Making a Community

So what’s been cooking? During the past week, I’ve been thinking of creating a community for traders and investors to share their knowledge and ideas. And this one will be a different one from a while back that I made. I’m talking about the forum. This is a lot different because I’ve invested a lot of time and money in it.

I’d like to see Filipinos talk about money, trading, investing and business. I want the Philippines to be rich and thus have a lot of rich men. I apologize if I may have been slowing down on the posting, I’m just a one man act so I could easily be spread thin. But no worries, once I have finished all necessary preparations, I wish to invite all of you to this community and this blog will return to regular programming.

About my trade

Its doing great. I’ve made 20% profit from last week. Here’s my current trade as of this moment on EURUSD.

There’s also a new lesson on the trading course. Its about forex trading systems. Sort of like an introduction. Have a look and let me know what you all think.

Cheers,
ForexPhil

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.

What Are Your Goals in Forex?

180+ Pips on AUD USD

180+ pips on AUD/USD

When people asks me what I do for a living and tell them I have a business called forex trading, people always jump out of joy and ask me to teach them how to do it. It seems that is rare for someone to encounter such a breed of people that you won’t be able to hide your joy and ask questions. It is a pleasure for me to teach. But it can quickly becomes a frustration when people don’t have the willingness to learn. Only the willingness to ask. There are a lot of forex tutorials, resources and beginner tools on the subject that its quite frustrating now to explain fibonacci, limit orders, SMA, margin and leverage to an average person. We all have those basic stuff online and for free. If you come across a forex trader in your life, do not scare him away by asking newbie questions. Educate yourself first so you can ask interesting question that would express your willingness to learn. You may build a good relationship with that person and might improve your trading.

In a business where your character will be tested, I think everyone should be willing to learn by themselves because after all, it is your money. First ask the question, what is your goal for trading forex. Is it to become a millionaire overnight? Is it to retire young? Or is it just a vehicle for you for wealth building?

Whatever your answer to this question ultimately lead to what kind of strategy you will utilize. Every person is different. And every person have a kind of threshold where he can take a loss and not quit. Everybody is different. So learn about yourself. And create your own strategy. Master the fundamentals and you’ll be able to learn faster. And most importantly, be patient and have self discipline.

I do have my personal goal in forex when I started out last year. I haven’t achieve this goal yet. But I’m seeing positive results now more than ever. And that’s because I never stopped learning.

Whatever your goals are in forex, I wish you good luck.

Week 29: Going Short on USDJPY and Some Thoughts on Trading

It makes me sad when a friend wants to pursue a dream that is in line with yours, the journey could be fun with a close friend besides you, but chose not to pursue his dream because of a shorter term goal and temptation of instant gratification.

Like I always believe, the road to success is a lonely road. You will lose friends because not all people see the same opportunity and the future that you want to see. A successful person is courageous to continue to go on, even after losing all that he has, and even if the journey is his, alone to pursue, he will still go on.

Being focused on a goal is important in any endeavor. Spending all your effort and time on a single business is what makes it successful. See the visionaries of our time. I will be honest with you. Since you have started your way to forex trading. Never expect to earn money with it. Not at least the first few years. Even more if you have another job and doing this part time. That is the truth. Do not expect to beat the market by being a part time trader. Do not expect to be rich with a half-assed effort. Doing that only means you are underestimating the market.

Seems like a good opportunity to SHORT now for USD/JPY. It could be a retrace. Weekly chart also showing weakness. Trade at your own risk.

Forex Trading on USD/CHF Feb 9

More forex trading before sleeping! I’m excited to spot a nice setup on USD/CHF. I just can’t pass this opportunity up before going to sleep. The chart looks like this:

picture-3

It’s definitely going down. So I made “short” to enter the trade and hopefully get’s back with the results when I wake up by tomorrow. :) By the way, this is on daily chart. It’s better to trade in this chart for me so I don’t have to be afraid of the noise happening with candle sticks going up and down on fast charts.

Update: Feb 9

Currently at +25.0 pips. I’m short on this trade. I chose short because of the pinbar that’s been in a bullish trend. And I’m quite iffy about the candle that will form today. We’ll see. I see no reason to go long though.

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Update Feb 9 Exit Trade

I exit the trade with 63.5 Pips. It’s a WIN.

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Update on Trade USDJPY and EURUSD

I just watched the opening of the “Amazing Spiderman” movie and I think its better than the first movie. Since because its more related to the real story in the comics and Peter Parker is a fun character, sarcastic and witty, like the real spiderman in the comics. You should watch it. It doesn’t have anything to do with this post but, I just want to share it with you. Ha! :)

Update on USDJPY Trade

I opened the trade a few days back. You can actually see the first time I blogged about this trade. Its here. Its a trade going for the short side. Right now, as of this writing, it has given us good amount of profit and the risk is now zero. Which means, I can add more position to it. Take a look at it, I think its awesome.

I am guessing that it will continue to go down. Take note, “guessing”. I will never ever tell you that I’m sure of a trade. There’s always a possibility to reverse. That’s how you spot a fraud forex trader or analyst. They think they know where the price will go. They’ll come up with fancy words and stuff, but all that just to keep you insecure and to make themselves look better. You see, trading is simple. Its not easy but simple. You just have to bet whether it will go up or down. Just make sure you don’t lose the house when you’re wrong. When you’re right, then good for you!

Update on EURUSD

I opened this trade yesterday. As you know, I have been a contrarian trader. I like it when a lot of people shout the same stuff. “Eurozone will go down and stuff so go short!”. I say, okay. That’s great. What if you’re wrong today? Then majority of the people who are short will want out. That’s when I come it. >:)

See my position? That’s what you call a bottom. What did you say? It doesn’t exist? Your mentor told you not to be bottom fishing? That’s great. More for me. When looking for the bottom or the top, you need to find a way to determine a valid support and resistance lines and you place your trade near those lines. Actually, I think for me, one of the best skill to have other than try to sit around and wait patiently is to find support and resistance lines easily. It comes with practice and I suggest you start trading live immediately or do demo trading and try to look for those lines. There are tools to help you with that, fibonacci retracements, stochastics, rsi, zodiac signs, horoscope and my favorite, constellations.

Where do we stand?

At this writing we are currently up by 47.05%. What? Again? I’m not complaining though. I’m nearing to doubling my capital a few percent more. But I always remind myself not to be greedy so the market won’t take it away from me. I think its a good attitude to have.

Why Trading the News is Probably a Bad Choice

news

You might have noticed that I don’t post much about the news like other forex blogs. I don’t bother with what the next interest rate would be or the quantitative easing of currencies. I realized that if you depend so much in the news, you’ll end up confused.

Don’t get me wrong, there are a couple of people who trade solely on the news, and its a strategy that I never got the hang of. Its fun to see your account go up the moment the news was released, and provided you’re on the right direction, it can provide so much high. And I think I understand why some people would depend so much on the strategy. Its fun!

But in my experience in messing around with the news as a forex trading strategy, while waiting for the news to come out, like for example, the interest rates. Its hard for an ordinary person to predict what would be the interest rate. Even experts can’t be so accurate to predict it, so that leaves me “guessing” what will be the interest rate. And with time pressure on your side before the news broke out, its just a matter of guessing now. With 50% chance of going wrong, you’ll eventually go break even or go bankrupt. And with stress as its effect, I don’t think I would last much with this strategy.

I don’t know, some people may make a killing out of it, I see a lot of people depending on news for their trading and investing decisions. I see a lot of this in stocks and currencies particularly.

What about you? Do you trade with the news? How was it?

Week 7: Solidifying My Plan – Martial Arts Tournament

I was in a hiatus for 1 week. That is because I participated in a martial arts, full contact, knockdown karate competition. And I was injured. It took me a week to fully recover and so I am back. You may watch the video below to what kind of karate I practice. I don’t have the video of my matches but you can imagine me the one being knocked out. ;P

During those times, I kept on back testing my strategy. Day in, day out and I will backtest my strategy later tonight before I go to sleep. Everyday. I want to make sure that I will follow my plan. To make it second nature.

The reason being is I want to solidify my plan. I want to have a fixed, concrete goal. If I say, I want to be a millionaire by the year 2015, I should have at least a plan to achieve it and a confirmation that it can happen, that its possible. And its definitely possible.

The goal I have to reach $25,000 per month in forex only boils down to an ultimate goal – To earn a $1,000,000 in forex. With back testing, the shortest time I can reach this is 3 – 5 years. If and only if I follow my plan. Every broken plan will only delay me further.

Another goal of mine is to have all the time in the world. Forex is my ultimate vehicle to obtain ultimate freedom. I see myself doing 1 – 3 trades per month but the profit are enough for me to last a year. This is possible with the strategy I am back testing. I just hope that the market does not change enough to make it invalid.

Crazy as it may sound. The only missing piece to all this plan and trading is patience. A lot of it. All things come to he who waits. I just have to keep the idea in my head, that I will be a millionaire in 3 – 5 years time, the only payment for that is discipline and patience. Not a bad trade off in my opinion.