I Suck At Writing, Insurance and Girls

I just realized that I really suck at writing. It is hard work for me to write the forex trading courses. I wish I could have made it more enjoyable. That is why I’m ordering some books right now about writing. I really want to share the love of forex trading and I think that my inability to express that love into writing would only limit my reach to more people.

Actually, I’m buying books because a girl rejected me. This fine woman, a manager from a popular coffee chain, I dated for a while just called it quits. She doesn’t know I have a blog so I guess that’s ok venting it out here. I’m buying books so I can forget about the whole thing. I feel devastated…

On the other hand, there seems to be a lot of insurance salesmen. A guy already phoned me selling insurance. He might have thought that I will commit suicide after being heart broken.

This post is not related in anyway with forex trading. But a screenshot of my trade looks just fine. It looks like a blood dripping right? Kinda explain how I feel.

Forex Backtesting

Forex backtesting is the process of going through charts from previous years, weeks or days to confirm the effectivity of a system. Simply put, you look at past charts to know if your system worked well as you predicted or failed. Every new and experienced forex trader do backtesting because it allows the trader to gain knowledge and confidence on his system and make necessary tweaks and rule to find the system that works for them.

Forex Backtesting Software

Most forex companies will let you view at past charts or even download them, where you can mark (using pencil and paper) and trade by looking at one bar at a time (simulating a real trade session).

There are some software that will do this for you. One is forex tester. Well, I think, its the only back testing software out there. Either the forex brokerage company has a feature or not, you can either trade manually or demo trading. Demo trading can be long and tiresome. Using a back testing software, you can instantly test your strategy because you can control the time when each bar will appear.

Conclusion: Whatever method you take, always remember to test your strategy before trading live. Either by backtesting, paper trading or demo trading. You must gain full confidence on your trading system.

I’ve Been Thinking About Goals

Yeah I have reached my first goal after 2 years with a deadline that’s suppose to be 1 year. I’ve been thinking of making this goal on the basis on how much money was made. I realized that its not important how much money you make in this business. Because what attracted me to forex trading is the risk and the intellectual challenge of trading.

Maybe its time for me to add another goal. Sort of like how Benjamin Franklin acquired the different traits he wants to have. Practicing each trait like, discipline and patience, not succumbing to fear and greed, are what I would really like to master more than earning a lot of money in forex.

The only problem is how…

Week 2: Forex Analysis Sept 12 to 16 and a New Toy

The past week has been a very good week. Did we make money? Hell yeah. I got the chance to ride the market movement of more than 800 pips on the EURCHF. And right on the spot, predicted its movement a week prior from the forex analysis week 1 post.


800 pips

My New Toy! iPad 2

That trade, riding its uber tall movement gave me the chance to reward myself with a new toy.

I bought an iPad 2 for myself to reward myself of a job well done. I haven’t got it yet and I’m still waiting for it to be delivered. I will post some pics when it arrive.

I tend to trade well watching tv and I made all the profits while lying in the couch trading in my mobile phone. But mobile trading made my eyes hurt because of very small letters. So I thought I would buy an iPad for a better mobile / flexible trading and at the same time, I can read books without having to clutter my desk with books I already finished reading.

Forex Analysis

EURUSD

It moved quite dramatically downtrend for daily. You may take profits now if you want to be on the safe side for daily trades, because it might pullback to test the resistance. We could see another downtrend for another week. It’s definitely a downtrend on monthly.

Get into downtrend trades. Its a good opportunity to go short.

EURJPY

Its a breakout downtrend on daily. Breakout downtrend on weekly. Still a downtrend on monthly.

Go short trades because its telling a very strong downtrend.

AUDUSD

Downtrend on daily for breaking the strong support at 1.05034. It is a good indication of an incoming downtrend on weekly. Monthly is still unsure. Might be a pullback.

Go SHORT. Its is downtrend for daily and weekly. But be careful holding the position for too long.

EURCHF

Seems like there is a resistance on 1.21822 and it can’t go on further. It might also be a sign for a pullback because the market have moved quite dramatically on daily. On weekly, it is now an uptrend. We are still not sure if it will pullback or not. Just be careful. Monthly is definitely an uptrend.

I would go long for the long term on EURCHF. Since monthly signal is telling us a great uptrend coming. But be careful going long on daily or weekly as we still don’t know if there will be a pullback or not. Enter at your own risk.

USDCHF

There is a breakout on daily. Even if EURCHF is directly proportional with USDCHF, this currency pair instead of pulling back, remained to go strong. There might be a window of opportunity here. Daily is in an uptrend. Weekly is definitely an uptrend. Monthly is uptrend.

I would go for uptrend trades on this currency.

Disclaimer

This trading journal is meant to be for educational purposes only. Please do not take these as trade recommendations and I am not responsible if ever you lose money in the forex market.

EURUSD +1,687 Pips

Screen shot 2013-10-24 at 11.06.09 AM

Entering a trade inside a kumo, betting that the cloud won’t break. This is what I think while I opened the trade in EURUSD. It has proven to be an effective strategy. As you know, a flat line in a kumo cloud means a strong resistance. While I also drew my own resistance lines, Ichimoku confirmed that it indeed has a high probability that it will not break. So I bet more. The resistance at 1.3500 is a dead giveaway for me. Look at the candlesticks lining up in a straight line. 🙂 That’s another opportunity to add more position from the profit I had on the first to trades near 1.33 and 1.32.

Total pips gained so far +1,687

Screen shot 2013-10-24 at 11.05.56 AMHappy trading.

 

Week 21: Euro Crisis Over? Or Is It The Calm Before The Storm?

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.

Forex Trading Reward: Macbook

I bought a new computer from the profits I made on this trade. The reason behind that is because I’ve been traveling a lot lately. And my phone just won’t cut it at times. I can’t look at the charts in detail. And also, I’ve been eyeing this laptop for a long time and thought of having it as a reward once I made a good trade.

I took some of the money and bought this laptop and all the remaining gets reinvested. Its a great laptop. I love it!

Lesson Learned

Though I made profits from the last trade. I wasn’t quite happy. Because I was betting really big in a business of probabilities. And I know that in time, the probabilities might hit me. I will try to lessen the risk now and be content with making money consistently in a safer way than to bet big and hard and have big returns but have big drawdowns.

What’s your reward for yourself this coming christmas?

Been Traveling – The Benefits of Being a Forex Trader

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.

Happy trading.

What Makes Forex Trading Different?

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.