Update 03.09.2010--------in the event that you have stumbled across my journal and need to read some on how I transaction, please begin at post #642. I began this diary as a new trader and the material up to that point is more about my trip as a trader. I am han happy and trade for a living now to assist new traders with queries on my style of trading. Offering you and bes of fortune to you in the markets.
Advice for new pupils to forexforum.co.za
I know what I know due to the James16 Chart thread
....Most of my articles are directed at the newer traders/students here and this one is the same. I've been trading for 3 years. The understanding that I have recieved wasn't only because of my own efforts but was paid for by others in lost sleep, lost time with loved ones, pain, divorce, lost cash, guilt, second guessing, lost self esteem, fruion and to get some that I have read and know the lost portion of themselves. I feel an obligation to write a hopefully and straight forward a sobering but positive message as I have felt some of those things myself. I can appeal to your state of mind on whatever level you're on in your learning to trade journey although I am not going to be able to learn this stuff for you but. With all that said I shall make a statement that many who I admire will probably disagree with. I feel that just about anybody has the potential to be a profitable professional day trader. The variable is how?
Much enjoy my trading style isn't anything new -all borrowed and assembled from some really excellent parts-I am going to borrow many things already said here and only say them somewhat differently. You see that I understood that what we're doing on the J16 thread is pretty much of the stuff only a different way of looking at it based on our characters. The Dirt Simple material doesn't change, it is just applied based on personal style and your comfort level. I personally do not trade the daily charts much. If you're a beginner you should--period. It is a Dirt Simple commandment.
Now I am 43 yrs old and have not been trading as long as I'd like but I know some things and also you new ladies and gents listen good into the following or don't waste your time or your household's time.
All these are the significant elements which make trading into a consistent money making business rather than a fruitless gambling exercise.
1. Business trading like it is a business enterprise. Your government is treating your trading like a company if you're using capital to trade with. Approaching your trading is mandatory in each and every transaction, day or year which you trade.
2. Instruction: In any business that is successful, the proprietor needs to know what he's doing. In our organization, it is all about learning the technical facets of trading. You don#8217;t even get edued by reading a book, viewing videos or trading your account. Trying to trade your own funded account as a newbie in a ";error and trial setting"; may only do one thing, conquer you. I really don't care what your path to learning might be. Demo trade months or however long it takes for you to get comfortable with all the material before investing once you begin to trade with cash, keep your standing sizes small. #8216;Hands-on#8217; schooling is what's needed to begin to comprehend the complexity of trading. You are fortunate to have discovered this substance and find the advantage of articles left here 7 days a week. You are going to learn the right basics on trading at J16. Eduion during a time setting permits you to keep your learning curve little and protect your funds during the treacherous and long procedure. Once you understand then it's possible to commit funds to a live account.
3. Plogy: To be a consistently profitable day trader you should have the mind set; before I was able to comprehend the material I received my head right way. It is the other way around. Without the right mindset you might head to a casino. You will find nearly as many people willing to take your cash there as you will find trading FX. Simply put, you ought to be resistant to losing cash and must forget your transaction regardless of whether you lost money or made. Losing money is a fact in this business.
4. Methodology: You must learn the proper way to trade the basic technicals of FX never deviate from these basic foundations and as edued here. Go out of this advice and you'll find the 20/20 hindsight as guests who are in no hurry along with the the second. Holding that losses are portion of the business and receiving the proper mindframe will insure that you'll never second guess yourself as every single transaction is only going to be placed when certain conditions are met, the exact same way, all the time, regardless of the market atmosphere.
5. Focus/Commnt you have to keep your eye on the prize. This sounds easy, however you'll find yourself while learning letting profitable trades turn into losers for reasons. You have to convince yourself that there is not any option for longterm collapse. Failure over the longterm way that you gave cash to the winners. I really don't wish to be THAT guy.
6. : as soon as it comes to trading, comes in several forms. We have to wait for our trade to come, await the proper tome to close a transaction, wait till we know our content, await tomorrow, next week. Never force a transaction. Await the proper technical installation. Allow the trades come to you the same as any business enables the clients. It is okay to pass on a transaction I promise. There will be more. I promise.
7. Discipline: Build your own rules based on th material edued here along with your very own defineable observations and stick to these ALL the time. Ignoring or forgetting your principles will make someone a profitable trader and spiral your psycology down into head traps. Use money management do not overleverage yourself. USE STOP LOSSES.
8. Stop Losses: as though your life depended upon them, they're an ABSOLUTE MUST Use them; they also allow you maximize profits and to manage the transaction the ideal way. If you do not use stops, then stop trading right now! Seriously. Never presume a transaction must return to your entry price to get you out. Now if you don#8217;t feel me? Try it and find out exactly what it does to your head. If you play without a stop for breakeven it is game over. Try philanthropy instead of trading. It is your calling. The minute this throws you into the group of the majority of traders who are doing nothing more than giving their money away. Bear in mind this a few trades can lead you into false sense of security. Always use stops, they're there to protect you!
9. Risk/reward ratio: Few beginners use this to their own benefit. You shouldn't trade unless you have a specified and profitable risk/reward ratio. By doing this, believe it or not, you can be a very successful trader if you're only right a fraction of the time on your trades. You are most likely asking how is this possible? It's about managing the transaction efficiently and trading the ideal way. Using proper entry and exit prices along with using stops efficiently allows one to make money on a basis that is consistent.
WHY A JOURNAL: I've been debating this for a few months and so here goes. I'm starting my Forex traing journal as of now 02.13.2008 . This diary is for the purposes of documenting my trades all with the short term goal of enhancing my trading abilities. The longer term goal is that within 5 years, I'll trade as a full time and profitable business.
TRADING: I'm trading 3 distinct ways during the forseeable future. My trades will be recorded under the following titles These are trades for the days that I can attempt to create 10-40 pips off of short-term moves in the market. I will need to have all the day to stay at my desk in order to perform those trades. INTRADAY STYLE #1 All these are breakout style trades. INTRADAY STYLE #2 These are trades based on what I currently understand about price action. These trades will be put up after 4PM Central Time Monday -Thursday. I'll finally post the rules here these trading types for each. UPDATE: 07.29.2008--I trade only DIBS/Harmonics Set-Ups and Price Action on daily charts.
SPECIAL THANKS: Bob for introducing me to FX. Mike W and Tiki-Trader for sending me some reading material that is superb and answering my dumb questions. Thanks also to my new friend Zoopy who always appears to be lurking on the mill and is there when I need him to explain something to me.
CHEAT NOTES:
NZD/USD 94-47 GBP/USD 156-78 USD/JPY 119-60 EUR/USD 129-65
USD/CHF 148-74 AUD/CAD 98-49 EUR/JPY 130-65 GBP/JPY 199-99
DIBS: 1)EUR/USD 15 Pips 2)AUD/USD 15 Pips 3)AUD/JPY 15 Pips
BEOB Bearish Outdoor Bar
#8226; Pub 2 Fragrant pub 1
#8226; Close of pub 2 is lower compared to open and
close of bar 1, preferably two thirds of
down way or more
BUOB Bullish Outdoor Bar
#8226; Pub 2 Fragrant pub 1
#8226; Close of pub 2 is greater than receptive and
close of bar 1, preferably two thirds of way up or more
DBHLC Dual High Lower Close
#8226; Dual highs #8226; Pub 2 closes lower than pub 1#8217;s reduced
DBLHC Dual Low/Higher Close
#8226; Dual lows #8226; Pub 2 closes greater compared to pub 1#8217;s large
IB Inside Bar
#8226; Long pub 1, pub 2 (ib) is inside pub 1#8217;s span
#8226; Bar 3 MUST break bar 1 and pub 2 #8217;s
low or high to be a valid Setup
#8226; Direction is down or up based on which side fractures first
PPZ Price Pivot Zone
New York 8 A.M.--Sydney 3 P.M.--Tokyo 7 P.M.--London 3 A.M. DIBS Trades Line in the sand 2:00AM Central
I am a professional trader. My job would be to take risk. If I handle my losses and let my profits run I will be successful. Because I am a professional trader, I will forgive myself easily for making mistakes and move on to new opportunity's. I feel good I have the discipline to control my feelings and the patience needed to be a professional trader. I am a professional trader and will make $. This will be achieved by me by controlling my feelings, setting achievable objectives, and following my trading egy. I am confident and believe to be profitable because I AM a professional trader.