Hello to my blog!!! The last i wrote a post was 1.5 years ago! I really dun have a habit to blog :P
Back to the main point i have started Forex training for awhile! I on slow progress i have improved but still not to the standard where i can trade real account. For now what i need is sort of a daily or weekly diary keep track of my mistake and success! i was thinking why not making it for friends to view to and probably learn about Forex!
Originally i going write an introduction to Forex explaining Forex from my point of views but i am to lazy! u can read it up online its all over the internet. If u need help just ask me i will try to explain your queries if i know! I am still a beginner! Honestly i read about other people reviews and road to success, but trust me is not easy, dun believe in the advertisement out there , i have been failing daily (you will see later what i meant.) Some people take a year to get pro, some take half a decade, i haven find anybody who could beat the market w/o hard work! Trust me! to succeed you need to fail u need persistence and to learn and understand! It is equivalent to a marathon or getting your honors/degree/masters/PHD requires time dedication, effort and lastly EXPIRENCE.
PLEASE READ! This disclaimer will appear for all my future Forex blog posts.
- Anyone reading the Forex tag post please do not share them, you are welcome to read and comment!
- Secondly all materials, comments, post written/given are my personal opinions they are not advice or reality!
- I am not going mention company, people & platform. Dun ask!
- I am no expert my knowledge on forex is still limited as i said it just a diary to keep track of my trades and learn!
An fast introduction
Basically i am trading demo account. I am following inputs given by the chief trader, he explains the daily news that might affect today’s trade. Give directions of the trade, resistance, support but does not tell u go into time and place to trade so do your own analysis and capture the timing on your own!
I normally do scalping trade or spot trade.
Scalping trade refers fast trades which basically identify price action and trades following the identified trend. My aim less than 30 seconds and 1.5 pips profit per trade.
Spot trades are normal trade with My aim less than 90 seconds and 3 pips profit per trade.
What is pips?
SGD1.3000 to SGD1.3001 is 1 pips baciscally 4 decimal place,
Standard lot in Forex is USD100,000, 1 pip profit will give USD10
Mini lot $10,000, 1 pip profit =$1
Micro lot $1,000, 1 pip is $0.10 Doing the math scalping trade 1.5pips less brokerage 0.5 gives 1 pip. 300 pips monthly give u $3,000 from 1 standard lot and $6000 from 2 standard lot.
I use very simple trading technique/tecnical analysis.
Trading technique used:
- Price action
- Double bottom/top reversal pattern
- Triple bottom/top reversal pattern
- Head and shoulder reversal pattern
- Flag Continuation pattern
- Triangle Continuation pattern
- Break out of resistance/support/trends
- Fibonacci Retracement
I practice my trade on Monday to Thursday night 8pm to 11.30pm. Currently on DEMO account.
I trading 0.5 pips entirely as i am aiming to get 90% profit rate (1 loss in 10 trade) per night for consecutive week before moving to 1 pip then 1.5 pip. This is to get experiences and train my timing correct. Also a restrain of 1 trade per 15 min (even if its is a lost). This is to train me to look for best trade in given time frame and also not to take every single trade possible and trade in all market conditions. I am trading euro america currency.
Finally to my diary yeahhhh!!!!!
Trade Diary 1 (Monday 5th February)
Japan weakening YEN, A week ago news, America also announced continuity oF QE3 printing money till its economy turns better. Weakening currency (ie. print $$$) help boost export thus better GDP and growth and ability to pay for the fiscal policy. Age of Currency war! Most currency are devaluing itself. Euro made up of several countries is hard to get an agreement of majority to devalue its currency thus, going face tough competition (currency become higher) ahead. I would say same for SG? ( i have no prove :P )
EUR/JPY(left) USD/JPY(right): Daily chart.
SGD/JYP(Daily), Holiday to Japan?
Analysis Before trading
In the hourly chart we can see the first triple top formed before the 3rd leg of the up channel (daily chart), and successfully broke the triple top resistance. Once broken top side The triple top resistance became support for the new accelerated trend. A triple top was formed again and couldn’t break the new resistance and formed the second leg for the accelerated . which broke the resistance of the second triple top. The resistance turned into support for the third leg of accelerated up move. hourly chart is also significantly bullish.
In the 30 min chart we can see than every time the up side is broken is consolidates side ways buts after the peak of 1.3700 i started to dip down, and broke the 2nd accelerated up trend line. With this we can foresee a retracement. Reason being if it was still a bullish pattern it will try top side before breaking further down. As u can see the zone is extended as it is a support for the trade day.
My Trade day
My first trade is a sell trade located at the pink rectangle in the 10sec chart. The reason for the trade,2 Higher low at top in red at the top and 2 lower low in orange, followed by 2nd leg acceleration down trend(3rd red bubble).
This trade was done because a pull back after testing the bottom which did not cross the previous high(black line) and a possible 3rd leg of acceleration. The pink box is where my exact profit is 1.35513 to 1.37707 =0.5pip. It is a sell trade. My exact order was at 1.3552 but deal to slippage it got to 1.35513. This was a decent trade but selling at 1.2552 was at wrong level. Timing was correct. It would be best if the selling was at 1.3553 (blue line). Both spot(2.5 pips) and scalping (1.5 pips)trade is possible. Another point, the down move i traded on only lasted 30 sec after the 1.3553 level. Closing in 30 sec = profit. As seen longer holding time = more risk! 1 min and the profit is missing. 9.15pm to 9.30pm trade done on 9.17pm, 13 min to look for next trade.
Trade 2 & 3
Trade 2 was at 9.44pm, the pink square on the right, a sell order at 1.35568 to 1.35563. It was done caz a lower high was form, 2 black circle which did not break the peak. also not after the consolidation in green rectangle the move lasted 30-40 seconds.
Trade 3 was at 9.46pm a lose shown at the blue rectangle. I ordered a sell order after thinking it might form a third leg for a further down move. First note the time difference in first and second trade 9.44pm and 9.46pm, that why i need 15 min interval for each trade so i would not rush into every possible trade there is and do a proper analysis. Secondly I should wait for a pull back to test the upside (if upside cant be broken) which will form the third leg before entering a sell order. Honestly looking at this trade make me feel dumb, i was to eager and impatient. If i would have waited, i would have seen a higher high(pink bubbles) and lower high(blue lines) signaling a build up to break the red down trend.(red dotted channel).
Trade 4 a buy trade which i made another loss, shown in the blue box, I have no idea why i made this stupid move. A proper order would be at where the green rectangle is higher high and 3 lower high(green lines) attempting the upside, with a time limit of 30 sec again. Quite similar mistake to previous, should always wait for a pull back which is supported before trading. Another stupid mistake here.
Trade 5 sell order after the break of a consolidation above pink line. supported my 3 lower high and 3rd leg acceleration which cant break the top of the consolidation. This is what i call a good trade, can be a spot trade to, 5 pips in 60 secs.
Trade 6 is located at the pink box. this trade is done caz a test upside(right most red bubble) fail to even reach the previous consolidation, forming a accelerated leg for further down move. Also lower lows and 3 lower highs were form(3 pink line) suggesting a further test of downside. A decent trade, can also be a spot trade with 5 pips in 30 seconds. Also A perfect trade would be at green rectangle mark. It is supported by 3 lower high (3 blue lines) and a break of the dotted accelerated trend, 2 mins, 10 pips
Trade 7 and 8
Trade 7 located at the first pink box, i would say this is not a decent trade just a lucky trade, the no pull back to try the downside, same mistake as previous two losses might have happen, i was just lucky. A decent trade would be where trade 8 is, tho not fantastic
Trade 8 located at 2nd pink box, Higher lows (3 blue bubbles) and higher highs were form, not a fabulous trade still okay i guess.
Trade 9 and 10
Trade 9 was a buy order above red line but i made a lost located at blue box. I was trying trade a head and shoulder reversal pattern shown in pink lines with neck line at red line, obviously it did not work. To note, never assume a head and shoulder pattern till it is form, as it could easily turn into a double bottom. Also A buy trade should only be enter after test of grey circle is held forming a third leg and higher high, clearly it did not hold.
Trade 10 was a sell trade located at the pink box. Traded because a fail breaking the upset and a break of up trend(dotted blue line) with no higher high. A place for a spot trade too, 40 secs 8 pips.
As u can see most scalping trade if u scout for the best place to enter can be a spot trade, scalping trades requires better technique and time precision, training with 15 min interval help me identify a which best trade i should enter in the given time frame. Also not this trade is a side way consolidation no a trending day, as seen it did not break the blue support zone drawn in 30 min chart extend into 10 min chart as a support zone. we traded a range of 1.3548 to 1.3578, 30 pip range and there still a lot of opportunity. I will work hard to night :D