My Demo Trade

Today I open a DEMO accout with Exness, with 100K deposit. This is are my trades (post will be updated after every trades)

1) 15/05/2013
GBPUSD
 Price had been clearly bearish past few days. I took the trade at M5 supply (RBD) zone. Price had been nicely compressing on its way to the supply. My entry was a touch trade at the lower border of the zone, with S/L  above the supply zone. I noticed that price also formed a nice bearish abandoned baby pattern on returning to the zone.

Trade was closed at the swap level (also RBR zone). This was a 2.5R win. Unfortunately, I entered wrong lot size. Instead of 10.0, I used 1.0 lot size. So instead of risking 2% (my standard risk per trade), I only risked 0.1% and gained ~0.25% only.

2) 16/05/2013
GBPUSD
I tried to sell GU at M5 RBD zone, but it hit S/L within few minutes.

Apparently the strong bull move was actually due to US data release, with both core CPI and unemployment claim showed bad data. So the lesson fo me tonight is before opening any trade, please check whether ther is any imminent price release!!

3) 16/05/2013
EURGBP
Another losing trade opened on the same day as GU trade above.

  

On hindsight, I guess the supply at A is much stronger than the demand level that I marked. Besides, my entry is on 2nd touch of the zone, and the spikes at B may have removed all the demand left and that's why price broke lower.

Looking at the daily time frame, price actually went down to the fresh daily demand, and then  went back up again. 

4) 17/05/2013

GBPUSD

Price broke a major H4 demand zone (light blue zone), and there was a nice RBD formed on LTF before the demand zone was broken. When price returned to this RBD zone, I shorted the pair with S/L above the RBD zone and TP at recent demand zone.

 

Trade closed with about 2.5R profit

5) 17/05/2013

USDCHF

I tried to short this pair once it reached a nice RBD zone on M30 (touch trade). But price spiked up and hit my S/L 

The move spikes up could be just fake out... Looking at the price pattern after my S/L was hit ( it looks like a descending triangle), price may go lower after this.

 

   

Compression Homework

After identifying our RBD and DBR zones, we will wait till price returns to the zone. If price is compressing towards a major DEMAND area, it means on its way down, it will retest all the minor supplies (therefore consuming all the minor supplies). Thus when price hit the major demand area and decides to go up, it will slice through the compression (CP) area until it reaches the last untested supply.

 

RBD/DBR Homework

Some of my RBD/DBR homework. A good RBD/DBR should have a base and price moved strongly (ideally forming a pole) from the base.

 

My Story

Today, I'm opening my first blog to document my final journey in forex trading. Why is it my 'final' journey? Well my forex story began somewhere in 2011. Due to the attraction of getting easy money, I quickly got involved in forex and started learning to trade.

I started with a few demo account and started to learn a few indicator-based system. I opened a very small ($20) account, and it got wiped out immediately (margin call). Then I deposited more for multiple times, and they never lasted very long. During those times, I jumped from one system to another, but all didn't help me at all in increasing my account.

Then, I discovered Supply and Demand (SnD) trading, which is indicators-free and looks promising. There were a lot of successful traders in Forexfactory who trade using supply and demand concept. Since then I started to learn more about SnD. After few months, I managed to grasp the basic concept of SnD, and started trading live using it.

Five months ago, I deposited another real money into my trading account. After 2 months, I already gained 60% of my initial profit. However, for the last 3 months my trading had been so erratic and inconsistent until I lost 30% from those 60% initial gain. This drawdown was mainly because of undisciplined trading, impatience, and greed.

Therefore I decided to study SnD again, use strict money management, and last but not least to become more disciplined in trading.

I am going to learn SnD and price action from the beginning again, and this blog will become some sort of journal in my learning process. My resource for learning SnD comes from ReadTheMarket website. It can be found here.

If after learning this method and trade using it, but still lose money, then I guess Forex is not for me and I will stop trading Forex. I believe that Forex trading is more of an art than science, and therefore not everyone will be able to be good at it.

-Neopips