Category Archives: Uncategorized

How to Practice for Forex, Stocks and Binary Options Trading

How to Practice for Forex, Stocks and Binary Options Trading
We all have heard phrases “Practice makes perfect” and “Practice, Practice, Practice”. So how do we practice to better our selves in the skill of trading financial markets. How can we master Forex, Stock and Binary Options trading? What is the best way to practice?

For best results, trading like any other skill requires our subconscious brain to understand rules of engagement. We do not master a skill unless rules of engagement have been learnt, understood and burned in our mind. It is like driving a car, playing golf or learning how to play a guitar. It is no different. However as per multiple researches conducted over years and from my own personal experience, I find these 3 ways of practising work best.

1. Visual Practice: You learn rules of a system and open up charts. You do not take any action but just monitor charts visually to see when and how those conditions arise and what happened and what you could have done to trade or avoid a trade. This helps preparing your mind for actual execution.

2. Actual Practice: You start taking trades as per rules and try to stick to the plan. Without the first kind of practice this is a waste of time. Most traders start from here and hence fail or give up.

3. Mental Practice: Here you close your eyes and mentally rehearse your trading rules, entry, management and exit strategy. You see your self in market taking and managing trades. It is like meditation. This is the most important practice type. This runs along with other two practice types. Without this, it will take longer for brain to learn and burn the new skill of trading.

I do all these 3 myself every day and they have helped me become a profitable trader.

Happy Trading

-TradeYodha

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Leave a comment: I would love to hear your thoughts, suggestions on this topic. Please leave a comment.
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Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
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Trade: HYR Oversold Buy Opportunity (London)

Trade: HYR Oversold Buy Opportunity

Snapshot:

HYR Oversold Buy Opportunity
HYR Oversold Buy Opportunity

Reasons For Trade:

  1. Oversold
  2. Reaching support level 3.7
  3. Directory’s buy today on 7th of December

Stop Placement:

3p

Targets:

First Target: 5p

Second Target: 6p

Trade Execution:

Watch for the price action to reach below 4p.

Concerns:

None

Planned News/Events Expected:

Unknown

Post Execution Review:

 

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Leave a comment: I would love to hear your thoughts, suggestions on this topic. Please leave a comment.
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Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
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EURAUD Gartley Pattern Butterfly Pattern ABCD Pattern 200SMA Short Forex Trading Idea

EURAUD Gartley Pattern Butterfly Pattern ABCD Pattern 200SMA Short Forex Trading Idea

Snapshot:

EURAUD Gartley Pattern Butterfly Pattern ABCD Pattern 200SMA Short Forex Trading Idea
EURAUD Gartley Pattern Butterfly Pattern ABCD Pattern 200SMA Short Forex Trading Idea

View it on TradingView

Reasons For Trade:

  1. Gartley Pattern completion in PRZ zone
  2. Butterfly Pattern Completion in zone
  3. ABCD Pattern completion
  4. Fibonacci confluence of 78.6 retracement and 127.2 extension of last retaracement
  5. 200sma in the zone
  6. Strong supply Area

Stop Placement:

Above supply zone

Targets:

as shown, there are 3 targets

  1. Structure based
  2. 38.2 Fib retracement from advanced pattern
  3. 61.8 FIB retracement from advanced pattern.

Trade Execution:

Wait for confirmation

  1. Take targets as you go along
  2. Tail stops on 3rd target as EUR can take a bearish rotation again to give large profits.

Concerns:

None

Planned News/Events Expected:

Week is packed with news

MonOct 26 5:00am EUR German Ifo Business Climate
TueOct 27 5:00am EUR M3 Money Supply y/y
8:30pm AUD CPI q/q
AUD Trimmed Mean CPI q/q
WedOct 28 8:30pm AUD Import Prices q/q
ThuOct 29 All Day EUR German Prelim CPI m/m
4:00am EUR Spanish Flash CPI y/y
4:55am EUR German Unemployment Change
8:30pm AUD PPI q/q
FriOct 30 3:00am EUR German Retail Sales m/m
4:00am EUR Spanish Flash GDP q/q
6:00am EUR CPI Flash Estimate y/y
EUR Core CPI Flash Estimate y/y
EUR Unemployment Rate

 

Post Execution Review:

Pending

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Leave a comment: I would love to hear your thoughts, suggestions on this topic. Please leave a comment.
---------------------------------------------------------------------------------
Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
---------------------------------------------------------------------------------

USDCAD Bat Pattern Butterfly Pattern Fibonacci Retracement Confluence Flat Candle Long Forex Trading Position

USDCAD Bat Pattern Butterfly Pattern Fibonacci Retracement Confluence Flat Candle Long Forex Trading Position

Snapshot:

USDCAD Bat Pattern Butterfly Pattern Fibonacci Retracement Confluence Flat Candle Long Forex Trading Position
USDCAD Bat Pattern Butterfly Pattern Fibonacci Retracement Confluence Flat Candle Long Forex Trading Position

Reasons For Trade:

  1. Fibonacci confluence of 78.6 of overall impulse leg, 61.8 of another impulse leg, 161.8 fib extension of recent retracement.
  2. Flat candle in zone suggesting new orders started from there which has fibonacci confluence with 88.6 Fibonacci retracement level and Fibonacci extension of recent retracement. This makes an area very string due to bat pattern formation.
  3. Level on Level demand area. So we will have to combine.
  4. This impulse leg has string ERC candles which broke previous structure.
  5. Due to 161.8 extension of recent retracement this zone also has completion of Butterfly Pattern too which coincides with flat candle and bat pattern completion on the same point.

Stop Placement:

Below flat candle

Targets:

First: 38.2 fibonacci retracement
Second: 61.8 fibonacci retracement

Trade Execution:

  1. Wait for confirmation in the zone.
  2. As there are 2 fibonacci confluence levels creating level on level demand zone take multiple positions using zoning technique.

Concerns:

None

Planned News/Events Expected:

Whole next week is packed with USD CAD  news

MonOct 26 10:00am USD New Home Sales 468K 546K 529K
TueOct 27 8:30am USD Core Durable Goods Orders m/m -0.4% 0.0% -0.2%
USD Durable Goods Orders m/m -1.2% -1.1% -2.3%
10:00am USD CB Consumer Confidence 97.6 102.5 102.6
11:20am CAD Gov Council Member Lane Speaks
WedOct 28 8:30am USD Goods Trade Balance -58.6B -64.9B -67.2B
10:30am USD Crude Oil Inventories 3.4M 3.7M 8.0M
2:00pm USD FOMC Statement
USD Federal Funds Rate <0.25% <0.25% <0.25%
ThuOct 29 8:30am CAD RMPI m/m 3.0% 1.2% -6.8%
USD Advance GDP q/q 1.5% 1.6% 3.9%
USD Unemployment Claims 260K 264K 259K
USD Advance GDP Price Index q/q 1.2% 1.5% 2.1%
9:10am USD FOMC Member Lockhart Speaks
10:00am USD Pending Home Sales m/m -2.3% 1.1% -1.4%
FriOct 30  8:30am CAD GDP m/m 0.1% 0.3%
USD Employment Cost Index q/q 0.6% 0.2%
USD Core PCE Price Index m/m 0.2% 0.1%
USD Personal Spending m/m 0.2% 0.4%
9:45am USD Chicago PMI 49.5 48.7
10:00am USD FOMC Member Williams Speaks
USD Revised UoM Consumer Sentiment 92.6 92.1

 

Post Execution Review:

Pending

View it on TradingView

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Leave a comment: I would love to hear your thoughts, suggestions on this topic. Please leave a comment.
---------------------------------------------------------------------------------
Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
---------------------------------------------------------------------------------

GBPAUD Bat Pattern Psychological Number Long Trade

Trade: GBPAUD Bat Pattern Psychological Number Long Trade

Snapshot:

GBPAUD Fibonacci Cluster Bat Pattern Psychological Number Long Trade
GBPAUD Fibonacci Cluster Bat Pattern Psychological Number Long Trade

Reasons For Trade:

  1. Bat Pattern
  2. Psychological Number 2.0800
  3. This zone has been a strong demand zone in past

Stop Placement:

  1. Below Bat pattern’s X point

Targets:

  1. 38.2 Fib Retracement back up
  2. 61.8 Fib Retracement back up

Trade Execution:

  1. Wait for confirmation because the stop loss level is too wide and there have been few spikes in the zone previously.

Concerns:

  1. Price may touch 78.6 fib level of previous impulse leg XA and go back up as there is also fib confluence and ABCD pattern completion

Planned News/Events Expected:

TueOct 27  5:30am GBP Prelim GDP q/q
8:30pm AUD CPI q/q
AUD Trimmed Mean CPI q/q
WedOct 28 8:30pm AUD Import Prices q/q
ThuOct 29 5:30am GBP Net Lending to Individuals m/m
8:30pm AUD PPI q/q

Post Execution Review:

Pending

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Leave a comment: I would love to hear your thoughts, suggestions on this topic. Please leave a comment.
---------------------------------------------------------------------------------
Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
---------------------------------------------------------------------------------

NZDUSD Fibonacci Confluence, ABCD Pattern, Demand Area Long Trading Idea

Trade: NZDUSD Fibonacci Confluence, ABCD Pattern, Demand Area Long Trading Idea

Snapshot:

NZDUSD Fibonacci Confluence ABCD Pattern Demand Area Long Trading Idea
NZDUSD Fibonacci Confluence ABCD Pattern Demand Area Long Trading Idea

Reasons For Trade:

  1. Fibonacci Confluence of 38.2 of previous impulse leg, 0.886 of recent impulse leg, 1,272 fix extension of recent retracement.
  2. ABCD Pattern forming
  3. Good Demand Area as price shot up from this zone in multiple ERC candles.
  4. 200sma reaching the zone
  5. Price is reaching over sold territory
  6. Psychological round number 0.6600 in zone

Stop Placement:

Below Psychological round number 0.6600

Targets:

  1. First target at opposite Supply location where 50sma was crossed by 10sma.

Trade Execution:

  1. Partition entries. First entry using limit orders and second to wait for confirmation in the zone to have better R/R ratio. This is because the price may come deeper in the zone to touch round number 0.6600

Concerns:

None

Planned News/Events Expected:

MonOct 26  10:00am USD New Home Sales 546K 552K
5:45pm NZD Trade Balance -822M -1035M

Post Execution Review:

Pending

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Leave a comment: I would love to hear your thoughts, suggestions on this topic. Please leave a comment.
---------------------------------------------------------------------------------
Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
---------------------------------------------------------------------------------

EURJPY BAT PATTERN FOREX TRADE IDEA LONG ENTRY

EURJPY BAT PATTERN FOREX TRADE IDEA LONG ENTRY

Snapshot:

EURJPY Bat Pattern Long Forex Trading
EURJPY Bat Pattern Long Forex Trading

Reasons For Trade:

  1. Bat Pattern forming.
  2. Due to sudden drop EUR is reaching oversold area. On H4 it is already oversold but on H1 it is not.
  3. Spikes close to red zone in chart show a Demand area. So price may come back to retest this that is when H1 will be oversold. This can give is a Double Bottom formation.

Stop Placement:

  1. Below point x of bat. Looking left I see another demand area on previous impulse leg. So including that too.

Targets:

  1. First: 38.2 Fibonacci Retracement
  2. Second: 61.8 Fibonacci Retracement

Trade Execution:

  1. At 38.2 close half of the trade and move stops to break even.

Concerns:

Demand are on previous impulse leg is wide and is beyond stop loss limits.

Planned News/Events Expected:

MonOct 26  5:00am EUR German Ifo Business Climate

Post Execution Review:

Pending

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Leave a comment: I would love to hear your thoughts, suggestions on this topic. Please leave a comment.
---------------------------------------------------------------------------------
Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
---------------------------------------------------------------------------------

EURJPY Bat Pattern Short Trading

EURJPY Bat Pattern Short Trading

Snapshot:

EURJPY Bat Pattern Short Trading
EURJPY Bat Pattern Short Trading

Reasons For Trade:

  1. Bat Pattern

Stop Placement:

  1. As the 1.618 Fix extension is close to point A, and previous structures are also there we need to have bigger PRZ.

Targets:

  1. Take 1:1 target
  2. Extended target at 38.2 because we have 50sma and 200sma there which may not let us go below 38.2.  See concerns below.

Trade Execution:

  1. Take 1:1 target and  close 50%
  2. Move stop to break even

Concerns:

  1. Price has been consolidating. This may invalidate the pattern as what happened in EURUSD few days ago.
  2. SMAs are just below so possibility of having extended targets is low.

Planned News/Events Expected:

ThuOct 22  7:45am EUR Minimum Bid Rate
8:30am EUR ECB Press Conference
FriOct 23 3:00am EUR French Flash Manufacturing PMI
3:30am EUR German Flash Manufacturing PMI

Post Execution Review:

22-Oct-2015: Closed this order. I was waiting for confirmation to take position. Today’s price action has invalids this trade idea. So orders cancelled.

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Leave a comment: I would love to hear your thoughts, suggestions on this topic. Please leave a comment.
---------------------------------------------------------------------------------
Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
---------------------------------------------------------------------------------

EURUSD Bat Pattern and Gartley Pattern Long and Short Trading

EURUSD Bat Pattern and Gartley Pattern Long and Short Trading

Snapshot:

EURUSD Bat Pattern and Gartley Pattern Long and Short Trading
EURUSD Bat Pattern and Gartley Pattern Long and Short Trading

Reasons For Trade:

  1. For long entry we have Gartley pattern completing just above 1.1320
  2. For short entry we have a bat pattern completing around 1.1430 level

Stop Placement:

  1. For long Gartley entry stop needs to be 1 ATR i.e. 13 pips below A.  See concerns below.
  2. For Short Bat Pattern we can have stops just above A around 1.1470

Targets:

  1. First Targets at: 38.2 Fibonacci
  2. Second Targets at : 61.8

Trade Execution:

  1. Take first target and close 60%

Concerns:

  1. 10sma is in the middle of 50sma and 200sma causing market to get stuck at the moment. So if market goes on to complete Bat pattern it will be in uptrend. That means we will have to be careful about our extended targets.
  2. If the market goes to complete gartley pattern we may not be in down trend. We will still be consolidating as long as it respects point A. However we will have 50sma and 200sma above us that means we will again have to be careful with our extended targets.
  3. Also for gartley pattern stop placement is not clear as the next level is below 1.1279 which gives us a huge risk area.

Planned News/Events Expected:

TueOct 20 8:30am USD Building Permits
ThuOct 22  7:45am EUR Minimum Bid Rate 0.05% 0.05%
8:30am EUR ECB Press Conference
USD Unemployment Claims
FriOct 23 3:00am EUR French Flash Manufacturing PMI 50.2 50.6
3:30am EUR German Flash Manufacturing PMI

Post Execution Review:

22-Oct-2015: Closed this order. I was waiting for confirmation to take position. Today’s price action has invalids this trade idea. So orders cancelled.

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Leave a comment: I would love to hear your thoughts, suggestions on this topic. Please leave a comment.
---------------------------------------------------------------------------------
Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
---------------------------------------------------------------------------------

Today’s Forex Trading Mistakes Journal

20-October-2015: Today has not been a profitable day however it has been productive. I was lost and today’s Forex market humbled me once again and reminded me of few trading mistakes that I made on my way.

For some reason I have been interpreting market signals in contradictory ways. Instead of following rules and patterns I was all over the place. Tried to take 5 positions on NZDJPY, AUDCAD, GBPUSD and AUDUSD. All of them were either cancelled or failed. So a lost a total of 122 pips loss. So approximately a total of 86 pips. This has set back my profit that I made last week by a bit. I am back to 350 pips of profit so far in October so far.

Reviewing today’s actions I found my trading mistakes:

  1. Several of my positions today were based on Advanced Patterns. Every time they were complete and I took a position, they started to go against me. I should have followed the plan and rule to let the market play. But I closed them prematurely only to see that that I was right and pattern did work.
  2. SMAs where all tangled up in few trades. I kept on confusing them with patterns and structures. Instead of following just one thing I tried to mix them.
  3. Did not use RSI as it should be used. Must use them for to read them overbought, oversold and divergences correctly.
  4. Paralysis by analysis created biases. Switched between time frames to justify biases. Must stick to one Trading time frame.
  5. Too much of screen time created emotions causing moving stops. Once trades are in, there should be minimal screen time.

Another day of mistakes and position losses but another day of great learning! Nothing lost only gained!

-TradeYodha

 

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Leave a comment: I would love to hear your thoughts, suggestions on this topic. Please leave a comment.
---------------------------------------------------------------------------------
Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
---------------------------------------------------------------------------------