Developing My Own Trading Style
There is some basic instinct that I'm comfortable to use :
No. 1 - Candlestick
No. 02 is about TimeFrame
M30 time frame is the most appropriate to see what is happening for the news due to the news is mostly announced at the interval of 30 min. Compare it with the D1 TimeFrame to scan where is the location of the candlestick now, after Australia Open, after Europe Open, and after US Open. And M5, whether you are at the top position of the candlestick within the M30 candlestick when you decide to enter if you able to read candlestick with bolinger.
The larger the timeframe, the more useful of the indicator.
No one will chose different timeframe if there are no indicators.
There is one problem for the timeframe and indicators, which is if a currency pair of higher spread of > 20 pips such GBP/CAD, GOLD, the smaller timeframe and indicator surely not suitable at all, because you have to project the next 40 pips in order to win risk (1:1) reward.
Playing H4, mostly you will close at a longer time because of the indicator and the candlestick take longer time to form. I'm choosing M30, so that I will win and lose within the same day.
I have prepared a list of Why do we lose so much in practical and in theory at
BizWorldAbout as I'm developing a strategy to be winning many times and losing few big lose. Sound scary of the Big lose? It's actually a lesson to all of us, how long would you stay until it swing back?
Sorry guys, I'm closing this forum topic. Thank you for your time. I'm enjoying my working strategy. see ya.
14 Jan 2010 pattern = 02 Feb 2010 pattern. GBP/USD. M30.
I named it Shaking Trend. Seldom happen in a month.
If you learn to read chart, it's much better.
Learning the skill of similar chart through AUD/USD with NZ/USD, with 90% correlation.
In order to become a winner in forex, what are the playing pattern available?
Which pattern you are choosing now?
Which pattern is difficult to play?
a) More pips, More Time, Less $ per pip
b) More pips, More Time, More $ per pip
c) More pips, Less Time, Less $ per pip
d) More pips, Less Time, More $ per pip
e) Less pips, More Time, Less $ per pip
f) Less pips, More Time, More $ per pip
g) Less pips, Less Time, Less $ per pip
h) Less pips, Less Time, More $ per pip
Please arrange it in order based on the difficulties of these patterns.
Why?
You would know how far you have gone and all the levels you would like to achieve and ignore.
Don't Mess with Forex News
Forex News mostly give impact on those associate with USD currency pairs, such as GBP/USD, EUR/USD, AUD/USD and so on... I have come across with the internet resources, but I would like to group it into three (3) category.
Category A (Don't Ever Touch-skip that day), Category B (Close your open trade 2 hours before), Category C (Close your open trade 1 hour before the news).
Category A
Non-Farm Payroll report
Category B
Interest Rates (FOMC rate decisions)
Trade Balance
Category C
Current Account Balance
Treasury Inflow Capital (TIC) Data
GDP (Gross Domestic Product) report
FOMC Meeting Minutes
Retail Sales
Inflation CPI (Consumer Price Index)
Durable Goods Order
ISM (Institute for Supply Management)
Producer Price Index (PPI)
You may look for the explanation of these economic Indicators below:
Forex Economic Indicators| Easy-Forex
The question is, is it the forex news, only the time you could make more money?
Is it the More Risk = More Reward? or the More Experience = More Reward?
There is one fact that you could ignore Forex News if you are playing timeframe H4, D1, W1 which normally based on technical indicators.
Trading the News requires closing the trade within seconds.
For previous post, the meaning is like this :
It does not necessarily using a lot of time to win in the forex.
It does not necessarily using a lot of money to win a lot in the forex.
It does not necessarily need more pips to win a lot in the forex, instead more $ per pips
and the list continues.....
Now. Don't Mess with Forex News
Forex News mostly give impact on those associate with USD currency pairs, such as GBP/USD, EUR/USD, AUD/USD and so on... I have come across with the internet resources, but I would like to group it into three (3) category.
Category A (Don't Ever Touch-skip that day), Category B (Close your open trade 2 hours before), Category C (Close your open trade 1 hour before the news).
Category A
Non-Farm Payroll report
Category B
Interest Rates (FOMC rate decisions)
Trade Balance
Category C
Current Account Balance
Treasury Inflow Capital (TIC) Data
GDP (Gross Domestic Product) report
FOMC Meeting Minutes
Retail Sales
Inflation CPI (Consumer Price Index)
Durable Goods Order
ISM (Institute for Supply Management)
Producer Price Index (PPI)
The question is, is it the forex news, only the time you could make more money?
Is it the More Risk = More Reward? or the More Experience = More Reward?
There is one fact that you could ignore Forex News if you are playing timeframe H4, D1, W1 which normally based on technical indicators.
Trading the News requires closing the trade within seconds, or else you are not trading news, but trading its activeness period should it be last for hours.
Fear of Losing
I like Robert Kiyosaki quotes :
"Fear of "being" a loser affects what people "do" in strange ways. I have seen people who bought a stock at $20, sell their shares when they reached $30 because they're so afraid of losing what they've gained, only to have the stock go to $100, split and go up to $100 again. That same person, having bought a stock at $20, will watch it go down to, $3 and still hang on, hoping the price will come back up... and they may hang on to that $3 stock for 20 years. This is an example of a person "being" so afraid of losing, or admitting they lost, that they wind up losing.
Winners "do" things almost exactly the opposite. Often, the moment they know they took a losing position, i.e. their stock price starts to go down instead of up, they will sell immediately and take their losses. Most are not ashamed to sly they took a loss, for a winner knows that losing is part of the process of winning, When they find a winner, they will ride it up as far as it can go. The moment they know the free ride is over and the price has peaked, they cut and sell.
Being a great investor is to be neutral to winning and losing. Then, you don't have emotionally driven thoughts such as fear and greed doing your thinking for you."
Do you know where to spot the moment they know the free ride is over and the price has peaked, they cut and sell in Forex? Read again, you will know the clues.
Focus one currency pair at one time while you are playing makes you become more efficient, which is "if you ever have one chance, what currency pair would you be playing, and how would you know is this the right position?".
In gambling, normally a person will focus on a particular table, if she/he decide whether today have the luck or not. Betting a limited money to ensure he/she stay in the game longer and a rule for himself/herself to feel whether today is enough is enough, meaning enough winning as well as enough of losing. In other words, the enemy (player) today might be stronger than you thought.
Diversify your money (resources) into more than 2 pairs makes you tired, and you would not able to place your 'more money' per pips if you diversify too much.
In addition to that, you would find yourself closing all the currency pairs at the same time when the market does not follow you, and you do not have a targeted stop loss for all the currency pairs.
By the way, why do I compare gambling with forex?
Some of the games in gambling involves calculations. And of course they are similarity of the following
a) with greed
b) with fear of losing
c) with emotion breakdown
d) could not stop playing
e) 90% losses
Not forgetting there do have winners in the gambling as well. So how do they win? I don't believe they cheat but they do have skill on their own.
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Before I start, I'm doing a forex research on myself. I know there is a lot of indicators out there, and tools for all of us to use. However, I'm trying to focus problems that I'm trying to solve it, that is why do we lose so much?
Cutting every losing trade too much
When it is a losing position, it is understandable you would close it as lost to stop further losses. However, if you cut every losses too much, it is the meaning of accepting the losses, and the symptom is normally you would not able to let the profit run long enough because did not take the risk long enough.
Strategy focuses on Profit too much
If you unable to focus the losses problem, you would not able to go far, and the symptom is this problems always repeated.
Loss small many times, Win A big one few
This strategy would make you tired and to be greed at the wrong place. Once the Big One does not appear, you would start to panic. It's a No-No. You lose so many times because you are unable to spot the Big One, that's why.
How about Win Small Many times, and lose a Big One few? This is the strategy where I'm going to experiment. Taking the risk, manage it at a appropriate place and see how much you would get.
Sit Down and Straight Away Playing
This strategy normally known as a gambling strategy. Where there is an empty seat, you sit and start playing. How about checking on each table, see which table has a big player and see how he/she is playing, there must be a reason the big player sit there for a very long time. Then you catch he/she playing style. In gambling, it is about winning, not playing. So with Forex, it is about how to win, is not a playing games to waste your money. Not every situation is the best condition for win.
The Style of Winning
If somebody tells you that he/she has won in the forex, there are two typical playing strategy.
1st : Doesn't require long hours of playing.
2nd : Requires long hours of playing.
This is the most important part that you would like to develop a winning strategy. If you mix up both of them, you are mixing whatever strategy you have in your mind, and telling yourself you are an expert straightaway.
Amount per pip too much?
If USD per pips is too much, you would unable to stay long for the risk. This strategy normally comes together with those requires sit for long hours of playing because every pips carry a lot of money.
Exit trade after long candlestick is form
Exit trade when you win is correct. However exit trade when you lose the most is definitely a No - No. Forex swing up and down, would it swing back or not, you have to do some homework.