4th Week July Trading Results 02

Open Positions : 3
Closed Positions : 3
Total Pips Earned : -157.30
Total Profit Earn : -157.30

A lesson that need to be learned here...was able to close at about 50-48 pips earlier, but I decided to hang on till it got the better of me...I could have hang on..but afraid it will trigger a margin call, hence was forced to exit...live to fight another day...





"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough"

Forex system - 3 white soldiers / 3 black crows

Forex system - 3 white soldiers / 3 black crows

Very Simple system - simply look for 1 of 2 candle formations at or near the bollinger band (in this case the default 20)

You are looking for either 3 consecutive bulish candles for a buy, 3 consecutive bearish candles for a sell - that's it!!! - 3 white soldiers / 3 black crows formations

Things to note. On the larger moves, the price WILL retrace. Best thing to do in this situation is when you see this happen (typically 1 or 2 candles in the opposing direction) simply close the trade and re-enter when the price has returned to the point where the change started. as for exit strategy - a lot of the time you can count on approx 2 - 3 times the value of the retracement (e.g. if the price retraces 10 pips, then you are looking on the re-entered trade of a TP between 20 - 30 pips!

You can use ANY 3 consecutive candles, however this works best when the price has just "bounced" off the Bollinger Bands.

"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough"

EUR, GBP/USD Breakout System

EUR, GBP/USD Breakout System

Morning strategy tightened to the timing factor and only two currency pairs.

Trading setup:

Time frame: 1 hour.
Currency pair: preferred but not limited to EUR/USD and GBP/USD.
This Forex breakout system uses no indicators.

Trading rules:

The system is called "early bird" because it requires a trader being ready to trade Forex as early as 5:00 am EST.
Find the Highest High and the Lowest Low for the candles from 00:00 EST to 4:59 am EST. (We should have 5 candles for each hour: 0, 1, 2, 3 and 4).
At 5:00 am EST set 2 entry orders: buy order - above the highest high +5 pips, sell order - below the lowest low and -5 pips.
Set initial profit target to +90 pips for EUR/USD and +140 pips for GBP/USD - both targets are way too high if to consider that daily range average for EUR/USD is only 110-120 pips and daily range average for GBP/USD is 180-200 pips.
If those targets get hit - very good! However, our profits will be determined mainly by the time factor instead of a fixed amount of pips.
So, we close all open positions at 12:59 EST (1:00 pm EST) and cancel all remaining orders. The next trading opportunity - only next day at 5:00 am EST.

Setting Stop Loss orders:

Stop loss for Buy order should be placed below the found earlier lowest low -3 pips, for Sell order - above the highest high +3 pips. If a stop loss is hit most likely traders will see an opposite position open. Stop loss should never be moved.

"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough"

Forex System Strategy - "Fibonacci Trading"

Forex system - "Fibonacci trading"

Here is one of many Forex System strategy that I will be showing you guys...it is commonly used & taught by Forex experts in school...



Traders were asking to post some strategies that will work on smaller time frames.
Here is one very nice trading system that can be worth your attention.
When a trader chooses to use small time frames (like 10 min, 15 min, 30 min even 1 hour) risks to be wrong are always higher than with larger time frames.
Therefore, it is very important to have a really good Forex trading system that can advise on entries with high chances to win and what's more important it should be able to tell exactly where to exit without need to constantly monitor the price.
Note also, the more traders look at charts, the more they tend to have controversial feelings about the success of a current open trade...
With all this long introduction, it is only left to mention that this strategy will require from traders basic knowledge of use of Fibonacci tool.
What is Fibonacci tool and how to use it? Simply Google "forex fibonacci" phrase and you'll find a lot of information about it.
...This is probably the only reason we classified this trading system as Complex one, not every trader is comfortable with using Fibonacci studies in Forex.

Trading setup:

Time frame: any over 5 min and less than 3 hour.
Currency pairs: any.
Indicators: 5 WMA

Rules:

Look at the price waves. Find the most recent swing high and the most recent swing low = so called Fibonacci A swing and B swing.
Pull Fibonacci from A to B.
To know which direction to pull (up or down) simply look at the trend; if it is unclear, find appropriate AB swings and set Fibonacci in both directions.
Once set, wait and watch the retracement from AB swing to unfold.
During the retracement there are three conditions to be met in order to consider trading:
1. The price must touch 5 WMA.
2. The price must at least touch 0.382 Fibonacci retracement level.
3. The 0.618 Fibonacci retracement level must not fail. Here it means the price should not close below (uptrend) / above (downtrend) 0.618 retracement line. It can touch or poke it, but the level must withstand the "attack".
When all three criteria are met, enter once the candle is clearly closed above 5 WMA for Long entry, below - for Short.
Stop order is placed always 4-5 pips above (downtrend) / below (uptrend) the 0.618 Fibonacci retracement level.
Profit target is set to 1.618 Fibonacci expansion level derived from point A.

"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough"

4th Week July Trading Results 01

Open Positions : 1
Closed Positions : 1
Total Pips Earned : 52.30
Total Profit Earn : 52.30


"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough"

Dealing Spreads

These are some of the basic infomation that is usually taught when you sign up for any Forex courses, knowledge that may to some make them feel like a true Forex broker.

Useful information is courtesy of dbfx Trading.

Example of Margin Calculation

Another basic infomation that is usually taught when you sign up for any Forex courses...

Profit and Loss

Another basic infomation that is usually taught when you sign up for any Forex courses...

Decimalized Pricing

Another basic infomation that is usually taught when you sign up for any Forex courses...

Rollovers

Another basic infomation that is usually taught when you sign up for any Forex courses...

Best Hours to Trade Forex

Since the Forex market is open 24 hours a day, a trader can’t track every single movement on the market. It’s crucial for a trader to know when he can expect high volatility, so that he can implement his strategy on the most effective way. If you’re trading using daily charts, the best period to analyze Forex is around 5pm EST because that’s the rollover period. If you’re trading on shorter time frames, you must know when you can expect more volatility.


The most important Sessions on Forex are:

The Asian Session (7pm – 4am EST) – During this period, you can successfully day trade especially if you trade the yen. USD/JPY is a good choice if you plan to trade on this session. This period is not as volatile as the US session or the European session, but it’s possible to trade it and achieve a good performance;

The European Session (2am – 12pm EST) – This is one of the best periods to trade Forex. Since most of the dealing desks of large banks are located in London, the majority of major Forex transactions are completed during this session. During this period you can implement a successfully strategy on any currency pair.

The U.S. Session (8am – 5pm EST) – This is another great period to implement your forex strategies. Volatility is good, and you can expect good volatility on any currency pair. The European and U.S sessions are the most important ones on Forex, so you can trade between 2am and 5 pm EST and get good intraday swings almost every single day. Between 8am and 12pm EST we have the U.S. session and the European session at the same time. This is the best time of the day to trade Forex. Volatility is good in all currency pairs. Some of the most important economic releases appear during this period, and this brings good opportunities for Forex traders almost every single day.

How to choose a good broker?

Before trading Forex you need to set up an account with a Forex broker. So what exactly is a broker? In simplest terms, a broker is an individual or a company that buys and sells orders according to the trader's decisions. Brokers earn money by charging a commission or a fee for their services. You may feel overwhelmed by the number of brokers who offer their services online. Deciding on a broker requires a little bit of research on your part, but the time spent will give you insight into the services that are available and fees charged by various brokers. Is the Forex broker regulated? When selecting a prospective Forex broker, find out with which regulatory agencies it is registered with.

Besides, a good broker will provide you the following:

1. Low Spreads. In Forex trading the spread is the difference between the buy and sell price of any given currency pair. Lower spreads save you money.

2. Low minimum account openings. For those that are new to Forex trading and for those that don’t have millions of dollars in risk capital to trade, being able to open a micro trading account with only $250 (we recommend at least $1,000) is a great feature for new traders.

3. Instant automatic execution of your orders. This is very important when choosing a Forex broker. Don’t settle with a firm that re-quotes you when you click on a price or a firm that allows for price slippage. This is very important when trading for small profits. You want what we call a WYSIWYG (pronounced wiz-ee-wig) broker! This means you want instant execution of your orders and the price you see and "click" is the price that you should get...WYSIWYG = What You See Is What You Get!

4. Free charting and technical analysis Choose a broker that gives you access to the best charting and technical analysis available to active traders. Look for a broker that provides free professional charting services and allows traders to trade directly on the charts.

5. Leverage Leverage can either make you super rich or super broke. Most likely, it will be the latter. As an inexperienced trader, you don't want too much leverage. A good rule of thumb is to not use more than 100:1 leverage for Standard (100k) accounts and 200:1 for Mini (10k) accounts.

End Of 3rd Week July Trading Results 03

3rd week of July trading report, as you can see I have 7 wins out of 8 open trades.

As mention in my previous blog, I had never been thru any courses nor I had help from any of my friends who have been actively trading...I have seen & heard enough of a "sure win strategy" or a "winning formula", but the the catch is, you must pay or enter a school...which at the end of it all can be self taught or read it up in the internet...

So here I stress to you that I am not out to earn from anyone or benefit from anything...not even trying to recruit members to any school or even challenge others for that matter...all I am trying to do is share my "LAYMAN'S WAY" of Forex Trading...

To me this report is not to show you how cocky I can be, but rather to let you guys & gals know that everyone & anyone can do it if you put your heart & mind to it...

Have A Great Weekend...

3rd Week July Trading Results 02

Another winning example for your viewing perusal.

Open Positions : 2
Closed Positions : 2
Total Pips Earned : 161
Total Profit Earn : 161.00

Keep a Trading Diary

Keeping a detailed trading diary is what makes you grow as a trader. This is what allows you to learn from your experience. Good traders usually have great trading diaries while bad traders simply don’t care about them.
On your trading diary, you should annotate all your trades as well as describe all the reasons that made you take the trade. You should also annotate your pace of mind when you entered the trade and during the trade. Was there any economic release while you were holding a trade? If so, annotate it on your trading diary. The technical indicator that you were using gave you an exit signal, and you ignored it? Well, don’t be ashamed. Write it on your trading diary, and learn from your mistakes.
All traders make mistakes. The difference between winners and losers is that winners tend to learn from those mistakes. Losers prefer to forget about them…
If you want to be a winner, you’ll need to build a great trading diary and make it as much detailed as you can. You can even take some chart snapshots at the moment you entered and exited the trade and post them on your trading diary so that, in the future, you can see the reasons why you made your decision about a trade. In the future you can read your trading diary and learn about some mistakes that you made.

Myths about Forex Trading

If you have experience trading stocks and think you can simply apply your knowledge on Forex and make money, you’re going to be disappointed. The Forex market is much more complex. Firstly, the Forex market is open 24 hours a day. This may not seem a big deal but it’s a significant difference in relation to the stock market. As the Forex market is open 24 hours a day, this brings more complexity to a trader. If in the stock market you have periods of higher and lower volatility, in the Forex these differences are even higher.
Many stock traders think the Forex market is easy because it is open 24 hours a day. They think they can trade whenever they want and make their quick bucks. Truth is you can make money in Forex. But for that, you need to have a deep knowledge about this market.
The indicators that work in stocks don’t always work in Forex. The Forex market is more complex and, this way, the indicators that you use on stocks don’t work so well here.
Brokers are another huge difference between stocks and Forex. In the Forex market, due to the lack of regulation, a lot of Forex brokers don’t act in their clients’ best interest. It’s a lot more difficult to find a good Forex broker than a stock broker.

Plan How You Will Trade

You need to decide how you would like to trade. Would you like to day trade? Would you like to swing trade? It all depends on your personality and on the time you have to trade.

There’s no such thing as the best trading style. The best trading style is simply the one that best suits your personality. If your personality is more suitable for day trading, you probably won’t be a bright swing trader. If you prefer less stress and/or you don’t have the time to stay in front of your screen all day, you will probably be better swing trading.

What You See s What You Get...

I am not to going to be so technical in explaining how to trade, with fancy talk or technical guide. What you see is what you get...some may question my integrity or my style of trading, but what the hell that is the "Layman's Way"...as always I don't care as I don't represent any school.

Again I say that I am simply a guy who is trying to prove a point. I will be using only my charts & results as my presentation on a successful trade or loss.

MACD (Moving Average Convergence Divergence)

(MACD) A trend following momentum indicator that shows the relationship between two moving averages of prices.

The "MACD Indicator" is another great tool that I use to monitor the trend movement...it helps me to determine when to enter the market, be it buying or selling...

It might look silly & maybe lame as all this tools or as they call it "Indicator" is known to all the traders out there, but there is a point to all of this...why pay a sum of money to learn all this as all we need to do is a bit of research on our part on how to go about using this mighty tools, as ultimately it will help us in our daily trading...

RSI (Relative Strength Index)

(RSI) shows price strength by comparing upward & downward close to close movements.

The "RSI Indicator" to me is one of the must have tools...it helps me to determine when to enter the market, be it buying or selling...

As you all may know, you can't based only on tools to plot your trade...but it's a handy tool to help you decide better...

Results Base On 3 Months Of Trading....

Here is a testiment of my stupidity while i first started trading...shown above is my Live accounts that I have been funding since I started trading in early May 09...

Live & learn, but never give up !!! That is the Layman's Way !!!

3rd Week July Trading Results 01

This will be one of my many example of a live trading where I will show you my style or so I call it the "LAYMAN'S TRADING" way...

Open Positions : 4

Closed Positions : 4
Total Pips Earned : 363.80
Total Profit Earn : 363.80

My First Step Into Forex...

On March 2009, I finally got the email that I have been waiting for, to start funding my "LIVE ACCOUNT" & start trading...

Was the best news ever...it made my spirits run high as I imagine myself living the lifestyle of the rich while working from the comfort of my home...who could have thought I got the best job ever !!! so I thought...

The Ups & Down Of Forex...

I will let you know how I evolve in the daily Forex world...No bullshit or impressive charts, just honest day to day trading be It I make or I break it...stupid as it may be to all traders a like, but what I am trying to do is to prove a point, that we shall discuss in future...we shall really see how naive or stupid I can be when it comes to trading...

My Views & Perspective...

Firstly let me start of with why I don't believe in investing on a sum of money on a Forex course that will only tell me the basic info & way's on how to do Forex trading. There is so many resources out there that already teach you on the fundamentals on Forex trading...

Nevertheless, I do acknowledge & respect all the schools that preach on Forex trading. They are indeed "Masters" in the trade industries, as they have a proven track record on successful breeding of a new trader, however only a fraction of them will make it as for the rest will become statistic for future reference. What I am trying to prove here is that if you don't have the time or money to invest in learning Forex, then don't dampen your hopes as there is other ways that everyone can learn it too...bottomline is it all boils down to your dedication & determination in becoming a successful trader.

My "LAYMAN" Way On Forex Trading...

Hi there...here is my way of looking at things in a different perspective...or shall I say it "THE LAYMAN WAY".

I am a just an everyday normal guy, who is like most out there dream of making it big someday in Forex Trading...

It all started with a friend of mine...he approach me with an idea for making money & how he could be a millionaire in just under 2 years...that was what struck me hard in the brain...if he could do it, why can't I...that was what I thought...so after month's of careful thinking & multiple demo training accounts...I finally decided that this was the way I want to make money & lead my daily life, hence I decided to quit my job & go into "Forex Trading" full-time...
So here I am guys & gals...dumped my job for the chance to try & make it in Forex...