Emotion challenges

Trading is a lone ranger path, you can't be trading because of someone's else decision to buy or sell. You can seek advises, technical findings or suggestions. But at the end of the day, you need to make your own decision.

This week 38th of the year, i am into my 5th week of paper trading and although i am still in the positive zone with $331.68, My gross profit and loss was greatly extended from my previous week.

Partially this was due to my emotion coming into play when my consecutive 4 losses in a row in EUR/USD eat into my profit for week 4, causing my capital to go go back into 2700+. I realised that i read the overall trend and did not put it into consideration and is always trying to think too much ahead that we are in the process of retracing.

5th Week of Trading

Gross Profit: 2 477.42 Gross Loss: 2 145.74 Total Net Profit: 331.68

Profit Factor: 1.15 Expected Payoff: 4.48

Balance: 3 933.84

4th Week of Trading

Gross Profit: 1 565.10 Gross Loss: 962.94 Total Net Profit: 602.16

Profit Factor: 1.63 Expected Payoff: 10.21

Balance: 3 602.16

If you were to look at the EUR/USD daily chart, technically we are out of the downtrend since Jun 2010 based on the RSI 80/40, 60/20 rule. The confirmation of the reverse in trend can be found in the period of August, where the RSI remains strongly at 40 level. From the chart, we can also see that we are in the early 3rd stage of the elliot wave which i forsee it to be the strongest move.

For next level of resistant, I will be looking at 1.36860, 1.37832, 1.38274 for retracement. For Fibonacci Retracement, I would be looking at 1.37832 at 161.8%.

In the coming week, my overview is to look at long positions with short scalping near resistant.