This is the fifth week of my day trading adventures with the 5EMAs Forex Trading System. It’s been more fun this week, and I’ve cut down on the mistakes made in week 3 and 4.
My Forex Day Trading Results with the 5EMAs Trading System
This is the update of the past 5 weeks where I’ve been taking the complete 5EMAs Forex Trading System for a spin in the currency markets:
- End of Week 1: $10,513.20 (+5.13%)
- End of Week 2: $10,983.56 (+4.47%)
- End of Week 3: $10,206.23 (-7.08%)
- End of Week 4: $9,620.75 (-5.74%)
- End of Week 5: $9,940.09 (+3.32%)
Cutting out learning errors have helped to start turning things around, with a return of +3.32% over the past week. When I look back over the past 5 weeks, I am glad that week 3 and 4 turned out the way they did.
I learnt a lot from those losing weeks more than I did from the winning ones.
Review Of The Past Week Day Trading
If there’s one thing about the markets, they can humble you pretty quickly once you get over-confident. Looking back, the first two weeks of almost incredible success did put me in the emotionally dangerous zone of getting overconfident.
And that resulted in the next two weeks where the markets did me a favor by reminding me who’s really in charge of moving the markets around, and that person’s not me. 
This week, I cut down on the number of trades I took from 10 to 7. Even then, I had to exit 1 - 2 trades pretty quickly when I realized that I made errors. So instead of taking the full loss, I escaped with only losing a few pips.
I did still make a few changes in the middle of trades though, something which I’m not very happy with. However, it’s part and parcel of finding out the finalized version of my trading strategy once I go live. What were they?
Changing My Trading Plan
Initially, I placed automatic trailing stops of between 30-35 pips on my trades. This helped me reduce the amount of chart time by putting the exit on automatic. However, after developing my trading strategy further I decided to NOT place that 30-35 pip automatic trailing stop once I reached break-even.
Instead, I opted to go for longer trending trades for the probability of taking 100 - 200 pips out of the markets in a single trade. After all, once I reached break-even on the trade I also reached my profit target for the day.
I did this in week 4, where sometimes I got stopped out on the second half of the trade for 0 pips. That’s OK, because it’s to be expected when I’m going for a 100 - 200 pip intraday trend trade.
Why would I want to do this?
In the course of day trading, sometimes you get the opportunity to extend an already profitable trade for longer trending profits. That’s what I wanted to accomplish when I adjusted my strategy. However, nothing ever goes exactly as planned. Here’s what happened on a recent USDCHF Sell trade, when I adjusted my stops tighter than I wanted to.
And guess what happened next?
Here’s a chart on what happened after my Sell on USDCHF was stopped out:
Click on the thumbnail to see the full chart
1H Chart of USDCHF For This Week
That would definitely have given a huge boost to the equity level for very little extra work. I’ll be reworking my strategy to allow me to take advantage of a huge trend like this the next time it happens.
Still, it gives me some measure of what to expect when I go for longer trending intra-day trades versus going for smaller pip targets and tighter stops.
Of course, I have my reasons why I intended to go for larger trending trades. Chiefly one of which is that I don’t like taking more trades than I have to. 
If you can get the equivalent or huge profits from taking less trades, why the heck not?
Summary Of Day Trading For The Fifth Week
I took a lot less trades this week, and waited patiently for better trades to set-up. Ego and overconfidence can kill a trader as quickly as a lousy trading system, so it pays to be humble and detached from the market movements.
It’s much different watching a trade develop in real time action before your eyes as a day-trader. It’s harder to sit on your hands while waiting for trades to develop, but just because the markets are moving all the time doesn’t mean that you should.
That’s a big difference between taking on “End of Day Trades” and intra-day trades. Swing and End of Day trading allows you to analyze the charts in the morning, place a trade or adjust your stops before shutting down the trading platform until the next day. You don’t get affected by watching prices move in front of your eyes, especially when prices make huge sudden surges in one direction or the other.
Day-trading is more emotionally intense than swing or position trading, which requires you to be even more aware of your emotions and actions than a swing trader.
Trading Lessons For You
While I’m posting my experiences here out in the open, I do hope there are some things that you can pick up from them. Trading, while requiring technical competency, also requires you to have a strong grasp of your emotions. So if you’ve been trading for awhile but not experiencing success, it isn’t always your trading system that’s letting you down.
Emotions are something that every trader has to work through, and your trading success is hugely dependent on your mental strategies for coping with emotions waxing and waning through your daily activities of day-trading.
The better your ability to handle emotions of fear and greed, the better you will become as a trader. The hardest part of your journey towards becoming a successful trader lies in your ability to stay detached from your emotions to view the markets with unbiased eyes.
Having a solid, robust trading system helps tremendously in giving you confidence to pull the trigger. The emotional aspect of trading, however, is something you will have to learn to cope with. Otherwise you will never become a consistently successful and profitable trader.
Overall, I’m starting to settle in a bit more into the 5EMAs Forex Trading System. Quite a number of trades I took this week were from the Advanced Module, so if you have the budget I recommend you purchase the complete course versus just the Standard module.