Trading Oct. 24

Oct 31th

• At the time that I realized trading is a kind of gambling, I trade with more tight discipline and less emotions. Because I know that it is the possibility that will make me win this game in the long run, not by some special particular time. Thus, every trade will always be the same eg. even all time high, major economic news, more market participant, or etc.
  • Even though you get huge profit from overrisk, it is meaningless to your career longevity.
  • But the profit from high reward:risk ratios or high win rates are the real meaningful of your trading system. Which it comes from having true knowledge and understanding in the chart analysis

Oct 29th

• Trading in every day is always the same, no any day that is special than the other(eg. all time high), always use the same risk
• The best strategy when enter the trade in sideway market is entered by counteract the direction of the present candle stick and adjust stoploss to protect the fund
  • this will help decrease the length of stop loss required in the high volatility of range trading which results in lower risk usage with possibility to use the same position size as same as trading when there is a trend(no need to decrease to reduce risk).

Oct 26th

• sometimes, when a company has released new innovation, but after that the stock falls down(sell the fact), it is usually the good time for buy the dip, because the stock price usually rises back to the previous level after that good company later releases some the following good news.

Oct 24

• Going outside made my trade worse because of unthoughtful decision and uncontrolable/distracted environment
• The most important thing in trade is self-control. The knowledge and skills is also important but lesser. Because without self-control, even though you can make profit from trade, it will turn out in loss eventually.
  • Even the trader with less skills but more better self-control can make more constant profit in the long run. 

Oct 21

• It is possible to be wrong in many trade but you can prevent loss by adjust trailing stop at least to cover your fund. And repeating this many time there will be at least one correct trade that will made profit for you. 
  • Before adjust trailing stop, always waiting for closed price before adjust it.

Oct 20

• Don't predict the chart, just read it.

Oct 16th

• The combination of trendline and SnR zone with dow theory is the best strategy
• After I realized that trading is one kind of gambling(but with knowledge will help increase winning odds), I can manage myself and also my risk so much better.

Oct  15th

• Doing trading diary is so good, it help me follow my discipline. Good trading diary must be able to help traders reflect themself.
• Down spiral in Trading crypto is that the cost of trading(fee and commission) is high(as double of gold), so if I want more profit I have to double the risk which deteriorate my mental and mindset and result in over risk and over trade with big loss.
  • 2 times of cost of trading decrease leverage opportunity in half, resulting in half less profit!!!
  • 2 times of cost of trading also results in using double risks to gain the same profit.
• In sideway, the good strategy is short term trade and don't expect any long profits. or the best is not to trade
• Today I lost a lot from an impulsive and unintentional trade. Trade only closed price will be so valuable.
• The new strategy is charting everything from large TF to small TF and also placing trendline and SnR zone along any TF
• Don't fix TF, any TF can be used, but the principle is to analyzing from large to small TF respectively. 

Oct 14th

• Forex trading cost is so much less than crypto, so it can leverage more at position opening which is far more better than crypto
• Trading on a laptop is so much better than on a tablet, there are a lot of useful tools
• use a large(Week) time frame and go through all asset charts, then change to the smaller TF(d,h4,h1) and repeat the process again until to the smallest TF(m5)
  • use Trendline and SnR zone along with charting in any TF
• 1st step - screen the chart in Big TF(W, D) with Trendline, SnR zone
• 2nd step - go to smaller TF(h1,m5) - screen again with Trendline, SnR zone
• always waiting for closed price is so valuable

Oct 13rd

• Major pillar of trading
  • knowledge - Technical and fundamental analysis
  • risk management
    • over risk
    • over trade
  • Mental health
• Trading is not a game of chasing market, it is a game that focusing on yourself.

Oct 12nd

• I found my bad crypto trade usually came from trading on phone because it allows impulsive and reckless decision, so I change using my binance app on phone to my tablet which has a better environment and tool that composes me to think more carefully. 
• For Crypto, cost of trading is so high and there is less price volatility than Gold, the best strategy is trade less frequent with larger position size.
• The advantage of asia time is that you can enter position at the best price before the trend is coming in US time, the disadvantage is that it may take quite long time to wait and stress your mental health.

Oct 11st

• Self assessment&analysis
  • Good
    • This week I analyzed all charts with Day and Week TF, it worked like a charm. Then trade in 5m TF to make use of risks as efficient as possible.
      • this strategy can constantly made profit
  • Flaw
    • I over trade and over risk(mostly) which make all of my profits neutralized.
• For the trading assets that have low cost to trade(low spread and commission free), especially Gold, the more frequent trade is possible, at least close the position to keep profit and reenter it when it is suitable. 

Oct 10th

• Chart analyzing in day&week TF provides the most reliable trade for all assets. But for entering position you can use as small TF as you prefer eg. 5min, 1h.
• Only the disciplined trader will be success.

Oct 9th

• I found that TF day is so much better for trade.
• The only one factor that make me broke is over trade and over risk(undisciplined).
• The successful trader is not the one who is the most brillant, but the most disciplined trader.
  • The most brilant trader can still be broke, if he doesn't has discipline. 
• It should not be trade many asset in one single time because all assets' price usually rise and fall in the same simultaneous rhythm, if the trades are placed in the rhythm which were wrong, all of them would have a high change of stop out.
  • The better strategy is trading only one asset at a time and if it is stop out wait for a while(4 hours) before enter the trade again. 

Oct 8th

• I am broke again, this is a real broke. Although directional trading seems works but it still has a lot of uncertainty. I always have to protect myself(my fund).
• The real problem that deteriorated my mindset and strategy is that I want to become rich as fast as possible so I overtrade and overrisk.
  • So, one of the most important thing that no one told me(because I have no coach) and I always have to tell to myself is "Don't hurry, everything need time to build". 4
• In case that unable to access to the good source of news, use a week or a month timeframe to determine the trend. It works like a charm! Use the trend from previous weeks, not the current week

Oct 5th

• I think directional trade with day Time frame is better than any other smaller time frames. Those smaller time frame should be used as entering the position or sideway day trade?
• I tried my risk diversification strategy again but get a lot of loss, it seems like it doesn't work?
  • But today I've just got little profit from directional trade.
• Price action is elastic like, especially in SnR zone
• Market have no mercy, just strict to risk control to protect yourself and your mental health.
  • Greedy is not wrong, trading is a selfish game, but always have a proper risk management to your strategy no matter it is high risk or low risk.  
• Price actions will always have interactions with trendline and SnR zone either in bullish or bearish way(no one know, until it break or rebound). And it is not a matter which trendline you see, it always have interactions. 

Oct 4th

• I blowed up my trade account again, I place stop loss with wrong principles. It is too tight, even though the trade direcition is not wrong, it still blow up my account.  

Oct 3th

• principle in trading is to
  • use just a small amount of money in an exchanging of a larger amount of money
  • Go with the trend, don't predict market
    • Go with the trend - mainly using dow theory(HH-HL=uptrend, LH-LL=downtrend) to trade with the direction of existing trend in the time frame that is watching
    • Don't predict the market - it is too hard to analyze and predict the market with human brain and the result in the long run is usually not much good. it doen't use brain energy efficiently in such this unproductive work(trading has no real benefit to this world)
  • trendline and snr zone is like the place on the map(for resting or pausing for a while), but the direction of trend is still need dow theory
  • trade as much asset as you can to diversify risk
  • Trade stupidly, just simply identify the trend, like a 6-years old child watches the chart using dow theory
  • Trading is not a thing that you should waste your thought or brain energy. It is just an identification of trend by using dow theory and probability of effect from trendline or SnR zone that will not stop out your position and risk diversification by trade as many asset as you can.
  • Again, trade stupidly, don't waste much of brain energy in trading. Instead, use the brain energy for the real productive thing in your life such as your precious real work, hobbies you enjoy that have real benefits to the world.

Oct 3rd

• I found that the Dow theory is the best principle in chart reading. Just HH-HL is in an uptrend and LH-LL is in a downtrend, and just stupidly trade with the trend.
  • Trendline and SnR zone are just the location on the map(also important), but the direction of price is identified by Dow theory.

Oct 2nd

• When I found that trading in the day is so hard, it is probably because I bias on the wrong side. The most easiest is trend following with dow theory
  • when the price still make Higher high, higher low, it should be bias uptrend.
  • when the price is making Lower high, Lower low, it should be bias downtrend.
• We shouldn't have emotion with the market action because it is not us who can create the price action. Having emotion either stress or too much joy usually comes from using too much risk.
• When adding to the win position, the stop loss should be at further price than the entry price so that even the position added, there is no addition loss or even zero loss.   

Oct 1st

• I found that coffee probably ruin my trade, it creates emotional instability causing me unable to make a decision thoroughtly. There is a research showed that it may cause a brain unable to compensate to sleep deprivation which result in brain volume shrinkage. My important life decision can't rely on just drinking this beverage.