Oxcel Trading System - Simple does it

I don’t think that it is any kind of a system or price action whatever for that matter. I believe that as traders, we are born to be risk managers. Simple concept of support and resistance, and minimum candlestick reading is enough, as long as the risk reward is good. After all, the best traders only managed 60% of their trades end up as winners. I want to prove that point as I have been trading for a few years. I tried many systems, and end up the one that works is the one that was always within myself. As long as I managed my emotion and risk I make money, whether be it in Forex or stock market.

Currently I am starting a website with a Facebook to record down my live trades before it happens. I mainly trade the daily charts. Occasionally I will trade the stock market too.

If you find my posts useful, please support mysite. Thank you.

Here’s an example of a trade I did on 13 August 2014.

It was a short, and look where EUR/AUD pair is right now. I have already taken profit though.
Hubert Koh

More Trades I did on 18/8/2014.

Shorting both NZD/USD and GBP/USD. We also all know how it went

Every week I will spend sunday time preparing the chart work for next week! see my next post. thanks :slight_smile:

Oh and btw, I am holding onto two trades. AUS/USD long and EUR/GBP long.

Hope to make more money. :slight_smile:

Hello, nice and a simple strategy you’ve got there can you tell me which TF do you use?

Most the Daily charts and occasionally 4 hours Charts. Guys please feel free to post and ask questions

The defining factor between being a successful trader who is able to earn a living requires one to understand the importance of time. It may even be labelled as the make or break, preventing you from falling into the depths of failure. All of us understand that time cannot be earned; we all have the same exact 24 hours as the person next to us. Unfortunately, too many traders emphasize so much on constantly being in the market that they fail to realize the value of sitting out. Time is perhaps the most valuable commodity when it comes to trading in both Forex and equity.

Importance of time
The defining factor between being a successful trader who is able to earn a living requires one to understand the importance of time. It may even be labelled as the make or break, preventing you from falling into the depths of failure. All of us understand that time cannot be earned; we all have the same exact 24 hours as the person next to us. Unfortunately, too many traders emphasize so much on constantly being in the market that they fail to realize the value of sitting out.

Time is perhaps the most valuable commodity when it comes to trading in both Forex and equity.

Greed Can Destroy Your Trading Mentality

GREED can screw your trades up very badly. Last two weeks were amazing for me. Almost all my trades were spot with good risk reward. I knew mentally in my head that after a period of good swing trades like this, bad trades will come.

Nonetheless greed got to the better for me and I enter in less than good quality trades such as long Eur/Gbp and Long Aud/Usd. The ability to filter trades make the difference for most traders. Take for example, it was clearly a downtrend, and yet I decide to act against the trend and longed. Luckily I thought to myself that this trade does not make sense and quickly reversed my trade.

The conclusion is clear, counter trend trades rarely work as trends in Forex persist for days, months to even years. It is always best to trade with the trend.

Shorted EUR/JPY. let’s see how it goes.

There are no secrets that are harboured by successful traders. In fact, if you were to ask them about their road to success, they will all probably explain to you the same answer: adopting the right mentality. Controlling the market is out of anyone’s reach, and no one possesses that ability. The only thing that traders have control over is themselves. Admitting and submitting to that fact is the first step towards trading with the right mindset.

Here’s the million dollar question, what exactly is the right trading mentality? A professional trader fully comprehends his own trading strategy that’s unique to himself, and uses that knowledge to sift out good trade positions that suit his requirements. This conflicts directly with a vast majority of traders, who make futile attempts to force trades into their favour by allowing their emotions to get in the way. The key principle that successful traders maintain is purely anticipating and being entirely prepared. His moves are not planned each step of the way, but planned several steps ahead. Instead of searching for potential trades and developing a strategy around it, they look out for specific trades that are aligned with their strategy.

As mentioned before, most traders allow their emotions to take control. This is absolutely detrimental in making successful trades, as getting emotional may possibly lead to you taking illogical actions that result in losses. Focusing on your risk tolerance and being familiar with it will go a long way in preventing such occurrences. Successful traders are known to adopt this technique by first determining a comfortable amount of losing, and taking measures not to exceed that amount. Additionally, emotions are known to prevent you from making confident decisions, which encourage you to be fickle-minded. Being indecisive in the trading industry will most definitely not pan out well.

Tampering with open trades is another common mistake that professional traders avoid. The right trading mentality to adopt here is a ‘set and forget’ trade mentality, allowing your trade to take its own course instead of trying to predict its movement and working around it. Setting and forgetting prevents you from making this costly mistake. However, there are always rare cases where altering your trade position is permissible; but that’s entirely your prerogative.

In hindsight, the trading mentality that you adopt is what defines your trading habits. Instead of viewing the market as a get rich quick scheme, professional traders treat it with utmost respect. They are always willing to admit their own limitations despite their experience and knowledge, and replace their shortcomings with strategic and systematic methods.

Therefore, practicing a professional trader’s mentality allows you to achieve the following key attributes that are related to successful trading:

• Anticipation
• Preparation
• Planning
• Patience
• Confidence

It is only through leveraging on a professional trader’s mentality that will take your trading experience to a higher caliber.

I enjoy reading many books, and most of the books that I read is related to the financial markets, trading, as well as motivational (self-help) book. There was once, someone ask me if I was feeling down or sad, just because I was reading such a book. Like seriously, I am a believer that most of the information is already written out there, we just need to find the book and start reading. Only then can we improve ourselves.

Reading and letting it ‘sink’ into you is the best way to keep going in your life. After all, the reality is this: life is tough; It is a competitive world out there. People are either working towards their own dream or working for other people’s dream and which who you rather do? Furthermore, the fact is this :
An average people in the US read less than 1 book a year an earns 319 times less than an CEO, who earns much more and is reported to read 60 books a year on average. So who do you want to be?

It is good for the beginner in market. Providing short but descriptive details about AUS/USD long and EUR/GBP long. Further details in my next post.

One of the best books I have read on the stock market is William O Neil’s How to make money in stocks. Most of my ideas actually come from there. It forms my foundation for my investment strategies

Live Trade :XAUUSD short trade
It has been about 36 hours since the markets opened on Monday morning. There has no decent setup until just now. There is a decent pin bar in the 4 hour gold Chart that I have taken a short. This is a good setup where I am 70% confident it will work out.

The pinbar is resting on the support turned resistance, following the downtrend towards 1200 levels.

Let’s hope it works out. :slight_smile:

                                        XAUUSD 4 Hour Chart Gold Trade.

The result is that gold indeed went much lower. Cheers.

How to Profit from Gold and Silver?
Gold and silver as commodities are valuable metals that are used as a medium of exchange in the ancient times. The common knowledge about precious metals is that they are commodities in limited amounts, can be used as a hedge against inflation as well as a safe haven that rises in value whenever there is chaos and trouble in this world.

Daily Chart of Gold

However, in the wake of the dramatic fall in value of gold in the past 3 years, gold and silver has become rather unpopular amongst retail investors. On September 7, 2011, Gold touched an intraday high of $ 1923.70 and has never seen that level ever since. Since then it has been on a spiral downtrend towards the $1100 levels, suppressed by all the major banks. That is 43% correction in price, which requires a 73% increase in price to bring it back up to that levels again.

The Bigger Picture
The huge question is always, so where is the bottom for gold? When is the right time to start buying again?

                                                  Weekly Chart of Gold

No one can tell for sure that where the bottom is, but if one were to invest in such opportunities, we should be looking at the weekly chart. Clearly, downtrend recently, and the bigger picture is still an uptrend. This is due to the gold properties as a hedge against inflation.

Based on a weekly technical analysis, it seems like gold is about to turn. It is at a key Fibonacci level of 50% retracement. However, to invest in the longer term, you need much conviction and much more evidence.

Why will Gold and Silver rise dramatically?

  1. The contrarian investor point of view

When was the last time we had a severe market decline that was all over the news? Yes you are right, 2008. Today we are standing at 2014, nearly 6 years from the last demise.

Economic cycle of boom and bust is only going to get shorter and shorter. And it seems that the average cycle now, has been reduced from 8 to 10 years to 6-8 years. The next crisis will come and when it does, gold will rocket due to its cheap evaluation.

  1. The cost of mining gold

According to Thomson Reuters Data, the average cost of mining and producing gold bars is about $1200 per ounce. Should the price remain suppressed below this price by the big players any further, the gold mining industry will become unprofitable.

The consequence will be that production cutbacks are likely. This is a basic question of supply and demand. The reduction in supply will increase the price. Furthermore, when the next crisis arrives, the demand will surge, further stating the fact that gold is approaching a bottom.

  1. Dirty cheap valuations

Calculating the P/E ratio for a commodity sector like this is rather difficult as gold itself does not have any earnings.

A better representative measure is the P/B ratio, which measures the sector’s stock market value against the book value of mining company assets. Since the profitability of the gold miners depends on the price of the precious metal, the current net asset value are actually -14% below where they were in August 2012. Furthermore, the sector trades at just 1.74X book value, near multi-year lows and a hefty 31% discount to the long term historical average of 2.5X, suggesting that the global mining sector remains undervalued at this juncture.

The Silver lining

Below are my reasons why Sliver will become an even bigger winner.

  1. Silver is a precious metal that is highly versatile. Silver’s demands in technological and medical uses stems from its unique anti-microbial, reflective and conductive qualities, making it a vital element in many high ticket projects.

Since it is so vital and used in such small quantities, its price is inelastic. If silver goes to a $500 a troy ounce and Apple Computer needs a 1/10 of an ounce to make their $1,000 computer work at the highest quality, they will simply raise the price $50 to make up the difference.

  1. Silver is cheap such that even the common man, with little savings can buy an ounce. When the next commodities rush comes in, everyone will want a piece, and silver will become hot in demand. The higher the price of gold goes, the more demand will naturally flow into silver.

  2. There is not much silver left in this world. While gold has been on everyone’s mind, silver is mostly used for the less eye catching sectors like medical and computers. Hence, much of the silver is not recycled, but rather wasted and thrown away. It is estimated that there is not much stockpile of silver left on earth, hence when the demand comes in, the price will shoot up like crazy.

  3. Comparing the silver market with the gold market, is like comparing the volume of STI to S&P500. Just as huge funds tend to buy stocks in S&P500, central banks are only buying gold. If they dumped a billion into silver, they would explode the market. A billion into gold would hardly make a ripple. When the time comes when paper assets are worth much less then it is today, silver will be the next best alternative for the big boys, and you will know what happen. J


While this is a low trade risk, it does not mean that gold and silver cannot go any lower. It seems to be a ‘right’ time to buy gold and silver because of multiple factors discussed earlier, and low risk trades are good trades to take. However, one should not be greedy and go on margin, because we never know how long the big boys can suppress the gold and silver market.

Actions to take now include buying some physical gold and silver or we can buy a precious metals fund (fundsupermart.com) or ETF. I would personally prefer ETF. This cannot, and should not be a margin trade, unless you are willing to buy again and again on margin, which is very scary and risky. This does not suit my appetite.

Disclaimer: This is just my recommendation and there are always risk to any form of investment. I will not take responsibility if you were to lose money in this trade.

Thanks for his thread sir. It helps us to improve our basic.