Dear Full time/Part time Traders – Thanks for your time and help

Hi,

I am a newbie but playing with forex demo more than a year or two. Trying different strategies without any real plan and dedication, behaving like a teenager even though I am pretty old and have lot of responsibilities in life. My 8 year old daughter thinks that I always play computer game (FX), my college going daughter thinks that it’s my obsession and my wife thinks that this is my online affair and ruining our marriage. In her opinion, If I used half of this time, I could have my PhD by this time. I have come to a point that I started thinking that I have wasted a lot of time which I could use for some other good work. Since I am generally successful in my professional life, it’s my ego which is stopping me to quit. So, I want to try it one more time but this time seriously and methodically and this is my promise to myself. Also, I am not that naïve to think that I will make thousands with $1000 in a year. I will start live only when I will be comfortable and with the money I am ready to loose.

If you have given me company this far, please hang on a little bit more. I want to thank you for your time and I will appreciate any comments (including sarcastic one)…

My Constraints: Even though I sit at computer almost 11/12 hours a day, but my effective chart time is at the most 1 to 2 hours and that is in between 7 PM and 11 PM (US PST)

1) Since I can not sit at computer most of the time, I think I should not look for a time frame lower than the 4 hr. What time frame, you think would be the most suitable for trading in PST zone between 7 PM and 11 PM?

2) What currencies will have a better trading opportunities during that time?

And finally,
3) I need your suggestion (including pointing out a system thread in this or other forum) about a system that will be most suitable during this period of time?

Thanks again,

FX_California

Here are my recommendations, understand that these are just ideas to get you thinking.

Since your initial start up is about 1,000 find a broker who trades micro lots. This will allow you to start small. Take your time and let it build.

To answer your questions:

1. Find or develop your own daily system since your computer time is very limited. There are a few good ones in the trading systems section, so spend some time in there finding one that suits your trading style. Daily systems can be very profitable and require just 1-2 hours per day to maintain.

2. If you trade a daily system you won't have to worry about which pairs move during the asian session. You would come in after the new daily candle has formed and make your trading decisions based on that candle. It will only take a few minutes when you fully understand how the system works. So basically trade any pair.

3. Oops, already covered that in my previous answers. I really can't recommend one system without knowing you. You need to cruise through and find one that just clicks with you and possibly gives you that aha moment. The main thing to remember about 4 hour and daily systems is that you must be patient. Sometimes it is weeks before the best set up shows itself. But when it does for the most part they are long term trades that you just need to check on once a day.

One more suggestion, once you build your account a little bit, take some out then take the family out for a nice dinner. Once dinner is done, inform them that your "Game" playing paid for the dinner. LOL!

Hopefully this was helpful and I wish you all the success in the world.

Magnumfreak:

Thanks for your wise advise. I will definitely keep in mind. I understand that it might take days to find a set up in a daily system. At the same time, I need a little bit more excitement to keep me going till I become a matured trader to realize the fruits of patience. So, I am looking for a system where I can get little bit more set up possibility during the PST evening hours. I have been attracted to few systems/methodology in this forum, Phillips 4 hr, Jacko, james16, No Brainer Trading. If you are ready to be at risk to be 'politically incorrect', are any of the above systems or any other in your view will possibly give more signal during PST evening hours? Again, It will be all my risk to follow your advice. I know I have pushed you beyond the permissible limit. I will fully understand you if you want to be quiet on this.

Thanks,

FX_California

I suggest you should study how the financial markets works first, before you make any decisions about when and how to trade.

For whatever it's worth you can check my system.
just click on the signature line and it will take you to my journal, it is a very simple once a day system.
Regards.

You can't go wrong learning the James16 material. Great foundation for trading. Jacko is great also. Not familiar with the other ones you mentioned.

The timeframe you have available to trade puts you in the asian session. Typically those moves are slower than other times such as U.S. and London. However, I do find opportunities to trade during asia. This is not to say that asia won't surprise everyone now and again. Especially when the bank of Japan intervenes on the yen. I am not sure how much experience you have in trading the lower timeframes but they can yield decent returns during asia. If you are going to be in front of your computer you may want to consider it.

Stick to the daily/weekly timeframes. Just watch a lot of pairs to pick the best setups.

Just stick with simple Price action.

http://www.forexfactory.com/showthre...ice+pivot+zone

Will allow more time for your family and a lot less stress


Best of luck

Mike

magnum beat me too it

Hi FX_California,

What is it that you expect from trading Forex? Is it a hobby or do you want it to become a profitable business. If you want it to be a business that brings you a revenue stream, then you need to treat it as a business.

Begin by forming a business plan. Set realistic goals and then begin working to achieve them. You've already discussed your time limitations, so what about other considerations? How much money can you begin with? How much can you add to that on a regular basis? Can you find other ways to save money that will in effect increase your earnings? Set your self working hours and then stick to them. In the beginning you can use those hours for business planning or system development and testing. Later, you can use those same hours for trading.

You also need to get your family on board with you. Trading is hard enough without having to battle your wife and children. Once they see you treating FX as a serious business venture, they will respect your decision more. After you have formulated your plan, share it with your family. Ask them to help you in your new business. Your wife can review your trades weekly or monthly to see if you have stuck to your trading rules or adhered to your risk management plan. In this way she can assist you instead of adding to your stress.

The trading system is not the hardest part. You already know the timeframes that will work for you. I suggest you stick to trend trading. Indicators and price patterns work in a trend better. Find one indicator to determine the trend direction and/or strength and then find another for timing entries. These indicators can be price patterns or mathmatical derivatives of price, whichever works best for you. Cut your losses short and let your winners run. After you have chosen your tools, backtest them bar by bar, or if you have programing skills, you can let some software do the work for you. Once you have a system with a positive expectancy, begin demo testing with proper money mangement. Treat the demo as if it were your real money in the account. If after a few months your balance has grown and you didn't suffer any large drawdowns, you can consider putting your hard earned cash on the line. Keep your emotions in check and stick to your plan. Don't jump ship if you have a bad day, week, or even month. Consistant profits come from consistant trading.

If you are in this to make money, keep that in mind. I believe a lot of traders get caught up in systems, message boards, the emotional thrill of trading, or whatever else and they forget what why they got involved in FX....to make money. Do what is in your best interest, and treat trading like a brick and mortar business, and you will start to see results.

I've probably rambled on too much, but I hope you find something useful in my rant that will aid you in reaching your goals.

Happy trading,
Art