If you’ve been following my forex forecast and decided to take the trade with me, we are now at a +120pip profit at the time of this writing. Pretty good profit margin. But it is not what we’re going to talk about today.
While I was lying in bed last night. I thought to myself. All indicators and all strategies are there on the internet, in books and in mentors. Why is it that there are only few people who are successful in forex trading. In the Philippines, I have not seen or met someone who is successful enough to get media attention. Is it really with the strategies or indicators that will make a forex trader successful?
While I was reading a book about different kinds of forex traders. I noticed that most of them are doctors, retired military men or athletes. People who are tough mentally or knows psychology. Maybe the thing about forex trading is its all in the mind more than it is with the indicators.
Also, nobody knows what will be the future of the charts or when a trend will begin or end. Nobody really knows when a reversal will occur or a support and resistance will break or bounce. Nobody really knows. We only have indicators to tell us options of what may happen its still us that have to decide and take risks.
So, the bottom line is… Its about risks. Risk management and money management. You only have to have a decent strategy that you’re confident about and apply money management principle to it.
Take risks. We know from the start that forex trading is risky. Before we even know how the market moves. We know that forex is risky. So we have to be prepared to take risks. That aside, manage the risk with money management.
These are my thoughts about forex trading. You may voice out your opinion in the comments section below.
This is done in the daily charts. I saw bar A which is a nice inside bar. But the bars next to to Bar A is a trading range. So I wait for a bullish bar to enter.
Bar B is a doji which means bears and bulls are almost equal. But have a potential as a signal to indicate a bullish trend. So I try and wait if the next bar is bull to enter the trade. It proved to be a bull and closed just above the inside bar’s range. So I entered long depicted in the arrow.
As of now, its +63 pips.
Today is a great day for me. Today marks the day where I completely eliminated all the losses that I have incurred while learning about forex.
When I started a year ago, I tried to trade forex live. After practicing for a couple of months, demo trading, I gather up all the courage I could get and opened my first live account. During the course of the year, I accumulated a total of -$5,000. Yes… Negative… And today, I completely finally took back all the losses.
I am up +$1,063 starting today. I hope this is the beginning of a wonderful trading life. And hopefully achieve my forex trading goal.
After all that grueling experience. I would like to share to you a little knowledge I picked up while stumbling across the trading realm. There are only 3 important factors to be successful at trading.
2. Money Management
Notice that there are no trading strategy here or indicators. Not even entry strategy. It is because those 3 factors are what determines a successful trade. Because of them, my trade has been really good so far.
I made 7% gain last week and this week, I got my stock broker account approved. I’m trying to diversify my assets into different vehicles. But forex will be my no.1 go to guy for risk – reward.
Also trying to change my strategy a little bit. I figured I need to have a strategy that gives me most of my time and day trading is a no no for me. I’ve been trading the hourly chart this past few months and it can be stressful at times. I’m moving into daily and hopefully weekly. So there will be less updates on this blog because I’m moving to a longer time frame.
Well, the long down trend that started last year gave us a decent profits on the way down to the last four trades that was written in my previous post. The whole euro crisis did give us some handsome profits. And the question comes to mind… Is it over? Or is it a temporary retracement?
If you ask me, I don’t know… I have long turned my back to predicting the market. And now focused my energy into betting into sure trends. Like the previous euro down trend. My hunch is, the euro crisis is not over. And I’m guessing this is just a short term retracement. What we need to watch out for is its continuation on the down side. But it might take a few more weeks before it shows a good enough sign.
1.3100 is a very strong resistance. Let’s see if it holds.
Meanwhile, I was reading a lot of books and there’s a particular book that got my attention. Its “Reminiscences of a Stock Operator“. There’s a lot of wisdom in this book that every trader should know. The story is very interesting as well, because its based on a true story for the most part.
I am using technical analysis when I am trading forex. Mainly candlesticks and moving averages. And yesterday, a beautiful pinbar reversal signal formed at AUDUSD. Looking to go Long on this one.
For the aggressive trader, this is a good chance to go LONG. But for the more conservative type, you might want to wait for the next bar to close before entering your position. You want to confirm that the next bar is bullish to be on the safe side.
I’ve been traveling, climbing mountains, tasting different delicacies and meeting women. Right now, I’m trying to live the life that I image for myself. Though, not yet what I really imagine, I can see that I’ll eventually get there.
Traveling costs money. And while you travel, you don’t work. The best thing about being a forex trader is you can earn money just by having an internet connection on your phone. And while I was taking a picture on top of a mountain, I added a position on my trade and my capital now up 38% as we speak.
Oh and I also think the forum is a bad idea. I never thought it would take a lot of time for me to manage the spam. I still haven’t opened the forum for users yet bots and spams are already being submitted. I would remove the forum and the discussion may proceed here in the comments section.
This is my first week after I made a new goal and reached a new milestone in my forex trading. The last forex analysis proved to be a success (for me). And I’ll be doing it again, writing it in this blog, so I can keep track on what strategy I will use for the coming week.
Daily: Downtrend. There is a very clear reversal pinbar.
Weekly: A possible downtrend. Large pinbar favoring downtrend.
Monthly: Uptrend BUT this could be a pullback now or possible trend reversal.
Comments: Be wary trading for the long term because the weekly and monthly signals are not strong enough to risk big. Make downtrend trades (sell) on daily and be careful holding position for too long.
Daily: Trending Downtrend. Reversal confirmed. Be careful of signal expressing uptrend.
Weekly: Downtrend. Very strong indication of downtrend forming.
Monthly: Strong indication of downtrend. Resistance at 1.40575, if this break, downtrend will be for the long term.
Comments: Get into downtrend trades. Take downtrend trades.
Daily: Downtrending. Lookout for reversal signal.
Weekly: A break on resistance. Downtrend confirmed.
Monthly: Downtrend going to resistance at 105.896. Once there. Be wary. But its all downtrend from here.
Comments: Take downtrend trades. Signal is very strong. Resistance at 105.896
Daily: Resistance at 1.12099. Large tail / pin bar signalling trades to take uptrend.
Weekly: Not sure, but downtrend. There’s a large reversal right after the pinbar for uptrend.
Monthly: Downtrend. But a very good signal for uptrend trades.
Comments: Its a very good signal to buy uptrend. But don’t hold the position longer than a week. Weekly is till not clear.
Daily: Large pinbar telling uptrend. Says pullback is finished.
Weekly: Weekly is not clear as to where it wants to go.
Monthly: It is a good day to buy.
Comments: Like EUR/CHF. This is a good buying opportunity. Just be careful holding it for week-long.
So where the hell have Forex Philippines (ForexPhil) been?
Traveling, climbing mountains, enjoying nature. You can say that this is a month long vacation for me. The good thing is forex trading allows me to earn money while on the road. You just need an internet connection and a trusty laptop.
Actually, December and early January have low volume so its best to just enjoy the time off and return when January is almost done. Which is what I did. We’re going to start trading again from here on. You can still trade, but I just prefer to stay on the sidelines when its a year end.
I appreciate the comments on the post about the membership. You guys are cool. Thanks also for the people who emailed me and expressed their interest. So for the people who commented and emailed me expressing their interest… Thank you!
What ebook? I’m planning to make an ebook version of the Forex Trading Course. So that people can still learn to trade forex even offline. If you want to read it while riding the bus. Print it out and give it to a friend. But the ebook has more. I plan to put in the Ichimoku series which would be cool. So stay tuned!
I went back to school to learn a “skill”. Loving every minute of it. If you want to be updated with the latest post about forex trading, you can enter you email below this page. I will let you know once the membership OR the ebook comes out!
Christmas is approaching and a gift of 650+ pips is better than any other gift I could receive this Christmas. Yes folks, its the largest profit I got since I started trading. And this is real money. More than 650+ pips. I’m pretty much confident now with my system and I can already see my goal not that far away.
You can see when I entered the trade indicated by a yellow arrow sign indicating a “short” trade.
Lesson learned. I pretty much stumbled my way and doubted myself if I even have to pursue trading. I did lost a couple of money and thinking that the money lost is not really lost and just an educational expense much like a school tuition. I did think of giving up because of consistent losing trades. But there have been a lot of times in my life that when I was about to give up, that’s the time where you are about to succeed. This is a small success for me and a validation of my efforts and persistence to learn and study different systems and to figure out what kind of system is the right one for my personality.
If you’re still struggling. Don’t give up. Lose only the money you can afford to lose. Don’t borrow money expecting to become millionaire. If you’re smart, you don’t need to borrow money. Don’t give up. Continue reading. You’ll get the hang of it. And most importantly, subscribe to my feed if you would like to be updated of what trades I take.
Later pips. And Merry Christmas to all!