SweetSpotFX

Closed 3 orders for the day - 1 loss and 2 profit - overall I made 46 pips!

Trading will commence tomorrow at 04:00 GMT.

Another great day for me. Closed all trades with a profit early this morning! Attached is a screenshot of MyFXBook thus far. Still early days though...

So I've been trading forex for the past 3 years. I've made a lot of money, but I've also lost a lot of money... Is forex trading that predictable? I'm referring to newbies, like myself 3 years back.

You get to know forex trading, make your first deposit and blow your account before the weekend, because you did not know what a "margin call" is. Then you give it another shot and trade smaller lot sizes. By this time you got to know some indicators and it's all for free! You start adding them to your chart and as soon as they line-up you trade - and guess what - you've actually just made you first money trading forex. You are now so impressed with yourself that you cannot wait for the next opportunity to trade...

For days even weeks it can go on like that until one day when your indicators are wrong and you hit your first stop loss. By now you know to trade with a stop loss, because your previous account was blown up, because you over traded the account and you had no stop loss. So you find yourself with a loss... but wait, another opportunity is emerging right in front of your eyes. This is the opportunity to make up your loss and even make some profit! Minutes later you find out that yet again your indicators signaled the wrong signal - or did you interpreted the signals wrong. Never the less you are down more than 20% on your investment, because again you over traded your account, because you know nothing about money management... Yes you guess right - by the following day you are down 50% and your last few trades is basically double or nothing.

So here we go, round 3... but before you start trading you have to recycle those indies, because they are no good. You start round 3 with a new set of indicators and determination to make back you losses. Round 3 is quite interesting, or for me it was, because you now know to use a stop loss and trade smaller lot sizes. You are touching on the MM topic, but are still lacking the risk/reward aspect. Never the less here you go. Round 3 can go both ways - either up or down. Come to think of it - a currency can only go up or down. You have to choose one of two options, yet you find it difficult to choose the right answer more then 50% of the time. My guess is that round 3 also goes south not long after you started...

After 2 years of trading I got to know the real meaning behind MM and risk/reward. I also found out that indicators can be used for some purpose, but at the end it's the price that will tell you when to trade and when not to. Price Action and Price Patterns are really a key ingredient in my trading style. Self control also very important - cut your losses - tomorrow will bring new opportunities - you do not have to break even today.

Also key ingredients for a successful trader is discipline, emotions and patience. But all of that in the mix and you'll find that round 7 or 8 is not that bad...

SweetSpotFX is basically a mixture of experience gathered over the past 3 years and a good interpretation of price action. Proper MM and a good risk/reward ratio is what makes it work. I'm not saying that I've found the perfect trading system. I've simply found a system that is working with my trading style and that is adoptive to market conditions.

Let's see what happens - that is after all why I've started this journal.

Had to do a bit of recovering on Friday, but managed to walk away BE. You might notice that I have two journal running simultaneously. The reason for that is the one, Auto WOMP, is an ea trading and I only optimize and monitor the trades. This journal, SweetspotFX is purely a manual trading strategy.

So far SweetspotFX banked about 18% profit for March. It is a high profit strategy, but not so much high risk because of risk/reward being 1/2. Also if I should reach a 20% draw down or loss on my account I stop trading. I do this with all my strategies. I have learned a hard lesson in the past that you cannot sit and wait for a currency to turn in your favour.

Anyway, let's see what next week has to offer.

Cheers!

Because I'm running a PAMM account at InstaForex I've decided to no longer trade this strategy as it's similar to to my PAMM account and takes up too much of my time.

See my new journal named "FX Investment Fund"

I only prefer to MT4 trading system. It is the best trading system for me as I go for manual trading.