Poor But Profitable (slightly)

I think we'll be over 1.27 sometime soon, but this trade here was made a little too late for my tastes. I focused on the five minute and didn't pull out to the 15 min until after the entry (although I did check the daily, which motivated my decision to enter yet another long).

You may be saying to yourself (and I know I am), that these scalps are terribly unprofitable. Well, they obviously aren't, albeit a negative trade could definitely hurt (I'm keeping my losses on these trades from 5-10 pips, with a bias towards the 5pip side). But the thing that has me saying that these trades are unprofitable is the amount of money that goes towards the spread. I get a decent spread that can sometimes be below 1pip, but even so, it averages ~2-2.5 which is a large portion of my trade. The only reason I trade them is because I figure I have a decent edge on my side and I want to get my feet wet.

Eventually, I hope to increase the amount my trades take in (a good idea, no doubt). Just giving myself a little time to get back in the game.

Anyway, the trade netted 2.5 pips bringing the account to $29.89 or a total gain of ~6.94%. Hoping for a trade that I can gracefully exit. Then again, the .8pip trade from the other day could fall into that category. I just want to know that I won't hold on long after things have fallen through...we'll see.

PS: Decided to add something on to my rules; I hadn't mentioned how many lots I would trade. Right now I will trade a single lot. Once I am at two times my original account size (27.95*2 = $55.90) I will increase my lot size to two. Should be careful enough.

Another One

Went long on the EURUSD for a 6.9 pip gain, bringing the account to $29.64. I decided to go long for several reasons. First, this market is bullish. Second, the EURUSD had made new highs. Third, this market is strong. I won't make any predictions about tomorrow, but when I saw things this evening a long didn't look too bad.

Anyway, I'm tired and have some studying to do.

PS: If I held on any longer (at least in the short term), looks like I would've given back my gains. Who knows what it will look like in ten minutes, later tomorrow, next thursday or ten years from now. But, luckily, that's not my game.

Take a Read

If you haven't already: Ziad's comment on how to become a successful trader.

A couple others of interest: Why Intelligent People Fail and 52 Prove Stress Reducers.

Update: Spending time watching the market while doing some other miscellaneous activities. Keep it running and make mental comments/guesses as it progresses. Absorb and learn.

Second Trade

All of these are from the same trade, which netted 4.3 pips, boosting my account to $28.87. I'm not letting two (fairly small) trades get to my head. There was nothing all that great about either.

If you look at the first screen, you'll notice what charters like to call an inverted head and shoulders (whether it holds or fails won't be known until later, of course). I don't know a ton about the context surrounding this market at the moment. It appears that the Eur is on a fairly strong momentary upswing, which is one reason my trades (scalps) are so short and hesitant. I keep coming in during "after hours" when the action has calmed downed. I'd rather not get caught in anything too substantial (keep my risks small), because while I could land a nice 100pip run (haha) I am just as likely to see a 100pip run against me. For now, I'll stick with short ~5pip gains until I'm a little more comfortable. For instance, I could've let this one run more. In time.

Right now, I'll let the market soak in.

Update: made another trade. I decided it was a little too impulsive and got myself out with a 0.8 pip profit. I'm going to leave FXCM open but stay out of trading for the rest of the night. Account at $28.95

New Goal

I posted a week back that I had reopened a micro forex account with FXCM. It has a little over $25 in it at the moment ($27.95 to be exact). Because of my rigorous Summer class schedule and the amount of work I've spent on programming a poker bot, I haven't played much poker in the last two months. I'm going to shy away from poker until the bot is fully functional.

At the moment, I'm very interested in financial markets. I posted in a comment to Black Bottle that while poker can help a person develop many useful skills to trade in the market, poker will rarely provide as much of a reward. I'll leave the poker game mostly to the bot until I get a large enough bankroll that playing a couple tables pays better than $5/hr.

Right now, I'd like to develop my forex skills. As they are still underdeveloped and rusty (although I would say somewhat profitable), starting to get back into the game with a $25 account will obviously not be for the money. It will be for the experience and eventual profits.

Now, for my goal: I aim to trade at least once a day for the next six months (excluding some days that will be mentioned beforehand and, of course, any days the markets are closed). That's six days a week, with approximately four weeks to a month: or, 144 trades minimum. I will begin with a limit of five trades a day with no more than three losing trades to prevent steaming.

All of the trades will be kept track of right here. Hopefully, I can keep my head on straight and make it through the great times, the terrible times, and everything in between.

EDIT: (first trade)

This was a quick trade. Definitely nothing I would want to stay in long term (looking at the 2 hr charts). But I played this one because it seemed that the pair had a quick dip and an equally quick recovery on the 15. It had pulled away from the MVA and may make a return. I wish I got in just a few pips higher in order to reduce risk. But it turned out okay. Account now at $28.44 with this 4.9 pip trade.

Further: unsure whether it would continue its push higher or a push lower. Just playing momentum and getting my feet wet.

Self-Knowledge

"Many bad players will not improve because they cannot bear self-knowledge." - David Mamet.

Yesterday, while browsing the local half-priced bookstore, I came across a copy of The Tao of Poker. My eyes widened. I reached out and picked up the copy. For $3.97, I would make a purchase. Something about the book makes me all warm and fuzzy inside. It brings out my desire to make myself a better person (not just a better player). In fact, I've also heard many traders refer to this book; I've heard many people refer to this book.

The Tao of Poker has more than its fair share of treasure contained within.

For example, the quote above. I had not planned on posting until I skimmed across that line. One of the easiest things to do is to block your real self from coming into view. Some people may even know their flaws (intellectually), but they prefer to push those realizations off to the side. It makes for a more comfortable life.

Unfortunately, the true winner, the true master, is willing to look at himself in the mirror in entirety. It is a difficult thing to do, viewing your own humanity. But, self improvement is difficult if you do not allow yourself to see what needs improvement.

It takes strong people.

Goal

"When the opponent expands, I contract; and when he contracts, I expand. And when there is an opportunity, I do not hit, it hits all by itself." - Bruce Lee

PS: I miss me v wallstreet.