 2008 at 9:22 am and is filed under Forex. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.