Owner: Forex Trading Journal URL:http://forex-tradingjournal.blogspot.com/ Join Date: Sun, 10 Feb 2008 13:35:37 -0600 Rating:0 Site Description: Forex Trading on EurUsd, GbpUsd, UsdChf, UsdJpy and EurJpy. My focus are in day trading and also longterm trades which are based on both technical and fundamental analysis. I also take high considerations to macro-economic factors. My aim is to become an Site statistics:Click here
Why I Have Dropped Out MACD 2006-10-16 00:47:00 Past post I have written that i have dropped out MACD as my trading indicator. In this post i will try to explain why did i do that. But i have to emphasis that MACD is a very good indicator indeed.First of all, lets take a look of what is actually MACD. MACD is just a simple indicator which consist 2 part of calculations derived from exponential moving averages. The most famous setting for MACD is 12, 26, 9 which represent (slower EMA, faster EMA, signal average period) in order. We start with building our own MACD. First, take a EMA and make it 12 period counting. Then draw another EMA and make it 26 period, make it in different color. You will have two moving averages. Take the difference in this two MA and plot another graph below the price charting, you will have this graph:When the f Read more:Dropped
Catch That Dragonfly 2006-10-11 00:44:00 This is a dragonfly. It is an insect which lives both in the water (when they are babies) and land. Dragonfly eats other small insects. They have four wings and six legs. They have long tails.Dragonfly usually found near ponds, lake and places where there is open water. The reason is they need water to breed. I think most people have seen a dragonfly flying low near water and dipping their tails. This is how they lay their eggs.When i was a small boy, my brother & i used to catch this insect. It is not easy, because they are very aware and agile creature. Well, we have our own ways of catching. One is just bashing them with stick. This will just kill them immediately, easy. That is okay when we only used them for fishing bate. Another way is to make them confused. We usually move our h Read more:Catch
Placing a Stop-loss on Your Trade 2006-09-23 00:36:00 There is always risk in trading, especially when using margin (leverage). It will be a good thing to know where that you want to leave the trade when it is bad. Putting a stop-loss will prevent you from hoping that the market will make a reverse towards your way, which will usually lead to a big loss (believe or not there are traders out there which hanging to their trade while it is going bad to more than 100 points). What eventually will happen you will have a margin call, which is quite painful. Then you will regret why you didn't cut the loss when it is still small & acceptable. So this where the stop-loss comes to work.Good things when you put your stop-loss are:You will have more free marginYou are emotionally free from fear & anger of lossesYou are not hoping, but trading wi Read more:Trade
The 4 Year Cycle & the Dollar 2006-09-10 00:27:00 Artikel dlm Currency Trader Magazine menulis berkenaan kitaran dolar. Penulisnya Marc Chandler & Ezechiel Copic menulis kitaran dolar berkait rapat dengan pilihanraya US. Kitaran dolar ini bertempoh 4 tahun. Kitar usd ini telah dipuratakan seperti rajah jadual di bawah (from Currency Trader Magazine September 2006 volume 3 no 9) :Memetik dari artikel tersebut:"Our experience with floating exchange rates is not sufficient to draw any hard and fast conclusions about the impact of the U.S. electoral cycle on the dollar. These preliminary findings suggest that to the degree there are some regularities, they are strongest during the second year of a president’s term and biased toward the dollar’s downside.During the third year, the dollar alternated between rising and falling in each pe Read more:Dollar
, Cycle
Entry and Exit Strategies for Maximum Profitability 2006-09-09 00:24:00 Jim wrote:I have received several email messages from readers asking about how to best determine entry and exit strategies when trading markets. Here are just a few of their quotes: "Though my success rate has been high, I am only breaking even financially, due to getting out too early in profit and letting my losses run too far." "Many articles are written showing when and where to enter trades--but how many articles are written about 'running' positions? Where to exit surely has to be the biggest key to trading success!" "I would appreciate some advice or tips on how to and when to enter a market and when to exit." Of course, if a trader knew exactly when to get into a market and when to get out, wouldn't trading be easy! But even the most successful traders in the world can' Read more:Entry
, Strategies
, Maximum
Procedure Prior to Open a Position (Update 1.2) 2006-06-30 00:11:00 Some update added. Rule no 1, 3 & 8. Spelling correction for word analyse. :)Check the trend: Is it upward or downward.Use Daily chart to check the economic trend.Use 4hr chart to check the trend using MACD histogramto check the major trendGo to smaller scale (1hr) to watch entry point (this is explained in rule 2-7).to check the minor trendUse 15min chart to pinpoint the entering point (this is a subtitute method for rule 8, use rule 8 if time is very limited).Always follow the trend of the larger scale.trade the reversal from the minor trend to the major trend.Print chart of the currency pair.Draw a valid trend line.Analyse pattern of the chart, whether it is:reversal pattern, orcontinuation patternAnalyse the volume of the chart, watch for:high (peak) volume, climax bottom or topvol Read more:Procedure
, Prior
, Update
Consolidative Trading 2006-06-15 23:57:00 GU berada dalam keadaan konsolidasi yang agak lama, mungkin sedang menunggu berita dari Ben Bernanke tentang interest rate yang akan dikenakan kepada USD. Ini menyebabkan market terlantun-lantun di antara siling dan lantai harga.GU sedang mengalami penurunan dari high yang sebelumnya setelah FOMC mengumumkan kenaikan interest rate USD. Kini GU berada atas dari garis 38% retratracement dari kenaikan yang lepas bermula dari April 2006.Keadaan yang tidak pasti antara trader ini memberi keadaan konsolidasi yang baik untuk rangebound trading. Di sini saya buy low dan sell high dengan stop-loss yang minima. Risk management juga sangat penting memandangkan boleh berlaku false break-out dari trading range.Rasanya USD akan kembali bullish selepas FOMC rate. Tetapi ini bergantung kepada keputusan me Read more:Trading
Tools the Winners Use 2006-06-05 23:52:00 These are some tips from the expert. Though it's mentioned futures trading in the post, the rules complies well for forex trading. Read :Achieving success in futures trading requires avoiding numerous pitfalls as much, or more, than it does seeking out and executing winning trades. In fact, most professional traders will tell you that it's not any specific trading methodologies that make traders successful, but instead it's the overall rules to which those traders strictly adhere that keep them "in the game" long enough to achieve success. Following are 10 of the more prevalent mistakes I believe traders make in futures trading. This list is in no particular order of importance. Failure to have a trading plan in place before a trade is executed. A trader with no specific plan of action in Read more:Tools
, Winners
Trading Tips from Joe Ross 2006-05-17 23:50:00 Joe Ross is the owner of Trading
Educators.com . These are his trading tips:The Trade DecisionNever add to a losing position.Always determine a stop and a profit objective before entering a trade. Place stops based on market information, not your account balance. If a "proper" stop is too expensive, don't do the trade.Remember the "power of a position." Never make a market judgment when you have a position.Your decision to exit a trade means you perceive changing circumstances. Don't suddenly think you can pick a price, exit at the market.The Market Has CharacterIn a Bull market, never sell a dull market, in Bear market, never buy a dull market.There are times, because of lack of liquidity, or excessive volatility, when you should not trade.Trading systems that work in an up market may not
Channel Trading System 2006-05-03 12:52:00 Channel trading system is just like trading in rangebound. The different is you can only enter for the direction in which the trend move. In the example given above (Euro Dolar H4), the pair has touched the lower channel line, indicating that it is time to consider some buying.The best time to enter a channel is when the price is overbought or oversold, plus when some divergence happen. In this example, the MACD indicators shows bearish divergence while Stochastic show some slowing down or consolidation. It is wise to wait for some more time to confirm the trend as it is look like a consolidation period for the pair.Based on triple screen system,If bigger time frame up, the smaller time frame down, then long. Same for vice versa.If bigger time frame up, the smaller time frame down, then st Read more:Trading
, Channel
, System
Uncertainty : Doji The Dangerous 2006-04-26 12:49:00 What is doji? Doji is a candlestick where's the opening price is the same (or almost same as) of the closing price. Doji comes many forms: dragonfly, graveyard, etc. (i do not remember all).This doji is form on the candlestick pattern when market could not agree on the cited price. This cause the price bounced back to the original price when it is opened. This signals that the market is exhausted and the reversal is not far from now.Doji also means that bulls power = bears power. This equality also means that the price is at the brink of reversal.Although doji appearance during rally might signal an exhausted market, a doji appearance during decline may not portend a bottom. It might be a resting place before a downtrend resumes. However, there an exception for dragonfly doji in downtrend Read more:Uncertainty
Forex Broker : Good or Evil? 2006-04-15 12:44:00 Almost all forex brokers are labelled as evil. It is hard to find a reliable and honest one. Even the most reputable one has the bad comments on them. Their spread, slippage and commission is the main reason to look for. Not to forget some dirty tactics to make the trader loose.Is this the reality? Maybe yes and maybe no. An amateur maybe will say yes but for a professional their success depend less on the broker. We must be proactive in a situation. That mean we must have one or two step further than the broker.I still finding a reason why a broker want their trader to loose. For me, if i am broker, i will keep my trader alive as long as possible because they are the source of income. If the trader were killed, where i should find any more commission to make income.There are many brokers Read more:Forex
, Broker
Strategy before Economic News 2006-04-12 12:42:00 I hate it when always late when the news about certain economic indicator is announced. Today while I should made 70 pips, i eventually end up with -50 pips, a lost and I felt really terrible. It is always like this, and i hate it very much. I felt like an idiot. Very stupid. This is my 3rd time missing the news and this will be the last because i will start implementing the 'News Strategy
'.The strategy is :Open 2 position.1st : Open 2-3 hours earlier before the news.2nd: Open when the news comes out.This actually will help me when i am late and avoid me making stupid move when i missed the news. By this also it means that i already have a position when a news is announced. The 2nd position is to be opened at the news time. The 2nd position also will help to catch any pullback or spike in Read more:Economic
Kelemahan Diri: Teragak-agak 2006-04-06 12:38:00 Saya masih ada perasaan teragak semasa untuk membuka posisi. Ini terbukti pada malam ini apa bila saya gagal membuka posisi apabila berlaku break-out pada leher double top. Saya sudah memerhati & menanti situasi ini untuk beberapa lama tetapi apabila saatnya pada malam ini saya teragak-agak untuk melaksanakan plan saya. Akibatnya saya terlepas peluang untuk dapat sekurang2nya 200 pips mlm ini. Sedihnya. Apakah ubat untuk penyakit teragak-agak ini?Ini merupakan carta trade tersebut. Reversal ini sudah dijangkakan oleh saya sejak beberapa hari yang lepas. Ini adalah kerana left shoulder sudah terbentuk dua hari lepas. Harga terus meningkat, dengan kuasa beli yang semakin berkurang. Ini dapat diperhatikan dari indicator volume dan MACD yang menunjukkan divergence. Top (H) yang terbentuk h
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