Below is my result of forex trading in 2016.
With profit / Capital = 60%
Just like company who always do the finance summary at the end of year, so do I. So I have money to plan for the next year.
I continue to apply my trading strategy in 2017 and it is promising.
My strategy just applies the support/resistance and reversal pattern head & shoulders theory and adding my years experience when I traded in the market.
If you want to find out, inbox me and I will explain more detail for you.
My first lesson learned: Never trade in a short time. The spread and sudden move wiped me out. Investment always takes long time to generate profit so I have to wait at least 2-3 months to actually see profit.
So I only used H4, D1 & W1 chart for trading. Much better in term of spread and protecting me from sudden moves.
M1 chart of EURUSD
My second lesson learned: The market move by zigzag.
This is one of the most important truth about the market that I have learned and now become my root base for my trading strategy.
My third lesson learned: Buy at bottom or near support level and Sell at Top or near resistance level.
My fourth lesson learned: The trend only reverses when the reversal pattern head & shoulders completes its shape and the neckline is broken.
[B]My sixth lesson learned: Money Management = trade various money pairs, with reasonable volume[/B]
My money pairs are: USDJPY, USDCAD, USDCHF, AUDUSD, NZDUSD, EURUSD, GBPUSD, XAUUSD, XAGUSD.
These pairs have low spreads and their charts do not look the same.
My seventh lesson learned: When I view the market, I start with W1 chart for overall view. Then move to D1 for more detail and then H4 for trading point.
W1 = The trend of the market
D1 = Confirm the trend of the market, search support & resistance level, search reversal pattern
H4 = wait for reversal pattern for trading point.
[B]My eighth lesson learned: Never loss the track of the market.[/B]
Since the time for the market to generate the profit is quite long (2-3 months) I lost the track of the market sometimes and the opportunities passed. So I put note on my wall to remind me to check at lease 1 time per day but not too much. As too much will affect my trading psychology and can increase stress.
[B]My ninth lesson learned: Keep it simple.[/B]
The absolute truth is that people can not predict the future. I have used many indicators like moving average, Relative strength index, etc. but at the end I realized that those are subjective. The market moves on its own. So I try to keep my trading strategy simple. And it works.
[B]My tenth lesson learned: Money pairs reflect the economy[/B]
Big events like American election, Brexit, etc. definitely affect the market. I always brief some news at night. Bad news mean down and good news mean up.
My eleventh lesson learned: The higher the market go up, the more careful with my buy order. The lower the market go down, the more careful with my sell order.
My trading result from Jan 2017 up to now. The strategy still works very well.
With profit 2311 / Capital = 9000USD
Thank you for sharing this awesome tips :35::35:
Kindly send to you all my sample technical analysis
https://drive.google.com/open?id=0B_SefqI5Co-dWXByZUQweGhWVzQ
