Thursday, December 18, 2008
Wednesday, November 26, 2008
Before Obama speaks....
I took about 80+pips today. This one rakes 53pips. The move happened so fast and that perhaps made Oanda hung. My take profit got hit and everything stay frozen.
Sometimes when it happens like that, I may cover half at 900 and move my take profit to see where it'll move further.
Still 53pips ain't bad.
Perhaps the circled green candle is a good second entry. hmm.... more thoughts.
Sometimes when it happens like that, I may cover half at 900 and move my take profit to see where it'll move further.
Still 53pips ain't bad.
Perhaps the circled green candle is a good second entry. hmm.... more thoughts.
Monday, November 17, 2008
Trading System
Trading, to me at this time of writing, is seperated into 3 parts:
Analysis is made up of entries and exits. The final conclusion of an analysis is to give us a signal : Long or short or stand-aside. Not all correct analysis yield correct price movements - it's just how the market is, they obey no fix rule.
Moneymanagemetn is ALL about exit. The famous saying goes: let your profit run, cut your losses short. Both are abouth exits. Your risk/rewards ratio is about exits- where your TakeProfit (exit) is in relation to your StopLoss(exit).
*You should be able to tell now that exits are far more important than entries.
Pschologoly is tricky. I simplify (and assume) it to this: pschology = greed + fear. (This is really over simplifying because pschology also includes loads of other biases that we have). We cannot measure greed and fear per se, but we can measure the effects of greed and fear. Notably this shows up in our trades (but is not limited to) as entries taken too early or late and exits taken too early or late. I also measure my heart rate sometimes- just to tell me how 'clear' I'm thinking. I note that when my HR goes up from 70/min resting to 100/min I'm usually over-trading. Correlation doesn't mean causation though.
Therefore now we have the following equations:
Just remember to keep track of the relevant numbers in your trading journal. The journal will be our map to get from point A to point B.
Good trading.
- Analysis
- Pschology
- Money managment
Analysis is made up of entries and exits. The final conclusion of an analysis is to give us a signal : Long or short or stand-aside. Not all correct analysis yield correct price movements - it's just how the market is, they obey no fix rule.
Moneymanagemetn is ALL about exit. The famous saying goes: let your profit run, cut your losses short. Both are abouth exits. Your risk/rewards ratio is about exits- where your TakeProfit (exit) is in relation to your StopLoss(exit).
*You should be able to tell now that exits are far more important than entries.
Pschologoly is tricky. I simplify (and assume) it to this: pschology = greed + fear. (This is really over simplifying because pschology also includes loads of other biases that we have). We cannot measure greed and fear per se, but we can measure the effects of greed and fear. Notably this shows up in our trades (but is not limited to) as entries taken too early or late and exits taken too early or late. I also measure my heart rate sometimes- just to tell me how 'clear' I'm thinking. I note that when my HR goes up from 70/min resting to 100/min I'm usually over-trading. Correlation doesn't mean causation though.
Therefore now we have the following equations:
- Analysis = entries + exits
- Pschology = entries ( + / - candles timing) + exits ( + / - candles timing)
- Moneymonagments = TakeProfit / StopLoss
Just remember to keep track of the relevant numbers in your trading journal. The journal will be our map to get from point A to point B.
Good trading.
Monday, October 20, 2008
Week reflection, 13th to 17th October 2008
Last week I did about 150pips. I have more losses but my wins were much bigger. It's an awesome feeling. I think it's also my first time getting so many pips as well.
A month ago I'll be jumping for joy had I get such results but I was not happy on Friday. It wasn't that I was greedy. I just felt I could have traded better. There were trades that I felt I still exited early and some that I got in way too early.
It certainly felt like I had a change in my mindset. I really want to take trades that are good. I truly truly truly believe that if I traded well, the pips will come.
A month ago I'll be jumping for joy had I get such results but I was not happy on Friday. It wasn't that I was greedy. I just felt I could have traded better. There were trades that I felt I still exited early and some that I got in way too early.
It certainly felt like I had a change in my mindset. I really want to take trades that are good. I truly truly truly believe that if I traded well, the pips will come.
Wednesday, October 15, 2008
A scalped that went terribly wrong....
Tuesday, October 14, 2008
What Trend line?
Yesterday we were looking at the EU pair and while market is all over the place the TL held nicely. Jinhar also taught me that if a TL has too steep an angle, usually, they won't hold.
The following chart was taken before the move down in the evening. Have a look at it yourself, this was taken maybe 3,4 hours before the move down. Wife got 150pips later on.
The following chart was taken before the move down in the evening. Have a look at it yourself, this was taken maybe 3,4 hours before the move down. Wife got 150pips later on.
Friday, October 10, 2008
My best trade ever!
This is my best trade ever. Not because I entered correctly. Not because I got stopped out at Break even.Because I analysed the trade and stuck to it without chickening out. I stood firm on my position and not take out prematurely. When I was sure it wasn't going my way, I took it out at BE.
Had I held all my positions this way I would be in some serious pip showers :)
You must be wondering why did I hold it? Because clearly I could have gotten a nice 20pips in this one.
But that's clearly outcome bias and recentcy bias. Take a look at these trades I made today as well.
Because I chicken out, I missed out on a lot more pips. Repeatedly, had I held it to target I would gain more pips. Lesson is to hold on to your target and trust my trend lines, because that line measure the psychology of the market.
Later on I did another short beyond this picture which yielded 40pips.
Thursday, October 9, 2008
Too fast too furios too overtrading
My second post for the day :) I promised jinhar to go for 2 good trades a day that will yield 50pips. Although I've achieved that in the afternoon today I thought I do a little bit more! So here I was trigger happy almost immediately when I sat down in front of the pc after I got back from gym.Had I think properly, I could have taken a nice long. But I had 3 bad entries. which cost 38pips (average 13) . The good one is worth 25pips. Not bad risk/reward but I could have waited.
The first target is where I took profit. I thought it will head to the 50% fib but that fast? And while price crosses the 21ma, 30tf stochs crossed down.
Thursday, October 2, 2008
Update on trade measurement
Yesterday, wife took a look at my previous post and told me that some of the measurement don't make sense. (The main purpose of the measurements is to chart down the effects of FEAR and GREED manifested in the different areas of trading and work on them consciously.)
The exit. The purpose of measuring the exit was to see how many times I chicken out of a trade without a valid signal. However the way I measure it, it penalize the price hitting the SL (a good thing) more than me chickening out (a bad thing).
There's still a few bug on this so I guess this will be a constant work in progress. For now I'll change the measurement to be as follows:
*************
After a week on using this system, I'm changing the exit measurement to be similiar to my timing. E+0 for perfect exit, E+1 for 1 candle too late, and E-1 for candle too early.
The exit. The purpose of measuring the exit was to see how many times I chicken out of a trade without a valid signal. However the way I measure it, it penalize the price hitting the SL (a good thing) more than me chickening out (a bad thing).
There's still a few bug on this so I guess this will be a constant work in progress. For now I'll change the measurement to be as follows:
- Analysis (Right or wrong?)
- Timing (-XXX for candles early +XXX for candles too late and +0 for exact candle, I try to get +0)
- Risk/Reward (At least 1:2)
- Percentage of the move I caught
- Exit (-1 for trades that are exited (both in loss or profit) without a valid signal, +1 for trades that exited with a valid signal (SL hit, TP hit, signal change) )
*************
After a week on using this system, I'm changing the exit measurement to be similiar to my timing. E+0 for perfect exit, E+1 for 1 candle too late, and E-1 for candle too early.
- Analysis (Right or wrong?)
- Timing (-XXX for candles early +XXX for candles too late and +0 for exact candle, I try to get +0)
- Risk/Reward (At least 1:2)
- Percentage of the move I caught
- Exit （-XXX for candles early +XXX for candles too late and +0 for exact candle)
Tuesday, September 30, 2008
Reflection on the month of September
Late in August, I decided to increase my pip value as I noted that I was consistently profitable in my trades. Right after I did that, I had a big blow up and went on a losing streak for 2 weeks. It was the toughest 2 week in my trading journey thus far. I tried everything I know to get out of it: went back to demo, took less trade....etc but whatever I do, I couldn't stop the losing.
Nothing changed really - I still have the knowledge - just my mind playing tricks on me. It was full of fear.
In the end, I took a holiday, went back to demo , traded a longer time frame and then finally back to trade small pipvalues.
The last 2 weeks has been good again. Trades were consistently getting better, my confidence got back and most importantly I am having fun again trading.
I want to record what I did differently here:
I started to measure every components in my trade. My previous mistake was to think that the main component of a taking a trade is in my analysis. But that's far from the truth. Having the right analysis alone can still give you much losses if your entry is a bad one. So now, I record these in my journal:
I found out that analysis is my strong suit. I'm right 80-90% of the time but my entry timing is bad. I started 2 weeks ago at 10 to 6 candles too early - overtrading and trigger happy! Risk/Rewards is also less than desirable. Funny, when I take care of my entry timing, my risk/reward also got much better... much much better.
You know after 2 weeks, I know now that if I take care of the components, ESPECIALLY money management, the pips takes care of themselves.
I have a day with 30% wins and was still in profit. It's something to read it about being profitable with less than 50% win, it's REALLY something for me to feel it. My timing has also improved considerable.
It's fun, scary and brutally honest for me, myself and I when I measure myself like that. It certainly lends more clarity... and I was wondering why I didn't do it earlier. A word came up - FEAR. I was afraid to find something so ugly in me that will freak the heck out of me. I was fearful of trying new things because I may just lose money? (not that I wasn't already)
Fear has a way to prevent me from learning new things.
But really this exercise has taught me to face them squarely. Love myself more. Now that 2 weeks is over, learning more about myself really isn't that bad... in fact my trades shows that the love is paying off. In fact, I need to add, that God loves who I am already no matter how ugly I am.
(yes there's an ugly betty in all of us!)
Nothing changed really - I still have the knowledge - just my mind playing tricks on me. It was full of fear.
In the end, I took a holiday, went back to demo , traded a longer time frame and then finally back to trade small pipvalues.
The last 2 weeks has been good again. Trades were consistently getting better, my confidence got back and most importantly I am having fun again trading.
I want to record what I did differently here:
I started to measure every components in my trade. My previous mistake was to think that the main component of a taking a trade is in my analysis. But that's far from the truth. Having the right analysis alone can still give you much losses if your entry is a bad one. So now, I record these in my journal:
- Analysis (Right or wrong?)
- Timing (-XXX for candles early +XXX for candles too late and +0 for exact candle, I try to get +0)
- Risk/Reward (At least 1:2)
- Percentage of the move I caught
- Exit (-3 for SL, -2 for loss, early exit with valid signal turn, -1 for chickening out but no signal turn, 0 for BE, 1 for profit but chickening out in an early exit with no signal turn, 2 for manually taking profit as price just miss TP, 3 TP hit)
I found out that analysis is my strong suit. I'm right 80-90% of the time but my entry timing is bad. I started 2 weeks ago at 10 to 6 candles too early - overtrading and trigger happy! Risk/Rewards is also less than desirable. Funny, when I take care of my entry timing, my risk/reward also got much better... much much better.
You know after 2 weeks, I know now that if I take care of the components, ESPECIALLY money management, the pips takes care of themselves.
I have a day with 30% wins and was still in profit. It's something to read it about being profitable with less than 50% win, it's REALLY something for me to feel it. My timing has also improved considerable.
It's fun, scary and brutally honest for me, myself and I when I measure myself like that. It certainly lends more clarity... and I was wondering why I didn't do it earlier. A word came up - FEAR. I was afraid to find something so ugly in me that will freak the heck out of me. I was fearful of trying new things because I may just lose money? (not that I wasn't already)
Fear has a way to prevent me from learning new things.
But really this exercise has taught me to face them squarely. Love myself more. Now that 2 weeks is over, learning more about myself really isn't that bad... in fact my trades shows that the love is paying off. In fact, I need to add, that God loves who I am already no matter how ugly I am.
(yes there's an ugly betty in all of us!)
Friday, September 26, 2008
26th September 2006
I was stalking this trade for some time. After I got back from gym, I was tired, sweating and hungry. So while I was busy doing nothing it got away. On hindsight I should have placed a pending order.
I thought however to put this trade here so that I remember what a 'jinhar' trade with the trend feels and looks like. So here it is.
I thought however to put this trade here so that I remember what a 'jinhar' trade with the trend feels and looks like. So here it is.
Thursday, September 25, 2008
Pending order trades 25th Sept 2008
Felt so awesome. Came back from the gym and discovered that one of the trades hit target!
Actually both trades hit target but I chickened out on the second :( and my pending order was triggered on the wrong side.
In synch with the EU night
Wasn't trading this night, just wanted to get back into the swing of things. First time in ages that I have picked 3 trades in a row that worked!
Tuesday, September 23, 2008
Jinhar reviewing my trades pt1
(My poor entries for short are marked by the vertical lines)
16:58:59 [Jinhar] it was juz against the trend..
16:59:18 [Jinhar] u waited for the stoch to drop .. but i tld u too watch it on 4hr.
16:59:34 [ericsatch] ahhh
17:00:05 [ericsatch] at that time four hour the stochs were braiding but adx were clearly up.
17:00:21 [Jinhar] On 4hr stoch neva came to a point wer u can short
17:00:26 [Jinhar] dey wer always long.
17:00:46 [ericsatch] ic
17:01:24 [ericsatch] ok Ill need to wait for the higher tf to confirm the move too...
17:01:40 [Jinhar] Wen ur r in a strong trend yea
17:02:00 [Jinhar] I tld u wen u counter trend u need to chk everythng twice ..
17:02:06 [ericsatch] when the higher tf is in a range then i can just follow the range?
17:02:29 [Jinhar] See .. wen u wanna short in downtrend u dont need to chk
17:02:31 [ericsatch] yeah. when u told me htat i already took the first one.
17:02:35 [ericsatch] ic
17:02:39 [ericsatch] LOL
17:02:40 [ericsatch] i get it!
17:02:47 [Jinhar] wen u wanna go long on uptrend u wont need to chk 3 times
17:02:57 [Jinhar] but wen u wanna short on uptrend .. datz practically .
17:03:09 [Jinhar] u need to chk 10 times.
17:03:21 [ericsatch] is that right?
17:03:55 [Jinhar] Lon i would go in when stoch started goin up
17:04:16 [Jinhar] ur long is right ..
17:05:04 [ericsatch] like there?
17:05:12 [Jinhar] yea
17:05:20 [Jinhar] datz momentum long ..
17:05:37 [Jinhar] u goin wid da trend .. after the trend is established.
17:05:42 [ericsatch] ok
17:05:47 [ericsatch] will do that today
17:05:57 [Jinhar] Kool
17:06:08 [ericsatch] so if i go in at the vertical line my SL is there?
17:06:22 [Jinhar] ya
17:06:34 [ericsatch] that's about 40pips
17:06:51 [Jinhar] U go in at a vertical line .. at the loew
17:06:55 [Jinhar] not on the top
17:07:08 [Jinhar] and den att 15-20 pips to the loe
17:07:16 [ericsatch] so when it was nice red candle, you long at that point?
17:07:26 [Jinhar] Yea ..
17:07:29 [Jinhar] Practicalli
17:07:36 [Jinhar] But wid open eyes u cant do that ..
17:07:47 [Jinhar] datz y u keep pendin orders .
17:08:29 [ericsatch] how do you set pending order to hit the wick?
17:08:47 [Jinhar] a loew is made on a prev bar
17:08:54 [Jinhar] now if stoch is turnin up .
17:09:03 [Jinhar] i will keep pendin at or near the loe..
17:09:14 [Jinhar] so when price again comes down ..
17:09:17 [Jinhar] i will get in .
17:09:29 [Jinhar] and i wont thnk wether it will go further down or no
17:10:03 [ericsatch] ic!
17:10:10 [ericsatch] but if you miss. you miss.
17:10:26 [Jinhar] u get in as close to the loe den
17:10:34 [Jinhar] or u wait for the range to breakout
17:11:47 [ericsatch] thanks. the first trade is the biggest lost of mine
17:12:12 [ericsatch] after that.. the trades got better. timing improved from 6 candles too early to about 1.5 average
17:12:41 [Jinhar] ahh nice .. i sometime go 12 candles earli lol..
17:12:42 [ericsatch] also practiced holding to target. tho i had more losses the wins were clearly bigger now
17:12:59 [ericsatch] 12candles..and it doesn't affect you?
17:13:10 [Jinhar] na .. i have done it so many times ..
17:13:12 [ericsatch] you need a bigger SL then?
17:13:17 [Jinhar] no
17:13:29 [Jinhar] i always get in near high or loews
17:13:35 [ericsatch] because u get in near the low
17:13:53 [Jinhar] i get stopped out 4-5 times doin that .. but i catch hi or loes..
17:14:08 [Jinhar] and once i do i ride emm till the end .
17:14:19 [Jinhar] i took a posi b4 asian start
17:14:34 [Jinhar] whole asian and eur it didnt moved it was in 50-100 pip range
17:14:53 [Jinhar] in us it started movin .. closed it at us end for 459+ pips.
17:15:07 [ericsatch] wow
17:15:10 [Jinhar] u have to wait 20 hrs sometime to trade to work
17:15:20 [ericsatch] ok. i gotta keep that in mind
17:15:42 [ericsatch] you gonna show one of your trades? maybe on the blog?
17:16:05 [Jinhar] I will soon give me sometime ... jus bz wid lotta useless work ..
17:16:20 [Jinhar] gimme a day will do it tomm or later today
17:16:24 [ericsatch] so today's lesson is kinda.. take with the trend.
17:16:30 [ericsatch] ride it to the end..
17:16:33 [Jinhar] always
17:16:43 [ericsatch] so sometimes you see its 200 then it goes back to 50 but you jut stay in
17:17:12 [ericsatch] is that correct?
17:17:30 [Jinhar] i most of time se 150 plus den -2
17:18:03 [Jinhar] but i am not in front of pc .
17:18:09 [Jinhar] i look it laters in da day
17:18:09 [ericsatch] and u just stay in...?
17:18:24 [ericsatch] ok
17:18:29 [Jinhar] i am not here
17:18:38 [Jinhar] i put in my pendin and limit orders
17:18:42 [Jinhar] and go away.
17:19:02 [Jinhar] if i look at charts i always book profs
17:19:02 [Jinhar] wen i c dem
17:19:54 [ericsatch] ic
17:20:10 [ericsatch] i noticed tho, the analysis have about 80% chance of being correct
17:20:21 [Jinhar] ya'
17:20:38 [ericsatch] so.. not i gotta work on what you tell me to. timing, timing, timing and hold to target
17:20:55 [Jinhar] yea wad ur trget is
17:20:58 [Jinhar] and wad ur stop is
17:21:02 [Jinhar] if u get in at loe
17:21:09 [Jinhar] u wil hit ur t
17:21:19 [Jinhar] if u r wid da trend den
17:21:32 [Jinhar] da biggest trades always are counter trends...
17:21:47 [ericsatch] i just got in eu long 1.4866
17:21:54 [ericsatch] are counter trends??????
17:22:00 [ericsatch] you lost me there mate
17:22:26 [Jinhar] yea dey start as countertrend ... and den trend changes and dey bcome trendin trades
17:22:34 [Jinhar] And u ride dem from the start ..
17:22:41 [Jinhar] dey are huge payoff
Wednesday, September 17, 2008
How to trade ranges by Jinhar - Pt3
19:44:35 [rebuzz] a pitty i saw ur post too late
19:44:49 [Jinhar] i didnt predict it .. it was juz .. ranges fibs and ewaves
19:45:25 [Jinhar] Nothin else .. i wasnt sure .. i juz saw it was frmin a rev ..and juz trin elliot theory
19:46:32 [rebuzz] great analysis anyways, learned a lot of it
19:46:47 [Jinhar] Thnks ..
19:47:24 [Jinhar] it was a novice .. analysis .. juz usin trends .. i didnt even put up any fibs on it Lol
19:47:59 [rebuzz] hehe sometime its better to see a clearer chart, makes things more obvious
19:48:22 [Jinhar] yea i still trade on a plain chart .. wid juz 2-4 trendlines 19:48:26 [Jinhar] Nothin beats dat.
19:49:47 [rebuzz] gonna get a coffee, be back in 0 or so
19:49:49 [rebuzz] *10
19:49:53 [Jinhar] Okies
19:49:58 [rebuzz] 0 would be really fast ? ?
19:50:30 [Jinhar] REALLI
19:54:17 [rebuzz] re
19:54:25 [rebuzz] coffee in the makin ^^
19:54:42 [Jinhar] Nice'
19:55:38 [Jinhar] Some news hit out ?
19:55:50 [Jinhar] Jus moves 50 pips ..
19:56:00 [Jinhar] js moved*
19:56:18 [rebuzz] can u give me an advice on how to predict when a trendline will hold jinhar? i have trouble pullin the trigger when a trendline is reached - i want to wait and see if it holds, and then it often goes so fast i feel im to late to enter 19:56:47 [Jinhar] Drw on higer tf
19:57:02 [rebuzz] nothin i know of jinhar (news)
19:57:18 [Jinhar] 100 pips . in 2 candles
19:57:51 [rebuzz] what u mean by draw on higher tf?
19:58:24 [Jinhar] Trendlines .. will worn 100 percent of the time on higer .. tf . if u using small tf .. many times . it wont .. wrk
19:59:00 [rebuzz] higher tf = 4h/daily/weekly?
19:59:08 [Jinhar] 30-60
19:59:28 [Jinhar] Other then tick .. and 5mins
19:59:37 [Jinhar] Wadeva is ur higher tf
19:59:39 [Jinhar] Draw on it
19:59:47 [Jinhar] 30 mins . 60 4hr daily
19:59:56 [Jinhar] doesnt matter . but it shld b ur higher tf .
20:00:11 [Jinhar] IF ur news tradin .. Den on ur loer tf .. as bk teaches
20:01:17 [rebuzz] ah i see, thx
20:01:58 [Jinhar] I got in my short on gj based on 30 min trendline onli
20:03:09 [rebuzz] could u upload a chart please?
20:04:10 [Jinhar] dis is a 5 min on ej
20:04:12 [ericsatch] hey all, back frmo dinner
20:04:21 [Jinhar] i have got a channel
20:04:24 [ericsatch] jinhar, you amaze me at your trades ?
20:04:26 [Jinhar] from a 30 min
20:04:54 [Jinhar] Dey r simple .. traders eric
20:04:58 [Jinhar] Trades*
20:06:11 [Jinhar] Rebuzz wad tf do u trade?
20:06:20 [rebuzz] 15m/1h at the moment
20:06:31 [Jinhar] k
20:06:36 [Jinhar] hold i will draw it for u on dat
20:06:38 [Jinhar] whch pair ?
20:06:51 [rebuzz] gj
20:07:41 [PipHunter25] gm all...Jinhar do you also use the Stoch also?
20:10:59 [Jinhar] Rebuzz blue lines are from 60 min 20:11:11 [Jinhar] Dey r da 1 to follow .. while black.. is wads goin on 15 min 20:11:17 [Jinhar] black .. is not imp as blue
20:11:52 [Jinhar] i have juz used .. some extra paddin .. as der are 2 diff .. tops on 15 mins
20:12:18 [rebuzz] thx jinhar
20:12:18 [ericsatch] how would u trade it then?
20:12:21 [Jinhar] np
20:12:41 [ericsatch] so short or long when the top/botton blue line hits?
20:13:55 [Jinhar] yea till it doesnt break the blue channel on the upside .. we are on the down trend
20:14:11 [Jinhar] black it will break within few hrs or few candles.. its juz tdays range 20:14:19 [Jinhar] while the blue 1 is for few days now 20:14:48 [Jinhar] Eric it wont hit the top or the bottom 20:14:58 [Jinhar] Most of the time it will turn b4 it
20:15:04 [ericsatch] ic
20:15:10 [Jinhar] so u need ur indic to tell u wer da rev is comin 20:15:18 [ericsatch] how do you nkow when to go in then?.. ic 20:15:19 [Jinhar] But dis method is beautiful for rev
20:15:33 [PipHunter25] Jinhar how can I save a screen shot of the chart?
20:15:34 [Jinhar] the 2 circels at the bottom 20:15:47 [Jinhar] at dat time .. stoch will have completed der downside 20:15:56 [Jinhar] or oscill will ahve change posi 20:15:58 [Jinhar] cci 20:15:59 [Jinhar] macd 20:16:01 [Jinhar] wadeva u use 20:16:16 [Jinhar] Ders 20:16:22 [Jinhar] A blue floppi
20:16:24 [ericsatch] ok jinhar, i feel like flying to india and sit beside you for awhile
20:16:25 [ericsatch] hahaha
20:16:27 [Jinhar] in the toolbar
20:16:34 [Jinhar] hahah .. Eric
20:16:35 [PipHunter25] So the trend lines are the 15m and 60m?
20:16:57 [Jinhar] Blue is 60 mins and black 15
20:17:01 [Jinhar] juz for rebuz
20:18:36 [PipHunter25] You normally use which tf?
20:18:43 [Jinhar] 30 min
20:20:09 [ericsatch] where do u place your stops jinhar?
20:20:26 [Jinhar] I place over da high
20:20:42 [PipHunter25] so indeed of 2 trendlines for 2 tf you would only have one set of trendlines?
20:20:42 [Jinhar] on da red line 20:20:58 [Jinhar] Yea i gen onli have trends from 30 min 20:21:08 [Jinhar] i down use loer tf trends 20:21:19 [Jinhar] dey are no use to me 20:21:25 [Jinhar] i dont*
20:21:27 [PipHunter25] can someone tell me how this chart can be saved??
20:21:42 [Jinhar] Ders a blue floppi on the tool bars
20:22:18 [PipHunter25] ok thx..
20:22:23 [Jinhar] Nprbs
20:22:39 [ericsatch] ahh. thanks jinhar. trying to work it out man. it;s like when you get it.. it's easy. like swimming or biking...
20:22:51 [Jinhar] hehe .. eric is veri easi .. 20:22:56 [Jinhar] datz y is so tough 20:23:12 [Jinhar] coz u wont get confidence to take it .. 20:23:17 [Jinhar] as its juz 2 lines 20:23:17 [Jinhar] tellin u 20:23:21 [Jinhar] nothin else
20:23:24 [PipHunter25] Yes thanks alot for the info Jinhar ?
20:23:33 [ericsatch] heheh yeah
20:23:43 [rebuzz] ye, great stuff jinhar, thx man
20:23:46 [Jinhar] We need 10-20 indic to supprt us ..
20:23:48 [ericsatch] how about looking at eu or gu now jinhar, if you ahve time..
20:23:51 [Jinhar] den we pull da trigga,
20:23:54 [Jinhar] Sure
20:23:56 [Jinhar] whch u want ?
20:24:01 [ericsatch] eu
20:24:03 [ericsatch] since news is coming ?
20:24:12 [Jinhar] Eu
20:24:15 [Jinhar] okies and wad tf
20:24:17 [Jinhar] u tradin?
20:24:40 [Jinhar] Timeframe?
20:24:57 [ericsatch] 5tf and 30tf?
20:25:08 [Jinhar] Okies
20:25:32 [ericsatch] lol i wish i can record this
20:25:47 [PipHunter25] you can Eric
20:26:00 [ericsatch] not without the mic on.. i think
20:26:06 [ericsatch] how to do it piphunter?
20:26:24 [PipHunter25] copy and paste the text and use the floppy above to take a screen shot.
20:26:39 [PipHunter25] save to your harddrive
20:26:47 [ericsatch] ahh that's what i intend to do ?
20:27:02 [ericsatch] just tot u nkew how to record it like how we do for class
20:27:05 [PipHunter25] really good stuff thx to Jinhar
20:27:28 [Jinhar] again blak is 5 mins and blue is 30mins 20:27:38 [Jinhar] u have got 3 tops here 20:28:31 [Jinhar] Its juz rangin beautifulli 20:28:57 [Jinhar] 4 beautiful range trades here 20:29:05 [Jinhar] which all i wld have taken if i was tradin dis ..
20:29:35 [Jinhar] more then 200 pips .. in 10 hrs 20:29:42 [Jinhar] Simple tradin
20:29:50 [PipHunter25] 3 tops are good right? Do you only require 2 touches?
20:29:57 [Jinhar] No
20:30:01 [Jinhar] i juz tld u its 3 tops
20:30:10 [Jinhar] it doesnt matter.
20:30:19 [PipHunter25] got it
20:30:26 [ericsatch] im trying to see this on my mt4
20:30:41 [Jinhar] Clear ur chart 1st
20:30:43 [Jinhar] den u will c
20:31:22 [Jinhar] Sowwie . for more trendlines .. juz i had it from previ and dey wer still holdin
20:31:26 [Jinhar] so dey are still imp
20:31:36 [ericsatch] np jinhar
20:31:39 [ericsatch] i have lots of TL myself
20:31:50 [ericsatch] but like yousay.. i dare not trade the TL because... it's just 2 lines
20:31:51 [ericsatch] lol
20:31:57 [Jinhar] Lol
20:31:58 [ericsatch] but i do have most of them on me charts
20:32:11 [Jinhar] Its .. amazin how juz 2 lines .. can make pips 20:32:18 [Jinhar] take for ex dis chart onli 20:32:23 [Jinhar] 4 trades in 10 hrs more then 200 pips 20:32:26 [Jinhar] easi tradin 20:32:39 [Jinhar] Short the top of the range .. go long at bottom 20:32:51 [Jinhar] wanna c update chart
20:32:54 [Jinhar] c da last candle 20:33:49 [ericsatch] yeah 20:34:02 [Jinhar] Tld ya its simple as 1-2
20:34:09 [Jinhar] Short 1 long 2
20:34:22 [ericsatch] say if you miss the top...can u jump ni now and short? 20:34:43 [Jinhar] If u can afford . dis stop and ur system .. says yes
20:34:43 [ericsatch] because really the SS just turned 20:34:44 [Jinhar] u can
20:34:55 [ericsatch] where would ur stop be? here? 20:35:06 [Jinhar] Ur sys .. goin wid u . den short.
20:35:18 [ericsatch] cool
20:37:21 [Jinhar] But trades of dis type will take time 20:37:28 [Jinhar] dont expect quick trades 20:37:35 [ericsatch] yeah. 20:37:41 [ericsatch] about 1hour for a trade 20:37:51 [Jinhar] Sometimes more 20:38:17 [Jinhar] 7 hrs for 2 trade whch i c on my screen
20:38:50 [ericsatch] ic
20:38:54 [ericsatch] how do know when to take out? 20:38:58 [ericsatch] when it hits target? 20:39:02 [Jinhar] yeah 20:39:06 [ericsatch] or when it the indi turns? 20:40:28 [ericsatch] in demo, i shorted eu right here 20:40:39 [ericsatch] 23 pips on it
20:40:43 [ericsatch] you were dead right jinhar 20:40:50 [Jinhar] hhee 20:40:59 [ericsatch] but im not sure when to take it out
20:41:10 [Jinhar] at 4200 20:41:17 [Jinhar] or 4195 20:41:18 [ericsatch] when 5tf changes direction?
20:41:19 [Jinhar] keep a pendin 20:41:22 [Jinhar] No .. 20:41:30 [Jinhar] Juz keep a pendin stop and limit order 20:41:32 [Jinhar] and sleep
20:41:56 [ericsatch] ahh ok
20:42:04 [ericsatch] you know what jinhar, i may just do demo on this until i get it
20:42:05 [ericsatch] haha
20:42:13 [Jinhar] hahaha
20:42:15 [Jinhar] nice nice
20:42:15 [PipHunter25] Jinhar..does it matter if the signal occurs during a slower time like the Asian session? Do take the trade no matter when it occurs?
20:42:17 [ericsatch] why 4200?
20:42:26 [Jinhar] na it doesnt matter
20:42:29 [Jinhar] u will hit ur t 20:42:35 [Jinhar] within 1 hr .. or 10 hrs 20:42:36 [Jinhar] doesnt matter
20:42:51 [ericsatch] so no need to put it back at BE or +1? 20:43:31 [Jinhar] If u sure price wont retrace bak den put it a be 20:43:36 [Jinhar] i dont use be 20:43:43 [Jinhar] i always get stopped out
20:43:50 [rodhuy] hi jonhar, i am late joining. is this just range trading, sell at top, long at bottom. what indicators do you use to confirm?
20:44:04 [Jinhar] wadeva u find 20:44:06 [Jinhar] osma 20:44:07 [Jinhar] stoch 20:44:10 [Jinhar] oscilla 20:44:11 [Jinhar] macd
20:44:21 [rodhuy] ok cool
20:45:11 [ericsatch] jinhar let me show u
20:45:43 [ericsatch] stay cool and let it hit SL? (it's on demo. so im more calm on this one) 20:46:13 [Jinhar] Let it hit
20:49:30 [ericsatch] thx jinhar
20:50:26 [PipHunter25] yeah thx jinhar!
20:56:08 [ericsatch] so when u scan for trades.. jinhar, you just go through the ranges? 20:56:20 [Jinhar] Ranges 20:56:22 [Jinhar] Channels 20:56:27 [Jinhar] Break outs 20:56:29 [Jinhar] Anythn
20:57:18 [ericsatch] ok thanks jinhar! you make it look easi
20:57:36 [Jinhar] Its easi u juz need to get used to it
20:58:48 [ericsatch] ok
20:58:55 [ericsatch] will demo it until the pips comes rolling i
20:58:58 [ericsatch] in*
20:59:05 [Jinhar] Try it and c
20:59:08 [Jinhar] hw it goes
20:59:27 [ericsatch] i will
20:59:28 [Jinhar] eur again felld down 20:59:31 [ericsatch] yeah 20:59:33 [Jinhar] afta testin the top 20:59:35 [ericsatch] what a ride eh? ? 20:59:36 [Jinhar] tld ya to hold on 20:59:42 [Jinhar] Its will happen many time
21:00:18 [ericsatch] hey jinhar, i saw this video the otherday about this reality hostess who got slapped
21:00:53 [ericsatch] it's an indian talk show... i was just wondering what happened to the host after that!
21:01:20 [Jinhar] i dont knw . i dont watch indian tv sowwie
21:01:53 [rebuzz] hehe this eu trade workin good ?
21:02:20 [ericsatch] np. its just a silly clip!
21:02:28 [Jinhar] hehe okies
21:03:42 [ericsatch] http://www.youtube.com/watch?v=bvDzYj1jB5Y
21:03:48 [ericsatch] tot u may understand the language better ?
21:15:48 [ericsatch] jinhar, if i were to short gu, I should do it here?
21:16:17 [Jinhar] wid stops abv the trendline u can
21:17:12 [ericsatch] ok ? I'll be demo-ing more
21:17:27 [Jinhar] Okies...
21:19:44 [ericsatch] this is fun jinhar
21:19:59 [ericsatch] lol... feel rejuvenated after my break.. and with demo ?
21:20:02 [Jinhar] i knw.
21:20:23 [ericsatch] wow 4200 nearly hit
21:20:26 [ericsatch] can't believe it ?
21:20:51 [Jinhar] Datz da fun part eric
21:21:37 [ericsatch] hit 4200 - padding 21:21:42 [ericsatch] osum 21:21:47 [Jinhar] haha 21:21:49 [Jinhar] now .. cover .. 21:21:56 [Jinhar] If u have multi lots 21:21:56 [ericsatch] cover? 21:21:59 [Jinhar] cover half
21:22:14 [ericsatch] don't understand
21:22:18 [ericsatch] i took out all ?
21:22:24 [Jinhar] if u have 2 lots cover 1 21:22:28 [Jinhar] like dat .. 21:22:34 [Jinhar] u had 2 targets. 21:22:42 [Jinhar] so 1 gets hit take 1 out
21:23:00 [ericsatch] ic 21:23:19 [ericsatch] so 4200 for one. 4182 for second
21:23:27 [Jinhar] yeah
21:23:44 [Luka Bobnar] hi guys waht is going on?
21:23:55 [Jinhar] and increase the stop to .4215 or .. somewad level
21:23:59 [Jinhar] whch is on da fib
21:24:31 [ericsatch] ic
21:24:41 [Jinhar] So u always go home wid nice bag of pips.
21:25:00 [ericsatch] man.. jinhar, that's what im looking for
21:25:14 [Luka Bobnar] I like that Jinhar ?
21:25:26 [Jinhar] hhehe luka .. u bak
21:25:30 [Luka Bobnar] yep
21:25:35 [Luka Bobnar] and trying to catch up
21:25:48 [Luka Bobnar] dow is totaly smashed again
21:25:51 [Jinhar] as always
21:26:21 [Luka Bobnar] its more than 200 points down agan
21:26:36 [Luka Bobnar] and europe stocks are falling like mad too
21:26:41 [Jinhar] its gonna hit all da markets like a virus
21:26:49 [ericsatch] thanks jinhar..
21:26:54 [Jinhar] Nprbs eric
21:26:57 [ericsatch] will see if i can do this consistently 21:27:10 [Jinhar] juz draw ur ranges nicely 21:27:12 [Jinhar] and u will b fine 21:27:19 [Jinhar] use stoch osma .. mas on bks temp
21:27:22 [Jinhar] and u will b even fine
21:27:35 [Luka Bobnar] hehe lol! you got that right
21:28:10 [Jinhar] but luka u cant do anythn .. ppl everiwer . its spread all ova
21:28:29 [Jinhar] its affectin all financial sectors .. and der is no ways out .. until ppl can put it bak .. of der heads
21:28:59 [Luka Bobnar] yes I know when there is panic it's overall panic
21:29:08 [ericsatch] so the trick is to spot the ranges correctly...
21:29:11 [Luka Bobnar] man my platform crashed and now fibs are all messed up
21:29:33 [Jinhar] Sad ... u will have to redraw dem ?
21:30:18 [Luka Bobnar] the fibo levels are messed up! - like where the 161 should be the 261 is and so on
21:30:47 [rodhuy] JIN, JUST TOOK THAT SHORT FROM TOP OF RANGE ON eu AND TOOK 50 PIPS, OUT NOW. DEMO ONLY FRO NOW THO
21:31:02 [Jinhar] hahah nice man nice
21:31:03 [rodhuy] nice
21:31:06 [Jinhar] Keep it up ..
21:31:12 [rodhuy] demo ?!@
21:31:33 [rodhuy] ok is it reversing back up, is this a trade long now? 21:31:33 [Jinhar] >?? 21:31:47 [Jinhar] it hit the bottom and ur indicators wid u 21:31:47 [Jinhar] den ya 21:31:57 [Jinhar] ur indicators .. .shd b der supprtin u
21:32:01 [ericsatch] jin, not yet?
21:32:08 [ericsatch] coz higher tf indicator are still up?
21:32:12 [ericsatch] are still down i mean
21:33:55 [Luka Bobnar] huh Paulson on stage again in 30 mins so expect spikes in all directions ? even left and right
21:33:55 [rodhuy] yes down
21:33:55 [ericsatch] what do you think jinhar?
21:34:17 [PipHunter25] lol Luka ?
21:34:25 [ericsatch] lol
21:34:27 [ericsatch] ok ok!
How to trade ranges by Jinhar - Pt2
24:59:03 [gtk] Do you take range trades sometimes as the price is going up (for a sell) in anticipation of the stochs curling? the GU is what I am watching.
24:59:18 [gtk] its near the top of the range now...
24:59:39 [Jinhar] Lemme c
01:00:44 [Jinhar] No
01:00:47 [gtk] seems like if I wait for the cross, often its just abit too late
01:01:05 [Jinhar] U need to c wether it breaks the range or no
01:01:08 [Jinhar] u can take a short
01:01:31 [Jinhar] but den .. u will have to deal wid more lossin trades.. as many times it juz breaks out
01:01:34 [Jinhar] i take a trade ..
01:01:51 [Jinhar] Sometimes juz bcoz dey dont break a range
01:02:05 [Jinhar] but sometimes .. u get stop out
01:02:36 [gtk] so this would be a fairly high risk trade at the moment...
01:04:41 [Jinhar] b4 the candle close veri risky
01:04:47 [Jinhar] i always wait for a candle closs
01:04:56 [Jinhar] Close*
01:06:09 [gtk] cool, makes alot of sense. I just seem to see the ranges the best right now. but getting stopped out sucks so i am torn still as to how i want to trade.
01:06:33 [gtk] but the candle close remains important. can't start jumping too early as a habit.
01:07:11 [Jinhar] Do the followin and u will b fine
01:07:22 [Jinhar] wen u open a chart
01:07:29 [Jinhar] Look for all the ranges on the chart
01:07:42 [Jinhar] Once u draw dat
01:07:53 [Jinhar] Look at the price
01:08:11 [Jinhar] If price is gettin blocked in btwn .. Den draw a range der .. or a fib
01:08:28 [Jinhar] Once done .. Look always at the price to confirm ur entri or a exit
01:08:39 [Jinhar] once price says yes look at the indicator.
01:09:02 [Jinhar] Neva do it rev .. datz look at indi 1st den at the price
01:09:17 [Jinhar] If indi confirms ur eva .. take a posi . if not den wait
01:09:21 [gtk] right, i may have been doing that
01:09:27 [Jinhar] Dis will save u a lot of lossin trades
01:09:35 [Jinhar] Personal exp
01:09:47 [gtk] you have it, i am trying to get it!
01:10:56 [Jinhar] yea i have it after 1000 of mistakes
01:11:14 [gtk] hahaha
01:11:27 [gtk] maybe you can keep me to 500!?!
01:11:36 [gtk] when looking for ranges...
01:11:57 [gtk] do you mark all the waves in the chart? or just the major ones?
01:12:11 [Jinhar] da one whch 1 c
01:13:37 [gtk] the GU dropped nearly 30 pips since i asked you! 
01:14:21 [Jinhar] 
01:15:00 [gtk] i am seeing them and often predicting them, but hesitating on the trigger right now.
01:15:15 [Jinhar] u will get der
01:15:55 [gtk] i think so... just don't want to be in too early habitually. so really appreciate your advice.
01:16:14 [Jinhar] U wont
01:16:23 [Jinhar] prac more of paper trades for another week
01:16:39 [Jinhar] Or small pos trades if u r tradin live .
01:16:44 [Jinhar] And u will b fine Dont wrrri
01:16:55 [gtk] dude! its all paper... dream of trading real but not getting the results that warrent that yet
01:17:24 [Jinhar] U will get der
01:17:32 [gtk] thanks mate
01:18:30 [Jinhar] Everi 1 has to go to da same phase as u gtk
01:18:40 [Jinhar] i still do paper trades .. wen i m confused .
01:18:53 [Jinhar] Trades not gonna go anywer .. but ur money will
01:19:08 [Jinhar] So protectin ur cap is most imp nothin else
01:19:18 [gtk] haha, that's what I am avoiding by waiting to go live.
01:19:29 [gtk] make sure the pips are coming
01:22:27 [Jinhar] Pips .. will come
24:59:18 [gtk] its near the top of the range now...
24:59:39 [Jinhar] Lemme c
01:00:44 [Jinhar] No
01:00:47 [gtk] seems like if I wait for the cross, often its just abit too late
01:01:05 [Jinhar] U need to c wether it breaks the range or no
01:01:08 [Jinhar] u can take a short
01:01:31 [Jinhar] but den .. u will have to deal wid more lossin trades.. as many times it juz breaks out
01:01:34 [Jinhar] i take a trade ..
01:01:51 [Jinhar] Sometimes juz bcoz dey dont break a range
01:02:05 [Jinhar] but sometimes .. u get stop out
01:02:36 [gtk] so this would be a fairly high risk trade at the moment...
01:04:41 [Jinhar] b4 the candle close veri risky
01:04:47 [Jinhar] i always wait for a candle closs
01:04:56 [Jinhar] Close*
01:06:09 [gtk] cool, makes alot of sense. I just seem to see the ranges the best right now. but getting stopped out sucks so i am torn still as to how i want to trade.
01:06:33 [gtk] but the candle close remains important. can't start jumping too early as a habit.
01:07:11 [Jinhar] Do the followin and u will b fine
01:07:22 [Jinhar] wen u open a chart
01:07:29 [Jinhar] Look for all the ranges on the chart
01:07:42 [Jinhar] Once u draw dat
01:07:53 [Jinhar] Look at the price
01:08:11 [Jinhar] If price is gettin blocked in btwn .. Den draw a range der .. or a fib
01:08:28 [Jinhar] Once done .. Look always at the price to confirm ur entri or a exit
01:08:39 [Jinhar] once price says yes look at the indicator.
01:09:02 [Jinhar] Neva do it rev .. datz look at indi 1st den at the price
01:09:17 [Jinhar] If indi confirms ur eva .. take a posi . if not den wait
01:09:21 [gtk] right, i may have been doing that
01:09:27 [Jinhar] Dis will save u a lot of lossin trades
01:09:35 [Jinhar] Personal exp
01:09:47 [gtk] you have it, i am trying to get it!
01:10:56 [Jinhar] yea i have it after 1000 of mistakes
01:11:14 [gtk] hahaha
01:11:27 [gtk] maybe you can keep me to 500!?!
01:11:36 [gtk] when looking for ranges...
01:11:57 [gtk] do you mark all the waves in the chart? or just the major ones?
01:12:11 [Jinhar] da one whch 1 c
01:13:37 [gtk] the GU dropped nearly 30 pips since i asked you! 
01:14:21 [Jinhar] 
01:15:00 [gtk] i am seeing them and often predicting them, but hesitating on the trigger right now.
01:15:15 [Jinhar] u will get der
01:15:55 [gtk] i think so... just don't want to be in too early habitually. so really appreciate your advice.
01:16:14 [Jinhar] U wont
01:16:23 [Jinhar] prac more of paper trades for another week
01:16:39 [Jinhar] Or small pos trades if u r tradin live .
01:16:44 [Jinhar] And u will b fine Dont wrrri
01:16:55 [gtk] dude! its all paper... dream of trading real but not getting the results that warrent that yet
01:17:24 [Jinhar] U will get der
01:17:32 [gtk] thanks mate
01:18:30 [Jinhar] Everi 1 has to go to da same phase as u gtk
01:18:40 [Jinhar] i still do paper trades .. wen i m confused .
01:18:53 [Jinhar] Trades not gonna go anywer .. but ur money will
01:19:08 [Jinhar] So protectin ur cap is most imp nothin else
01:19:18 [gtk] haha, that's what I am avoiding by waiting to go live.
01:19:29 [gtk] make sure the pips are coming
01:22:27 [Jinhar] Pips .. will come
Wednesday, September 10, 2008
How to trade ranges by Jinhar - Pt1
I thought I just post what Jinhar taught us today on trading ranges. I've also highlighted the parts where it I think it's the most imoprtant lesson.
17:02:01 [Jinhar] anyways market is not movin
17:02:15 [Jinhar] Price to retest a range .
17:02:24 [Jinhar] Ma to confirm the move
17:02:33 [Jinhar] Indica to supprt my entri exit
17:02:47 [Jinhar] trend lines .. to evalu
17:02:53 [ericsatch] how do u use MA to confirm the moves?
17:03:11 [ericsatch] ahhh ok.
17:03:16 [ericsatch] for the direction.. is thar right?
17:03:25 [Jinhar] yeah
17:03:31 [ericsatch] ic
17:04:00 [ericsatch] nice. i got it
17:04:07 [Jinhar] da short we talkin abt .. was a perfect by using channels
17:04:08 [Jinhar] range
17:04:10 [Jinhar] stoch
17:04:11 [ericsatch] may just try trading ranges now in demo
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17:04:46 [Jinhar] I go long .. wen dey r movin down
17:04:47 [Jinhar] counter trend
17:04:49 [gtk] good point jinhar
17:04:59 [MrT] Hi Dan - Welcome
17:05:01 [Jinhar] Look at the channels
17:05:17 [Jinhar] It was at high
17:05:28 [Jinhar] High of the range .
17:05:35 [Jinhar] stoch at high
17:05:37 [ericsatch] the reverse is forming now jinhar is that right?
17:05:40 [Jinhar] prices cant break abv
17:05:46 [Jinhar] Its a no brainer short
17:06:04 [gtk] cool
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17:14:01 [ericsatch] do you get stopped out a lot? or u just keep trading knowing that the money management will make up for it?
17:14:52 [Jinhar] I get stopped out a lot
17:14:55 [Jinhar] i mean lot
17:15:12 [Jinhar] But dats fine .. i knw my style is to aggrsive.
17:15:22 [Jinhar] so i have to get used to it
17:15:24 [Jinhar] cant let it affect me
17:15:37 [Jinhar] i knw my right ones will tc of the rong.
17:15:41 [Jinhar] So doesnt matter
17:16:38 [Jinhar] i need .. 2000 rong trades .. to wipe my accnt .. need 20 right ones to double it
17:16:42 [rebuzz] re
17:16:46 [Jinhar] Do the math .. where will u put ur money ?
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17:18:41 [ericsatch] how do you do your money management jinhar? 2000 trades? so each trade risk is 0.005&?
17:18:42 [rebuzz] oh, sorry mate ?
17:18:57 [rebuzz] but i guess u made ur pips ?
17:19:01 [Jinhar] O ya
17:19:10 [Jinhar] did 1 percent prof on total accnt
17:19:15 [Jinhar] In da asian session
17:19:29 [Jinhar] Juz waitin for tradin again
17:19:41 [rebuzz] how many pips is that? u trading more conservative now?
17:19:49 [Jinhar] eric my sl gen in 20 pips 25 pips max ..
17:20:04 [Jinhar] but i close within 5-6 pips .. at da 1st signal dat i m rong
17:20:06 [ericsatch] ic that's mine too. and that's 0.05% of your account?
17:20:21 [Jinhar] i dont wait .. for price to hit my sl of 20 pips ..
17:20:46 [Jinhar] if i m rong i will close it .. wid -1 or 0 pips .. also .. Dont care if market goes in my favour or no
17:20:54 [Jinhar] 1st sign u get ur rong .. dat da exit point for me
17:21:04 [ericsatch] ic
17:21:11 [Jinhar] So in dis manner i will need more then 2000 trades to get my ass kiked ..
17:21:33 [ericsatch] i mean to ask, how much risk you put ni the 20pips SL if it does hit. -1% if it hits?
17:21:57 [rebuzz] and if its in plus jinhar? say 30-40 pips and ur target is say +80 and then u get a "bad feelin" do let the trade roll?
17:21:59 [Jinhar] I let the trade roll to max point
17:22:09 [Jinhar] If its in profit .. it should b alwwed to fly
17:22:25 [Jinhar] u cant . close it wid 10 20 pips of prof .. and den compllain u dont get any big movers
17:22:46 [rebuzz] do u put ur stop to breakeven then or let it be where it is at the beginnin?
17:22:46 [Jinhar] once trade is in profit .. Lock it in wid .. some pips profs .. and den let the price tell u wen to go outta trade
17:22:50 [gtk] yesterday, i took a range trade and closed it at 25 pips. checked it later and it hit the bottom of range at 93 pips.
17:23:05 [Jinhar] Gtk it will always hit the bottom
17:23:13 [gtk] just wanted to break even on the day
17:23:16 [Jinhar] u need to wait
17:23:22 [gtk] but you are right of course
17:23:22 [Jinhar] durin asian .. i missed 3 entries
17:23:33 [Jinhar] all of them moved more then 100 points
17:23:47 [Jinhar] i didnt enter dem coz i missed all of emm and der was no chance to enter
17:24:06 [gtk] bummer
17:24:07 [Jinhar] i knwd it wld go up .. but didnt matter i missed it and der was no clear entri point later.
17:24:12 [Jinhar] Doestn matter
17:24:12 [rodhuy] jinhar what pair are you trainding in asain session?
17:24:20 [Jinhar] i will get more in da evenin
17:24:36 [Jinhar] Imp thng is follow da rules .. to the last point
17:24:42 [Jinhar] dont .. go wid emotions
17:24:51 [Jinhar] emot wont .. make u pips
17:24:54 [Jinhar] rules will
17:25:06 [Jinhar] I mostli trade the yen pairs .. all the time
Friday, September 5, 2008
The slippery slope.
Since last Friday I've been having a losing streak. I know it's not my knowledge, not my trade setups but it's my psychology.
I have not forgiven myself for blowing up. And worst, I'm tired. I'm tired that I keep blowing up after a week of good trading. I'm tired of keep trying. I'm tired and finally on Tuesday night I curled up in my bed and gave myself a good cry.
But I also made another important decision this week to stay on. To keep fighting. To keep trying. I will not give up.
My good wife said something very wise. She told me that because I have gotten most things in life easy, I'm not used to going beyond myself. That's why consistently being excellent is uncharted territory for me.
It is true. I have been blessed with some intelligence and so I am able to do most things in life ok. Unfortunately, nothing very very well. Nothing excellent. And in trading, you need to be head and shoulders above everyone before you can make it.
*wife says, actually I did things well. THAT's the problem. Now I have to go for excellence... *
So, after much crying, much heartaches I'm still here in front of my PC. I'll have to keep the consistency and overcome myself.
Wife says, when I overcome myself, she'll buy me a plague that says: Congratulations Eric, you have overcomed yourself.
I'm going for it.
I have not forgiven myself for blowing up. And worst, I'm tired. I'm tired that I keep blowing up after a week of good trading. I'm tired of keep trying. I'm tired and finally on Tuesday night I curled up in my bed and gave myself a good cry.
But I also made another important decision this week to stay on. To keep fighting. To keep trying. I will not give up.
My good wife said something very wise. She told me that because I have gotten most things in life easy, I'm not used to going beyond myself. That's why consistently being excellent is uncharted territory for me.
It is true. I have been blessed with some intelligence and so I am able to do most things in life ok. Unfortunately, nothing very very well. Nothing excellent. And in trading, you need to be head and shoulders above everyone before you can make it.
*wife says, actually I did things well. THAT's the problem. Now I have to go for excellence... *
So, after much crying, much heartaches I'm still here in front of my PC. I'll have to keep the consistency and overcome myself.
Wife says, when I overcome myself, she'll buy me a plague that says: Congratulations Eric, you have overcomed yourself.
I'm going for it.
Monday, September 1, 2008
Week ending 30th of August
I had a fantastic week. My win loss ratio was at 73% and the pips were coming in. I found a repeatable pattern I can work with and I'm having fun trading. I was back at BE of my account after the 80 pips blow up.
... until friday.
I had an appointment to go to and I was rushing for time. So I was trying to squeeze out trades before I head out. Sigh before I knew it, I lose about 40pips.
I realiase trading is like working in a Ferrari factory. Every work must be done right, done 'perfectly'. You cannot rush art.
... until friday.
I had an appointment to go to and I was rushing for time. So I was trying to squeeze out trades before I head out. Sigh before I knew it, I lose about 40pips.
I realiase trading is like working in a Ferrari factory. Every work must be done right, done 'perfectly'. You cannot rush art.
Saturday, August 23, 2008
Week ending 23rd August
Ended this week with a slight loss due to Tuesday.
I got another 20pips yesterday and 30pips today (+37 on Wednesday) giving the total to 87pips. Though up in pips, but a bit down in value.
The best part was that the last three days was a complete joy to trade. I took the safe trades, did proper money management. I was relaxed. The trades were well planned.
Most of all I'm really happy about the way I traded. It was fun to trade.
Some lesson to take home would be that
a) price will always always always retest, don't hurry to jump in or chase
b) the market acts like a casino always tempting you in
c) my analysis is usually correct but i jump the gun too fast... way too fast.
Lets see what next week brings.
I got another 20pips yesterday and 30pips today (+37 on Wednesday) giving the total to 87pips. Though up in pips, but a bit down in value.
The best part was that the last three days was a complete joy to trade. I took the safe trades, did proper money management. I was relaxed. The trades were well planned.
Most of all I'm really happy about the way I traded. It was fun to trade.
Some lesson to take home would be that
a) price will always always always retest, don't hurry to jump in or chase
b) the market acts like a casino always tempting you in
c) my analysis is usually correct but i jump the gun too fast... way too fast.
Lets see what next week brings.
Wednesday, August 20, 2008
Blowing up!
Yesterday I blew up!
I lost 80pips! I did all the stuff I shouldn't have done-- all in one day. Jumping in too early, over trading, overly aggressive. You name it, I did it.
One thing I did not do. I didn't panic which I am quite happy. I genuinely thought that I traded well.. except that the results didn't agree with me. lol.
So what really were I doing wrong? BK analysed my trade and said I definitely over traded and jumping in too early. I'm thankful that he's so patient with me.
I felt that, that was the symptom but not the root. After some praying and thinking about it I think it's definitely me lacking patience. Had I waited 1 or 2 more candles before jumping in, I would have stayed away from a lot of the trades and there would not be a 'over trading'. Had I waited, I would also see more clues as to the trade will happen or not which will lead to more profit.
Most of all, I also think that I was being overly confident. Because I could see so many setups that can support my trade I became bias in what I see. Bk's advice is to get at least 4-5 reasons now to get in. For me, I tell myself to stick with the simpler setups and have very strong support with my indicators.
This article is written to remind me what I learn so that I may not repeat it.
Don't chase the pips. Chase the trades.
today's results -9+4+17+25 = 37 pips.
Not bad for a come back.
I lost 80pips! I did all the stuff I shouldn't have done-- all in one day. Jumping in too early, over trading, overly aggressive. You name it, I did it.
One thing I did not do. I didn't panic which I am quite happy. I genuinely thought that I traded well.. except that the results didn't agree with me. lol.
So what really were I doing wrong? BK analysed my trade and said I definitely over traded and jumping in too early. I'm thankful that he's so patient with me.
I felt that, that was the symptom but not the root. After some praying and thinking about it I think it's definitely me lacking patience. Had I waited 1 or 2 more candles before jumping in, I would have stayed away from a lot of the trades and there would not be a 'over trading'. Had I waited, I would also see more clues as to the trade will happen or not which will lead to more profit.
Most of all, I also think that I was being overly confident. Because I could see so many setups that can support my trade I became bias in what I see. Bk's advice is to get at least 4-5 reasons now to get in. For me, I tell myself to stick with the simpler setups and have very strong support with my indicators.
This article is written to remind me what I learn so that I may not repeat it.
Don't chase the pips. Chase the trades.
today's results -9+4+17+25 = 37 pips.
Not bad for a come back.
Sunday, August 17, 2008
What I learnt this week is...
to never go on 'revenge' mode!
I started the week fairly well and was up about 40-50pips by Tuesday. Took Wednesday off (and missed the huge moves). Thursday I suffered a huge blow and was sent back to just +20pips for the week.
I was so dissapointed. I wanted to make all the pips back... really badly.
In the end I went on revenge mode. I made all the mistakes listed in the books of 'things you should not do as a trader'. The scary thing was - my emotions were so strong I didn't even know I was not thinking straight.
All I wanted was to 'get it back'!
It was horrible. At then end of Thursday, I lost all my profits and more. Thankfully, wife was there to support me.
On Friday, I started calmly. I traded well. It was night and day difference. I was so calm when my SL was hit, I wasn't too bothered.. because I knew I traded well. It's funny how that sounds but that's how I felt. I just kept going. When a trade presented itself, I took it. It was almost fun.
In the end, I made back all that I lost... and a bit more.
Emotions... are powerful things. Do not undersestimate it.
I started the week fairly well and was up about 40-50pips by Tuesday. Took Wednesday off (and missed the huge moves). Thursday I suffered a huge blow and was sent back to just +20pips for the week.
I was so dissapointed. I wanted to make all the pips back... really badly.
In the end I went on revenge mode. I made all the mistakes listed in the books of 'things you should not do as a trader'. The scary thing was - my emotions were so strong I didn't even know I was not thinking straight.
All I wanted was to 'get it back'!
It was horrible. At then end of Thursday, I lost all my profits and more. Thankfully, wife was there to support me.
On Friday, I started calmly. I traded well. It was night and day difference. I was so calm when my SL was hit, I wasn't too bothered.. because I knew I traded well. It's funny how that sounds but that's how I felt. I just kept going. When a trade presented itself, I took it. It was almost fun.
In the end, I made back all that I lost... and a bit more.
Emotions... are powerful things. Do not undersestimate it.
Thursday, August 7, 2008
Practice makes perfect
This week didn't start off too well with me. I am in a slight loss practicing the risk/reward thingy. Sometimes I go into a trade without a SL set other times I go in with too small a profit target. Either way it was a difficult monday/tuesday.
I was getting upset too. And the worst thing while trading is being upset.
However halfway through Tuesday I calmed down. I looked back at my journal and colleted myself. Slowly but surely the winning trades came back. My winnings are marginally bigger than my losses now. A small step towards the big goal.
I think the biggest difference I made was to take my time to plan for a trade. To calculate the spread, the SL and the profit. and guess what? It acts as a last filter to take a trade or not... and many times although the setup is right, the risk is just too big.
I'm glad I'm learning this now. :)
I was getting upset too. And the worst thing while trading is being upset.
However halfway through Tuesday I calmed down. I looked back at my journal and colleted myself. Slowly but surely the winning trades came back. My winnings are marginally bigger than my losses now. A small step towards the big goal.
I think the biggest difference I made was to take my time to plan for a trade. To calculate the spread, the SL and the profit. and guess what? It acts as a last filter to take a trade or not... and many times although the setup is right, the risk is just too big.
I'm glad I'm learning this now. :)
Saturday, August 2, 2008
Risk Reward Ratio
The last week was a good one.
I am up in pips, confidence and consistency. Thanks to everyone who's helping me :) I love it!
However as I'm glancing through my trade journal I found out that my losses are still high as compared to my wins. It's because I tend to take out portions of the profits as it goes up to hit my target. I guess there's nothing wrong with that but it screws up the initial Risk/Reward ratio.
I spend some time thinking about why this is so and I think and come to the conclusion: my trade pschology.
With some practice, I'm getting there... I believe this could be the last peace of the puzzle before I start trading mini lots!
I am up in pips, confidence and consistency. Thanks to everyone who's helping me :) I love it!
However as I'm glancing through my trade journal I found out that my losses are still high as compared to my wins. It's because I tend to take out portions of the profits as it goes up to hit my target. I guess there's nothing wrong with that but it screws up the initial Risk/Reward ratio.
I spend some time thinking about why this is so and I think and come to the conclusion: my trade pschology.
Im too chicken to let the trade ride out hit the target
With some practice, I'm getting there... I believe this could be the last peace of the puzzle before I start trading mini lots!
Monday, July 28, 2008
Last week...
Last week ended well for me.
In mid week I noticed that my win loss percentages for ranging market was 70%++ but when the price moves in trends, my win/loss percentage was less than ideal! about 20-30%!
I was floored.
So I sat down and thought about how different the two are - one oscillate from one resistance level to the last support, while the other flew in one direction.
The temptation to get in, or jump in or chase a trade is immensely great, especially when you see price move and move and move and move! But it's also equally deceptive. You never know when it stops and then go against you. And because price moves so fast, I wasn't even sure when to enter a trend move even when I'm anticipating it.
So I spent most of Thursday last week pondering on it....until friday morning 6am.
And then suddenly things click. I chuckled when I got the 'a ha' moment in bed before dawn.
So on friday, I rode the trend on eu and gu. I'm made pips and I was very happy. It wasn't the pips that made me jump for joy... I was very happy because I traded well in the trending market. 2 trades and to get about 40+ pips.
I want to thank BK who taught me so patiently, Robin who helped me implement it, wife who is ever so patient encouraging me and God whom I believe put all these wonderful people in my life...
I am blessed. (hahah don't that sound like me receiving an award or something?! )
What a satisfaction it was to end on a high note. My win loss percentage has also improved gradually over the last 2/3 weeks. If I can up my confidence during a trending market, I hope the win/loss can stay at about 70%. My money management has also improved- stops are smaller and my profits are larger. (I do see a few more kinks to work on this department though... one thing at a time)
Best of all I think I'm getting more confident because Im trading better. Yay! :)
*******
It's monday today and I started well. Up 40+ pips today. Praise God!
In mid week I noticed that my win loss percentages for ranging market was 70%++ but when the price moves in trends, my win/loss percentage was less than ideal! about 20-30%!
I was floored.
So I sat down and thought about how different the two are - one oscillate from one resistance level to the last support, while the other flew in one direction.
The temptation to get in, or jump in or chase a trade is immensely great, especially when you see price move and move and move and move! But it's also equally deceptive. You never know when it stops and then go against you. And because price moves so fast, I wasn't even sure when to enter a trend move even when I'm anticipating it.
So I spent most of Thursday last week pondering on it....until friday morning 6am.
And then suddenly things click. I chuckled when I got the 'a ha' moment in bed before dawn.
So on friday, I rode the trend on eu and gu. I'm made pips and I was very happy. It wasn't the pips that made me jump for joy... I was very happy because I traded well in the trending market. 2 trades and to get about 40+ pips.
I want to thank BK who taught me so patiently, Robin who helped me implement it, wife who is ever so patient encouraging me and God whom I believe put all these wonderful people in my life...
I am blessed. (hahah don't that sound like me receiving an award or something?! )
What a satisfaction it was to end on a high note. My win loss percentage has also improved gradually over the last 2/3 weeks. If I can up my confidence during a trending market, I hope the win/loss can stay at about 70%. My money management has also improved- stops are smaller and my profits are larger. (I do see a few more kinks to work on this department though... one thing at a time)
Best of all I think I'm getting more confident because Im trading better. Yay! :)
*******
It's monday today and I started well. Up 40+ pips today. Praise God!
Friday, July 18, 2008
Ranging and Trending markets
Last 2 weeks was good for me.
As I learn more about the art, my win loss percentage is getting better. I have currently filled 2 pages of my journal with 70% win loss for the very first time!
It's a combination of putting in more parameters in my trade and learning the characteristic of price action.
For example yesterday I made a -15pips loss. Why? Because I was trading it (eu and gu) with a trending strategy in a ranging day.
So note to self... pick your daily strategy before jumping in.
As I learn more about the art, my win loss percentage is getting better. I have currently filled 2 pages of my journal with 70% win loss for the very first time!
It's a combination of putting in more parameters in my trade and learning the characteristic of price action.
For example yesterday I made a -15pips loss. Why? Because I was trading it (eu and gu) with a trending strategy in a ranging day.
So note to self... pick your daily strategy before jumping in.
Wednesday, July 2, 2008
Trade Psychology - the dark side
The more I learn about trading the more I understand now that mastering trade psychology is the most important part if one were to become a jedi in trading.
Because even with the best trading system...
If master one not his/her trade psychology, s/he cannot be a jedi. Fear there will be... and fear leads to the dark side. -Yoda :)
Okay, I made that up. Haha can't resist that one for a geek like me.
A big part of trade pschology are our cognitive biases. Let me list some of them down (taken from the book Way of the Turtle by Curtis Faith)
It's really easy to know them... who doesn't know that we need more than 3 test to proof a system? Who doesn't know that a given system can make you loss 3 times in a roll and yet still work?
Yet with money involved, emotions run high, at the time of trades, my mind was just not working... or rather it WAS working BUT with a bias. A strong bias that want to see things my way. It was looking at the market with a bias lense.
All this really didn't hit me when I read the book but when I started trading with real money, the meaning came crystal clear. Even if it's USD 0.01 per pip. I also learn that biases only happen after you enter a trade. Perhaps it's because now money is committed, your mind starts to 'hope'.
It's almost and imposibility after that to think clearly because the mind is so bias it doesn't know what 'clear' is anymore.
I think, that's where a trading system - an almost mechanical one - comes in. It comes in to tell you what you're to do and when to to do it. AND most importantly tells you your odds in the general whole picture so that you don't freak out when you have a string of losing trades.
Odds or Edge are unbalance probability tipped in your favour. Like in the roulette table, the edge is tipped to the house's favour so the more it spins the more they win.
A trading system is just that... a way to trade with an edge. All we have to do is to keep the wheel spining. That way we can 'fight' our cognitive biases without increasing our blood pressure too much.
Happy trading.
Because even with the best trading system...
If master one not his/her trade psychology, s/he cannot be a jedi. Fear there will be... and fear leads to the dark side. -Yoda :)
Okay, I made that up. Haha can't resist that one for a geek like me.
A big part of trade pschology are our cognitive biases. Let me list some of them down (taken from the book Way of the Turtle by Curtis Faith)
- Loss aversion: The tendecy for people to have strong preference for avoiding losses over acquiring gains
- Sunk costs effect: The tendency to treat money that already has been commited or spent as more valuable than money that may be spent in the future
- Disposition effect: The tendency for people to lock in gains and rides losses
- Outcome bias: The tendency to judge a decisino by its outcome rather than by the quality of the decision at the time it was made.
- Recency bias: The tendency to weigh recent data or experience more than earlier data or experience
- Anchoring: The tendency to rely too heavily, or anchor, on readily available information
- Bandwagon effect: The tendency to believe things because many other people believe in them
- Belief in the law of small numbers :The tendency to draw unjustified conclusion from too little information.
It's really easy to know them... who doesn't know that we need more than 3 test to proof a system? Who doesn't know that a given system can make you loss 3 times in a roll and yet still work?
Yet with money involved, emotions run high, at the time of trades, my mind was just not working... or rather it WAS working BUT with a bias. A strong bias that want to see things my way. It was looking at the market with a bias lense.
All this really didn't hit me when I read the book but when I started trading with real money, the meaning came crystal clear. Even if it's USD 0.01 per pip. I also learn that biases only happen after you enter a trade. Perhaps it's because now money is committed, your mind starts to 'hope'.
It's almost and imposibility after that to think clearly because the mind is so bias it doesn't know what 'clear' is anymore.
I think, that's where a trading system - an almost mechanical one - comes in. It comes in to tell you what you're to do and when to to do it. AND most importantly tells you your odds in the general whole picture so that you don't freak out when you have a string of losing trades.
Odds or Edge are unbalance probability tipped in your favour. Like in the roulette table, the edge is tipped to the house's favour so the more it spins the more they win.
A trading system is just that... a way to trade with an edge. All we have to do is to keep the wheel spining. That way we can 'fight' our cognitive biases without increasing our blood pressure too much.
Happy trading.
Wednesday, June 25, 2008
How I discovered that I have NO trading system
As I find myself learning more and more about price action in the last few weeks with James in the chat room, I found my confidence of reading price action increasing.
I found out why trendlines, resistance and support lines work so well. I also learn how to be more aware of price action formations like double tops, double bottoms, fib retracement. I'm far from being an expert but I feel reasonably comfortable looking at charts.
But what do I do with TL ?
I know that price may stall at those places, but I can't do anything about it. Will the price break the line or will it bounce off it? Should I take a long or short at this point? Yes, there's a fib and TL here as support line but the trend is very bearish (or is this just a retracement?) so what do I do, still go ahead with the long? Or Which line is more important?
There seems, at least for me, to be 'information overload'. And by the time I finish analysing, the trend started and I missed the train.
It is this and a series of losses that really shook me. It made me doubt myself. I became unsure. I became unclear what my trading system was, of which entry is only a small part! In fact, when I think about it, I can't say if I even HAD a system.
A trading system needs to have an EDGE. (Edge means a unbalance probability favouring you.) It should have a Risk/Reward ratio that favours you. It should have an exit that's defined so that it captures the Reward.
All I had was a fuzzy entry point at ib/ob (and entries, in my opinion are the least important in a system)... it is hardly a trading a system.
I spent the entire weekend thinking about the system.
Thanks to my trading great buddies - Robin & Chris, with their help, I wrote down my entries, my exit, my expected risk/reward..etc I still can't figure out what is my edge because I do not have enough data. But with everything written down, I now have an intelligence basis to take or not take trades. I know what risk is acceptable and what is not.
Suddenly, it helps me seperate the trees from the forest. Things got clearer.
For the first time in 2 weeks, I started off with a clearer head. Thanks guys. :)
I found out why trendlines, resistance and support lines work so well. I also learn how to be more aware of price action formations like double tops, double bottoms, fib retracement. I'm far from being an expert but I feel reasonably comfortable looking at charts.
But what do I do with TL ?
I know that price may stall at those places, but I can't do anything about it. Will the price break the line or will it bounce off it? Should I take a long or short at this point? Yes, there's a fib and TL here as support line but the trend is very bearish (or is this just a retracement?) so what do I do, still go ahead with the long? Or Which line is more important?
There seems, at least for me, to be 'information overload'. And by the time I finish analysing, the trend started and I missed the train.
It is this and a series of losses that really shook me. It made me doubt myself. I became unsure. I became unclear what my trading system was, of which entry is only a small part! In fact, when I think about it, I can't say if I even HAD a system.
A trading system needs to have an EDGE. (Edge means a unbalance probability favouring you.) It should have a Risk/Reward ratio that favours you. It should have an exit that's defined so that it captures the Reward.
All I had was a fuzzy entry point at ib/ob (and entries, in my opinion are the least important in a system)... it is hardly a trading a system.
I spent the entire weekend thinking about the system.
Thanks to my trading great buddies - Robin & Chris, with their help, I wrote down my entries, my exit, my expected risk/reward..etc I still can't figure out what is my edge because I do not have enough data. But with everything written down, I now have an intelligence basis to take or not take trades. I know what risk is acceptable and what is not.
Suddenly, it helps me seperate the trees from the forest. Things got clearer.
For the first time in 2 weeks, I started off with a clearer head. Thanks guys. :)
Monday, June 23, 2008
Trading Live vs Trading Demo
Last 2 weeks was tough man. I started trading live!
I had a roller coasted 2 weeks. I could blame it on the market which was so erratic! But then, since when it's not? Or I could take the responsibility and re-look at my trading system.
I figured I should do the latter and thankfully I did because I discovered that I DON'T HAVE A SYSTEM! aaahhh. (more on this later)
Apparently I was using the 'force' and it wasn't quite with me.
Added on to that was the pressure of REAL money.
To be honest, naive as it sounds, I wasn't expecting that REAL money would adde on THAT much pressure. A little yes, but not a lot. This is because I was pretty competitive when I was trading in demo. I took a loss in demo seriously as if it was my own money but stil REAL money added more pressure.
So to those beginners, when you're 1/3 ready, start with a mini micro account. Use Oanda and trade 100 units even. (I think they're the only guys that allow you to trade any unit size). You'd be surprise how different USD 0.001/pip feels as compared to 'demo trading'.
I had a roller coasted 2 weeks. I could blame it on the market which was so erratic! But then, since when it's not? Or I could take the responsibility and re-look at my trading system.
I figured I should do the latter and thankfully I did because I discovered that I DON'T HAVE A SYSTEM! aaahhh. (more on this later)
Apparently I was using the 'force' and it wasn't quite with me.
Added on to that was the pressure of REAL money.
To be honest, naive as it sounds, I wasn't expecting that REAL money would adde on THAT much pressure. A little yes, but not a lot. This is because I was pretty competitive when I was trading in demo. I took a loss in demo seriously as if it was my own money but stil REAL money added more pressure.
So to those beginners, when you're 1/3 ready, start with a mini micro account. Use Oanda and trade 100 units even. (I think they're the only guys that allow you to trade any unit size). You'd be surprise how different USD 0.001/pip feels as compared to 'demo trading'.
Monday, June 16, 2008
Why pivots don't work as well..
as say trend lines, support and resistance. And as I learn more from James I understand why and it's completely logical. It's not a Jedi mind trick as I have previously thought it was.
This is because pivot works as a mathematical average. It's an mathematical estimation and it's 'dead'.
However if we draw the trend lines and support and resistance correctly, this represent actual psychological barriers which is more accurate.
Why is this more accurate? because (our first assumption of Technical Analysis, is that) price is a direct representation of what the market is thinking, feeling. And by drawing trend lines, support and resistant line, we accurately represent the current sentiment of the market. That's why price always go back to where it's been before.
On the other hand, pivots are mathematical averages which try to estimate such barriers.
And since trend lines are more accurate, why use any less?
Your computer will also thank you more for using less computation power, lines to draw on your screen that ocassionally looks like multi-coloured spaghetti. I know mine does, my laptop is getting 'old' and 'slow'. hahah
That's why James hardly uses any indicators (except for stochastic)... or for that matter, any trader who is a 'price action' guy.
I suppose some people find price action hard to learn because there's no fix formulas.. or perhaps they feel that it is 'dangerous'? Perhaps some find drawing TL from 'significant' points could be as subjective as 'beauty'which lies in the eye of the beholder? But really, significant is just that- significant, obvious, kinda hard to miss. (Just take a bit of practice), and everything you think is significant probably is.
I just find learning more about price action really good and fun actually. It may be difficult at first but the more I learn it, the more I can discern what to do and how to take a position - stand, long or short. And the more I learn, the 'easier' it becomes to 'survey' the landscape.
On the other hand, I figured that relying solely on indicators is a bad thing. Don't get me wrong, I just think using some indicator is good but depending on them heavily is a bad thing for the simply reason that indicators are mathematical formulas trying to quantify human behaviour.
It would work sometime but since human behaviour is as erratic as it can be, it can also be wrong a lot of times. Take for an example, an engineer usually have a pen and pocket calculator in his pocket. So whenever we have these 'signals' we say - that's an engineer.
You can easily see why it'll generate a lot of false signal- an accountant, a model, a mom, a child and just about anyone can have a pen and pocket calculator at one time or the other in their pocket.
Laslty, someone did a program to test it out. Check it out here. As you can see, if you don't know what you're doing with indicators, it can tell you anything you want it to say.
This is because pivot works as a mathematical average. It's an mathematical estimation and it's 'dead'.
However if we draw the trend lines and support and resistance correctly, this represent actual psychological barriers which is more accurate.
Why is this more accurate? because (our first assumption of Technical Analysis, is that) price is a direct representation of what the market is thinking, feeling. And by drawing trend lines, support and resistant line, we accurately represent the current sentiment of the market. That's why price always go back to where it's been before.
On the other hand, pivots are mathematical averages which try to estimate such barriers.
And since trend lines are more accurate, why use any less?
Your computer will also thank you more for using less computation power, lines to draw on your screen that ocassionally looks like multi-coloured spaghetti. I know mine does, my laptop is getting 'old' and 'slow'. hahah
That's why James hardly uses any indicators (except for stochastic)... or for that matter, any trader who is a 'price action' guy.
I suppose some people find price action hard to learn because there's no fix formulas.. or perhaps they feel that it is 'dangerous'? Perhaps some find drawing TL from 'significant' points could be as subjective as 'beauty'which lies in the eye of the beholder? But really, significant is just that- significant, obvious, kinda hard to miss. (Just take a bit of practice), and everything you think is significant probably is.
I just find learning more about price action really good and fun actually. It may be difficult at first but the more I learn it, the more I can discern what to do and how to take a position - stand, long or short. And the more I learn, the 'easier' it becomes to 'survey' the landscape.
On the other hand, I figured that relying solely on indicators is a bad thing. Don't get me wrong, I just think using some indicator is good but depending on them heavily is a bad thing for the simply reason that indicators are mathematical formulas trying to quantify human behaviour.
It would work sometime but since human behaviour is as erratic as it can be, it can also be wrong a lot of times. Take for an example, an engineer usually have a pen and pocket calculator in his pocket. So whenever we have these 'signals' we say - that's an engineer.
You can easily see why it'll generate a lot of false signal- an accountant, a model, a mom, a child and just about anyone can have a pen and pocket calculator at one time or the other in their pocket.
Laslty, someone did a program to test it out. Check it out here. As you can see, if you don't know what you're doing with indicators, it can tell you anything you want it to say.
Friday, June 13, 2008
Oanda
Next week, I'll start trading on Oanda. We've look through a few brokers and chose that one to start with. The reasons are:
Lets see how I fare on a real account. Been really stressed out this week just to think about that. Hahaha. I guess it's a growing stage I have to get to.
Result this week has been down a bit.
- Tight spread. Among the non-ECN brokers, which needs higher capital to start account, Oanda actually gives very good spread.
- Trade any volume/unit you want. I need to start a mini account and Oanda allows you to trade on any volume, or unit as it's called.
- Reviews in online for them are consistently good and I when I have questions, their online help chat is also really helpful.
- The online help chat is REALLY awesome.
- Charts are all online, web based (using JAVA).
Lets see how I fare on a real account. Been really stressed out this week just to think about that. Hahaha. I guess it's a growing stage I have to get to.
Result this week has been down a bit.
The 'almost' complete forex syllabus
Having just started my forex trading education, I'm starting a page here to share what I've learnt. When I started, there's an overwhelming information on the net - that I just didn't know where to start. Most of them are either:
And I find it hard to find a place which gives me a 'complete syllabus' forex course, I had to scavenge from site to site to learn.
So I plan to share the sites I've been to give you a more balance feel what's out there. Hopefully, it can help you shorten your learning curve a bit and direct you to good websites. Hopefully in the process, help us form a more complete roadmap for our forex education.
And if you could share a few good links here, I'd really appreciate as all of us are constantly looking to learn more. Thanks in advance!
I think forex is mainly seperated into the following category
Forex Techincal knowledge
Forex technical knowledge comprises of mainly of the hard facts of forex, eg. what is forex? what is a pip? how to you earn trading forex? when is a good time? what are indicators? what do they do?...etc
These are the fundamentals of forex trading and is our basic forex trading tools. I've always felt that to become a jedi, one needs to master the basic of the (market) force. Hahaha. I'm such a geek.
Economics
If you've read the basics, then you'd know that knowing the news is important for forex trading. World economies affect values of currentcy. Some good sides to get update includes:
Personally I also subscribe to TIME and FORTUNE to give me a good idea what's happening all around the world.
Psychology
Check back this space!
Money Management
Check back this space!
- too advance or
- junk.
And I find it hard to find a place which gives me a 'complete syllabus' forex course, I had to scavenge from site to site to learn.
So I plan to share the sites I've been to give you a more balance feel what's out there. Hopefully, it can help you shorten your learning curve a bit and direct you to good websites. Hopefully in the process, help us form a more complete roadmap for our forex education.
And if you could share a few good links here, I'd really appreciate as all of us are constantly looking to learn more. Thanks in advance!
I think forex is mainly seperated into the following category
- Forex Technical knowledge
- Economics
- Psychology - the market and yourself
- Money Management
Forex Techincal knowledge
Forex technical knowledge comprises of mainly of the hard facts of forex, eg. what is forex? what is a pip? how to you earn trading forex? when is a good time? what are indicators? what do they do?...etc
These are the fundamentals of forex trading and is our basic forex trading tools. I've always felt that to become a jedi, one needs to master the basic of the (market) force. Hahaha. I'm such a geek.
- I highly recommend you go to to Babypip's 'school' of pipsology to learn the basics. It's really easy to understand and funny - a refreshing read - and when you completed all the topics there from kindie to college you get a good grasp of what's going on when people talk about Mac-d or RSI or WTF-that-isn't-happening!
- Black Knight's Forum. In the forum there's 10 lesson to get you started in all the basics.
- Chart School is also an excellent place to learn about charts. Although it's a place meant for stocks but the principals are the same. Packed with loads of information.
Economics
If you've read the basics, then you'd know that knowing the news is important for forex trading. World economies affect values of currentcy. Some good sides to get update includes:
Personally I also subscribe to TIME and FORTUNE to give me a good idea what's happening all around the world.
Psychology
Check back this space!
Money Management
Check back this space!
A new blog
Well, I'm starting with a new blog here, partly because I'm not sure what to do with www.forexwtf.com . D is having a new gig soon and I don't have a tech partner to help me do up all the nitty gritty stuff. So this blog is as close to one for 'dummies' as it can get.
I hope you all like it. I will continue to post up more stuff on what I've learnt in the last week and I've learnt a LOT. Now where should I start?....
Also I guess it's a good new start because next week I'll be starting my trades with Oanda.
I hope you all like it. I will continue to post up more stuff on what I've learnt in the last week and I've learnt a LOT. Now where should I start?....
Also I guess it's a good new start because next week I'll be starting my trades with Oanda.
Credo.
A few friends gathered and started a daily MSN room to chat about possible trades, targets and the like. And while we are all learning, and making mistakes I came up with a little 'motto'/credo if you will which everyone agrees on.
So repeat after me 1000 times:
I will only take SURE trades. I will take only trades that I'm confident. That means when I enter a trade I would have my TP, SL figured and plan out. I will not chase or jump in or take any other trade besides a SURE trade because Discipline is my friend. The TREND is my best friend.
So repeat after me 1000 times:
I will only take SURE trades. I will take only trades that I'm confident. That means when I enter a trade I would have my TP, SL figured and plan out. I will not chase or jump in or take any other trade besides a SURE trade because Discipline is my friend. The TREND is my best friend.
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