Honorary Member Q&A: Medisoft

Medisoft

###1. Tell us little bit about yourself. Where are you from? What do you do full-time? What are your hobbies?

I’m from Mexico City. I do not trade full time, because I have a day job. I love astronomy, like aquarium fish, love programming (I’m a web site programmer). I also love technology and robotics and finances. Because of that one of my hobbies is to make automated systems to analyze or trade the markets.

###2. When/why did you start trading forex? What resources did you use to learn how to trade (websites, books, apps, mentors, etc.)?

I started about 2 years ago, because I already knew about stock markets and found that it is easier to make use of technical analysis on Forex.

What resources? MMh, I used lots of them! I started with books from “for dummies” series (candlestick for dummies, market timing for dummies, forex trading for dummies and others), some websites like Stockcharts, Candlesticker, and of course BabyPips forum and school.

I forgot to tell I also read the “Trade what you see” book for harmonic patterns, the Wikipedia for statistics and Fibonacci.

I don’t ask for mentors. From the beginning I thought that any person that is willing to teach to trade profitable is a scam or is very expensive. I simply cannot realize that a person could be teaching a very profitable way of trading for low money. Is like making public his edge and I don’t think that is possible.

I think that one can share part of their technique and let the remaining part to be discovered or developed by the trader, but not the full technique.

###3. What do your friends and family think about you trading currencies?

My friends don’t understand very well. They think that it is too risky, but my family is OK with it. Only problem I have with my family was when I was trading on smaller time frames because that made me stay in front my computer until very late in the night. I don’t recommend anyone to trade that way!

###4. Describe your trading methods and how they differ from when you first started trading.

Well, I think they were MACD, Stochastics, RSI and other oscillators crosses. Some candlestick analysis.

Today, I found that the oscillators are not very good for trading! They always give lagged signals, one cannot trust on them. Also, I started trading in lower time frames looking for smaller profits (in pips) risking too much, using full hedge all the time! Hhahahah, I remember that first “grid trading zero loss EA” I used in the beginning! That EA depleted two accounts!

Now I use price action with trend lines and support / resistance levels. No indicators, no helpers, no EAs, and only daily and weekly time frame. Someone calls this “naked charts”. I found it easier, more profitable and with very low stress!

###5. Do you trade full time? If you do, what made you decide to focus all your efforts to trading? If you don’t, what do you think is necessary to reach that full-time status?

No, I trade half time, only 2 hours a day after market close (NY).

If for full-time you understand to live from forex, one need to be consistent and get about 3 times your monthly requirements for at least 6 months and have a bank account with other 6 months of money, enough to live without profits for that 6 months.

If for full time you understand to work 8 hours or more daily on trading, I think one needs to be analyzing market, designing new strategies and reviewing previous trades.

I personally think that the full time trader is a combination of previous two points, but also think that one can be full time trader doing trading only a couple hours daily.

###6. What are some of your most unforgettable trades and trading moments?

Well, I start my trading at about 16:00 CST, that is about the time when my broker closes the daily candles.

Before trading I go out for dinner, and for a coffee (I like espresso, double sized one, Mexican beans from Chiapas, Colombian or from Cuba). While I’m drinking my coffee I open in one screen my MT4, and in other screen the Baby Pips forum where I post my daily analysis / log.

I then start then looking at charts.

I already marked all the support and resistance levels, and also draw trend lines and channels and Fibonacci retracements (in that order), so I don’t make too much changes to my charts at this point.

The only day that is different is Friday. Because the market is closed, I give me a break and sometimes make my analysis on Saturday.

###7. What are some of your most unforgettable trades and trading moments?

My “AHA!” moment. When I started trading 3 ducks system I got that feeling, that I can see behind the charts! That was an inspiring moment!

Other very memorable event was when I started making my daily log. It is very useful! I had read that the good traders usually make that log, but I never understood that before.

###8. Name three traders (he/she doesn’t have to be famous) who have inspired you to continue trading currencies. Why are they helpful?

Mmh, that is a difficult question. I think one is TMoneyBags that teaches harmonic trading, other is Captain Currency from 3 ducks system and third is a friend of mine called Juan C, that trades intraday price action.

TMoneyBags helped me to understand better how the market moves, how to use Fibonacci and other tools and I started looking bigger time frames when I started harmonic trading.

Captain Currency definitely is who gave me the inspiration of trading bigger time frames, and I started being profitable after reading all the thread and his e-book.

Juan helped me to understand better price action and convinced me to give it a try.

I should mention also Cyco, that showed me that trading 28+ pairs on daily view is definitely a way to hedge your losers. Of course MasterGunner99 helped me in the view of letting your winners run and cut your losers fast. I know they are 5 people, but I learnt a piece of information from every one.

###9. Forex trading is not an easy business. What motivates you to continue trading when in a trading slump?

The stats. I know that after a bad moment it is a good one that can erase all the losses.

I also want to be like the MIB. To be above the system. Sometimes I think there is a conspiracy of governments to make the middle class poorer everyday, and I want to avoid that trading, “surfing” the “waves” they create when the move. That is also one of the things that make me like the Bitcoin.

###10. Do you have any advice for trading newbies out there?

Yes! Do not trade “miracle” systems! Do not trust on EAs provided by anyone! Just use common sense! If someone offers “never lose again” EA for only 200 bucks, it is a big red light! Why in the world one is going to give a money making machine for 200 bucks? Maybe for 200,000,000, but not for 200!

Also, look for higher time frames! You can practice on any time frame, just to know how the market moves at any time in the day, but when you are going to go live, please, use 4h or above TF.

Be patience! After all, forex trading is a way to get money. Is like a job. If you make poorly thought actions in a job, you are going to be fired. The same in FX. Just do some impatience trades and your account is going to suffer! Higher time frames allows you to make a good analysis, look many more pairs (not only majors with dollar, but all the majors crosses and maybe some minors or exotics), be more “in the zone” and make better decisions. Also allows you to leave your trades a couple days without looking at them (like happened to me last week when my kid was in hospital) without a problem.

Ah! I think I have another advice! Use stops… but not too tight! Use BIG stops, with RIGHT money management. With the desire of not lose to much, sometimes we use small stops. That will end you with more losers.