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Re: Why I Choose to Succeed in Forex Trading

Starlo — Sun, 09 May 2010 15:37:33 -0000

Very insightful articles. I like the comments. Traders must realize that even with all the indicators, your trade can still lose. As I keep emphasizing, keep practising and ask questions, it can just be something simple why your strategy is not working. A good proverbs is two heads are better than one. So let us keep strenghtening each other, Iron sharpens Iron.

Good luck to all..

Re: Why I Choose to Succeed in Forex Trading

Starlo — Sat, 08 May 2010 03:12:52 -0000

Pray for your eyes to open and see. Keep practicing my friend many people enter and lose within a few days and just give up. When I first started I open a practice account and set many trades, just wild trades with stops but no target. I never go back to look at it until a few days or even a week, to my surprise the balance had doubled, I got exited and open a live account with 2k U.S. I went to the 5 min charts and see the price flying down a nd place a sell, it started to fail, I now double up and place another sell, I still continue to fail, I double again and place another sell, it still continue to fail so I gave up and exited the position with me losing half the money I deposited. Feeling very sad I turned off the computer and went to lay down. when I turn the computer back on and look at the price it actually turned and continue down, if I didn't close the position then my money would doulble. If I had some practice then I would know that I should only risk a small amount of my money and wait for it to either lose or win. I would know that the price might just retrace and continue down therefore would not sell when it was flying down but instead wait until it retraces to get an entry. I made the very common mistake that most traders make when starting.

Keep praying and keep practising. Good luck to you.

Re: Why I Choose to Succeed in Forex Trading

Starlo — Sat, 08 May 2010 02:51:26 -0000

To Kimroy,

Practice alot and practice as if it is real, don't confuse yourself with too much indicators but remember that indicators are good but not too much. Try to practice one pair, trying to trade more than one pair may only get you confus. Choose the time of day that is suitable for you to trade. You have to be very very patient, don't run down the price, make it come to you. There are times when my entry is missed by 1/10th of a pip but I know thats how it is so I sit and wait on another opportunity. Try to develope a simple strategy and practice, practice, tweek it and tweek it till you feel comfortable.

You must remember that what you are doing to lose is the same thing many traders are doing and are losing too. Some common mistakes are 1) believing its a get rich quick thing. 2) No proper money management plan. 3) Trade 2 days in a practice account and belive that you get it right. 4) Trying too hard to pick the bottom or top, simply follow the trend, don't be afraid of it, the trend is really really your friend. 5) Trade without a good strategy.

Casey Stubbs have some good strategy, I started out using a support and resistance strategy that he posted some time ago, for this example I going to use the support area. The Strategy was to identify 3 main support area and 3 main resistances area. It was (for the support area) setting a buy just above the support and a sell just below the support with small stops and vica versa for the resitance area. I quickly realize that in order for the sell to work at the support area then the buy at that area will have to fail, Therefore I tweek it a little and leave out the buy above the support area and instead I only place the sell just below the support area 1 that way I get a better win/loss ratio. Note, by doing this I missed out on many trades because sometimes the price comes to the support area and then bounces, however sometimes it falls through the support area and hit my sell and continue down. So you realize that patience is very key. Mr Stubb take profit target was to aim for support 2. Now what I do is aim for support 3 instead and move my stop to break even and trail. However at support 2 I now place a buy just above that area and a sell just below support 2. If the price turn back at support 2 then I stand a chance to make profit from that and in the mean time I can't lose again from my first position. If the price continues down then I get a second sell, one fail buy and my trailing stop moves further down then you can just imagine the rest.

A very very effective strategy that works is the break out strategy. When buyers and sellers are fighting and the price range start to get smaller and smaller then the price will burst in one direction eventually, the pair can trade in a range for a long time but the smaller the range gets the more likely that it will break out. The problem with that is there will be falls break out at times but with a good win/loss ratio then this won't be much of a problem because if you lose because of a falls break out and win the next time then you should come out profitable. You see the break out just might be an indication of the real trend. Again here you would place a buy just above the top of the range and a sell just below the bottom. Another break out to look for is for example, if the price is trending down and it reaches a point and just start to move sideways for awile then it would be good to look forward to the price continuing down. If the price hit a low without moving sideways too much and then starts to go up, you should go to a bigger time frame chart and try to determine the direction of the trend, if the direction of the trend is in the same direction as the smaller time frame chart then go back to the smaller time frame chart and apply fib. retrace with the expectation that the price will continue down after retracing.

I sometimes use ATR (average true range) to help me determine target points. Another tool is if you ask Mr Stubbs a question he will answer you, so if you are having problems with your strategy then ask for his opinion.

Re: Why I Choose to Succeed in Forex Trading

Starlo — Sat, 08 May 2010 01:30:22 -0000

I agree with what you are saying. I just want to talk a little about some trading principles, as you say "you choose to trade according to your strategy, you choose to follow your money management". At first it was very hard for me to follow my strategy plus I could never help but to be greedy (no money management strategy), I kept making the wrong choices. Eventually I went back to my practice account and started to trade it as if it was real, I applied proper money management to my strategy and followed it to a T. Eventually I became so confident that I can just set my trades and leave the PC. Now I'm back trading my live account and I don't break the rules, none at all. I risk 2% per day and I'm prepared to take up to 15 loses in a row, although never happen before.

I say this to all traders, follow your strategy. Last week I Rode the EUR/USD all the way down from 1.3350 to 1.2600 and and kept adding to the position so eventually I made over 2,000 pips. The thing is as soon as I reach 1.3000 my gut feelings started telling me to go long but I kept telling myself no, follow your strategy, just like the cowabunga strategy, as soon as my moving averages cross over and then re-cross in the direction of the trend then I added to the position. My trailing stop was hit at 1.26805

Its not everyday that your strategy will work to the max, sometimes you may lose 2%, sometimes 1%, and when you are gaining you may just break even some days or make 0.5% or 1.25% etc but the thing is, though may not often, your strategy will work right out to the max sometimes so with a good win/loss ratio you just may win. I say the choice is yours, PLAN YOUR STRATEGY. Casey Stubbs have some very good strategy, you may need to look into one then tweek it your way. Mr Stubb may be modest and just want a hundred pips but if you believe the strategy can give you more then look into it.

The greatest thing about FX trading is you have the choice to practice.

Re: Trade Alert: USD/CAD

Starlo — Sun, 14 Mar 2010 23:22:33 -0000

Thanks Patrick, I normally set stops but not limit, what I try to do is exit about a hour or hour and a half before the trading day close; however in recent times it is working against me because I'm missing out on small profits. So as of now I'll do 2 entries with 1 stop rate and 2 limit rate. Which broker do you use?

Re: Stop Your Losses

Starlo — Wed, 26 Aug 2009 09:08:57 -0000

I have a customized RSI and its indicating to me to long GBP/JPY at 153.03. I hope you can read this in time and give me your opinion. I wish you could look at your charts and your foundamentals and comment on it. Tell me if its a good or bad trade and where to place the stop loss.

Re: Stop Your Losses

Starlo — Wed, 26 Aug 2009 09:04:22 -0000

I would love for you to re-post the best strategy you have posted so far. I like the strategy with the average balances.

My problem with stop lost is knowing when to adjust the stop position and when not to. I usually be conservative with my trades and set very tight stops and it works sometimes. For example: Yesterday 8/26/09 I shorted GBP/JPY @ 154.50 with stop @ 155.25 and limit @ 152.50, the trade was positive when I woke this morning but because I looked at the 4hr chart and see that it is indicating over sold I adjusted my stop to 153.60 and thats exactly where it went 15 minutes after and turn back. In all my trades my targets are never reach, I just seems to set the stops at the wrong place. If I don't adjust the stop then my positive trade turns negative and if I adjust the stop then my trade lose some of the targeted pips.

Re: Euro/Dollar Trade Setup

Starlo — Mon, 13 Jul 2009 09:29:49 -0000

What I did after it tested resistance1 is - Sell 1 unit at 1.39608 with stop at 1.39913 and limit at 1.39032. I gained 58 points. My second unit was 1.39608 with stop at 1.39974, that entry is still open. i placed the stop for the second unit a little further away because I intend to leave it open. I am planning to wait until it gain 75 points then move the stop to break even. After the RSI indicate over sold then I either adjust the stop again or close the trade. Does this makes sense to you.

I was always looking for a simple strategy that is easy to follow and now i think the S&R strategy is good. My main problem is where to set the stops, I am having a problem with my stops. The stops I placed for this particular trade is working though.

Re: Winning Forex Trading Strategy

Starlo — Sun, 12 Jul 2009 20:04:34 -0000

Can you explain the reason for the trend line in the support and resistance trade?