This is my third week of day-trading the 5EMAs Forex Trading System. The result at the close of this week is a -7.08% on the account.

A Review of My Day Trading This Week

After going through a review of the trades that I took this week, I noticed a couple of signs in terms of implementing my day-trading routine.

• In the first week, I took a total of 4 trades for +5.13%.
• In the second week, I took 6 trades for +4.47%.
• In the third week, I took 10 trades for -7.08%.

Notice any disturbing trends?
Reviewing Your Trading Activities and Results

While it’s too soon to tell, here are some of the things that I picked up from reviewing my trading results as well as my trading journal.

As a successful trader, you should always keep track of your results, comments on individual trades, as well as a trading journal to record almost any or everything that could affect your performance as a trader.

This helps tremendously in noticing things that may be creeping up on you so slowly, you don’t even notice them. In the hustle and bustle of daily activities, it’s harder to notice little things that you do, and that happens around you, which affect your performance as a day-trader.

I naturally prefer longer term trades which require less time watching the markets. Looking at charts that constantly move up and down can be quite “hypnotic” and cause the conscious mind to blank out, if one isn’t careful.

Some Things I Picked Up From My Trading Review

These are some pointers that I picked up from my review of day-trading activities. You might find them helpful if you’re day-trading, or considering to day-trade the forex markets.

Over-Trading as a Forex Day-Trader

The fewer trades I take, the higher the returns. Or, the more trades I took, the worse my results. This points to me that I might be over-trading.

I noted that after the first week, I started getting a little less stringent on my trades. It could also be due to getting a little over-confident about my ability to implement a forex day-trading system, as well as the fun from hitting winning trades.

If I Had Been Following My Day-Trading Rules

The 5EMAs Forex Trading System is a semi-mechanical system, which means that you still have to give trades the once-over and decide whether or not to take the trade. The rules are clear and simple enough, but as you know, the real world is hardly ever “perfect”.

I learnt a lot about day-trading the forex markets this week with the 5EMAs Forex Trading System. I enjoy discretionary trading because it allows me to hone my observation and trading skills, as well as giving me the satisfaction that I’m able to do something that so many others find so difficult.

If I had followed my day-trading rules and my observations, I would have ended up with the following results instead:

Out of the 10 trades I took this week,

• 5 were good and
• 5 were bad.

The Good Trades

Out of the 5 decent trades, 3 were winners and 2 were losers. The end result of just taking these 5 good trades would have been -$180.54.

This is significantly lower than the -$714.93 that the account went through this week. It’s still negative, but it would only then have been a -1.64% dip (from $10,983.56 to $10,803.02) instead of -7.08% (from $10,983.56 to $10,206.23) on the account.

The Bad Trades

Out of the 5 bad trades, 1 was a winner and 4 were losers. The result from these 5 bad trades were -$597.25, which contributed greatly to the loss in the account.

Even though 1 of the trades was a winner, I’d still consider that a bad trade. This is something that the market does in terms of random reinforcement. Random reinforcement refers to that fact that sometimes, even though you didn’t follow your rules, you still make money.

This causes traders to loosen up on their trading discipline, and makes the 4 losing trades much easier to come through the trading rules filter. And as a result, it makes trading success so much more difficult over the longer term!

Forex Day Trading Summary For This Week

I started out my day trading adventures with the following outline that can be found here:

My Trading Results With The 5EMAs Forex Trading System

Over the past week, I’ve started to add in the Advanced 5EMAs Forex Trading System trade set-ups into my forex day trades. This could account partially for the dip in results as I’m testing out new trade set-ups in changing market conditions.

I’m also adjusting to looking at the forex markets for longer periods of time (one of the perils of trading the 24 hour forex markets). I suppose that’s one of the advantages of trading automatic execution forex trading systems.

Still, it’s no excuse for going lax on my trading rules and activities!