Hey guys,
My name is Tim. First off, I would like to apolgize for rambling and getting off onto different subjects. This took me a while to sit and think about what I wanted to write about. These are just some thoughts I have had in my head about a good way of trading.
I have been trading forex for about 5 yrs now. 3 of those 5 years have been live trading. I do not waste my time with demo accounts or paper trading anymore. I guess I do a little paper trading in my head when I look at charts and know which way they will go with no indicators or trendlines. Common sense trading is so simple. My 7 yr old daughter understands half of what I talk about.
I started off thiknking I needed MACD and RSI and other indicators I went from one indicator to another trying this one and another one. They would look good when I back tested. I made things so much worse than I should have.
Keep your charts as clean as you can so you can see patterns
I learned that it's now what other people do with indicators no matter how good they seem or how good the system looked. Other people try to use the same exact indicators and make the same system when their mind is differant.
A person must get in "tune" with their mind and know the exact way they want to trade. It really turns into common sense. Indicators are such a waste of time. You lose so much of a move with indicators. Indicators are only what show what has happened in the past. We can all see what happened in the past with our eyes. We don't need indicators to show us what our eyes can see. REMEMBER: Keep your charts as clean as you can so you can see patterns.
Patterns are very important...
Take an empty chart and look for the patterns that form. Go into the past and look at any pattern that formed and look at what happens next. Every pattern is a little differant. You have to distinguish what pattern is which. Each pattern will be a little different that the past pattern but very similar. Look at those patterns very carefully.
Once you know where to draw your lines for your patterns, you will know how far you can expect the amount of pips to be made.
This way of trading will get you between 500 and 3,000 in a couple of weeks with your losses being much smaller. If you want to make a good amount of money trading like this, do not think you will try to scalp pips trading like this. Trading like this is fo mid-term trading. Once a trade is made, plan on a couple of days to a few weeks or trading this way.
Once Friday evening gets here and the weekend comes, I look at the weekly charts and look for any pattern that is forming. I tell Serena, my 7 yr old daughter that it is kinda like connecting the dots. Once those dots are formed (trendlines) what happens after the dots are formed? Almost everytime when I connect the dots, the same thing happens. Not only do I look at the weekly charts on the weekend but I look at the dailies and see if there are patterns forming. Ya know, the same price action happens but from a weekly chart to a daily, sometimes the difference is like night to day.
Here is one more HUGE thing to think about. Right now, what is happening to USD? The value of the dollar is declining so bad right now. I have been listening to some really messed up stuff going on with this government. FOW News is the best place for real news....... Should I go into that????????? I want to so bad............ Why not? This is how I feel and if some one wants to read it, go for it.
Interest for a tax payer is kind of how it works for a country. If a countrys credit rating is really bad with other countries, the country with really bad credit will be like you and me and have a hard time getting what we need to survive. No one will want to give us money or borrow to us if we need it. Right now, the USA is $11 trillion in debt and $45 trillion in obligations that we have promised other countries that we would pay back. In 10 yrs at that rate we will owe $880 billion just in interest. How does that sound? It sounds terrible to me. And they just keep printing more money. HEHE What does that mean to the USD???? The value of the dollar is gonna drop immensly (spelling). Now is a huge time for anyone trading forex. Seriously!!! We all know the value of the dollar is going down. Now is an awesome time to make the money on mid term trades.
Alright, I think I am finished with some of the thoughts going through my head. I have always said that I will never give up on this stuff. There are so many people that last at this only for a while and give up cause they think it is really hard. It isn't hard once you understand how a chart moves. It is difficult writing it down on paper explaining what I see. I explain it to my mom and dad or a friend that would come over a few times and they just don't have the heart about it like I do and I can feel that they don't want anything to do with it. I just don't understand why they don't want to get into it though. Trading is kind of like a game. You bet up and it goes down, you lose. If you bet up and it goes up, you win. The more you wager, the more you win or lose. My mom is always playing games on the computer. I thought for sure she would get into it. Maybe its just the way I explain things or something but she really doesn't want anything to do with my charts. That's ok though, she just doesn't like my game. Why doesn't she? Any how, I have been playing this game long enough and I know when I have to pull the trigger to buy or sell.
I have told many people that if they went to college to be a doctor and earn $100,000/yr, you would have to go to school for 8 yrs. I have done my reading and learning for 5-6yrs now. I am only a couple yrs from my goal. I know it will happen. It's kind of like playing football. Put your head down and your shoulder into it and keep your feet going. It will happen we just have to look at what keeps us going. To me, its not that I want to be rich. I just want to be able to afford a house in the country with a little bit of land and a few toys. I want to know that I can afford a few nice things in life. I don't want so much money that I know what to do with. I don't want to be rich. Just comfortable. And I know that someday it will happen just by doing this.
I have made many mistakes in my trading. Since I know I have made those mistakes, I must keep those mistakes in mind when I trade again. I have made the same mistake 5 and 6 times thinking it would work and it never did. I know how to change that too. Once I can reccognize (spelling) where my mistake is right when I think I should make a trade, and I know I have made that mistake in the past, I can sub-conciously tell myself that didn't work last time and I can hold off. We can only learn from our mistakes. Trading is full of mistakes.
O.K. Now I will shut up...
My name is Tim. First off, I would like to apolgize for rambling and getting off onto different subjects. This took me a while to sit and think about what I wanted to write about. These are just some thoughts I have had in my head about a good way of trading.
I have been trading forex for about 5 yrs now. 3 of those 5 years have been live trading. I do not waste my time with demo accounts or paper trading anymore. I guess I do a little paper trading in my head when I look at charts and know which way they will go with no indicators or trendlines. Common sense trading is so simple. My 7 yr old daughter understands half of what I talk about.
I started off thiknking I needed MACD and RSI and other indicators I went from one indicator to another trying this one and another one. They would look good when I back tested. I made things so much worse than I should have.
Keep your charts as clean as you can so you can see patterns
I learned that it's now what other people do with indicators no matter how good they seem or how good the system looked. Other people try to use the same exact indicators and make the same system when their mind is differant.
A person must get in "tune" with their mind and know the exact way they want to trade. It really turns into common sense. Indicators are such a waste of time. You lose so much of a move with indicators. Indicators are only what show what has happened in the past. We can all see what happened in the past with our eyes. We don't need indicators to show us what our eyes can see. REMEMBER: Keep your charts as clean as you can so you can see patterns.
Patterns are very important...
Take an empty chart and look for the patterns that form. Go into the past and look at any pattern that formed and look at what happens next. Every pattern is a little differant. You have to distinguish what pattern is which. Each pattern will be a little different that the past pattern but very similar. Look at those patterns very carefully.
Once you know where to draw your lines for your patterns, you will know how far you can expect the amount of pips to be made.
This way of trading will get you between 500 and 3,000 in a couple of weeks with your losses being much smaller. If you want to make a good amount of money trading like this, do not think you will try to scalp pips trading like this. Trading like this is fo mid-term trading. Once a trade is made, plan on a couple of days to a few weeks or trading this way.
Once Friday evening gets here and the weekend comes, I look at the weekly charts and look for any pattern that is forming. I tell Serena, my 7 yr old daughter that it is kinda like connecting the dots. Once those dots are formed (trendlines) what happens after the dots are formed? Almost everytime when I connect the dots, the same thing happens. Not only do I look at the weekly charts on the weekend but I look at the dailies and see if there are patterns forming. Ya know, the same price action happens but from a weekly chart to a daily, sometimes the difference is like night to day.
Here is one more HUGE thing to think about. Right now, what is happening to USD? The value of the dollar is declining so bad right now. I have been listening to some really messed up stuff going on with this government. FOW News is the best place for real news....... Should I go into that????????? I want to so bad............ Why not? This is how I feel and if some one wants to read it, go for it.
Interest for a tax payer is kind of how it works for a country. If a countrys credit rating is really bad with other countries, the country with really bad credit will be like you and me and have a hard time getting what we need to survive. No one will want to give us money or borrow to us if we need it. Right now, the USA is $11 trillion in debt and $45 trillion in obligations that we have promised other countries that we would pay back. In 10 yrs at that rate we will owe $880 billion just in interest. How does that sound? It sounds terrible to me. And they just keep printing more money. HEHE What does that mean to the USD???? The value of the dollar is gonna drop immensly (spelling). Now is a huge time for anyone trading forex. Seriously!!! We all know the value of the dollar is going down. Now is an awesome time to make the money on mid term trades.
Alright, I think I am finished with some of the thoughts going through my head. I have always said that I will never give up on this stuff. There are so many people that last at this only for a while and give up cause they think it is really hard. It isn't hard once you understand how a chart moves. It is difficult writing it down on paper explaining what I see. I explain it to my mom and dad or a friend that would come over a few times and they just don't have the heart about it like I do and I can feel that they don't want anything to do with it. I just don't understand why they don't want to get into it though. Trading is kind of like a game. You bet up and it goes down, you lose. If you bet up and it goes up, you win. The more you wager, the more you win or lose. My mom is always playing games on the computer. I thought for sure she would get into it. Maybe its just the way I explain things or something but she really doesn't want anything to do with my charts. That's ok though, she just doesn't like my game. Why doesn't she? Any how, I have been playing this game long enough and I know when I have to pull the trigger to buy or sell.
I have told many people that if they went to college to be a doctor and earn $100,000/yr, you would have to go to school for 8 yrs. I have done my reading and learning for 5-6yrs now. I am only a couple yrs from my goal. I know it will happen. It's kind of like playing football. Put your head down and your shoulder into it and keep your feet going. It will happen we just have to look at what keeps us going. To me, its not that I want to be rich. I just want to be able to afford a house in the country with a little bit of land and a few toys. I want to know that I can afford a few nice things in life. I don't want so much money that I know what to do with. I don't want to be rich. Just comfortable. And I know that someday it will happen just by doing this.
I have made many mistakes in my trading. Since I know I have made those mistakes, I must keep those mistakes in mind when I trade again. I have made the same mistake 5 and 6 times thinking it would work and it never did. I know how to change that too. Once I can reccognize (spelling) where my mistake is right when I think I should make a trade, and I know I have made that mistake in the past, I can sub-conciously tell myself that didn't work last time and I can hold off. We can only learn from our mistakes. Trading is full of mistakes.
O.K. Now I will shut up...
JOHN 3:16
