I am the NEW GUY & supposedly it is impossible to make a profit as a beginner.
But I have officially cleared 100+ pips in 1.5 weeks just staring the screen.
so far what I have done is this, I have ‘stochastic momentum index’ & ‘stochastic index’ both on. I am sure plenty know how to use those, of all the tools for graphs … so far I like those the most.
If you read one of my post for Saturday, I called out what the U.S. dollar would do, same as the AUD/USD {pretty much same as EUR/USD … same logic applies}.
But the using dailyfx.com, Google news, the newspaper everyday, & other obvious popular news resources, I gathered the ‘future’ of news.
Basically, my personal favorite is the AUD because I ran a 'small business aka ebay business for 3 years when I was in the military for side cash. I would keep my funds recieved from other countries in that currency when ever I would ship overseas. So I noticed that over the past few years, the aud would go from .80-.90 ish, It would be awesome because I would go into my credit processing account and have around 800 AUD, then the next day the rate would be higher and the conversion to USD would be anywhere from 5-50 dollars up or down. So i kinda know how the aud works.
AUD exports coal … alot of it to China, So they have a sound exporting business. Since that is a commodity, the interest rate doesn’t effect it as much. Plus the unemployment rate is around 5.5 I think, so when interest rates go up, it doesn’t hurt exporters as much. blah blah blah, that was my research for that. So I keep a close on my AUD, when the AUD goes down … it is because people are scared of it dropping but banks aren’t really dropping the AUD because it is damn strong.
So whenever the forex drops the AUD like the past 2 hours, it is bound to make at least a 15-30 pip rebound. I have been dead on 100% so far with those bets, actually I am selling my aud right now for a 4pip gain as we speak.
As far as the US dollar, for every action there is an opposite & equal reaction & what goes up must come down … with graphs, same applies to the opposite {what goes down must come up} because no dollar will ever reach ZERO.
How I tie all this together, in my 1.5 weeks experience, cough cough, I have noticed that anytime either stoch graph goes down {momentum or regular index} goes below -80, the dollar {any dollar} is oversold of course. So then I flip to SMA & BOLL & switch from 1/5 m graphs to 10/15 minute & see if the trend is on an uptrend. If it is on an uptrend {best in my experience is being on the 2cd hill}, and if the resistance/support line up with no overreaches, then I buy, exact opposite & I sell.
I just spit this out & i haven’t re-read to fix errors {so there might be some typo errors that don’t make sense}. but this is what I have done so far and I am up 100+ pips, with pips being today worth $5 {using 5 mini lots}. So I have done okay so far. calling it quits until the AUD market opens at 4 or 5 or whatever time it does.
IF all else fails, I take advice from here & rely on my good looks.
Pretty much I just use common sense and put 1 & 1 together.
I have -10/10 for stoploss & as soon as I break even, I turn it to -5/15, 0/20, 5/25, etc. and just move it up until the peak is reached for the particular uptrend I am on and then I sell.
