Keep a File
San Diego bobl 13:14 GMT April 25, 2008
If you take a chart, like in this case eur/usd, and have previously formed an opinion on yearly, monthly, weekly, charts............and go to daily. It's a solid idea to make a Physcial folder ...EUR/USD ... and print a daily chart of such say 200 days or more, nothing else. Then get your ruler out and draw horizontal lines of ideal entry areas. For me, that first line starts at 1.55 and goes down to 1.5280. So, my trading plan CAN kick in, i.e. legging in, in that range. The one caveat that is a must for me is that the market must have shown me a reversal pattern back towards the theme to actually pull the trigger. I never buy a falling rock.
How many traders these days take the time to print a chart and annotate a trading plan? Probably the only ones are guys that are held accountable to themselves, their boards, or managing body.
Even if you are a short term trader, keeping a file with charts and annotations of reasons for entry, trade management, and results is a wonderful teaching tool.