I have been trading for a couple of decades, I am a newbie and just like a lot of people I have researched many ways to create money in the forex market. I have been reading posts here, for a while now and while there is a lot of good information, I see a lot of individuals who trade with no egies. If you can not make money in this market after reading the James16 thread or twoblink's thread (some of it) then you are not expecting yourself or your . I know a lot of people have tried to turn $100 inot $1,000,000 but they rarely posts their egies. I'm probably not going to be a millionarie tomorrow but I've a egy to get their 10 years from now. I have an account balance of quite little and well I will use my trading system as leverage to turn it into a lot. Some individuals will skip this, I might not get any looks whatsoever but I don't care.lt;? Xml:namespace prefix = o ns = urn:schemas-microsoft-com:office:office /gt;lt;ogt;lt;/ogt;
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The is a egy taught to me by Phil Newton and Buk called the lt;? Xml:namespace prefix = st1 ns = prefix:schemas-microsoft-com:office:smarttags /gt;lt;st1:date Month=1 Day=2 Year=2003gt;1-2-3 lt;/st1:dategt;. I can't post a URL to his website but he's one with several trading movies where he teaches his . This way is approximately 70% effective when used on pairs all accross the board. Lt;ogt;lt;/ogt;
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The money management feature of the is a predetermined equity percentage .lt;ogt;lt;/ogt;
If I've 5k in my account I will be using 3 percent of my account fairness to trade with. Furthermore position size (i.e.) amount of contracts is based on the size of my stoploss. If I've a stoploss of 50pips having a account size of 5k and a risk of 3%, then I will be risking $150 for THIS commerce in monetary price and my stoploss of 50 pips determines that I will have the ability to create or lose $3 per trade. This isn't a daredevil system and you might probably maximize this even further but this is a marathon, and moreover I don't have the heart for big drawdowns.lt;ogt;lt;/ogt;
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In addition to lt;st1:date Month=1 Day=2 Year=2003gt;1-2-3s lt;/st1:dategt; I will be utilizing a few of James16 approaches for trading, although my main source of income is through the use of lt;st1:date Month=1 Day=2 Year=2003gt;1-2-3 lt;/st1:dategt; patterns.lt;ogt;lt;/ogt;
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Now for your own machine:lt;ogt;lt;/ogt;
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There is a stage where price treandline break. A trendline isn't necessarily a diagonal line, it's a stage of support and resistance. And therefore In come cases I'd consider things other people believe to be S/R, to be a trendline. When a trendline is ready to be brokenup, the market may sometimes indie this with a pattern called a lt;st1:date Month=1 Day=2 Year=2003gt;1-2-3 lt;/st1:dategt;. Basically a higher low followed by a violation at the trendline (T/L) or S/R. Lt;ogt;lt;/ogt;
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If you look at the attachment, (can someone tell me the way to get my pictures in the post?) You'll see what I am refering to. I'm adding more pictures so you see its a re-occurring pattern. The next image shows another, clearly labelled and herin lies the need to follow attributes of this .lt;ogt;lt;/ogt;
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1. There MUST, absolutely must be a violation of a trendline! If you don't stick to this, it might work out but you won't have a win/loss ration even close to what's possible.lt;ogt;lt;/ogt;
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2. This WAS a filter but it became apparent it was an essential part of the that I made it mandatory. You ought to be trading close to some round number or emotional resistance. Round amounts are points of choice and basically you have to appear at numbers like 1.3000, 1.2500 even 1.2550. These are things individuals naturally look for.lt;ogt;lt;/ogt;
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3. Both aspect of this pattern must land on a place of previous resistance and be at or close to some round number.lt;ogt;lt;/ogt;
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4. The three aspect of this pattern ought to be equivalent to or greater than a 50% retracement of this 1 aspect of this pattern. I prefer if the three aspect bounces straight off a fib retracement, but this is too rigorous a filter but it does instill CONFIDENCE.lt;ogt;lt;/ogt;
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So that's the pattern principles:lt;ogt;lt;/ogt;
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Fib retracements are drawn from the 1 aspect of this pattern into the 2, with a goal of 161.8%. I enter 4 lots and then after my goal is reached I remove 3 lots, move my stop to breakeven and allow another lot fly...it could increase profits dramatically.lt;ogt;lt;/ogt;
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One thing to remember. Don't cheat on your trendlines. I know it sounds dumb but I have lost many transactions seeking to place a trendline where there is not one. Better stay out when you're unsure. And remember this is a counter trend trade and you don't wish to conduct this trade with no stoploss it might cause devastation to a equity. I hope I have the time and tools to place my trades here and a few individuals are able to learn from it and I will too.lt;ogt;lt;/ogt;