Hi All,
On January 1, 2007, I became a fulltime Forex trader.
My journey here began 2 years ago through some challenging up and downs. I took a hard lesson in Money Management (MM) and leverage eventually ended up losing my first account in about 3 weeks.
(HIGHLY RECOMMENDED READING - The 5 Steps to becoming a trader - posted by DIALLIST - author unknown - search for it on Forex Factory)
I never gave up but began my quest to gain as much knowledge as possible. This eventually led to identifying profitable trades and allowed me to take my next account and grow it to the point where I recovered my initial money and withdrew my seed money. This then led to the next problem.
You see after withdrawing my seed money, I started having the attitude that it was "free" or "house" money to play with. I still had a mental block that this was some sort of gambling. I then lost half of my hard earned bucks which I used to call "winnings"
I then began to change my view on this whole Forex thing. To me, my goal was to make this a living not a place for gambling. I started calling my PIP gains as earnings or income and "losses" as expenses. My objective in this business was to ensure my income was more than my expenses to ensure a net profitable return for the business.
This is when things started to come back on track and I went from managing 10 currencies to only 1. And so it began.
I have adapted my trading to only trading Cable and on 15m chart with longer term outlooks on 1h and 1d. I also work a daily system on Cable targeting 100-200 pip moves.
I will over the course of time share my journey and decisions.
My challenge still remains the same and that is being awake during the currency moves during London and US session. Especially balancing family, social, and nonprofit activities.
My weekly bonus is based on net income increasing 50+ pip week is to fly my little 2 seater Cessna over the weekend. Under 50 pips, no bonus! (pips based on pips per lot average, example if trading 10 lots then it would be 10 x 50 = 500)
Essentially this strategy is average 10 pips per lot per day of trading for profit. Doesn't sound like much but the key is AVERAGE!
My system utilizes the 21, 50, 100 ema. I also utilize a 8ma, 8rsi and Stoch (8,5,3).
There is no prayer or hope in this system. AND this system is only designed to work during first 3 hours of London open (11-2PST) and first 4 hours of US open (5-9PST). Certain news events are avoided such as Non Farm Payrolls (NFP) - in many cases I will exit prior to and wait for new signal.
Take Profits are at EMAs or at Support/Resistance lines this is discretionary and a FEEL for the market (this is why I trade only Cable). Stops are when system reverses signal - this results in Stop and Reverse if within the timeframe listed above. Trailing stops are utilized based on Candlesticks.
I will post results and insights as I am able. My priority will be to trading.
Trading is a job where emotion must be controlled, I appreciate only constructive comments and no negative remarks. I expect nothing from anyone and will share how I combine these indicators as I go.
Please note: I created everything from already existing methods available here on Forex Factory (FF). I take credit for non of it. Look for systems/methods in which the author is still utilizing it or many are having success using it. Special thanks to all the wisdom that is shared by the many traders here on FF.
NEWBIES: I thought I would write a special note on psychology of trading for new comers. Trading is not a game, those that enter may make money initially but it will be a fleeting moment in time. Having the ability not to second guess your system and follow its rules will make you profitable. The key is Money Management and control of emotions.
IF YOU READ NOTHING ELSE, learn all you can about these two aspects of trading (Money Management and Emotion). Letting your winners run is hard and cutting your losses short is also hard. But this is where emotion plays a big part. We instinctively want to capture our profits quickly for instant gratification. But we don't take our losses based on some hope or belief that we are right. Remember the Market is Never Wrong....it is only what it is.
Thanks
Prov
On January 1, 2007, I became a fulltime Forex trader.
My journey here began 2 years ago through some challenging up and downs. I took a hard lesson in Money Management (MM) and leverage eventually ended up losing my first account in about 3 weeks.
(HIGHLY RECOMMENDED READING - The 5 Steps to becoming a trader - posted by DIALLIST - author unknown - search for it on Forex Factory)
I never gave up but began my quest to gain as much knowledge as possible. This eventually led to identifying profitable trades and allowed me to take my next account and grow it to the point where I recovered my initial money and withdrew my seed money. This then led to the next problem.
You see after withdrawing my seed money, I started having the attitude that it was "free" or "house" money to play with. I still had a mental block that this was some sort of gambling. I then lost half of my hard earned bucks which I used to call "winnings"
I then began to change my view on this whole Forex thing. To me, my goal was to make this a living not a place for gambling. I started calling my PIP gains as earnings or income and "losses" as expenses. My objective in this business was to ensure my income was more than my expenses to ensure a net profitable return for the business.
This is when things started to come back on track and I went from managing 10 currencies to only 1. And so it began.
I have adapted my trading to only trading Cable and on 15m chart with longer term outlooks on 1h and 1d. I also work a daily system on Cable targeting 100-200 pip moves.
I will over the course of time share my journey and decisions.
My challenge still remains the same and that is being awake during the currency moves during London and US session. Especially balancing family, social, and nonprofit activities.
My weekly bonus is based on net income increasing 50+ pip week is to fly my little 2 seater Cessna over the weekend. Under 50 pips, no bonus! (pips based on pips per lot average, example if trading 10 lots then it would be 10 x 50 = 500)
Essentially this strategy is average 10 pips per lot per day of trading for profit. Doesn't sound like much but the key is AVERAGE!
My system utilizes the 21, 50, 100 ema. I also utilize a 8ma, 8rsi and Stoch (8,5,3).
There is no prayer or hope in this system. AND this system is only designed to work during first 3 hours of London open (11-2PST) and first 4 hours of US open (5-9PST). Certain news events are avoided such as Non Farm Payrolls (NFP) - in many cases I will exit prior to and wait for new signal.
Take Profits are at EMAs or at Support/Resistance lines this is discretionary and a FEEL for the market (this is why I trade only Cable). Stops are when system reverses signal - this results in Stop and Reverse if within the timeframe listed above. Trailing stops are utilized based on Candlesticks.
I will post results and insights as I am able. My priority will be to trading.
Trading is a job where emotion must be controlled, I appreciate only constructive comments and no negative remarks. I expect nothing from anyone and will share how I combine these indicators as I go.
Please note: I created everything from already existing methods available here on Forex Factory (FF). I take credit for non of it. Look for systems/methods in which the author is still utilizing it or many are having success using it. Special thanks to all the wisdom that is shared by the many traders here on FF.
NEWBIES: I thought I would write a special note on psychology of trading for new comers. Trading is not a game, those that enter may make money initially but it will be a fleeting moment in time. Having the ability not to second guess your system and follow its rules will make you profitable. The key is Money Management and control of emotions.
IF YOU READ NOTHING ELSE, learn all you can about these two aspects of trading (Money Management and Emotion). Letting your winners run is hard and cutting your losses short is also hard. But this is where emotion plays a big part. We instinctively want to capture our profits quickly for instant gratification. But we don't take our losses based on some hope or belief that we are right. Remember the Market is Never Wrong....it is only what it is.
Thanks
Prov
-you know, good money management and no emotions!
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