4 Hour Strategy (MACD)

Nadia and Mike,

Don't get discouraged. Trading well and systematically is the hardest thing mentally a person can take on. Everything looks so easy in hindsight -- and it becomes easier over time -- but the unknowingness of every move makes this career very difficult on us psychologically. Keep working hard, studying, practicing and the confidence will grow. There will always be times when you want to kick yourself...but don't let those feelings stick with you. Never give up. Choose a few elements and focus on those. Build your skills over time -- master one then add another. Eventually it comes together. I promise you, every single trader has felt as you do! & Nadia, I am totally surprised that you have only started your training 5 months ago! Your skills are far more advanced than the normal trader at that point! Keep moving forward, because you truly have greatness in you.

The market wasn't so easy to trade this week. In hindsight, it looks obvious, but live it was a bit difficult. The stops on cable for straight 4 hour signals were pretty large. Remember, we don't need a trade everyday, and we won't get one from this system. It is the synthesis of our analysis that leads to the entry. & yes, the pair we are watching may or may not be the one that decides to move -- that is part of the trading/learning process. Not sure why we kick ourselves for missing moves -- sometimes it feels worse than chosing a bad trade. Weird psychological BS! Don't kick yourself -- you didn't lose any money and that is a good trading week! (Again, Cable was hard this week -- the stops were pretty big and price action during the candle was up and down -- many stops would have been taken before price moved in the "right" direction.

Sooooo...to make a short post long......

YOU GUYS ARE DOING A GREAT JOB! Keep working hard, and NEVER EVER GIVE UP!!!

Best to you guys/gals,
Pips

Thanks Pips.
I liked this article so I thought put it here.
http://www.millionairetradersbook.com/?page_id=6

Mike

Thank you pips for encouraging us, we are gonna study this weekend with double energy.

Hi Mike,

Thanks for the link! What a great article...Kathy Lien and Borris S. have sure made a name for themselves in Forex!

Did you notice the similarities to what Phillip teaches? 1. wait for the retrace, 2. average in if it is in your plan, 3. scale out and bank some profit while moving to breakeven, 4. give some of your position a chance to run, 5. stick to your rules & don't revenge trade, 6. Protect your capital.

Neato!! We are all so lucky to have the advice of such a wise man who has taught us many of the essential aspects of trading profitably!

Now, the rest is up to us! Thanks again for the great post!

(lastly, I have a friend who trades stocks using method #1, he is a police officer-- that just turned 40....the method is so effective for him, that he is a multi-millionaire without a single dollar of debt -- no house payment, no car payments)....so the trick is finding your groove and sticking to it!

Happiness & prosperity to you,
Pips

waow, i'm so lucky to be here, thanks for your dedication and encouragement... I still don't get the 'groove' of this rhythm.. will study more for the next week !!

Through ups and downs, that's when we find the true self...

Good job !

-no pips for me this weekend- http://www.forexfactory.com/images/icons/icon9.gif

Thankyou, Pips, and everyone who send me private messages for your encouragement, it is amazing to see how everyone supports each other in difficult time. You guys really help me . I feel all emotional now, Ok gotta control my self, emotions and forex dont mix. we talked about it on skype too to study over weekend to get back in the groove. And hopefully i can get out of my brain freeze ZONE and start TRADING IN THE ZONE. Trade well and pip plenty. Best wishes and thankyou to you all.
Nadia,.

Hi everyone,

I'm here for my weekly study update. Well, that's it, see you next week!

That's kind of how I feel. I didn't get a lot done this week. My youngest (two year old) son was sick this week and kept me awake several nights and messed up my schedule. He is better and I caught up on some sleep last night.

I will tell you backtesting continues to amaze me. I'm still lousy at trading this system, but I am seeing patterns to my lousyness and am starting to eradicate them. Something that surprised me a little was when I really get into a good backtesting mode, I felt emotional involvement, particularly on losers. I had a streak of several losers in a row and to my surprise I 'felt' some frustration. Why would I become emotional when there is no money on the line? I want to examine this further and will comment on it as I go.

By the way, some great advice I got regarding how to get back into rhythm was, do some backtesting for 15 minutes or so before getting into the real market, just to get the juices flowing. Excellent advice, but I wanted to do was to get in the flow just to start backtesting. Well, I had a brainstorm. Now before I begin my backtesting, I go through Phillip's trading excercise, I think it's lesson #10, before I begin. Not only does it warm me up, but I am sure it's a 'good' warm up because all of it is executed correctly.

Back to the emotional side of things, there has been quite a lot of discussion especially on the Skype chat regarding emotion and psychology of trading. It's been my observation that many of we aspiring traders come from business backgrounds, many who owned their own business. We have been successful in our other business ventures and assume that we will have the same success trading. Much to our (my) surprise, it has turned out to be far more difficult to achieve that level of success that we had before. Why is that? Well, I believe that one of the biggest reasons is that in other more 'traditional' businesses, it is chiefly our job to get as much control over our environment as possible, be it our inventory, sales staff, labor force, or whatever. It's my understanding that Sam Walton discovered a way to control Wal Mart's inventory in a more efficient way, and catapulted them to....., well, you know. Suddenly, here we are in forexland, and we're not in Kansas anymore! We're no longer in control of the business environment like we were. The market doesn't care that we've just added to that position we're in. "I did everything right, my analysis was beautiful, why isn't it going up?" We're operating in what is essentially the Wild West, where there is no 'law' as we know it, and the things we did to make a business work by and large don't exist here. Rather than trying to control our environment, which in the market is impossible, it has now become our job to control ourselves in an otherwise out of control environment.

And that is the key to becoming successful in trading. Knowing yourself, knowing what you are going to do no matter what the crazy market does. Mark Douglas (Trading in the Zone) says "you don't need to know what is going to happen next in order to make money". I used to think he was crazy, but I get it now. Just find a system that works (Phillip's 4H), learn to trade it correctly, then execute according to the plan. If your system really does work, then over the long haul you have probability on your side, and trading successfully is all about probabilities.

I hope I'm not too far off topic, but it's important anyway. See you all this week.


God Bless,
Richard

Info

Here is a written copy of Phillip's wrapup on Eur/Usd market rhythm for those who have promlems in understanding spoken English.

First post so just wanted to say many thanks to Phillip and everyone who contributes to this thread. Just wanted to share what i think is an inverse sHs that formed on the usdjpy. If any comments please share.

Hi to all guys.
I am new to forex trading. I found out about this system one week ago and i am trying to read through all the postings on this thread.

I have two quick questions
1. does North finance give the same data as MIG which Phillip uses?
Because i found out that the closing price of Friday was different between the two brokers on EU.

2. Is it advisable to read the whole thread coz i think it is long(467pages now)
or i can uses the lessons which Phillip and Palmer have posted at their website.

I have at least read 50 pages from the beginning and 10 last pages.
I'll appreciate your help.

Look at the S/R lines how support became resistance. We are currently agains the 200SMA and the resistance line. If the invert sHs is true it should break to the upside. The 89SMA is also closing in on thee 200SMA.
I dont trade breakouts. I like to wait for the price to breakout and to retrace back to the breakout level and when it contionious upwards from there I will enter.
Phillip

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Thanks for your quick reply. I also favor a breakout to the up side but you are right it is better to wait for price to break through the 200sma and that resistance line and see if they become support. If this scenario plays out could the 365ema be the first profit taking area?

Thank you, Phillp!This is a very nice analysis, and I am so happy that I was thinking pretty much the same way for the last 3 weeks. Thank you very much, sir.

Hello everyone, Hi phillip , i was going through the euro wrap you posted. very help full as always. In the end you say that euro has reached the top resistance again, so there could be a turnaround, however in the last page of the pdf chart i see the trend line quite a few pips above the current candle, I do see the resistance you mention , as price has reached the resistance piont of previous candle . However since price has bounced off the 8 MA , which is the speed of te current trend, also bounce off the bottom of current channel. So is there a posibility that this trend will continue before it retraces down to 21 MA. Here is a chart as how i look at euro.Thankyou for your reply. Best Regards,
Nadia,

Info

Info

Thankyou Phillip for taking the time to reply about euro. Looking at the big picture does make a difference so we can be prepared .
Best regards,
Nadia.

Hey people:

I'm in the process of getting the weekly wrap-up page completed for the web site. Thanks to OldDog, ira, Bil2205...who am I missing??? for creating the text files for those who speak English as a second language. All of Phillip's mp3 files, charts, and text files will be placed in their own weekly folder to make it easier to find files that were posted for that week.

...almost there