Community for Traders & Investors

I’m creating a community for traders and investors. A community where all the members share ideas and experience about trading and investing. A community where we guide each other and help each other to succeed.

As of this moment, it is for invites only. And we need people who are passionate about trading and willing to share their knowledge. We need people who will create educational materials and guide other newbies in the business. Because we make money on trading… not on seminars and we don’t need to take more money from newbies. We help them fish in the market instead of just giving them fish. If you think you are up for the job, just leave your comments below.

Disclaimer: We don’t pay you to become a member. But you can be a part of something great.

Forex Breakout Trading – EURGBP

Hello there blog readers. Hello there forex trading colleagues. We have a flash news. There’s a forex break out on EURGBP going to the downside. This could be a long term trend after waiting a few months for the currency pair to finish its corrective waves (consolidation). Keep your stops in check. This could be a big winner and a trend up to next year.

Week 32: +20% This Week Great EUR/USD Trade

The main highlight of last week is the trade for EURUSD and capital is now up 20%. Looking at the charts, I think there is something cooking for EUR/CHF.

Remember our analysis on the EUR/CHF that its cooking to go up? Well, it did went up but it seems that many are still shorting the pair. The interesting thing here is that the Swiss government expressed their willingness to intervene should the pair reach around 1.2000. This is last year’s tipping point where exporters are expressing their grief for high exchange rates and businesses are being affected.

Now that the pair is hovering at this level ~1.2000. It might be a great idea to go long and build up the position as you go.

The price action tells the same story, “I want to go up!”.

Keep in mind that before a trend reverses, there might be a consolidation… This move up that we are anticipating, may be preceded by consolidation first before it moves up, or it might continue to go down some more before it moves up. Keep your stop losses tight and be flexible enough to know if you are wrong. I have been wrong a couple of times, so same thing goes here… Trade at your own risk. 🙂

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.

Frequently Asked Questions in Forex Trading

I have been receiving a lot of emails lately from people who are interested to start forex trading. I apologize if I can’t reply with your emails, I’ll just post it here in return so people can see.

1. Recommended Websites to Learn Forex Trading

The only recommended website I could point you to in learning forex trading would be babypips.com. All the basics and intermediate materials that you need to know are there.

2. What are the Systems Used in Forex Trading?

There are quite a lot of systems in forex trading and I can’t explain all of them. The best way to use a system is to know yourself. If you are a risk taker and restless, try day trading forex using candle sticks. If you are a steady investor, try fundamental analysis using macroeconomics. If you are in between, try swing trading. I can not stress this enough, know yourself and then pick your poison.

3. Where to Get These Systems?

These systems range from robots to pure strategy. Where else can you find them? Bookstores. Go over to amazon and search forex trading systems and you’ll find yourselves a lot to choose from. Also, finish babypips.com for an introduction to different kinds of systems and pick one you think you like best.

4. Is there a Short Course in Forex in the Philippines?

For what I know, forex trading in the Philippines is at a very infant stage. Just look at our stock market, not even 10% of the population invest in it. So don’t expect much for short courses in forex. I believe there are some companies out there that does this and some gurus teaching the basics. But then again, that’s what babypips is for.

5. What is the best way to learn forex trading?

I think the best way to learn in ANYTHING is just go out there and do it. Demo trading can only get you so far. Without real money on the line you can not feel anything. Emotion is part of forex trading that you want to master, demo trading won’t do that and only a live account can.

How to Get Out Of Losing Trades

Screen shot 2014-02-25 at 7.06.25 PMAs far as forex trading goes, every trading system has their own rules for entry and exit, their money management and risk and rewards. But system rules, entry and money management are the easiest part of the system. The hardest part of the system is the “exit” because its where you’ll make or lose money.

What’s even worse is if the position is a losing proposition. Clicking that exit button might seem like a Herculean task of discipline and strength. Most people breakdown at this point and fall into the abyss of self-denial, thinking that the market will eventually comes back and recuperate their losses. But the market never did come back and his trading account, vanished.

I’m here to tell you what I think about losing trades, how to ease the pain it brings, how to get out gracefully and how avoid it in the first place.

Avoid Losing Trades by Concentrating more on the Exit

When you see a trade, focus on the exit rather than the entry. A newbie forex trader will try to “imagine” patterns when they see an entry signal. And sometimes, deliberately try to convince themselves that the pattern is indeed 100% accurate. They become obsessed at proving themselves that they are right. You should do the opposite. You should always try to prove yourself wrong and always look for the exit rather than the entry.

As I quote Sun Tzu’s Art of War:

“Victorious warriors win first and then go to war, while defeated warriors go to war first and then seek to win”.

Know beforehand that your exit will be profitable and you have won that trade even before you make it. As you make this approach, you’ll notice that you’ll have fewer and fewer trades. But the quality of those trades will certainly increase.

Immediately Close a Losing Trade and Move On

This is probably the hardest action to take for a losing trade. Accepting the fact that you’re wrong is a sign that you have matured as a trader. While newbies will try to hold on to the trade wishing that the market would bounce back. There are probably another school of thought when it comes to this strategy. The market does not go in a straight line and they wait for it to bounce back even for a little. That is perhaps true. But I would rather end it now than to hope that the market will come back for me. What if I’m wrong on that part as well? Being wrong twice in a single trade could be the worst feeling and it could harm your future trades.

Never Risk Too Much Money

All in all, it all goes down to the amount of money in a trade. Demo trading is fun because the money used is not real. And so, every losing trade in a demo account is nothing to you. But if real money is at stake, “shit hits the fan” too much too often. Risk only the amount of money you are comfortable with. You need to have a good money management strategy on top of your trading system. This is different for every people. That’s why we have a term risk appetite. Some people likes to risk high and some people don’t. I don’t personally like risking alot of money in a single trade. Well, I used to risk a lot, but I’ve changed.

Personally, the amount of money I risk in a single trade is 2%. Max. I don’t go over that. I have found that I’m very much comfortable losing that amount of money and so I don’t panic when I have losing trade. I just kill that losing trade and move on.

Whatever you do, losing trade is not a good feeling to have. But remember that forex trading is a business and should be treated as such.

Trade Closed 68% Profit – Forex Trade

This is was my last trade on USDJPY. I managed to close the trade with 68% profit before the sudden reversal a few hours before the close.

I think that this following week, we’ll see a retrace on the pair. If it doesn’t make a new high then the trend will continue to go bearish. If it does make and close into a new high. I’ll change my view on the pair as bullish.

Forex Backtesting lesson is now out on our forex trading course. Check it out!

Happy weekend you guys.

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.

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.

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…