Forex Trading Strategy

The author, being a rebel and a total ass to authority figure is a contrarian trader. He “sticks it to the man” that is why, he loves contrarian trading so much. But in general, he is also a technical trader. Making use of technical indicators, fibonacci and ichimoku.

The ultimate goal and an ideal trade for a contrarian trader is to buy at bottoms and sell at tops. It is the myth that many traders know and will not advice to many people. They will say, “don’t pick tops and bottoms, it doesn’t exists”. Fair enough, it is hard to pick tops and bottoms. But it is not impossible. People such as George Soros and Paul Tudor Jones are great example of contrarian traders who hunt tops and bottoms. And the author aspire to be like them.

It doesn’t matter how many fails or losses you incur hunting for tops and bottoms. Most of the time, with proper analysis, those losses can be recovered with just one winning trade. And best of all, hunting for tops and bottoms has low risk with great rewards. And that is what the author wants. Buy low, sell high. Simple enough for a simple minded trader.

What about investing? What About Value Investing and Fundamentals?

Fundamentals have their place. But the author believes that using fundamental analysis for a world wide market is very difficult with alot of factors you have to consider. Its a whole country’s economy you’re analyzing. Why not make it simple and just focus on the price? Its the bottom line isn’t it? And if you “invest” using fundamental analysis with a market that moves 1000 points per day, you are rest assured to go bankrupt faster that you can say Holy Sh*t.

  • Mathejo

    can you send me daily news letter?

  • ForexPhil

    You can subscribe if you want to be updated with new posts.

  • Rocky

    What can you say about the exchange rate of JPY to PHP? Last Monday it rates to almost P0.5725/Y1 but it downfall to approximately P0.56/Y1 or even less for some banks..

    Is it advisable to sell Yen before it reach back to P0.4xx/Y1 or there is still a possibility that it could return back to P0.57xx/Y1 up??

  • ForexPhil

    Honestly, the Yen is behaving rather peculiar for the past month. A lot of people are waiting for the Bank of Japan intervention (an occurence that happens quite frequently to preserve their currency). I don’t know where the currency will go at this point.

  • ferdy

    read bout some of yer blog…. im an ofw…. been studyin much bout this kind of business…. pero up to now…. still in paralysis of my analysis…. you were right meron ngan s pinas ng mga seminar…. pero i felt a little bit of ripped off kasi parang npakabasic…. bale inextend ko n lng on my own ang strategies ko…. kaso since im working class….. a family man….. never found time to actually apply what ive studied…. spent 12thou ng reach ng 22 thou just to get all the basic…. my wife’s not bothered kasi she knows i want to do it…. some sort of a retirement scheme to retire early of course…. hate to be the working class… kaso discouraged ako s bansa natin kasi konti lng tayo nkakaalam ng ganito…. mostly pa nsa higher ups…. do you have an org o group ksi gusto ko join…. i wanna learn more….. and apply it as well… pagod n kasi akong lumayo s family just to break my back for big bucks…….. u can email me if u want…. coz im really serious bout….. right now d2 ko s lugar ng mga puti mas mganda ang access ko kso limited ang stream ng net….. nsa platform ako…. at hindi given s mg ofw ang privelege s net…. so ang access ko s forex market maliit….. but i promise myself ill stop this crap and pursue this market n alam kong ilang percent lng ang ngcapture….. left my email add… at habang nkaon board i will still k look at yer blog para prepare…. kasi i assume pinoy k din…. kaya kahit english ang explanation i know i can still have a grip on it…

    tnx and regards

  • ForexPhil

    @ferdy,

    Don’t be discouraged. There is a reason why people doesn’t know about investing and any other risky business such as forex. Any modernized country has a law not to advertise any investment products to people, except people that is more than $1,000,000 net worth. I believe the US has that law, and most likely the Philippines has the same law.

    Having said that, its a fair game. Some people marry early and focus on working abroad all their life and some people are single pursuing the financial freedom first before anything else. Its just all about sacrifices, priorities and price we have to pay to get where we are now. Some people get out of the working class early, some are late, others rebel, others whine and blame the government. How you act on your situation makes the difference.

    About the seminars in the country, I do believe its pretty basic. There’s nothing babypips.com won’t teach you for free that these traders in the Philippines charge for money. Be smart.

    I don’t have a group. But keep updated on this blog. If there are more people willing to join a group to help each other, I might start a forum for you guys.

  • ferdy

    tnx…. good to hear that…. anyways check the website yer suggesting….. or do have other website that teaches much advance just in case……. ill gladly if i can haer it from u.

  • ForexPhil

    babypips and a few books about psychology.

  • Spyfrat

    excellent blog senor :)

  • Pingback: Contrarian Forex Trading | Forex Philippines

  • ForexPhil

    gracias. me gusta.

  • http://genkumag.wordpress.com genkumag

    Great blog, Senor!

  • Bhadz

    Gusto ko din sumali sa forum u.. :) Boring ngtratrade magisa, nagugulat mga katrabaho ko kasi kung anu anu daw binabasa ko. Some of them pa di man alam kung anu ang FOREX.

  • http://www.facebook.com/angel.catalan.1654 AngeLie CataLan

    i like ur blogs. :) transparent though, maxadong aggressive, tipong if u win u win , if u dont , u’ll win pa dn next time. ;)) paxal2 lng ako dito. friend ata kita fb. :P haha

  • ForexPhil

    Yes. Lagi naman you’ll win next time. There’s always a next time.