The art and science of forex

Trade review 090918

2009-09-21T14:29:00.002+08:00

Took the long at the edge,help the long thru news but chickend AFTER that. Next time, if I were to hold thru the news, I may as well hold it all the way.

Then took the short hours later. 9 + 30 pips I think...

Trade review 090917

2009-09-17T18:20:00.002+08:00

Quick scalp today. Sideways Range...zzz

Trade review 090911

2009-09-11T16:49:00.006+08:00

My trade today. I think it was a graet trade we good setups. Got spooked out twice tho. The first time at LMO with the spike. The second just before the news when the red candle (and hence bull div) formed. Should I have held?

Trade review 090910

2009-09-10T16:52:00.002+08:00

My trade today

Trade review 090909

2009-09-09T16:52:00.005+08:00

More coming...

Right after summer...

2009-09-08T17:31:00.002+08:00

A friend posted this trade right after summer. I think it's brilliant, but you judge for yourself.

Watching differing time frame

2009-06-10T14:15:00.002+08:00

It is always good advice to check different timeframes when trading. The general rule of thumb is to watch a timeframe that is roughly 4 tmies apart to give us an idea of what is happening in the 'long term' and 'short term'.

For example, if you trade on the 15mins time frame (tf) then watch the 1hour (tf) for what's happening in the longer term. If you trade on the 5mins then watch 30mins, as that's the closest. Often times when we do this, we see that the longer term may show bullish indicator signal while the shorter term show bearish indicator signal. The contradiction gives us reason to pause and wait for all signals to align before pulling the trigger on a trade.

I found it to be true also, that whenever indicator signals align, there are more chances for the move to be stronger.

But I have also found looking at closer timefram helps. For example if you trade on the 15mins tf, look at 5mins, 15mins, 30mins and 1hr tf for clues. Wouldn't the indicator contradict each other and add more confusion then you ask? Yes it would.

What IS consistent however should be the price action (and remembering that all indicators are lagging). Afterall the summation of 5min will give the 15min and the summation of 15min will give the 30mins and so on and so forth.

So while the indicator may contradict, the price action in different time frame forms a stream of continuous information, painting a consistent picture throughout.

Knowing this is advantageous to us because

We are also able to perceive price as a continous flowing story, instead of snap shots taken in the 2 time frame.
As a result, giving us more understandnig and clues as to what is happening
And that, hopefully, translate to good pips

Hollywood on Wallstreet

2009-05-05T23:02:00.005+08:00

As a continuation from the previous post.

Here's what Bernanke saying: Economy On Track for Recovery This Year ; Recession Will End Soon But Pickup Will Be Slow

Stocks: Banks gain on stress test hopes.

The result of the bank's stress test has been delayed from Monday to Tuesday and now I hear that it'll be released on Thursday.

All signs confirms: People wants to believe that recession is bottoming out... hollywood magic is making it happening.

***updates***
Fed’s Bank Results ‘Reassuring,’ Show No Insolvency

It seems confidence is back up. Market wants to believe recession is over, so it's over. The problems are still there but for now it's 'over' until the next 'recession'

Is the recession over?

2009-04-26T14:59:00.006+08:00

I've been thinking about the question a fair bit last few days. I think, imho, it's bottoming out but it'll take a couple more years for the recession to be over.

The governments are eager to tell the market it is 'almost over' and the world wants things to go back to 'normal'. But what is normal?

To these economies, normal means (very simply), the bank has money to lend to customers who show a decent ability to pay back the loans plus interest. The customers then go out and use the loan money to spend resulting in a GDP growth.

When the crisis hit, the banks don't have inventory - money - to loan out. Because they've lost too much money in bad investments. Without loans to give, they have less business, the consumers/businesses have less money to spend. There's no GDP growth and no GDP growth for 2 months is defined as a recession.

To fix it, central banks around the world just print more money and get it to the banks. At thisw time of writting, it seems now the banks are flushed with cash. But they still aren't eager to loan out. Why? Because being bitten by the bad investment they're cautious who they loan to.

They can't loan to other banks now because evem the bankers do not trust other banks. This is because no one knows how much they have lost in the bad investments. How much are the bad investment worth? How much is that piece of paper worth? Who knows?
They can't loan to the good customers with good track records because now they are suspicious if they can pay? What if they too lose their job?
They can't lend more to bad customers because that's what gotten them into this mess right? Who knows? And the bad customers already have so much NINJA loans - no income, no job or assets.

So who can they loan to? Without more money in the market, people can't spend. No spending, no growth, no GDP = BAD. In short, there is a lack of confidence in the market.

Now to fix the 'confidence'. Some accounting rules are changed to prop up the balance sheet. What was 'mark to book' was then changed to 'mark to market' and then 'mark to model'... and then now to something else. The bad investment, since no one knows how much it's not worth, is written off to partially. I'm not sure how all that accounting is done (you can see here) but the result -- Citibank was able to report profits. Wells Fargo, JP Morgan...etc are stabilizing. In layman terms, they just pressed the 'delete' button on the bad investments.

PURE Hollywood magic in Wallstreet.

Next week, the stress test result of the banks will be out. (Last month, US treasury conducted stress tests on banks in America to see how strong they are, if they still need extra cash...etc). I predict that the 'important' banks (you can tell who is connected and who is favoured) will pass with flying colours. Then someone important, Obama most likely, will say "... I believe USA has the best economy system, our banks are the strongest in the world and... " *drum roll* the end IS very near....

Confidence is further boosted. The market will most likely buy it. Someone shout "make me a believer!" The market rallies, stock surges up....

But still the key question is, how to get ppl to spend? Who are the bank going to loan to? Unless they issue out more NINJA loans, create more business very suddenly and quickly this process is going to take time. Unemployment rate is at a very very high level. (see my previous post here). Without employment, loans are hard to give out... not that they wont be. There are lots of NINJA out there.

So the key indicator for me to watch out is the unemployment rate. If it goes down for a sustainable period, we're out of the woods, sort of.

No one can keep spending and incurring great deficiet to keep growing. McD grow by making profit not by having more debt. One day this gigantic bubble will burst. Perhaps then, we will have a unifying currency. Scarily, that's what the bible predicts.

Trade review 090424

2009-04-24T15:55:00.002+08:00

I had a tough start today and had 2 losses and 1 BE consecutively. Thankfully I took this gu short which worked out beautifully.

Unemployment Claims - USA

2009-04-10T14:52:00.001+08:00

From forex factory.

I thnk it's far from over.

So much for "the end is near"

2009-04-07T17:54:00.005+08:00

I took a trade today which I'm quite happy about. Although there was a few false start but I still manage to get in to enjoy some of the ride. Here's a screenshot of it. It's good to take trades like this after a long time.

And after the G20 meeting, the media has been singing with news that the end of the recession is near. Market rallied. Shares went up. Everyone's happy. CNBC was so upbeat that it sounded like a motivational channel to me - almost like watching oprah. (she's better of course ;) )

Well, the media may sound upbeat... but so's the comedy channel :) Today CNBC reports: Banks' Toxic Debts Could Hit $4 Trillion. I guess the only positive note in that headlines is the word "could".

*update*
And a day after the above post: Bear Market Will Continue: Roubini ... So much for the end is near.

2 great entries but...

2009-03-27T18:12:00.004+08:00

I haven't been blogging much that's because I haven't been trading much either :) So it's nice to be back trading after 3 months!

My entries today were great but I didn't held on to it. Thought I put it here to remember how costly impatient is. The coloured circle is where I closed half my position but the rest of the half was either taken out when my SL was put at BE.

Trading in the zone pt2

2009-02-18T16:37:00.003+08:00

Believing is seeing, Jesus said. And how true. Whatever we believe in, we are right about that believe.

And our world viewed is seen thru that believe. Are you handsome? If you believe so, you are. Can you do it? If you believe you can, you can. And amazingly enough ppl around us detect that energy and respond with you. The concept is not new, believing is seeing. Books like "the secret", "think and grow rich", "as a man thinketh"... etc are repeating the same thing.

But what if we believe in the 'wrong' thing? like for example, if I believe that ALL dogs are friendly, my natural reaction when I see a dog is to pet it and befriend it. What if a dog bites me- I will get hurt, because I wasn't ready for a dog to bite me. After all, ALL dogs are friendly in my world. Will I still think that ALL dogs are friendly?

See, our brains are wired to prevent physical and psychological pain. If the dog's bite is pain enough, chances are my belief will change to prevent future painful occurences. Maybe my belief will be changed to SOME dogs are friendly. Maybe then, I will hurt less....And when that change occur, chances are we get hurt less. We aren't caught surprise the next time we meet an unfriendly dog.

Our believes are now aligned closer to the actual 'truth'. This, I believe, is the core of the book. Changing our beliefs to match that of the market.

One of the most common wrong belief is that we can predict the market through our analysis- be it fundamental or technical. When we belief that and the market doesn't move the way our analysis predict it, we feel hurt. After several losses, we start to question our analytical tool. After 10 losing trades in a roll, we start to believe that the system we're trading with is shit and it's time to learn a new system. This cycle continues with us learning more and more. We try different system, changing timeframe, using different indicator or worst pile on more indicator. With each change comes new hope that the next one will be THE system that gives us the consistently. I think many traders are not unfamiliar with this feeling.

We feel hurt because we our expectation are not met. We feel angry with the market. We feel revengeful (sounds familiar?) We want to be right.. and in the end we made foolish mistakes- overtrading, revenge trading... etc.

Other times, we get scared of pulling the trigger although the setups are all there. We're afraid that we may just be wrong like the last 10 times (... and maybe, a tiny voice tells you, the system you're trading with is shit). We hesitate on pulling the trigger to see the trade run and out of panic, we jump in the middle....

Truth is, the market is neutral to all system. It's not alive. It's like gravity. It doesn't hurt you nor benefit you unless you have a right belief on it. And no tools on earth can give you a prediction on it...

THE MARKET CAN DO WHAT IT WANTS

And if we truly belief that, we won't be hurt by the outcome of our trades. We would remain calm at all times. The reverse is also true. If we are not calm at all times, then chances are our beliefs are not in sync with the market.

All we can do then is have a system that have a positive edge that give us a long term winning strategy.

Now that we belief that the market can do anything it wants, the book gives us the 5 fundamental truth of the market:-

Anything can happen.
You don't need to know what is going to happen next in order to make money.(because anything can happen)
There is a random distribution between wins and losses for any given set of variables that define an edge (so don't worry if you have 10 losses, it's just random distribution)
An edge is nothing more than an indication of a higher probabiligy of one thing happening over another (ie you get to win in the long run)
Every moment in the market is unique ( no two instances are going to be alike: just because the last double top works out to a nice short doesn't mean that this one will)

Think about these. When we do belief these truths, we would be constantly in sync with the market because nothing will 'shock' us anymore.

Trading in the zone pt1

2009-01-19T18:57:00.003+08:00

Trading in the zone by Mark Douglas has been such a wonderful book that I'm going through it the second time. The principals I learn from the book has profound effects in my life and as I revise through them, I'll blog about it here for you.

However these principals are not listed in the order of the book.

Trading down to its simplest form is pattern recognation. Setups/Systems are simply that - patterns. These patterns form because of mass psychology - repeatable, repetitive and predictable - patterns. To consistently capitalize on these patterns, the trading skills we need are:

trust and confidence with our edge/setups/systems
thinking in probabilities

Whatever our system is, we need to have trust and confidence about it. We trust that the system will in all probability create a profit for us in the long run.

These skills are psychological.

Therefore to solve the puzzle to become a consistently successful trader we have to tackle the problem - our pschology. And at the root of that is our core believes. (I will write more about the believes which the book has outline.) And when it comes to personal transformation, the most important ingredients are our willingness ot change, the clarity of your intent and the strength of our desire.

The final destination is to become consistently successfuly. Now to become consistent is to make 'consistent' become part of who we are. The good book says, "Be holy as He is holy...." it doesn't say "do holy..." Similiarly, we have to "Be consistent" and not "do consitently..". And how do we get about there? The way to get there is to change our believe.

Our believe is our mind's underlying programming. Whatever we do, it reflects on our belief. In fact, it is difficult to act AGAINST our belief.

This book deals with some of the common wrong believes trader have which hinders us from being consistent. I will be written more about them in the weeks to come.

2009-01-14T14:13:00.002+08:00

Jan. 14. 2009

Quick guide to the GU:

Weekly: S.A. but candle is red.
Daily: S.A. although slightly bearish
4H: Bullish, indis and price. But T5's is just above as abit of resistance.
1H: Bullish, with mixed indis. but in OsMa territory and its bullish

DP has been holding as strong resistance. But is in the process of breaking above.

The worst scenario.

2009-01-12T14:27:00.003+08:00

During the holidays, I have been spending my time and effort to learn how to be more consistent. To that objective, I read the book 'Trading in the zone' by Mark Douglas. I highly recommend that book to anyone who's trying to be more consistent in their trading.

I have benefit greatly from it and it has changed the way I look at trading and in many ways my own life. I will probably write a summary of that book later in this blog so that I can refer to it myself, so keep a look out.

On being consistent, I asked myself an interesting some time ago: what's the worst possible outcome?

My first answer was of course "a bad analysis which lead to a trade and hit my stop loss... or keep going without hitting my stop loss"

But after some thought I think what is worst in the long run is "a bad analysis which lead to a winning trade". Because now not only you're rewarded for not sticking to your system, your inner programing thinks it can now bend the rules...etc It is a recipe for inconsistentcy. And inconsistentcy just leads to many emotional pain which usually leads to loss.

So stick to your analysis (or your system or your edge) whether the analysis leads to a win or loss, because in the long run if you stick to rigid rules you'll win.

It's the Xmas run?

2008-12-18T17:55:00.002+08:00

Trend line to Trend line - channel trades. Hope you get some pips on this one :)

Before Obama speaks....

2008-11-26T23:45:00.003+08:00

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.

Trading System

2008-11-17T15:50:00.007+08:00

Trading, to me at this time of writing, is seperated into 3 parts:

Analysis
Pschology
Money managment

All 3 parts make up what we call a 'trading system'. Most people feel that if they learn 1. Analysis, they've learnt a trading system which I think it far from the truth. Some learn 1 + 3, which is better but not good enough. This is because pschology plays a big big part in taking trades. The sum of all the parts is greater than adding the parts itself!

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

Sp depending what you lack, you can use the above numbers to help you target what you want to work on and focus your efforts in it. You can also come out with other exercises - the principal is to quantify each element and work on them.

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.

Week reflection, 13th to 17th October 2008

2008-10-20T15:15:00.004+08:00

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 scalped that went terribly wrong....

2008-10-15T17:39:00.003+08:00

Here I was thinking of a quick scalp. 1 minute in it I thought to myself that I shouldn't be trading like that! It's bad habit so I quickly exited with +1 maybe +2 pips. A couple of hours later, here's what it looks like.

Now I wonder what I was thinking...

What Trend line?

2008-10-14T14:09:00.004+08:00

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.

My best trade ever!

2008-10-10T19:53:00.006+08:00

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.

Too fast too furios too overtrading

2008-10-09T22:14:00.002+08:00

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.

What is greed?

2008-10-09T17:37:00.001+08:00

Update on trade measurement

2008-10-02T13:35:00.005+08:00

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:

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) )

I also added taking my heart rate before I start trading. I think that as I get more nervous, or scared, the heart rate will go up, which is a sign to tell me that I will not be thinking as clearly as before.

*************
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)

Reflection on the month of September

2008-09-30T14:03:00.005+08:00

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:

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)

With this system, I am able to measure my trading psychology and then put effort to work on them. It creates more focus on my part to work on a specific area.

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!)

26th September 2006

2008-09-26T23:12:00.004+08:00

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.

Pending order trades 25th Sept 2008

2008-09-25T20:36:00.002+08:00

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

2008-09-25T17:57:00.003+08:00

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!

My first pending order trade

2008-09-25T02:16:00.002+08:00

Unfortunately.. I missed it by 1 pip. Here's the trade in pictures.

Jinhar reviewing my trades pt1

2008-09-23T21:24:00.003+08:00

(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

How to trade ranges by Jinhar - Pt3

2008-09-17T11:15:00.007+08:00

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

2008-09-17T11:10:00.002+08:00

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

How to trade ranges by Jinhar - Pt1

2008-09-10T20:38:00.004+08:00

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

The slippery slope.

2008-09-05T13:46:00.004+08:00

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.

Week ending 30th of August

2008-09-01T14:30:00.002+08:00

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.

Week ending 23rd August

2008-08-23T04:25:00.004+08:00

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.

Blowing up!

2008-08-20T22:47:00.003+08:00

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.

What I learnt this week is...

2008-08-17T02:53:00.003+08:00

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.

Practice makes perfect

2008-08-07T20:55:00.002+08:00

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. :)

Risk Reward Ratio

2008-08-02T04:13:00.002+08:00

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.

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!

Last week...

2008-07-28T22:33:00.007+08:00

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!

Ranging and Trending markets

2008-07-18T14:54:00.002+08:00

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.

Trade Psychology - the dark side

2008-07-02T20:49:00.006+08:00

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)

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.

How many am I guilty of? All of them.

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.

How I discovered that I have NO trading system

2008-06-25T19:50:00.011+08:00

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. :)

Trading Live vs Trading Demo

2008-06-23T19:48:00.003+08:00

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'.

Why pivots don't work as well..

2008-06-16T19:30:00.005+08:00

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.

Oanda

2008-06-13T21:37:00.003+08:00

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:

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).

The only bad thing I don't like about them is that the charts are kinda hard to manuever. Plus I was used to MT which allows me to 'scroll back' to past data easily, add a TON of (useless) indicators. Now all I have is stochastic and price action. :)

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.

Brokers

2008-06-13T18:30:00.004+08:00

I've just started to use Oanda. My take on Oanda.

The 'almost' complete forex syllabus

2008-06-13T18:06:00.000+08:00

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:

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:

Fxstreet.com

Forextv.com

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

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A new blog

2008-06-13T17:34:00.002+08:00

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.

Credo.

2008-06-13T14:25:00.000+08:00

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.

2008-06-13T14:04:00.001+08:00

Undergoing MyBlogLog Verification

2008-06-13T13:42:00.001+08:00

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