This will be my journal of my adventures and research into trading strategies in the forex world.
I am simply keeping this journal so that I can look at it after I conducted the trade and also bounce my ideas of how to refine my own trading strategy.
If anyone is interested in discussing strategies here, all are welcomed, if you have some new ideas that you want to bounce of someone, you are also welcomed to do so here.
I will only post trades if I feel like it, and only if i have time.
I have started trading about 2-3 years ago, and during that time I have chanced upon the thread Technical Analysis Fallacy, here in forex factory.
It is a wonderful thread, where some of the best traders in the world hang out.
What you will never get here, is rigid, look for some indicator setup and trade it kind of thing. As the markets are always flowing, the conditions always change, therefore to be able to adapt to the changes in the market, one must intimately understanding market structure, and understand player profiling.
Quoting from the AoW, know thyself and know thy enemy, and a hundred battles, one need not fear.
I do not claim that I trade like in the TAF thread, what happens is, I have learnt some really useful things there, mainly how to read price action, money management, and romance of the 3 kingdom, also known as, the relationship of the forex currency pairs. And on top of that, I added in my own touch.
So my methodology is my own, forged by my own experience, and also from knowledge from various sources, especially from the TAF thread, but not only from there.
you will see elements of how i trade to contain stuff from the TAF thread, but i do not follow it entirely, I believe there is more, and I believe the thread to be only a small fraction of FTI's true capabilities. Just my gut feel, but i sense there are alot more that he did not show, mostly perhaps its because its not usable in retail trading, applicable only to people trading larger sums for corps and funds.
You will also not get any kind of fundamental analysis here, as I simply cannot understand fundamentals very well, and will not use that kind of analysis.
Technical Analysis is simply, the analysis of price, time and volume, as spot forex does not have volume, and I am not sure about futures, I don't have a live feed too, so I do not use volume and I do not use futures. But it is an ANALYSIS and STUDY of price and time, there is no rigidity in it, what people have as an idea of "Technical Analysis" really is nothing but hogwash, because they imposed their own assumptions of what Technical Analysis should be, rather than what it actually is. If you bother contrasting people like richard wyckoff and wd gann and jesse livermore, how they traded, that is true technical ANALYSIS, they used their brains and knowledge to produce profits. People in the TAF thread is also doing it, properly analysing price action, then with the right MO, handle and manage the trade appropriately, according to the conditions the market manifest right there and then. Then contrast it with the black box rigid method expert indicator type of trading where it is stochastics more than 80%, sell, that is not analysis, because the model is so confined, and restrictive, to local price action and does not factor the grand scheme of things and the general conditions of the market, RIGHT NOW, the key is RIGHT NOW. People who love to say this system is 70% accurate and blah blah blah, will learn it the hard way when the 30% kick in, it simply indicates that didn't want to use their discretion and their brains. Profitable traders deal with the RIGHT NOW, and handle it appropriately. There is alot of misconception about what technical trading is about, but what I CAN tell you about technical ANALYSIS, is you have to use your brain and think alot.
As jesse livermore pointed out, trading is not for the lazy, and those who refuse to use their brains or are too lazy, will only lose their money.
The tools I use to trade, price action, ro3k and money management, i will not elaborate, if you do want to know more, visit the TAF thread.
Specific strategies, which can be used in conjunction to price action and ro3k, is the ro3k spreading. Which is a method to spread out positions and rotate currency pairs in the portfolio such that exposure is different in accordance to how the market is moving NOW.
I basically follow the trend, but if it ranges, i will trade ranges, and if it has sudden counter impulse changes, I may spread it out or find ways to handle it, within my risk tolerance limits.
Also, whatever I say here is but my view/opinion of how the market works and how I handle it situations.
I trade intra-day, using the 5mins charts mainly and zoom out from there all the way from 5mins to daily, for analysis, sometimes i look at the 1mins charts if things feel funny.
actually, the truth is, to trade extremely well, it does not just require one to be hardworking in the average way. it requires extreme dedication and to be on the ball all the time.
I am simply keeping this journal so that I can look at it after I conducted the trade and also bounce my ideas of how to refine my own trading strategy.
If anyone is interested in discussing strategies here, all are welcomed, if you have some new ideas that you want to bounce of someone, you are also welcomed to do so here.
I will only post trades if I feel like it, and only if i have time.
I have started trading about 2-3 years ago, and during that time I have chanced upon the thread Technical Analysis Fallacy, here in forex factory.
It is a wonderful thread, where some of the best traders in the world hang out.
What you will never get here, is rigid, look for some indicator setup and trade it kind of thing. As the markets are always flowing, the conditions always change, therefore to be able to adapt to the changes in the market, one must intimately understanding market structure, and understand player profiling.
Quoting from the AoW, know thyself and know thy enemy, and a hundred battles, one need not fear.
I do not claim that I trade like in the TAF thread, what happens is, I have learnt some really useful things there, mainly how to read price action, money management, and romance of the 3 kingdom, also known as, the relationship of the forex currency pairs. And on top of that, I added in my own touch.
So my methodology is my own, forged by my own experience, and also from knowledge from various sources, especially from the TAF thread, but not only from there.
you will see elements of how i trade to contain stuff from the TAF thread, but i do not follow it entirely, I believe there is more, and I believe the thread to be only a small fraction of FTI's true capabilities. Just my gut feel, but i sense there are alot more that he did not show, mostly perhaps its because its not usable in retail trading, applicable only to people trading larger sums for corps and funds.
You will also not get any kind of fundamental analysis here, as I simply cannot understand fundamentals very well, and will not use that kind of analysis.
Technical Analysis is simply, the analysis of price, time and volume, as spot forex does not have volume, and I am not sure about futures, I don't have a live feed too, so I do not use volume and I do not use futures. But it is an ANALYSIS and STUDY of price and time, there is no rigidity in it, what people have as an idea of "Technical Analysis" really is nothing but hogwash, because they imposed their own assumptions of what Technical Analysis should be, rather than what it actually is. If you bother contrasting people like richard wyckoff and wd gann and jesse livermore, how they traded, that is true technical ANALYSIS, they used their brains and knowledge to produce profits. People in the TAF thread is also doing it, properly analysing price action, then with the right MO, handle and manage the trade appropriately, according to the conditions the market manifest right there and then. Then contrast it with the black box rigid method expert indicator type of trading where it is stochastics more than 80%, sell, that is not analysis, because the model is so confined, and restrictive, to local price action and does not factor the grand scheme of things and the general conditions of the market, RIGHT NOW, the key is RIGHT NOW. People who love to say this system is 70% accurate and blah blah blah, will learn it the hard way when the 30% kick in, it simply indicates that didn't want to use their discretion and their brains. Profitable traders deal with the RIGHT NOW, and handle it appropriately. There is alot of misconception about what technical trading is about, but what I CAN tell you about technical ANALYSIS, is you have to use your brain and think alot.
As jesse livermore pointed out, trading is not for the lazy, and those who refuse to use their brains or are too lazy, will only lose their money.
The tools I use to trade, price action, ro3k and money management, i will not elaborate, if you do want to know more, visit the TAF thread.
Specific strategies, which can be used in conjunction to price action and ro3k, is the ro3k spreading. Which is a method to spread out positions and rotate currency pairs in the portfolio such that exposure is different in accordance to how the market is moving NOW.
I basically follow the trend, but if it ranges, i will trade ranges, and if it has sudden counter impulse changes, I may spread it out or find ways to handle it, within my risk tolerance limits.
Also, whatever I say here is but my view/opinion of how the market works and how I handle it situations.
I trade intra-day, using the 5mins charts mainly and zoom out from there all the way from 5mins to daily, for analysis, sometimes i look at the 1mins charts if things feel funny.
actually, the truth is, to trade extremely well, it does not just require one to be hardworking in the average way. it requires extreme dedication and to be on the ball all the time.