Hello everyone. I know its been a while. BUt here is most of my real live trade update at Meetpips.com. Its a great way to journal your trade as it has a MT4 sync.
SO I wont be updating my Trade Journal here instead will be at this link below.
http://www.meetpips.com/members/FxGenius/journal/764/closed
Have a good day everyone.
Over the past few years of my trading career, I also had ups and downs on my trading. But that was when I always think big and target large. What changed from big to small , from losing to earning was to make trading easy and simple. We all already know that trading it self is a difficult yet confusing at times to understand whats going on.
IN reality, what is your aim in Trading ? OF course to Earn money. That’s right, we are here to earn and get some money from our job. Just like any other job out there. IN forex, its a different environment, its all about mentality and mindset. Its all about who is in control. BUt if you step back and think for a second, how much can you earn from something that moves 50 – 100 pip on average daily ?
If you think u can earn 100 pip on a single trade daily, be my guess. Show me if you can consistently. Other than scalping of course. Now if you reduce that to just a mere 5 pip, what are the chances of getting it in a move that averages even 50 pip. To even get 50 pip , the chances are 1/50. But to get 5 pip, the chances increases to 45/5 . Why ? because its achievable, small but profitable.
Over the course of a long run, it will deem turn your trade consistently profitable and positive. Again it will be a matter of MOney management on how much can you earn from just 5 pip. Its all about how confident and how good you are with market timing. Trading with experience does tend to have the edge to trade with full scale trading size.
Here is an example. You start with $2000 in your trading account. Your Weekly objective is 25 pip per week. SO each day is 5 pip. size to use ? Depends on your risk tolerance. I suggest you have 2 separate account. 1 account to act as your main account funds. The other to use it for trading. every profit u earn transfer it to the main account. Which leaves u the same capital and fix size on the trading account and the main funds increasingly with profit. Why do this, so you will trade without fear of losing your money!
Now with 5 pips and $ 1000 to trade risk it on a separate account leaves u the choices of taking 5% to 10% risk. with 10% risk , u gain 10% profit which leaves u 10 times of losing, burned account. with 5%, u get to risk 20 times of losing to burn it out. FOr a 5 pip trade on a single day, is achievable. so We use 5% risk .
5% of $1000 = $50. SO now my objective is to earn $50 profit per day or lose $50 -100 per day. So we will be using 1 Lot. Who cares ?! You are using separate account as trading and the other as your source of main funds. Meaning the $1000 you use is the amount u are willing to risk to lose.
Of course to get an ideal trading profit means u need a perfect timing market strategy. In this case I personally use Demand and Supply in my trading as a foundation. Demand and supply on a forex charts means you need to identify them well and these are actually institutional order flow.
Of course that will be a lot of practice or backtesting. Strategy is simple. Demand = Buying and Supply = selling. There is an order of odd enhancing scoring to identify a good supply demand level. I personally use as a checklist. I use this check list as identifying a good level to trade of 5 pip.
1. pattern ( demand and supply pattern )
2. Strength of imblance
3. Period at that level
4. Profit margin when it leave the level ( preferable 3:1 ratio but on a short term small time frame 1: 1 is acceptable )
5. Retracement
6. Time of the day the level formed
7. USD index
8. Location on a bigger time frame
9. Trend
10. arrival of price into the level
To summarise:
GOAL – 5 pip
Strategy – Demand and supply
Chart time frame to use – 15 min / 5 min / 30 min.
I prefer 15 min chart
SL up to you according to your position size and risk.
Now lets go back to earning. $50 a trade in a single day is not bad. You get to earn 5% per day. After 5 days of trading $250 per week goes into your main funds. Use all over again on that $1000 trading account. repeat for the next 4 weeks, I am sure yo will have 100% return in a single month. Of course if everything goes smoothly as planned.
Once your main funds grow to $3000, take 500 into the trading account, now you have $1500 risk to trade. Increasing ur position size to 1.5 lot. Now You’ll be earning $75 per day. Repeat the same thing all over again.
Now for people that has seen how I trade it is very simple and easy. For those who has not yet understand what supply and demand trading is , you can search it on google typing’ Sam Seiden’. Watch all the videos there to understand what I am talking about.
Try it on demo, I insist. Use support resistance , its also reliable! Test it over a period of 3 months, see if you can manage to gain 300% on your account.
People keep on wondering and hearing that Trading Forex sounds easy and a good get rich job quick thingy. The fact that their perception was mislead by some unknown traders who has the lack of knowledge and experience and expecting much from the hype. Mislead by the ads made by the brokers. Mislead by some friends who had been playing demo but not for real.
In fact, It requires a lot of dedication, hard work into training your self and the skill required to trade with the sharks. Most people are let down by the hope of taking the real trade and then loss, changing system to system or even doubt about trading the forex market. As most of you might heard that a risk disclaimer always mention that FOREX investment or trading is a High Risk instrument, and requires you to be able to cope the responsibilty of a loss and profit. They utilise leverage that can cause as a tool for your destruction mentally and financially or could work in your favor.
Not all FOrex trading works for everyone UNLESS you are ready mentally. Its a job not for the emotionally high EQ ( Emotional Quotient ). Its not a job for the Lazy individual. It requires you to think deeper and find your niche in trading base on your personality. Its not following someone or a professional trader because you can never be someone else or be that professional trader. Why ? Because he or she has his or hers individual personality that reflect his trading style. TO be them means you have to be like them, personally, routine behaviour, what they like and dont like. Now to think that, its impossible to be someone else.
You just need to ask your self, Are you able to think objectively rather then instinctively. Will you able to control your self under pressure ? Can you make quick decision if your a short term trader ? DO you have the patience to wait and observe without intervening ? Are you always positive ? Not just in trading but in life.
Trading Forex is a continuous learning. It does not stop from the day you finish your forex course. IN real trading , you just go in there into an uncharted territory. You have to have a thorough understanding of the currency pair, thorough analysis and planning. Thorough knowledge of your own system. How you handle and implement new ideas and filtering bad trades. How can you investigate and prove that the system does work and comfortably for you to use.
If you prefer backtest, then backtest it! IF you prefer DEmo accounts , then test it and test it up to 6 months.
Here is the routine HOW I learn something new, or new ideas on any trading system.
Step 1. I learn the rules by backtesting them for at least 1000 trade test so I become familiar and natural to the rule of the any system
Step.2 ONce you get the hang of the rules and pattern, Trade test it again for another 1000 trade test according to your time schedule of trading.
Step 3. Forward test the system on a demo or live account with strict small position size only for the purpose of testing and accumulating data how it perform for 3 months or more.
Step 4. IF you think you are consistent the last 3 months continue on untill for a year before making any changes to the system unless you spot its weakness and made drastic change to the timing of its entry.
If your not consistent go back to step 3 but logged in a journal all the details of your trade including your psychological profile at that time.
YOu do this everytime you have an idea as well on your trading style or system.
Notice that it requires massive work of research and thorough testing. You just need to work hard just like any job in order to earn what you deserve and work for.
Have a nice trading and take care!!
I have read one of Boris’s article regarding How to stop Dumb money and trade real money in Fx. It is really good though that it points out the relationship of eliminating low probabilities. Of course in Backtesting you won’t notice that though there are a few you might spot. Forward testing either on a demo or Live trading account is a different story. But I was interested on what he was saying that testing new ideas on a separate account. Testing on a real live account has a more precise benefit compare to backtesting. It also test the psychology behind trading.
Using Live real account testing also has the benefit to eliminate those low probabilities and also you get tot est them on an uncharted area where you don’t expect how the market will do on those new ideas strategies. You get to know how the broker will also react on those new ideas.
But again, you need to test them at least 1 year to know the performance of that system. While on Backtesting you accelerate to know a system at a fast pace and it is base on a historical data. Still it is beneficial to understand the rules of a system inside out, a form of practice to search a consistent pattern. It accumulate a statistic on how you perform by applying objective rules.
From my opinion, I think having both ways to test a new system may be great, but may again increase the period of gaining the experience and expertise on trading it self. Still back testing may be my foundation and forward testing is eliminating the unforeseen outcome.
If you want to read up Boris article here is the link http://www.fxstreet.com/education/trading-strategies/forex-trading-strategy/
ANother day another dollar, as always. THe down trend really makes any trending trade easier. The plan was to sell on any small supply on the smaller time frame chart.
Trade 1
SELL 1.30519 TP 1.30469.
Trade close + 5 pip during the EUropean open.
I was looking at the GLOBEX S& P 500 and it is in the monthly supply zone. The chances that this down trend will continue on for the next 2 months or so. But here is the Dollar index vs Eur0. It timed well on my entries.
Trade 1 close nicely with a $ 5000 profit.
Trade 2.
THis was base on the 15 min chart. Supply level at 1.30647. What I didn’t realise on this trade was that there was another supply level on top of it hence a level on top of levels. So I decided to hold out the sell and it did work out and reverse sharply.
SELL 1.30647
TP 1.30597
And it clsoe another + 5 pips. THats another $5000 .
REVIEW
What did I do best ?
Sticking to my plan and flexible on a moment change. Having my day today a full rested day, I was so focus and refresh. SO from the part of analysing the chart to planning it all got executed with success.
What should be change or improve ?
Nothing but continue backtesting and rest a full +7 hours sleep.
What’s next ?
See you tommorow market !!
Account statement
Its Tuesday and this is what I have during the London open market. A supply on the 5 min chart on the EURUSD. Took that trade for a 5 pip trade. As soon as it close, it creates another supply. What does that tells me ? Means more selling pressure were added. ANother institution had sell in large quantity to bring those price further down and keep the bull traders at bay.
The plan is the same
Target – 5 pip each trade
GOal – 10 pip per day ( 2 Trade Per day ).
Major trend – Down ( Bearish ).
Location – in between the weekly supply and within the reach of former weekly demand.
Time frame – 5 min
SELL pending set @ 1.31928, TP 1.31878. SL 5 pip above the red line ( 62 EMA ).
Results + 5 pip , trade close at its TP.
This trade took roughly 40 min. TO me thats ridiculous time. What that tells me is that possible price nearing a major support or a demand which to my knowledge at 1.31587.
At the same time, on the 5 min chart, The new supply at 1.3186. Put a pending there on its way down . It will be good to catch on its way after the ounce off the demand level.
SELL pending 1.3186 TP 1.3181 SL above the red line ( 62 EMA ).
Well This trade did not happen. SO the EURUSD going for its down trend move again. So that supply was the renewed sell orders by big institution. Anyway, I think thats a wrap up for the day.
Trade Review
What did I do best ?
Stick to my target and goal trade. As planned. Stop trading even 1 trade today since the overall total of yesterday trade during the us session made it 2 today.
What should improve ?
Nothing but continue as routine. PRobably need more exercise as well during the morning for a quick 15 min jog.
What’s next ?
See you tomorrow market!!
SImple to use. SELL as price touch the supply area ( marroon colored ) and BUY at demand ( Blue ).
How to install it to your MT4 ?
1. COpy the downloaded indicator to the platform folder ( C/:program files/ FX platform/ expert/ indicator/ )
2. Paste it in the above folder .
3. CLose your platform and re open them again.
4. YOu can use them on any time frame. Insert indicator on the menu , browse custom. It will list all the downloaded or any custom indicator or ea you have.
DOWNLOAD below
Another day another dollar. Thats I would Always say. Today’s volatility and liquidity was good and manage to earn the remaining move of the EURUSD towards its nearest demand.
The planned trade was
Sell any rallies , Sell a small supply. Target 5 pip each trade.
Goal for the day = total 10 pip
2 Trades
Most of the trade was a market order. No pending. What did I do first ?
AS a routine, Looking into the weekly chart. The price has sinked below the Dynamic 20 SMA resistance. All I can say is that is a small chance of the price might move lower as the demand was spotted on the hourly chart at 1.3158.
Dollar index is also nearing a supply level. Whether this week will break it or not that is the thing I want to monitor of.
Hourly ALL star entry was an ideal setup BUT the price was creeping in or stair casing slowly towards the demand level. SO in this case, I doubt that is the case. I am willing to see that the price will break below 1.3100 today or this week.
Next I move into the smaller time frame for my trade entry. I narrow down to 1 min chart today just to make the day quick and easy. KNowingly the bigger picture where I am . Selling into any small supplies will be a good setup since the price has been ranging during the asian session.
First trade was a sell near a fresh resistance at 1.31827 and exit at 1.31777 for a 5 pip. It took less than 5 min and the trade closed for +5 pip.
2nd and 3rd trade was a bit longer. THe price was hitting todays high range . THe 2nd trade sold as soon as the price hit the resistance higher than the 1st, and the 3rd at a supply level on the 1 min chart shaded maroon.
2nd Trade was the same size as the first, but the 3rd was smaller as to reduce the size of risk. THough the entry was at a low risk entry with high probability.
As soon as the price hit and tested the supply area for the 4th time, it dropped and drop untill it close both trade. I took the liberty putting the TP on the 3rd trade the same as the 2nd. SO I would say today over achieve the target and that is enough for the day trade.
Trade Review
What did I do best ?
Stick with my goal target and planned the trade , execute them as per planned and finish my day as planned.
What should improved ?
Nothing but continue on the same routine with 1 hour backtest before trading.
What’s next ?
See the market tomorrow.!!
Below is the Live statement statement for today.
The 10 pip trade example from my live setup .
PLAN Short term for 28 Feb 2012
GOAL – 2 Trade per day
Target – Total 10 pips
TP each trade – 5 pips
Lot Size – 60 Lot
Time Frame – 5 min Chart
Trade 1
Buy @ 1.34094
TP @ 1.34144
SL @ 1.3400
Trade 2
Buy@ 1.3427
TP@ 1.3432
SL @ 1.3418
Psychological Profile : I did sleep 3 hours extra during the day to cover the late sleep in the evening last night. After that extra sleep , I feel fresh and focus. I see better on the chart when I am fully well rested.
While waiting: I was editing the SKyrim games data, to give extra edge on my character in the game. The creation kit is super awesome!
EUROPEAN/LONDON OPEN
The trade went on as planned during the European session open. It trigger and close just like that. Trade 1 completeed with +5 pips Profit @ $ 3000 USD
It nearly touched my SL just by a mere 1.4 pip. CLOSE by that MUCH!
Next Trade 2. Awaiting for the planned setup trigger. Also while waiting , Look for any fresh demands.
Many might wonder why 10 , why not 40, 50, 100 or 1000! ? The answer is simple, DO what’s best for you to achieve realistically. In my opinion , every strategy has its hit probability. the lower the easier, the bigger the harder.
When you aim big, You need those extra patience and focus with careful planning. And sometimes you never get it, the market might only give you half what you planned or nothing at all. But when you aim small, its easier to get. Out of 100 pip range move or the daily average price moves of more than 10 pips is probably the easiest to get. The Only thing that stops you is Spread.
To achieve something small you need cheaper spread. The cheaper the better so you can get your hit rate more higher. How I achieve 10 pips is a simple day trade job. I divide them 5 pip which is probably the Most easiest to get on any currency pair. I trade ONLY EURUSD, because my spread range between 1.2 – 0.2 pip on an active open market.
I trade during the European / London session and US session. 1 trade per session to get 5 pips is the Most easiest. The most easiest entry to use is the support resistance area. But what I do trade is I use demand and supply level. I only trade this on my own account but not my pamm account. Because its my day job income. Since my pamm got hammered with a big loss , I had to implement the methodology on my pamm as well.
How to get 5 pips easily ?
Look at the hourly support resistance. Put your entry there and ONLY take 5 pip each time it visited the price area of support resistance or demand and supply.
I am sure that every session it creates support resistance on a daily basis. You can even use the London high low session or NY high low session. Find any significant price action on those areas. Remember, You only take 5 pips! Yes 5 not 10. DO it one at a time. Once you got 5 pip. take you time on finding another 5.
Once your done for the day with 10 pip, thats it. There is nothing more you can do but doing other chores or even have a time out with your families. Remember, you only aim 10 pip per day! Put that as your plan and target. IF you cannot find one on the same day, its best to leave and search for it the next day. I don’t recommend you chasing for every support resistance or demand and supply.
If you want to know, I trade on my own account sometimes last for about 30 min , thats for a day job for the day. YES 30 min is not long. YOu get to spend a lot of time with your family, even playing your games console or pc. Or Heck do something that makes you positive. But remember, I earn 10 pips as in just $2000USD per day. With bigger account its probably the most easiest and coolest thing to earn for a 30 min job. I am sure you can do the math for a 5 day trading days. And I get to withdraw them every week half of the total profit for the week! That pays my hardwork for the week.
Never let your self to think you can accumulate without withdrawing any profit just to ensure you can use a bigger position. Because it can lead to GREED. Once that is already on your mind and to let it even creep in slowly even you deny it, its a dangerous thought and believe me, it always strike when you get to have a very long winning streak.
Pay your self. even it just a $200 , still you get to deserve your self some income of all those hard work. Life can be simple if you make your self think and apply simpler.
Happy trading everyone!!
