Trade opened on Monday, 15 September 2008 at 2 mini lots. Achieved target 50 pips, profit $100.
New account balance: $4067.
Profit: $287.
Thursday, September 18, 2008
Thursday, September 4, 2008
2 Sep 2008
Trade opened on 2 Sep 2008
Buy 30000 GBP/USD @1.7788
Profit: $159. Will not trade for the remainder of the neek. Will start fresh on Monday.
Buy 30000 GBP/USD @1.7788
Profit: $159. Will not trade for the remainder of the neek. Will start fresh on Monday.
Wednesday, August 27, 2008
27 Aug 2008
Today's trade, set up to buy at 1.8460, 2 mini lots, stoploss 25 pips, take profit 56 pips.
Update: Stopped out, -25 pips.
Target for next trade: 160 pips.
Tuesday, August 26, 2008
26 Aug 2008
Breakeven trade yesterday. Sell trade was opened at 1.8363, moved 33 pips before retracing.
Account: $3881.40
Account: $3881.40
Monday, August 25, 2008
22 Aug 2008
Trade already setup and triggered. 2 minilots sell, and 1 extra lot for trailing, total 3 mini lots open. 2 minilots set to TP at 50 pips.
Update: SL hit. Account $3809.40
Update: SL hit. Account $3809.40
21 Aug 2008
Trade was stopped out last evening. I put in 2 mini lots, therefore loss was $50 (25 pip stop loss). Next trade would be set up at 2 mini lots at 50 pip TP.
Update: SL hit, Account $3892.40
Update: SL hit, Account $3892.40
Wednesday, August 20, 2008
20 Aug 2008
Here's the setup for today. The past two days no trades were triggered. Today is Wednesday, but still considered the first attempt.
Update: Price moved +42 pips in my way and retraces to hit stop loss at break even. No loss. Cable has been in a two day strong channel. Am considering buying an extra lot today if criterias are met, 1 lot to follow the usual method, and another 1 to trail at 40 pips (this would be set after it has moved 50 pips, guaranteeing a 10 pip gain).
Update: Price moved +42 pips in my way and retraces to hit stop loss at break even. No loss. Cable has been in a two day strong channel. Am considering buying an extra lot today if criterias are met, 1 lot to follow the usual method, and another 1 to trail at 40 pips (this would be set after it has moved 50 pips, guaranteeing a 10 pip gain).
Wednesday, August 13, 2008
13 August 2008
Monday, August 11, 2008
Wednesday, August 6, 2008
06 August 2008
Was a successful attempt. 50 pips made quite late at night about 11.30 pm.
Balance now: $3886.41
Tuesday, August 5, 2008
Long setup
Have set up my trade to enter short if price reaches 1.9519, as usual stop loss at 25 pips, target at 50 pips. Since yesterday's trade was breakeven, I'm starting back at 1 mini-lot.
Will set up long trades if price approaches the upper side of the channel.
5 August 2008
Have set up my trade to enter short if price reaches 1.9519, as usual stop loss at 25 pips, target at 50 pips. Since yesterday's trade was breakeven, I'm starting back at 1 mini-lot.
Will set up long trades if price approaches the upper side of the channel.
Monday, August 4, 2008
Post
My post as in Forex Factory
Starting at 12 PM might be a bit to early to look at the charts, unless you set rather a big stop loss. Even so, momentum will pick up at 2, and you might not necessarily be on the right side of the trade.
When I setup only past 4.30 pm, I might miss out some good moves between 2-4 pm, sometimes it might be the only good move of the day. But reversal is quite often here, so I'd rather let the market iron itself out then do the breakout system.
As for me canceling trades at 7.50 pm (have adjusted this to 8.20 pm), this is something I'm still looking on fine-tuning, but so far, I think I'd rather stay out of the market when 8.30 pm approaches. Spikes most likely will happen, so if the trades get triggered by this spike it would be a loss. So I might be missing moves here once again, but there's too much uncertainty here for me to want to be in.
As for the MM, I attached an excel file here to help me stay on track. It shows how much a 50 pip gain would affect the account every week. Considering I compound my gains, with a $3500, in about 2 years, it'll be close to $20,000. That is there is absolutely no deviation from the plan, strict 50 pips per week.
Not really phenomenal but some other systems' standards, but if only I have $30,000 to start with today, in 2 years, if I make only 50 pips each time (sometimes on a bad stretch, it might take 2 weeks to achieve the 50 pips), this 30k turns into $215k.
Now, before anyone jeers at this again, I'm not trying to project my future gains, but merely calculating what the account would become if I were to achieve my target each week.
Starting at 12 PM might be a bit to early to look at the charts, unless you set rather a big stop loss. Even so, momentum will pick up at 2, and you might not necessarily be on the right side of the trade.
When I setup only past 4.30 pm, I might miss out some good moves between 2-4 pm, sometimes it might be the only good move of the day. But reversal is quite often here, so I'd rather let the market iron itself out then do the breakout system.
As for me canceling trades at 7.50 pm (have adjusted this to 8.20 pm), this is something I'm still looking on fine-tuning, but so far, I think I'd rather stay out of the market when 8.30 pm approaches. Spikes most likely will happen, so if the trades get triggered by this spike it would be a loss. So I might be missing moves here once again, but there's too much uncertainty here for me to want to be in.
As for the MM, I attached an excel file here to help me stay on track. It shows how much a 50 pip gain would affect the account every week. Considering I compound my gains, with a $3500, in about 2 years, it'll be close to $20,000. That is there is absolutely no deviation from the plan, strict 50 pips per week.
Not really phenomenal but some other systems' standards, but if only I have $30,000 to start with today, in 2 years, if I make only 50 pips each time (sometimes on a bad stretch, it might take 2 weeks to achieve the 50 pips), this 30k turns into $215k.
Now, before anyone jeers at this again, I'm not trying to project my future gains, but merely calculating what the account would become if I were to achieve my target each week.
To BobCat
My post as in Forex Factory.
Setting pending trades is exactly how I do it at the moment. With my broker, GFT, the platform is Dealbook, I set up both the long and short at the same time. It's a parent & contingences order...Parent being the Long Stop order which is only opened when the price is hit, then only will the stop loss and take profit order gets activated.
Vice versa for short entry.
So for short, to wait an entry, I'll have 6 orders set up. 3 for long, 3 for short.
Setting pending trades is exactly how I do it at the moment. With my broker, GFT, the platform is Dealbook, I set up both the long and short at the same time. It's a parent & contingences order...Parent being the Long Stop order which is only opened when the price is hit, then only will the stop loss and take profit order gets activated.
Vice versa for short entry.
So for short, to wait an entry, I'll have 6 orders set up. 3 for long, 3 for short.
150-200 pip/month without technical indicators.
My post as in Forex Factory.
RSI, stochs, MACD and all these indicators might work well for many, but I feel uncomfortable with them. I like something simple. I'm using something that has been working well, without any indicators, just strict money management.
All I need is to make 50 pips every week. With this system, if you look back at the charts, it's been achieved almost every week. There was about 4 or 5 times when it wasn't achieved in one week, but took 2 weeks, but still in the end the 50 pips was achieved. This is where strong MM discipline comes in to save the day.
*Time stated here will be in GMT+8.
I'll open the GBP/USD chart at 4.35 pm. I trade the breakout of the channel from 8 am - 4.35 pm. Usually I set up the trade at 3 pips away from the high/low. Stoploss 25 pips, target 50 pips.
If no trades are opened at 8.30 pm, I cancel all trades. Wait for proper set up the next day.
If I get stopped out, I do not re-enter the same day. I wait for a chance the next day, between 4.35 pm to 7.50 pm. I increase the lot size just enough to recover my loss the previous day. Some would freak out at this point because it's sort of a martingale strategy. Firstly, I'm not doubling up my lots, but 1.5 times. Because my stop loss is 25 pips, it's half of my target. If I lose, I need to make 1.5 times the next time to recover my loss and achieve my target. But this is not entirely the case all the time. I do have a table drawn out on how many lots I would buy on the first, second, third try etc, and how many pips I would set as target. I will gradually increase the target size so that I could keep the lot size low.
It needs to be a balance of manageable lot size, and achievable pip target. I would like to achieve my target in as little tries as possible, so keeping the pip target more achievable is very important to me.
Because of this semi-martingale strategy, I start off with trading 1% of my account. This leaves plenty of room for me to trade safely.
After I achieve my 50 pips for the week, I stop. No matter what.
This strategy might not promise as much pips as some other strategies, but for me this is simple enough to keep me happy. Indicators and such give me a headache, maybe because I can't understand it or it just seems like noise to me. Even very good indicators needs to be used with good money management, otherwise someone could just as easily blow their account.
So, what's the potential of this strategy? Let's say we start with a small account size. $3500.
In 52 weeks, or shall I say 52 successful attempts (some attempts take 2 weeks, but that happens only a few times a year), you will be making $188 dollars per week, that is $752 dollars per month.
Of course if you could start of with a larger account, all the better.
So here's how it looks like: Starting capital; How much you would be making in 52 weeks
$3500 ; $752 monthly
$10,000 ; $2152 monthly
$15,000 ; $3228 monthly
$20,000 ; $4304 monthly
$30,000 ; $6460 monthly
I don't know about you, but this is more than enough for me to live comfortably. I very much prefer having a stress-free strategy, than to live on fear and greed for the promise of a much larger return, which is not guaranteed. The numbers stated above, I can safely say if I keep my head level, stick to my system and MM, is guaranteed. Holy grail? No, wouldn't call it that yet. But am pretty damn close. See what goes!
RSI, stochs, MACD and all these indicators might work well for many, but I feel uncomfortable with them. I like something simple. I'm using something that has been working well, without any indicators, just strict money management.
All I need is to make 50 pips every week. With this system, if you look back at the charts, it's been achieved almost every week. There was about 4 or 5 times when it wasn't achieved in one week, but took 2 weeks, but still in the end the 50 pips was achieved. This is where strong MM discipline comes in to save the day.
*Time stated here will be in GMT+8.
I'll open the GBP/USD chart at 4.35 pm. I trade the breakout of the channel from 8 am - 4.35 pm. Usually I set up the trade at 3 pips away from the high/low. Stoploss 25 pips, target 50 pips.
If no trades are opened at 8.30 pm, I cancel all trades. Wait for proper set up the next day.
If I get stopped out, I do not re-enter the same day. I wait for a chance the next day, between 4.35 pm to 7.50 pm. I increase the lot size just enough to recover my loss the previous day. Some would freak out at this point because it's sort of a martingale strategy. Firstly, I'm not doubling up my lots, but 1.5 times. Because my stop loss is 25 pips, it's half of my target. If I lose, I need to make 1.5 times the next time to recover my loss and achieve my target. But this is not entirely the case all the time. I do have a table drawn out on how many lots I would buy on the first, second, third try etc, and how many pips I would set as target. I will gradually increase the target size so that I could keep the lot size low.
It needs to be a balance of manageable lot size, and achievable pip target. I would like to achieve my target in as little tries as possible, so keeping the pip target more achievable is very important to me.
Because of this semi-martingale strategy, I start off with trading 1% of my account. This leaves plenty of room for me to trade safely.
After I achieve my 50 pips for the week, I stop. No matter what.
This strategy might not promise as much pips as some other strategies, but for me this is simple enough to keep me happy. Indicators and such give me a headache, maybe because I can't understand it or it just seems like noise to me. Even very good indicators needs to be used with good money management, otherwise someone could just as easily blow their account.
So, what's the potential of this strategy? Let's say we start with a small account size. $3500.
In 52 weeks, or shall I say 52 successful attempts (some attempts take 2 weeks, but that happens only a few times a year), you will be making $188 dollars per week, that is $752 dollars per month.
Of course if you could start of with a larger account, all the better.
So here's how it looks like: Starting capital; How much you would be making in 52 weeks
$3500 ; $752 monthly
$10,000 ; $2152 monthly
$15,000 ; $3228 monthly
$20,000 ; $4304 monthly
$30,000 ; $6460 monthly
I don't know about you, but this is more than enough for me to live comfortably. I very much prefer having a stress-free strategy, than to live on fear and greed for the promise of a much larger return, which is not guaranteed. The numbers stated above, I can safely say if I keep my head level, stick to my system and MM, is guaranteed. Holy grail? No, wouldn't call it that yet. But am pretty damn close. See what goes!
4 August 2008 GBP USD
Have entered short at about 5.40 pm. Almost reaching the point to breakeven, which is 33 pips.
Thursday, July 31, 2008
GBP/USD 31 July 2008
Set up the trade after 4.35 pm, buy filled, but at 8.30 pm. Was supposed to cancel unopened trades at 7.50pm according to the system, but I didn't because I was away. Need to study the charts if 7.50 pm is too early to quit trade, since my 50 pips were made at 8.30 pm.
Starting account balance: $3781.40
Today account balance: $3836.40
Total: +55 pips
Target achieved for the week.
Wednesday, July 30, 2008
30 July 2008 GBP/USD
Since Tuesday's trade was a break even trade, I'll consider this trade the 1st attempt. Going for 1 minilot.
Update: Buy trade filled, came back to hit stop loss. 25 pips loss.
Account: $3756.41
Tuesday, July 29, 2008
GBP/USD 29 July 2008
GBP/USD set up to enter long at 1.9970, or short at 1.9917. Target 50 pips, stop loss 25 pips.
Cancel trades if unopened at 7.50 pm (GMT+8)
Update: Broke even at 33 pips, came back to hit stop right on the dot, before moving on to hit initial target. 1 pip gain.
Account: $3781.41
Monday, July 28, 2008
Loss avoided
It's a good thing I made it a rule to cancel all unopened trades after 7.50 pm, otherwise I would have lost yesterday's trade. At 7.50 pm I closed both the trades I set up. In case of break of the lower channel, I've set the entry, stoploss and target. Same goes for long.The break finally happens at about 9.15 pm, but it dips about 36 pips before heading back up to hit the target. It's a rule for me not to re-enter after I'm stopped out the first day. It makes things too stressful for me.
Never think of pips you didn't get to make, think about the pips you saved. Defensive trading is crucial to survive in forex, that is trying to keep your capital.
Let's see what's in store for us later today at 4.35 pm. (GMT+8)
I have set up my trades for the day. Enter long GBP/USD if reaches 1.9915, enter short if reaches 1.9836. Both stop loss 25 pips, target 50 pips. Breakeven at 35 pips. Cancel trades if not opened after 7.50 pm. (GMT+8).1 mini-lot, so I stand to make $50 today, or lose $25 dollars.
Account balance: $3780.41
Saturday, July 26, 2008
Back Online
I've taken a long break to refine my strategy. The strategy I use is still the same with some fine-tuning, what I've worked on lately is the Money Management. I've been trading the idea on demo for a couple of months, of course have studied the charts for more than a years worth.
It's been playing out well week after week on the demo account. Now I've ready to go back on live, have just replenished the account with $3700. Although might be deemed little and unsafe by some, but that's about as large as I can go as a beginner. That's why I have to be extremely careful and disciplined, and to stick to my plan no matter what. I've learned well from my first try on the live account and I believe I've picked up very valuable lessons which makes me more confident this time around.
Now briefly about my strategy. I'm using a sort of Asian breakout method. I'll check GBP/USD at exactly 4:35 pm (it's GMT+8 here, so it's 8.30 am London time). I do not check it a minute earlier because I've realised I sometimes get burnt when I'm too impatient. Takes willpower not to open the charts because you might know there might be good action after 2 pm but very often there might be spikes or reversals after 4.35 pm.
What's my target? 50 pips. Each week. Nothing more. With cable, 50 pips is very doable. I start checking on Monday, if I achieve my target, I stop trading. Many a times it is achieve on the first try, the trade is open maybe around 5, by 5.30 pm or 6 pm 50 pips is achieved. Then I take the rest of the week off. There were times I tried to go back in during the week, more often than not, I lose what I've just made on Monday.
If I fail the first time, I try again on Tuesday. If there's no breakout of the channel (8 am - 4.30 pm) I do not trade. I'm likely to meet my target either on Monday, Tuesday, or Wednesday.
But of course, everyone needs to be prepared for a bad week. I start with 1% of my account on the first trade. My money management is semi-Martingale, although I'm aware of how a lot of people are against Martingaling. I call it semi-Martingale because I don't double up when I lose, but add the mini-lots just enough to recover the loss and make the 50 pips. Because my stop loss is 25 pips, the general rule is trade 1.5 times bigger than the previous trade.
The way to recover my loss is to either increase my target size, or my lot size. I figure it's easier to achieve 50 pips, than to achieve 75 pips. Therefore I'm more comfortable to use this semi-Martingale method knowing that I need to achieve the same 50 pips, not 75 pips, and then 100 pips and so on if my trades keep going the wrong way.
Oh well, just walk with me on this journey. Along the way I'll post more details on my money management, and how I manage my risk. Here goes.
It's been playing out well week after week on the demo account. Now I've ready to go back on live, have just replenished the account with $3700. Although might be deemed little and unsafe by some, but that's about as large as I can go as a beginner. That's why I have to be extremely careful and disciplined, and to stick to my plan no matter what. I've learned well from my first try on the live account and I believe I've picked up very valuable lessons which makes me more confident this time around.
Now briefly about my strategy. I'm using a sort of Asian breakout method. I'll check GBP/USD at exactly 4:35 pm (it's GMT+8 here, so it's 8.30 am London time). I do not check it a minute earlier because I've realised I sometimes get burnt when I'm too impatient. Takes willpower not to open the charts because you might know there might be good action after 2 pm but very often there might be spikes or reversals after 4.35 pm.
What's my target? 50 pips. Each week. Nothing more. With cable, 50 pips is very doable. I start checking on Monday, if I achieve my target, I stop trading. Many a times it is achieve on the first try, the trade is open maybe around 5, by 5.30 pm or 6 pm 50 pips is achieved. Then I take the rest of the week off. There were times I tried to go back in during the week, more often than not, I lose what I've just made on Monday.
If I fail the first time, I try again on Tuesday. If there's no breakout of the channel (8 am - 4.30 pm) I do not trade. I'm likely to meet my target either on Monday, Tuesday, or Wednesday.
But of course, everyone needs to be prepared for a bad week. I start with 1% of my account on the first trade. My money management is semi-Martingale, although I'm aware of how a lot of people are against Martingaling. I call it semi-Martingale because I don't double up when I lose, but add the mini-lots just enough to recover the loss and make the 50 pips. Because my stop loss is 25 pips, the general rule is trade 1.5 times bigger than the previous trade.
The way to recover my loss is to either increase my target size, or my lot size. I figure it's easier to achieve 50 pips, than to achieve 75 pips. Therefore I'm more comfortable to use this semi-Martingale method knowing that I need to achieve the same 50 pips, not 75 pips, and then 100 pips and so on if my trades keep going the wrong way.
Oh well, just walk with me on this journey. Along the way I'll post more details on my money management, and how I manage my risk. Here goes.
Thursday, February 7, 2008
EUR/USD 7 Feb 2008
Sell EUR/USD 1.4594 SL 1.4608 TP 1.4574
Current Balance: $276.87
Have prepared myself according to self-mental training at http://forexhypnotize.googlepages.com
Edit:
-29 pips
$247.87
Current Balance: $276.87
Have prepared myself according to self-mental training at http://forexhypnotize.googlepages.com
Edit:
-29 pips
$247.87
Wednesday, February 6, 2008
Forex Hypnotize
This is very helpful to keep myself in check when I'm a trading. If I'm about to do something stupid or rash while I'm trading, I make sure I watch this clip, then my mind is clear again.
Forex Hypnotize
Forex Hypnotize
Tuesday, February 5, 2008
EUR/USD 6 Feb 2008
Sell EUR/USD 1.4631 SL 1.4583 TP Not determined yet, will breakeven after 20 pips.
Balance $290.87
Edit:
-14 pips
New Balance $276.87
Lesson to learn. Would have taken profit if I set TP at 20 pips. Was greedy.
Balance $290.87
Edit:
-14 pips
New Balance $276.87
Lesson to learn. Would have taken profit if I set TP at 20 pips. Was greedy.
Why Do You Want to Trade Forex?
Why do you want to trade forex? It's a mean beast of a market, that can kill you with one swipe of its giant paws. What makes you want to suffer sleepless nights just to come out the other side as a successful trader? I'll tell you my reason. You can add to the list by leaving a comment, I'll then include it in the post.
1. I want to have financial freedom while I'm still young. There are so much more things I can do if I'm rich and 30, compared to if I'm rich and 65.
2. I want to give my parents a good life at their old ages. Bring them places they've never been able to go, give them things they've never been able to buy.
3. If I'm not financially free, I doubt I'll have kids. I see tonnes of people who are miserably burdened by having to pay so much for their kids, but they are stuck in a 9-5 job with no way out. I want to be able to provide for them, happily.
What's your reason?
1. I want to have financial freedom while I'm still young. There are so much more things I can do if I'm rich and 30, compared to if I'm rich and 65.
2. I want to give my parents a good life at their old ages. Bring them places they've never been able to go, give them things they've never been able to buy.
3. If I'm not financially free, I doubt I'll have kids. I see tonnes of people who are miserably burdened by having to pay so much for their kids, but they are stuck in a 9-5 job with no way out. I want to be able to provide for them, happily.
What's your reason?
Monday, February 4, 2008
EUR/USD Trade
05 Feb 2008
EUR/USD Sell 1.4804 SL 1.4816 TP 1.4782
Starting Balance: $229.87
Edit:
Caught the trade, removed TP at 1.4782, trailing it by 15 pips now.
Edit:
+79 pips
Starting balance $229.87
Current balance $307.87
EUR/USD Sell 1.4804 SL 1.4816 TP 1.4782
Starting Balance: $229.87
Edit:
Caught the trade, removed TP at 1.4782, trailing it by 15 pips now.
Edit:
+79 pips
Starting balance $229.87
Current balance $307.87
How to tell if your broker hunts stops
Here's an email I received from a signal provider.
Open a real or demo account at Dukascopy http://www.dukascopy.com/
and watch their price feed at the same time you watch the price
feed at your broker, or multiple brokers. At one point I used
to watch 6-7 different price feeds at one time but now only 2-3.
At news time you will see the manipulation the most. The other
brokers will widen spreads, even brokers like FXCM who say they
are now a pass through broker but is not. Unlike a true pass
through broker like Dukascopy won't have their spreads get wide
at news time, it will just be fill or
kill with your order if you try to spike news trade.
WARNING: Most brokers do not hunt stops on demo accounts, so you
must keep watching your live account, but you can compare it
to Dukascopy's demo account becuase they have never hunted my stop.
And no I am not an IB for Dukascopy.
Now here is the interesting point, watch price on all the brokers
as it hits major support and resistance levels and a very
high percentage of time you will see "price" spike on the bad
brokers. That means they are hunting your stops. You will be
shocked how often you will see it, even 5 pips off to me is
not excusable and it should not be to you also. They do
this because they are trading against you and make money every
time you lose. Please don't email me a lot of questions because
I really don't have time to explain it more, just watch lots of
broker's price feeds and you will learn. I already have heat
from many brokers on my bad list and telling the truth now will make
it worse but I am not afraid. I really want to help all you new
traders that did not know what I just explained.
Thanks,
Cindy
http://www.topforexreview.com
Open a real or demo account at Dukascopy http://www.dukascopy.com/
and watch their price feed at the same time you watch the price
feed at your broker, or multiple brokers. At one point I used
to watch 6-7 different price feeds at one time but now only 2-3.
At news time you will see the manipulation the most. The other
brokers will widen spreads, even brokers like FXCM who say they
are now a pass through broker but is not. Unlike a true pass
through broker like Dukascopy won't have their spreads get wide
at news time, it will just be fill or
kill with your order if you try to spike news trade.
WARNING: Most brokers do not hunt stops on demo accounts, so you
must keep watching your live account, but you can compare it
to Dukascopy's demo account becuase they have never hunted my stop.
And no I am not an IB for Dukascopy.
Now here is the interesting point, watch price on all the brokers
as it hits major support and resistance levels and a very
high percentage of time you will see "price" spike on the bad
brokers. That means they are hunting your stops. You will be
shocked how often you will see it, even 5 pips off to me is
not excusable and it should not be to you also. They do
this because they are trading against you and make money every
time you lose. Please don't email me a lot of questions because
I really don't have time to explain it more, just watch lots of
broker's price feeds and you will learn. I already have heat
from many brokers on my bad list and telling the truth now will make
it worse but I am not afraid. I really want to help all you new
traders that did not know what I just explained.
Thanks,
Cindy
http://www.topforexreview.com
Things to know about forex
A Guide to Forex Trading & Investing
Market knowledge and ability to understand analysis will only get you so far in Forex trading, but without the nerve to actively compete risking your own money in the process you can never become a successful trader.
Wagering huge volumes of money in a market as susceptible to change is liable to cause a whole range of opposing emotions; fear, excitement and anxiety just to name a few. Battling against your emotions in order to complete a successful deal is one of the major hurdles, which must be overcome if you are to become a trader able to close huge deals and earn vast sums of money. If you can overcome or even use these emotions to make trades on the Forex then a successful career may be beckoning, but failure to do so will almost certainly cost you a substantial amount of money and end any lingering desires to progress in the busy world of exchange rate trading.
Initiating and closing a trade at the right times are the backbone of becoming a successful Forex trader. If a person cannot execute these deals at the right times, the psychological and financial damage can be crippling. Missing a huge trend or sitting too long on a good price, can be a demoralising experience, but one that many will encounter during a career in Forex trading.
Entering at the right time is just one thing that must be done correctly, but if you are unable to leave at the right time or hold your nerve during the course of the trade, the implications are potentially severe. For example accepting a small loss just before the market rises can lead to a horrendous huge profit/loss ratio margin. Similarly sitting on a currency price that is plummeting for too long could be financially crippling. Understanding the Forex market and having faith in your ability to judge a trend will pay dividends if you hold your nerve, backing out at the wrong time can prove to be a catastrophic misnomer.
The fear generated by investing your own personal money is the main thing that must be overcome. It is the culprit in so many failure stories, people who just couldn't overcome their anxiety investing unwisely, pulling out at the wrong time, missing a rise completely, all result in failure and are caused by fear. Accepting this fear, and using it to your potential will make you a stronger trader, able to trade freely and enjoy the thrill of the exchange. Fighting it will get you nowhere, understanding and overcoming it are the best remedies to this baseless emotion.
Trading strategies will help you ride out the rough times and capitalize on the good ones. Sometimes just taking a step back and accepting a few losses will give you the energy and the knowledge to attack the Forex with renewed vigour, and make some serious profits. Accepting that sometimes you will lose out, you need to be able to take the hits and roll with a punch, there are no guarantees in the trading market, so being able to move on and start again is a skill that is paramount to generating success.
Analysis and charts can only get you so far. You must first master these things, and be able to correctly interpret the figures that are represented in order to spot the trends and make your move. But this all means nothing if you don't have the courage of your convictions. If you are too afraid to buy and not sure when to sell then a glittering career in market trading is likely to elude you. 'The trend is your friend' but it means nothing if you firstly can't spot it and secondly don't have the courage to back it. Knowledge, strategies and overcoming fear may well be the 3 best ways to become to unlock the door to becoming a successful trader. Without all 3 you will more often than not become unstuck, so prepare, practice and evaluate everything before taking the plunge in the complicated world of Forex trading.
Author Info
Michael J Campbell is the Webmaster for Forex Fusion, a Free Online Forex Trading Information & Resource website. Forex Fusion also features a great article on Forex Trading Systems
Article Source: Article Hub.net
Are you the only one losing in Forex?
Have you ever felt like you are the only one losing in the forex market? Everywhere I see, people giving out free forex signals, free forex strategies, and people replying how incredible the strategy/signal was and how many pips it made them. But when I start following the strategy/signal, it goes on a losing streak. Simply frustrating!
For a long while I thought there must be someone up the forex hierarchy watching my trading moves and making sure I lose my trades. Nothing seems to be going my way. Even when do I make a win, I'll be thrilled for about half a day, and then I have to lose it right back, and more.
Was the whole world conspiring against me? Why can't I be one of those that get to thank someone online for that wonderful strategy that has been constantly giving my pips day in and day out? Was there some kind of secret society I wasn't a part of?
It was affecting my self esteem. It felt like a personal attack, a personal failure. I know the expert advise is to not let your trades affect you emotionally, but it's hard to do so when you feel you're ALWAYS getting on the wrong side of the trade.
That was a rough patch I had to go through. I'd like to think I've survived it now. I've managed to keep my account afloat after 6 months of live trading, after coming very, very close to the bottom of my account.
When your mind starts being positive, positive things start happening. That's why I believe new traders should have small achievable targets. When you have many small wins and some small losses, rather than some big wins and many large losses, you tend to be more confident with yourself, and your trading. That realization alone, is the biggest factor, for how I've rescued my account from margin-call, from just a few dollars left.
For a long while I thought there must be someone up the forex hierarchy watching my trading moves and making sure I lose my trades. Nothing seems to be going my way. Even when do I make a win, I'll be thrilled for about half a day, and then I have to lose it right back, and more.
Was the whole world conspiring against me? Why can't I be one of those that get to thank someone online for that wonderful strategy that has been constantly giving my pips day in and day out? Was there some kind of secret society I wasn't a part of?
It was affecting my self esteem. It felt like a personal attack, a personal failure. I know the expert advise is to not let your trades affect you emotionally, but it's hard to do so when you feel you're ALWAYS getting on the wrong side of the trade.
That was a rough patch I had to go through. I'd like to think I've survived it now. I've managed to keep my account afloat after 6 months of live trading, after coming very, very close to the bottom of my account.
When your mind starts being positive, positive things start happening. That's why I believe new traders should have small achievable targets. When you have many small wins and some small losses, rather than some big wins and many large losses, you tend to be more confident with yourself, and your trading. That realization alone, is the biggest factor, for how I've rescued my account from margin-call, from just a few dollars left.
My mistakes in Forex
They say a wise man learns from his mistakes. A wiser man learns from other people's mistakes. So what have I learnt in these few months of trading? I've learnt a few golden rules.
1. Patience. After losses after losses, you get patience pounded and drilled into your head. Until one day, you no longer feel that you've lost out if you didn't catch that big move.
2. Don't be greedy. It's so much easier trying to achieve a small target than a large one, e.g. taking profit at 20 pips rather than 150 pips. It is doable of course, to achieve large targets, different strategies call for different take profit points. But as a beginner, I feel it's much better to try to catch a small chunk each time. Firstly, even if it's a small chunk out of a big move, it's fine. Some people might have even lost on that same move by being rash. Secondly, if it was a reversal, you've already took profit. You've won while others lost. Thirdly, even when you do lose, it was a small stop-loss.
If you've seen 'The Secret', you would understand the Law of Attraction. They say good thoughts attracts good things, negative thoughts attract negative things. Even if you are constantly thinking about not letting something negative happen, that's exactly what will happen! Because you are thinking about it, you are therefore attracting it. It doesn't matter if you're thinking about something you want or do not want.
So with small targets to achieve, the win-loss ratio will definitely be better than when you try to achieve big targets. You feel good about yourself having so many wins and little small losses. You feel confident when you are trading, and are no longer concerned when a loss happens. You don't think about the losses, you are happy and thankful for the wins. Guess what, that's what you attract. Wins!
1. Patience. After losses after losses, you get patience pounded and drilled into your head. Until one day, you no longer feel that you've lost out if you didn't catch that big move.
2. Don't be greedy. It's so much easier trying to achieve a small target than a large one, e.g. taking profit at 20 pips rather than 150 pips. It is doable of course, to achieve large targets, different strategies call for different take profit points. But as a beginner, I feel it's much better to try to catch a small chunk each time. Firstly, even if it's a small chunk out of a big move, it's fine. Some people might have even lost on that same move by being rash. Secondly, if it was a reversal, you've already took profit. You've won while others lost. Thirdly, even when you do lose, it was a small stop-loss.
If you've seen 'The Secret', you would understand the Law of Attraction. They say good thoughts attracts good things, negative thoughts attract negative things. Even if you are constantly thinking about not letting something negative happen, that's exactly what will happen! Because you are thinking about it, you are therefore attracting it. It doesn't matter if you're thinking about something you want or do not want.
So with small targets to achieve, the win-loss ratio will definitely be better than when you try to achieve big targets. You feel good about yourself having so many wins and little small losses. You feel confident when you are trading, and are no longer concerned when a loss happens. You don't think about the losses, you are happy and thankful for the wins. Guess what, that's what you attract. Wins!
Sunday, February 3, 2008
Rocky Trading Experience
It's been a tough few months. When I first started trading live, the most unfortunate thing happened. I made a big win. Why is that a bad thing? Because I spent the next few months trying to get the same kind of success on the first day, and my judgement was clouded. I just kept losing.
From then on, it went downhill. People say demo is nothing like trading live. It is terribly true. No matter how strong and disciplined you think you are, there will be times you will fall into a newbie trader trap. I've learnt the forex market is fierce and unrelentful. It is out to weed out the weaklings, it is an arena where only the strongest survive
I've gone from trading GBP/USD, to GBP/JPY, back to GBP/USD, now to EUR/USD and tried numerous forex strategies and forex signals.
I've been way, way to close to blowing my account. I'm talking a few dollars away. But Someone was watching over me I suppose, the trade then went my way.
It's been 6 months now. My account is still alive. And I've finally found my footing. No more slipping down uncontrollably.
As a way to control and monitor my trading, I'm creating this trading journal and will post my trades here. This is to maintain my trading discipline.
Happy trading! If you are new too, I hope you find your way soon.
From then on, it went downhill. People say demo is nothing like trading live. It is terribly true. No matter how strong and disciplined you think you are, there will be times you will fall into a newbie trader trap. I've learnt the forex market is fierce and unrelentful. It is out to weed out the weaklings, it is an arena where only the strongest survive
I've gone from trading GBP/USD, to GBP/JPY, back to GBP/USD, now to EUR/USD and tried numerous forex strategies and forex signals.
I've been way, way to close to blowing my account. I'm talking a few dollars away. But Someone was watching over me I suppose, the trade then went my way.
It's been 6 months now. My account is still alive. And I've finally found my footing. No more slipping down uncontrollably.
As a way to control and monitor my trading, I'm creating this trading journal and will post my trades here. This is to maintain my trading discipline.
Happy trading! If you are new too, I hope you find your way soon.
Thursday, January 17, 2008
SLK Forex Journey
I have tried so many strategies for forex, different setups, different indicators. And I've come to realise that, simplicity is the best. I really don't need that many headaches. So here I am, trying my level best to salvage my mini account. I'm really that close to blowing the account, but I believe in hope and faith. Wish me luck!
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