People who are new to forex trading or people who are aspiring to trade in the forex market always baffles me. You know the typical people who have 9 hour job Monday to Friday and thinks that they can self sustain themselves with their job and become a millionaire in forex trading.
There is nothing wrong with this train of thought and many people have started with this. But to think deeper, if you’re going to divide your time with forex trading and your day job, doesn’t that make it only a half assed effort to begin with? You’re half assing your work and half assing your trading. So you get, nothing done at all… I’m not saying you should quit your job to do forex. What I’m trying to instill to new forex traders is the open mindedness and the real expectations in forex trading. If you’re dividing your time, juggling trading and work, you’ll achieve your “self sustenance” in forex trading more than a few tens of years.
Never ever underestimate forex and say “I can do this part time and maybe someday, I’ll be rich”. C’mon man, you are competing against the most competitive traders in the world who do this job for full time, with millions of money depending on them . And to think that you’ll be rich with half ass effort is like trying to go to the moon with a bicycle.
If you want to succeed in forex trading, you should be competitive, have focus and never ever underestimate the market. You can do part time work part time trading all you want, but nothing comes out anything good about being a wishy washy son of a gun.
I spotted this market on AUD/USD pair and made a “short entry”. I believe it will go down because of the momentum of the buying pressure has now (probably ended). I am still not sure. I have nothing to back up this trade but instinct. I might screw this up but at least its listed here and I can still go back with all the forex trades I made.
Update: Feb 10 10:30 am
Maybe that is why we shouldn’t put emotions when trading. My trade is now at -23.7 pips. I can still see that its going down now. Might as well be on the trade.
Goal for 2011
$25,000 Net Profit in 1 Month
I will raise the steaks. My goal from September 2011 to September 2012 will be to earn $25,000 net profit in 1 month (YES! One Million Pesos a MONTH!) I LIKE TO SHOOT FOR THE MOON!. Breaking it down means I should be earning at least $833 per day.
How to Reach Goal
- Study more about money management
- Risk more and be defensive
- Always think that I might be wrong in a given trade. Making me think defensively rather than offensive (taking unnecessary risks).
- Put more risk on successful trades. And reduce risk for wrong trades.
- Always think about the exit more than the entry.
- Money management, psychology and exit strategy.
Main Goal for 2010 (DONE :D)
$5,000 profit per month in forex trading.
I already have a trading goal. But just to make it official, I’ll write it on this journal so I can comeback later and see my progress. This year 2010, my goal is to reach $5000 per month in profits in forex trading.
By the end of 2010 I should be earning at least $5,000 per month. Breaking it down to days $5,000 / 20 = $250. That is $250 per day.
How To Reach Goal
- I’ll be patient.
- Trade only on longer charts. Daily / Weekly. I’ve had very bad experience with day trading but have great success with daily and weekly, so I’ll stick with daily and weekly for now until I’m familiar with day trading on demo account.
- Follow the trend.
- Follow my system.
- Remind myself to refrain from overtrading.
My ultimate goal is to earn my first million dollar with forex. But it will take a while I know. Just keeping a more reachable goal for now based on my experience.
UPDATE (as of September 1, 2011): I have reached my goal of $5,000 net profit in one month. It has been a long journey and I was late for about 1 year achieveing this goal. But it has been a very good adventure and a lot of learning curve. At first I thought its impossible and now I can move on to bigger things. Bigger means bigger profit.
As I trade into 2013, I realized that my forex trading is slowly becoming a more mature system. As I meet other traders in the forum and as I trade to my 4th year, my system, from a go-in-go-out-fast trades to a more mellow slow but profitable and safe “lets open a trade and look at it next week” kind of trade. This I think is better than suffering the stress of day trading. But as I realize this, I might also be posting less and less because the trade have nothing to be excited about as I search for longer trades, traveling and searching for the meaning of life. And I don’t want to leave behind countless newbies who still stumble in the dark.
I’ve been thinking of a membership club where I can teach them online one on one or a signal service that I could contact you should I have a trade opened and closed. My analysis and opinion and of course open questions about how I trade and my indicator, ichimoku. Of course I don’t want to charge but I think that would not be possible as I would be employing people to develop a system like that, and I don’t want to be in the red zone since I don’t want to use the money for trading for this.
What do you guys think? A signal service or a membership club or both? And how much are you willing to pay/comfortable paying?
P.S. I think $99 is highway robbery.
A lot has happen last week. As the market’s volatility rages on because of the Eurozone conferences, most of my trades and stop losses has been hit with a loss. I’m just breaking even right now for the losses from last week.
I’ve been also preparing to “invest” in the stock market. Just to hedge the underlying “riskiness” of forex trading. I say invest and not trade, because I’ll be entering the stock market only for the long term goal and cash flow. The strategy for me investing in the stock market is for a less risky, long term, income generating approach. While my forex trading will be my aggressive side. Never put all your eggs in 1 basket as they say.
Anyone also investing in the stock market? What’s your favorite stock?
Last week has been good forex trading not so good on local markets and stock market though. But that’s a different story. Kind of practiced patience not only in trading but in general as well. You see, last week, this site was hacked. And I thought that was a good opportunity to test patience as I never panicked and just calmed myself that everything is alright. Now looking back at it, it felt pretty good. Friday, I got a chance to enter a trade that I thought was a good time. Its in GBPJPY and USDJPY and I will review them today.
Its a good buying opportunity. It seems like the trend has ended for GBPJPY but don’t be so sure. Even if it is not the end of the trend, it is still a small risk to take with great rewards. We should expect the price to go up to 50% fib entrancement. If it doesn’t break the high of Thursday, we can call this trade invalid. Nevertheless, I’m in this trade and the risk – reward ratio is good so I’m sticking with it. Weekly is on a downtrend and Monthly has just reach a support. This week will be crucial in ending this month’s price.
Seems to me that it already hit rock bottom. So I’m taking LONG trades from now on. Remember to use stop losses so you can lessen risk.
EURUSD 8 Hour Chart
There is a strong resistance at near 1.3400. At this moment, it could be a good time to short.
EURUSD 1D long position
This is an update from the long position I made a few days ago. The trade is now running at +120 pips profit. The condition is still valid so I’m sticking with the long position. This is an experimental trade and posting this for educational purposes only.
The idea behind the trade is a contrarian position.
Another position I entered using the same strategy last week is this.
USDCHF 4hr short position
The strategy is proving to be profitable with +110 pips already made in this pair. Of course, it needs a little more polishing but I think it is proving to be promising. Its easier to implement as well so when I get started with automated trading.
In total we have +230 pips a very promising experiment! And we are profiting 2 out of 2 trades. That’s 100% accuracy. Of course its too early to tell. But I’m very excited with this new system. Its easy and profitable.
AUD/CAD Daily Chart
A textbook candlestick pattern spotted on AUD/CAD. A perfect opportunity would be to wait for the next candle if its a bull candle then its a valid signal. If not, then its false alarm. Risk takers can enter on this pair now on the long side. I’ve never seen a candle stick pattern as light as a day as this one.
Here’s an update with my experimental trade.
EURUSD as of this moment has 2 positions. 1st has 321 pips and 2nd position has 221 pips. Looking good for my experimental trading strategy. Total profit of 542 pips.
This is the update from my post yesterday. Around 561 pips so far for this trade.