When I started trading the Forex a year back, it was a means to answer circumstances of immense financial desperation.
I had gone through every online program I could think of and through all the scamming pyramid schemes.
I just knew there had to be something better… so I looked and searched and gnawed at every opportunity my nose could smell and my eyes could see to better taste the potential for success and gauge a possibility for investment.
Though, people as they are, uncontrollable and lively… naturally want things to happen their way in life, and if you’re anything like me, you hate wasting time.
Time however I’ve understood through time itself is something very powerful and it can break or make you.
I believe humans on this earth are a parasite on times shoulders, leeching on it and poking it in the rear with a sharp pencil in a selfish endeavor of speeding things up in their direction and eventual benefit.
Time nevertheless, being a part of nature has its predefined path and destination, and granted the necessary development and breathing space, it can achieve wonders beyond your imagination. All we need to do to take advantage of it is just modestly place ourselves within the streaming channel of its course and relax until we reach the ultimate peak.
The reason I am saying this is because, it takes some people many years to acknowledge these facts.
I can guarantee however, than anything given the sufficient amount of time and breathing space coupled with a positive attitude can flourish to very productive heights.
My journey through the complex world of Forex has only just began and I am willing to dedicate many more years of my life to achieve a humble symbiosis between myself and the FX market.
There aren’t many jobs or occupations today that can offer what the challenge of becoming a Forex trader can.
Trading is not just a means of income, it is an Art and as with any other it requires an extremely persistent state of self discipline, which can be achieved only in cooperation with patience, a positive attitude and a goal.
GOAL! People…. Read it well and remember it.
If you do not have a goal, you are just floating about in endless space.
The difference between a person with a goal and one without is that when the first trips, tumbles and falls… he knows, why he has to get up and even if the fall spun him around 180 degrees, he would know that all he needed to do was turn around another 180 and move forward.
The latter however… will fall, they will get up and they will continue moving forward, where to though – Is it the same direction, or did they go left or right this time? … nobody knows
The fastest way to success is a disciplined plan. So take a day, a week a month a year if you have to, but write a plan and keep a diary, because that’s the fastest way to mature as a trader.
Being a student of the Forex, is being a student of life, it is a difficult psychology lesson which will lead you through deep self-exploration and if you’re not prepared to take yourself on, don’t.
A persons potential is almost limitless in this world and the Forex is a trading art which will have you delve into your inner most thoughts and intimacies and help you tap and develop your potential at one of the fastest paces possible.
You will not only better yourself as a trader, but as a person, a brother, a parent and a contributing member to your society.
If a man could conquer himself, he could conquer anyone and the world. With time the FX will teach you nothing less than just that.
For everyone who is just starting out.
1. You will loose money
2. You will cry if you’re emotional
3. You may even reach the verge of suicide
4. You will have people try to put you down
6. You will want to give up
7. You will want to give up once more
8. You will want to give up again
9. You will never give up if you have a goal set, so set it and you will have reason to go on.
10. You will have good trading days
11. You will have bad trading days
12. You will realize that a minimum of 2:1 income to expense ratio may as well be just as important as trading itself
13. You will try many trading systems
14. You will most likely develop yours at the end
15. You will use 100 indicators at some point and most likely use just a few at the end
16. You will realize that keeping a trading diary and plan. Is the same as your mum telling you to get your sleep: its true, If u do it u will be healthy and if you don’t you’ll always fall sick
17. Don’t get greedy!
18. Trade Pips not Money
19. 10 Pips a day is good
20. 20 Pips a day is great
21. 30 Pips a day is awesome
22. Accept loosing at most 50% of the time and winning the other 50%
23. Get a life. Exercise, eat, sleep. The better your health the better your trade.
24. Keep it professional! Take breaks! Wear a suit and a tie if you have to even though you’re going to the next room, but have the right mind set, this is business and you are both the President and the Employee
25. Don’t withdraw all your money from your account, compound what you can and aim to exponentially increase your lots while keeping your Pippage the same.
26. Patience and understanding is key and it is the difference between a loosing trade and a winning trade.
27. Educate Yourself. Dumb people loose money and Smart People make it in this trade.
28. Remind yourself why you do what you do every once in a while.
29. When you loose a trade have an optimization protocol:
- Ask yourself why you incurred an expense
- Understand why you incurred an expense
- Tell yourself what you need to do to avoid a reoccurrence and remember what you said
30. Try not to trade news
31. In most cases if there is something you can’t explain with Technical Analysis. It’s normally news’ fault.
32. Have at least 2 internet connection setup, 1 for back up.
33. Don’t trade when you are tired, drunk, sleepy or emotional
For those of you who are still reading I would like to share my key trading system with you.
It is very simple and is based on the same slow / fast MA crossover method detailed in the School section of BabyPips.
First of all you will need to set up your charts so do the following:
1. Open up a new Chart / EUR/USD or GBP/USD for example.
2. Set a 5 E-MA (Colour White)
3. Set a 10 E-MA (Colour Red)
4. Set a 20 E-MA (Colour Green)
5. Set a 50 E-MA (Colour Blue)
6. Set a MACD with: 5,10,10
7. Set an RSI with: 10
8. Set a slow Stochastics with: 10.3.3
Trade on preferable H1 / H4 and D1
Lets see it in the works.
Profit Range: 20 to +300 Pips per trade
It is extremely easy to follow:
- When the white 5 EMA crosses the Red 10 EMA AND: the following requiremets are met:
- RSI has broken over or below 50 (long / short)
- MACD should be over or below 0 (long / short)
- Stochastics are not in an oversold or overbought zone or they have just broken out of an oversold or overbought zone
- When the price crosses the 5 and 10 EMA and RSI is breaking 50
In a good trend or short term move the EMAs will line up in this manner from bottom to top (bullish) / reverse for bears
By the time the price breaks 50 EMA you should have long closed your position. Its a matter of a little practice and getting use to and you will be able to determine an optimal exit point based on the crossover on par with the indicators.
The key in trading is to loose all emotion. The best way to do it is to have a mechanical trading system.
For me this is it.
Last edited by elang; 06-08-2008 at 06:43 PM.