Category Archives: Psychology and Discipline

My New 2nd Edition Ebook is out!!

Thank you for all your patient. The new 2nd edition ebook is out. It is better and much more easier to understand. Especially the ‘How to ‘ identify demand and supply.

Feel free to purchase it for Only $20 usd.

ebook cover

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10 Pip or Weekly income.

AS I promise , April blog will be about 10 pip trade by popular demand. The question is why 10 pip ?

1. Because it is easy , on average , the currency moves more than 10 pip a day. What are the chances of getting 10 pip ? High!

2. Compounding it over the long run, you will definitely get a consistent low risk good reward profit growth.

3. It does not take so long to trade for it and requires not much of a screen time as well!!

4. Probably the fastest way to earn and trade for a living or when you have abundant amount of Trading money, this could be your weekly income.

4 reason is enough I think unless you can think of anything that can be of a disadvantage. One thing about the 10 pip, DONT BE GREEDY AND DONT BE TOO EUPHORIA .

Learn to let go and not bother what the price is doing afterwards. Get use to this feeling, You will succeed in just a 10 pip trader.

When and How ?

WHEN

Between 0800 – 1700 GMT  Look for demand and supply on a 15 minute chart

If you notice any demand supply after or prior the times I just mention, don’t bother about it.

HOW

1. You will ALWAYS find either demand or supply after 0800 GMT. You won’t miss it.

2. Set and Forget

3, Always aim for 1: 2 RR or 10 pip target. If it happens to be less than 10 pip applying the 1:2 RR, set your target 10 pip! If it is more than 10 pip , then you just have a bonus!

4. ALways use realistic GOALS. Earn 10 pip Per week ONLY. which in a logical sense, achievable!

Stick the above rules, you will definitely achieve it.

Lets do the Math:

10 pip Per Week. = 40 pip per month.

40 X 12 = 480 pip per year

10 pip = 1% earning gives 4% earning per month ( which in Hedge Fund term considered to be best Performance )

so in a year 48% returns.

With 1 Lot equivalent of a $400 a month grocery Money.

With 10 Lot equivalent of $4000 a month salary.

With 100 Lot equivalent of a $ 40K a month Executive Salary may be ?

Normally Retail Brokers allow up to 500 Lot max. or 200 Lot. which is with 200 = $80K a month. Possible? may be.

I had once tried 100 Lot for just 10 pip. The slippage is just enormous up to 3 – 6 pip. Why ? There isn’t just another trader or the broker does not have enough money to trade against and unable to meet our price offer. SO the trade may be half filled or just a quarter filled.

So whats the most ideal Lot size ? 30 Lot is much better to comprehend the 10 pip trade. Which gives you at least $12K a month. Which is more than enough .

Lets try it for April, see how much we can earn from it.

FYI

See attached chart below of this week.

2015-04-05_0133

OF course With a Trained and professional skill, this can be achieve Daily. But For the people out there just trying or experimenting. Once a week is adequate!

And do not use the same account , if you are having separate strategy, allow specifically for 10 pip account. OR elase your performance will be inconsistent!

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Too accurate Never gets filled

The nature of being too accurate may gets you frustrated. But at the same time you feel so good that you are correct on that move. What would you do if this happens ? Don’t get caught up with frustration and anguish. Just let it go. And wait for other better opportunity.

Its not the end of the world. There are plenty pairs out there might given you the best set up.

Hence I have remove the pending order as we speak.

m30_didnt_filled

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Adaptation to Market Changes

Performing such feat requires accurate Price action reading in the smaller time frame. Hence the earlier setup on the demand into supply, I have re adjust the position and SL so as to minimise the risk and take full advantage the reward.

See chart on the 5 minute below.

5_minute_EURUSD

Clearly no supply or even fresh one left for the next buy leg on the H1.

So now clearly we have 1. Least path resistance 2. Strong arrival 3. Buying into sellers.

My sell currently selling at a RR 1: 4 risking 5 pip for 20 pip reward.

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Example of a Trader’s Psychology

I am sure every trader out there come across and face their very own demon inside them. The fact it is not a demon but how your mindset has the tendency to trigger emotion base trading.

Below is a chart that was traded yesterday.

blogThis is the EURUSD day trade chart.

Initially An Asian Demand was formed before London Open. About 40 minutes later, it went for the Asian demand for buying and this fills the order long on EURUSD.  My plan was to allow it to move towards the TP for 40 pip. Which on the initial run failed to rally above current resistance. THen came on the NY session , re enter BUy at the demand after it fills the demand level completely 100% means all buyers are IN. I had the initial trade on BE. But as soon as the 2nd one re entry, I was over protecting it and move my SL too soon. so IT broke even as well which could have gone well. That I can forgive my self. But what I did when I was already feeling sleepy and tired for the day, Just after that BE stop out, I put pending buy for a fresh pull back on the rally after the news release.

I didn’t realise I fell asleep while waiting for the pull back. I didnt put a SL!!! ( Never trade when you are tired and about to sleep ).

AS soon as I was awake because I realise I didn’t put a SL, the price had went 20 pip against me. I immediately after woking up close the position without hesitation.

2 things that can result of this. 1. I will have a drawdown value on my performance statistic 2. It will trigger emotion base trading.

How do I overcome No.1 ?  Trying to forget it and there is always tons of opportunity that can easily recover that loss.

No.2 This can get at the back of my mind and even push me to chase a trade or desperately trying to make a come back. Which is an Obvious sign. If you look On the right side 2 red small lines, is a short position I made after waking up. WHen I realise it is a wrong thing to do, I minimise the risk for 4 pip SL. That way it tells me I am doing it wrong.

The problem with this trading attitude, it can result in habitual traits. SO to avoid it repeating, NEVER ever make a sudden quick decision after waking up, NEVER ever trade when you are tired and feeling asleep even without realising feeling asleep.

What am I going to do today, do the usual routine!

 

Happy hunting.