The Forex Diary – 7-6-09

As a part of my earnestness to become a trader, one of the ideas suggested in Marcel Link book is to keep a diary of your trades. I plan on doing this here as painful as it is. Last night, my loss was $84.98. I lost 80% of my account… Again. What happened? After reading not to overleveraged myself, knowing that I’ve lost most of my money through over-leveraging, I over leveraged several trades. Eight in total. Not only did I over leverage my trades, I over traded, chased the market, didn’t wait until a pattern was developed, and traded much to early.

I thought of trying a new strategy. Trading within the Bollinger Bands. I did this too prematurely. It seems it would have worked if just would have waited for a breakout. It hugged the bottom.

Lessons Learned – Rules

• Don’t trade during hours of 4:00 p.m. 1:00 p.m.
• Don’t overleverage my trades
• Don’t over-trade (Eight was just too much)
• Trade only Breakout
• Don’t trade during consolidation periods
• Trade 15 minute charts