Posts

Why I am a Trader and Investor and Why You Might Wanna be One Too

Image
I am a coder by day and trader by night! Coding is my day job. I am fully aware that only having a job will not allow me to provide for my family and myself consistently in the long run. This is because most of the western societies are setup in a way to be more and more disadvantageous towards the working middle class. I do not need to be a billionaire to be happy, but our society is becoming more and more binary. It seems that one can either be rich or poor, in which case I opt to be rich, or at least hedge myself against being poor. Trading and investing are my hedge against this trend.

The super rich and us Below are two videos from the BBC documentary "The Super Rich and Us". It clearly illustrates and explains the polarization of wealth distribution in our current society. Here is a catchy quote from the documentary:

There are the haves, the haves not and the haves yachts! But actually we seem to be heading for a society where there are only haves not and haves yachts

Will GBP Drop More

Image
Will GBP Drop More GBP/USDOANDA:GBPUSD davetromp The British Pound has been dropping heavily. Will it continue dropping more?
The bearish pinbar sure makes it look like it will.

This is my entry in my trading log:

Date Pair Direction Trade Trend Level Signal Entry
2019-05-21 GBPUSD Short With trend Down Horizontal Resistance Pin Bar retrace

Engulfing Patterns on USDCHF and AUDUSD

Image
Engulfing Patterns on USDCHF and AUDUSD USD/CHFOANDA:USDCHF davetromp
Some engulfing candle patterns have formed against the USD on the USDCHF and AUDUSD .
So I am shorting the USD by shorting the USDCHF and longing the AUDUSD .
Here is the chart of the AUDUSD:

Here are my entries in my trading log:
Date Pair Direction Trade Trend Level Signal Entry
2019-05-20 USDCHF Short Counter Trend Up Horizontal Resistance Engulfing retrace
2019-05-20 AUDUSD Long Counter Trend Down Horizontal Resistance Engulfing retrace

How To Place Support and Resistance Lines on Your Chart

Image
How To Place Support and Resistance Lines on Your Chart EUR/JPYOANDA:EURJPY davetromp
I was asked in the Tradingview chat how I place support and resistance lines. So I made a video explaining how I do it.

If you are trading for a long time already, this may be obvious, but if you are just starting out it takes some practice.

Still there are some principles that can guide the placing of S&R lines.

First of all S & R lines are not lines, but areas or zones.
Secondly, recent data is always more important then less recent data.
And thirdly, you should only place lines at obvious swing points.

And when placing the lines on the candles, you can take the following order of importance into account:
BodyWickTouch
Bounces of candle bodies (open and / or close prices) are more important then bounces of candle wicks (highs or lows of candles). And sometimes candles touch the line, but not exactly on the open, high, low or close of the candle. This is considered to be least important.

You c…

Trade Review Week 20

Image
Here is another trade review video. I learned some important lessons this week. I already knew I could be so much more profitable if I could get my psychology in check and this weeks trading shows that. Hope you can learn from my mistakes.

No charts and written review this week on my blog. You can checkout out my trades on previous posts and tradingview user @davetromp.

Ripple against BTC stepping higher on the 1hr TF

Image
Ripple against BTC stepping higher on the 1hr TF XRP / BitcoinBINANCE:XRPBTC davetromp Since yesterday the market structure for XRPBTC has changed from bearish to bullish .
Price has moved above the moving averages and has been making higher highs and higer lows.
So I exchanged some bitcoin for ripple at the second higher low (see chart) and I will add some more at the current higher low (see chart).
As prices move up I will be moving my stop up. If price will drop again I will be getting out at around my stop price.
I do not use risk to reward ratios the same way as in trading forex and precious metals and as you can see I do scale in and will probably scale out of a position. This is because Crypto currencies are much more volatile.
Also I am trading this on a lower time frame. I usually trade FX on the daily time frame.
So my analysis of the market is the same when trading Crypto or Fiat currencies. However, trade execution and trade management is very different. And also I do not use…

NZDUSD Short

Image
NZDUSD Short NZD/USDOANDA:NZDUSD davetromp I am a bit late in sharing this trade. You could have seen the entry in my trading log last night, but I forgot to publish it. This morning the short limit order got triggered on the NZDUSD .

This is my entry in the trading log:
Date Pair Direction Trade Trend Level Signal Entry
2019-05-14 NZDUSD Short With trend Down Horizontal Resistance Inside Bar break

Trade update as markets crash

Image
I closed out all of my trades 30 minutes into the US session. Trade war fears spoke the markets and put pressure on the US Dollar. Looking back it would have been more profitable and less stressful to not look at the trades during the day. S&P is crashing!
Gold is taking of! My trade got stop out, but I got out at -0.75R
Silver is not following. I got out with 1R profit.
Dollar went down As the USD dropped EURUSD spiked up. My stop got hit right at the opening of the US markets.
The pound went down more I got out at -0.5 R when price was moving up. Results EURUSD -1 R XAUUSD -.075 R XAGUSD 1 R GBPUSD -0.5 R Total -1.25 R
What if I did not got out of all of my trades? The results would be:
EURUSD -1 R XAUUSD -.1 R XAGUSD 1 R GBPUSD 2 R Total 1 R
So, if I would have not interfered with my trades and would have just let them play out, I would have made 2.25 R more then what I have made now.
Let this be a lesson.

Long USDJPY on Support

Image
Long USDJPY on Support USD/JPYOANDA:USDJPY davetromp I discussed this setup in my weekly review. Check it out here.

This looks like an obvious range bounce trade. I will enter at a break higher targeting the upper end of the range. Stop will be just below the wicks of the previous two candles.

I have entered the following into my trading log:
Date Pair Direction Trade Trend Level Signal Entry
2019-05-12 USDJPY Long Range Side Horizontal Support Indicision break

Good luck trading this week everyone.

Short GBPUSD on Pinbar of Resistance

Image
Short GBPUSD on Pinbar of Resistance GBP/USDOANDA:GBPUSD davetromp I talked about htis trade in my weekly reveiw.
Again, retail sentiment is bullish , so Iike to trade against this.

This is what I add to my trading log:
Date Pair Direction Trade Trend Level Signal Entry
2019-05-12 GBPUSD Short Range Side Horizontal Resistance Pin Bar retrace

Review of Trading Week 19

Image
This week I entered into 4 trades. There were more trade opportunities, that I did not take, because I did not want to enter into too many trades in the same direction against the US Dollar.

I closed out 1 trade on the USDJPY as it had been invalidated and was not triggered yet.

3 trade are still open on the EURUSD, XAUUSD (Gold spot) and XAGUSD (Silver spot).

My trading log shows the following entries:


DatePairDirectionTradeTrendLevelSignalEntry
2019-05-07XAGUSDShortWith trendDownDynamic ResistanceIndicisionMarket2019-05-08USDJPYLongCounter TrendDownHorizontal SupportIndicisionbreak2019-05-08XAUUSDShortWith trendDownHorizontal ResistancePin Bar

Introducing the Samurai Trading Youtube Channel

Image
Besides sharing my trading ideas as they come up during the trading week, I will share weekly videos during the weekend in which I share reviews of my trades. In this weekly video I will also look ahead to the coming trading week.

Trading EURUSD Down From Resistance.

Image
Trading EURUSD Down From Resistance. EUR/USDOANDA:EURUSD davetromp EURUSD has been in a down trend for over a year now. There is a hig probability that there will be a next leg down. I entered at market near the moving average and resistance zone and placed a stop loss order above today's high. Tomorrow the CPI report will come out. I might get out of the trade before it comes out. If I do not get out then I hope to trade all the way to the next S&R area for about 2R profit or even further to the next level for a 5R profit.

Please take care of the CPI report tomorrow!

Here is my entry in the Samurai Trading Log:
Date Pair Direction Trade Trend Level Signal Entry
2019-05-09 EURUSD Short With trend Down Horizontal Resistance Pin Bar Market

Gold Also Stepping Lower?

Image
Gold Also Stepping Lower? GoldOANDA:XAUUSD davetromp Looks as if Gold is stepping lower just like Silver .
I will be looking to enter at the 50% retrace of today's candle. This way I will be entering near the resistance level , which gives a nice tight stop and the possibility to set the take profit at 2R just before the next support level .

Here is my entry in the Samurai Trading Log:
Date Pair Direction Trade Trend Level Signal Entry
2019-05-08 XAUUSD Short With trend Down Horizontal Resistance Pin Bar retrace

Reversal Higher on USDJPY

Image
Reversal Higher on USDJPY USD/JPYOANDA:USDJPY davetromp A wide range has been forming on the USDJPY .
I am planning to go long at the break higher of today's high. Take profit will be at the other end of the range for a possible 3R return while the stop is a bit wider below the lows of the 25th of March.

Here is my entry in the Samurai Trading Log:
Date Pair Direction Trade Trend Level Signal Entry
2019-05-08 USDJPY Long Counter Trend Down Horizontal Support Indicision break

See How I Trade

Click on my performance chart below to see how I do it!