Needless to say, when you have an open trade and letting your profits run, you have to be patient not to close the trade until the market said so.

when you see profit on your open trades but knowing that it can still result to a loss, is just another test not to close your trades early.

So far, the most difficult test I encountered is the loss. Multiple losses can test your patience. 5-6 consecutive losses while following your system is just like a…
Trust…trust…trust…no, not thrust…

Although I anticipate multiple losses with the system I’m currently using, I just experienced a number of losses which broke the record of those consecutive number of losses I had.

So again, just enjoy.

I failed to reach my goal of 100% of gain from the total trading capital I deposited. So how much gain or loss do I have after 1 year?

Well, it’s less ~20% from my goal.

Want to read some stories? Then read on…

So few months before, I decided to change my thinking in trading. Wait until a drawdown of 50% in my account before I change anything from the “rules”.

But voila…

I got this ~80% gain before exactly one year of trading live account.

So what happened here? What is that entry point? Is that the best entry point? Do risk is too much to handle which gain more profits?

Hmmm…

It’s none of the above.

Remember my previous post where I mentioned that I studied almost all the indicators that might come into your mind?

Nothing from those indicators I used for those winning or losing trades.

What is it?

I just didn’t predict where the market will go. If it’ll be bullish, I’ll take it; if bearish, I’ll take. And not to forget, some ultra-mega patience, psychology, and money management once trade is open.

So that’s it, and I want to try more of this kind of trading. And if you’re looking for an entry with the highest probability of winning, maybe I’ll find that sooner or later and share it. But until I found that too hot to handle entry technique, we just settle for this psychological and money management game.

When I first started trading, I only think about the “entry” of my trades; and the T/P has no plan. But I do have a S/L.

Now, almost a year after I started live trading, my account is playing between loss, profit, loss, profit…In short, break-even.

Still good, since my losses can still be covered by profit. But all the profit will be wiped out in a couple of trades.

50% winning rate?

So I started to scour for “higher” probability winning entries…

Studied more technical analysis, fundamental analysis, you name it.

I believed that if I have a higher percentage of winning entries, I’ll be getting more profit…

That was then…

Now…

I’m trying to test to have lower percentage of winning entries but still will result to profit…

Maybe 20%-40% winning rate?

So what’s the best entry for that?

It’s risk management.

Exits are just part of the equation. Adding more to your winning entries, but risk will be higher. S/L when entered the trade in wrong direction, T/P when the market said so.

Now, my perception has changed. You need to have a proper money management to make profit in trading world.

So what else we need to add in our equation?

Soon, I’ll be studying the psychology in trading. Why, it seems to be directly proportional in risk money management in trading.

- Started to go Live forex trading this year.

- Studied different technical analysis indicators.

- Bought forex books for technical and fundamental analysis.

Hmmm…

So what are those technical analysis indicators? Let me skip those very popular western indicators like RSI, Fibonacci, etc.

Currently I’m studying Ichimoku analysis, I believe that this indicator promises a lot to those who are using it. If you’re still unaware of it, you can go to www.kumotrader.com.

Candlesticks, I shifted from Bar analysis to Candlesticks. Why? I find it easy to read candlesticks.

Anything else??? hmmm…

Maybe I’ll be reviewing my trade logs, and will start a trading plan based on those logs.

I didn’t achieved the 100% profit goal this year, but on 2011, its gonna be more than 100% profit. No, that’s not unrealistic. Get your calculator and try. It’s too modest, really.

Will continue to study and understand Ichimoku and candlesticks analysis, plus fundamental analysis.

Will use forex backtesting software to test new plan.

What else? hmmm…haiz…just wait for more post…hahaha…

Anyways, sorry for post formatting, it’s almost 2011 here…:D

Enjoy!!!

Most probably, you’ll have your T/P and S/L set before you open your trade. I do.

When I have my open trade in loss, I won’t cancel the trade until the S/L was reached unless the price is staying in consolidation period for quite some time. But when I am on the profit side of the trade, I would “manually” take the profit even before the target T/P is reached because of the thinking that the price might suddenly reverse.

Anyways, I think I have to change that mindset and be more confident when entering the trades. Because when I manually T/P without any basis, I’m risking the trade more than I should (Risk/Reward Ratio).

I think that one way to prevent premature T/P is not looking on the charts so often.

But how about if there’s any major reversal? Well, you might want to look to the charts after the close of the previous price.

If you think you’re taking most of your profit in the same way, we should change our mindset to avoid risking too much from our account.

Well, as far as I understand, it’s like reading where might the next movement of the price will go.

There are numerous tutorials you can find on how to read price. But I want to share to you where I started.

If you are aware of the forum forexfactory.com, there’s a thread that started last 2005 which focuses in reading price action using bars. The thread starter is well-known with an alias of “James16″.

I think you can try to read some of the posts from the thread to get a feel of how traders read charts using price.

Feel free to visit the link below to see the forum thread:

http://www.forexfactory.com/showthread.php?t=2331

Anyways, I like to understand more regarding James16 trading, so if you want to share regarding James16 trading techniques, feel free to comment below.

Enjoy!!!?

Hi guys, what do you see from the above image? Do you think it’s Bearish? Well, the moving averages are telling that the pair is having a bearish sentiment.

Well maybe it’s currently in range but anyways, once the price has touched the EMA 10, I think we can start to sell the pair.

Btw, I can’t wait that long to enter the trade so I opened up my Demo account and entered a trade. Well not bad, since I’m still tweaking this strategy. And also, the current candle is not yet on it’s closing time, we won’t know(based on the image), on where would the price will close.

Anyways, enjoy!!!

Update: 17-Nov

The price has been in a consolidation period for quite sometime. Although most of my indicators are telling it is still bearish, I cancelled the trade, with minimal loss, because of too long consolidation. Anyways, we can wait if the price will continue to become bearish.

Currently, I am learning and using technical analysis in every trade I enter.

Did you notice anything from the first line?

It’s the word “learning”.

I feel that anyone who do trading must continue to learn different things in technical analysis whether he’ll be using it or not. Well, I do.

You may ask why.

Let’s say you don’t use RSI, but you know that many traders are relying on this indicator. But if you know how to read RSI, you can have a “view” on what others are planning to do on the next few hour. Get it???

Well, let’s learn new things.

By the way, if you want to learn the basics of Forex, I recommend you to visit www.babypips.com and read until you get an idea how the forex works. Until now, I’m still visiting this website to refer on some things that are new to me.

Enjoy!

As you may know, the front page of this site contains a review of forex trading robots. If you’re a fan of these robots, go ahead to use them but as of now, I am one of those trade in forex manually.

I will update this blog as often as I can with colorful pictures , for you to get some new ideas. Hopefully good things…:D

Okay, to make things clear, this blog is for manual trading and the front page is for hardcore forex robot traders; needless to say, I may not discuss automated trading here in this blog.

Anyways, let’s get started…