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  • #1
  • First Post: Edited Sep 10, 2009 1:44pm Jun 26, 2009 12:54pm | Edited Sep 10, 2009 1:44pm
My Current Methods:
Last edit occurred on September 10th 2009

DIBS Journal Coming soon...
  • #2
  • Jun 26, 2009 1:00pm Jun 26, 2009 1:00pm
About me:
I am a new trader, only studying the forex market for the last four months or so. I have just now reached the point that I feel comfortable opening a live account.

I live in the US and I trade the London session. I work 8-5 Mon-Fri, so that means I get home, sleep from 7PM-1:30AM my time, and get up and trade for three to four hours.

I love compounding interest, and I believe that the forex market is one of the most powerful wealth building vehicles currently available.

My goal is to increase my equity by several percentage points each day that I trade. I want to work my way up to trading billions of dollars worth of currency each month.

I am risk tolerant, but I practice sound money management. I am an unemotional trader.

I will try to keep this journal updated with the results of each day's trading.
I am open to any suggestions, as well as questions.

Attached are the trades I took on Friday, June 26th 2009.
Attached Image
  • #3
  • Edited 1:14pm Jun 26, 2009 1:10pm | Edited 1:14pm
Hopefully in the future this thread will be of some use to a new trader. If I can help any person the way the collective forex community has helped me so far, I would consider it a privilege.

So to get an idea of what has shaped my perspective on forex here are some books I have read:

Trading in the Zone by Mark Douglas

The 10 Essentials of Forex Trading by Jared Martinez

Bull: A History of the Boom and Bust by Maggie Mahar

Currency Trading for Dummies by Mark Galant

Riding the Bear by Sy Harding

Millionaire Traders by Kathy Lien

Fooled by Randomness by Nassim Nicholas Taleb

If you are an absolute beginner you might refer to babypips.com for their beginner's introductory 'course' on forex.
Other than that, all the knowledge I have about forex has been derived from lurking in forums like these.

There is so much information online. If you put in the time, you will find what you are looking for.
  • #4
  • Jun 26, 2009 1:22pm Jun 26, 2009 1:22pm
I like trading strategies that use price action, support and resistance, trend lines, and candle patterns.

I believe indicators have their place, but the simpler the method, the more I like it.

I would rather trade a method that had a lower success rate as opposed to a higher one, as long as it was simpler and still profitable.

I don't care why price is moving the way it is. I want a system that allows me to trade whatever the market gives me. I fully realize that the market can do whatever it wants, whenever it wants to.

I think many of the traders who "fail" (give up) overcomplicate things.

I will stick with this and continue to learn until I find a consistantly profitable strategy that is so simple that I can trade it while watching Netflix, listening to music, and talking on the telephone all at once.

Okay maybe I'm exaggerating a bit... But I think you see my point.
  • #5
  • Jun 26, 2009 1:35pm Jun 26, 2009 1:35pm
My story will not be one of rags to riches. More like khakis to riches if anything.

But I have very little money.

I live comfortably, but I live paycheck to paycheck.

I AM serious about my financial freedom though, and so I'm doing what it takes to get my seed money.

I have a few toys and I'm selling all of them.

And I do mean all of them. My TV, Stereo, Guitars, Amps, Gaming Consoles, even a fancy phone that I have replaced with a cheap flip phone.

All said and done I should have around 3,000 USD to start my first live account (which I am opening this weekend).

There is a quote I like that goes something like: "Do what others will not do now, to do what others can not do in the future."

How many people just give up on the dreams they had when they are young? Most just get caught up in the day to day, and before you know it are in a 45 year rut working for someone else.

Not me. No way. Do you have your goals written down? Do you keep them in your wallet? Do you tape them to your bathroom mirror?

Do you even have clearly defined goals, with an associated timetable for completion? If you do not, you should. Being successful at Forex, like so many other things, is mainly a mental exercise.
  • #6
  • Jun 26, 2009 2:00pm Jun 26, 2009 2:00pm
Quoting DarkDays
My story will not be one of rags to riches....
Gotta say I'm impressed by your discipline and guts.
Good luck, hope you make it
  • #7
  • Jun 26, 2009 2:33pm Jun 26, 2009 2:33pm
What do you guys think of using something like Webex for this?

Once I am trading a consistantly profitable system live, I feel like I will have something to give back to the community.

I don't know if you are familiar with Webex, but it basically allows a user to share his or her desktop for viewing with many people at a time.

I'm sure there are other services out there as well, but that is the only one I am familiar with.

If you saw my trading records and found that I was profitable, would you like to see how I trade? If you are interested in this, let me know and I will see what is required to set this up.
  • #8
  • Jun 26, 2009 3:16pm Jun 26, 2009 3:16pm
hi dark days, so you just started ur live account?

I have been doing my "bachelors in GBP/USD" for about 2 years now, but not made any money, but havent lost too much either.

I am like you completely determined no matter what to succeed at trading forex sucesfully!
  • #9
  • Jun 26, 2009 3:32pm Jun 26, 2009 3:32pm
Good for you Alex! Yes I just started my live account. However I am only using a small percentage of my available capital at first. Everything I have read tells me that trading even one dollar of real money is completely different than demo. So I want to ease into it.

But I am hopeful, and will look to scale in the rest of my funds over the next couple of months.

Quoting alex1976
hi dark days, so you just started ur live account?

I have been doing my "bachelors in GBP/USD" for about 2 years now, but not made any money, but havent lost too much either.

I am like you completely determined no matter what to succeed at trading forex sucesfully!
  • #10
  • Edited 5:42pm Jun 26, 2009 5:33pm | Edited 5:42pm
Here is how I handle reversals or failed trades. I pretty much said all I can say on the actual screenshot. If you have any questions feel free to post.

Like any method this one likes certain times better than others. I have found that the first 3-4 hours of the London session are perfect. When I am no longer 'working for the man' I am sure I will try trading the beginning of the New York session as well.

I have also found that this method works best when the price action is ranging or trending. Choppy markets are okay too, but you will recieve less signals, as price typically is all over the blue cloud.

The only time that this method is virtually untradable is when the market is FLAT. If the market is flat, you will be staring at the screen bored out of your mind. Go have a beer or work on your scrapbook until volume picks up.
Attached Image (click to enlarge)
Click to Enlarge Name: THV Example of Reversal.JPG Size: 178 KB
  • #11
  • Jun 26, 2009 6:00pm Jun 26, 2009 6:00pm
Each year there are approximately 260 days to trade the forex market. Minus a few for holidays.

Lets do a little exercise. Say you don't trade every day. You take 14 days off for vacation, you're sick 7 days, and have 7 bad hair days in which you do not trade.

That leaves us with 232 trading days.

Here are some figures assuming you start with 1,000 USD:

$1,000 compounded at 1 percent for 232 days is: $10,059
$1,000 compounded at 2 percent for 232 days is: $98,909
$1,000 compounded at 3 percent for 232 days is: $951,121
$1,000 compounded at 4 percent for 232 days is: $8,948,180

What about two years? (And no, I'm NOT saying any of this is feasible.)

$1,000 compounded at 1 percent for 464 days is: $101,185
$1,000 compounded at 2 percent for 464 days is: $9,783,172
$1,000 compounded at 3 percent for 464 days is: $904,632,660
$1,000 compounded at 4 percent for 464 days is: $80,069,927,382

Of course, I am not saying these figures are realistic. Some are not even in the realm of possibility due to liquidity issues.

I do know that TRILLIONS are traded on the forex every day, dwarfing all other security exchanges.

I don't know what the limit is, or when my upwards equity curve will start to slow down.

But I do plan on finding out. Are you with me?

Who SAYS I can't turn a few thousand dollars into a million within the course of a few years.

The sky is the limit as they say.
  • #12
  • Jun 27, 2009 6:04am Jun 27, 2009 6:04am
Hi, nice sharing.

BTW may I know is that M5 TF?

Do you wait for a candle to close in a valid signal before entering that trade?

And also about the money management and t/p and s/l and trails, do you use tools such as swiss army to manage? if you do can you share your setting?
  • #13
  • Jun 27, 2009 7:45am Jun 27, 2009 7:45am
excellent approach...please dont leave this thread in between i want you to post your progress on regular basis,lets see how it goes on.
  • #14
  • Jun 27, 2009 11:54am Jun 27, 2009 11:54am
Please don't dump this thread.
  • #15
  • Jun 27, 2009 12:20pm Jun 27, 2009 12:20pm
The charts are on M1. I am experimenting with M5 as well since it is profitable for many, but for now I'm sticking to M1 during actual trading sessions.

I almost always wait for the candle to close before entering. For instance if I enter 45 seconds into the M1 candle, it could very easily reverse back into the cloud and negate the signal.

The only time I will enter before it closes is if it shows some serious price action in the direction of the cross. But that is mainly my intuition, and I would not recommend doing it. I feel personally that intuition leaves room for emotion and I like to leave emotion out of this completely.

I do not use any proprietary money mangement tools yet. If I do I will update the first post to reflect the change.

Thanks for your questions.

Quoting MyaNyx
Hi, nice sharing.

BTW may I know is that M5 TF?

Do you wait for a candle to close in a valid signal before entering that trade?

And also about the money management and t/p and s/l and trails, do you use tools such as swiss army to manage? if you do can you share your setting?
  • #16
  • Jun 27, 2009 12:25pm Jun 27, 2009 12:25pm
Thanks for viewing the thread, I hope we learn something from each other.

I will not leave this thread.

I am going to try to post a manifest of each sessions live trades the day (or morning) after they happen. If there is a memorable example, I will take a screenshot and document the trade step by step.

I am toying with the idea of making some videos and throwing them up on a site, and/or creating a blog. If it will help people and they learn from the content I will do it. And no, I'm not in this to sell anything. I have absolutely no affiliations with any product or service.

Quoting Alihuzaifa
excellent approach...please dont leave this thread in between i want you to post your progress on regular basis,lets see how it goes on.
  • #17
  • Jun 27, 2009 5:09pm Jun 27, 2009 5:09pm
Looking very good, nice and simple high probability approach, well done.

Regards
Pardy
  • #18
  • Jun 27, 2009 9:23pm Jun 27, 2009 9:23pm
Hi DarkDays

It's nice to see that you have started this journal to show all your progress with this system. I too trade THV and must say that it is quite amazing how successful it can be most times, it makes you feel like you almost know what the market is going to do.

May I suggest though that you read through the whole THV thread, if you have not done so already. Reason being is that there have been some changes to the version you are using which will help keep you out of those trades that reverse on you.

Anyhow, best of luck to you and I really hope you reach your goal.
  • #19
  • Jun 27, 2009 9:27pm Jun 27, 2009 9:27pm
Quoting DarkDays
So to get an idea of what has shaped my perspective on forex here are some books I have read:
Can I add to this list Think and Grow Rich by Napoleon Hill? It's a very good read if you have not done so already.
  • #20
  • Jun 27, 2009 9:48pm Jun 27, 2009 9:48pm
Thanks for the tip, and for taking the time to stop by. Yes I am in the process of reading that massive thread. I look forward to finishing it, it has been very helpful so far.

I'm also working on creating a site that documents my progress as well.

All the best,
DarkDays

Quoting gmcl02
Hi DarkDays

It's nice to see that you have started this journal to show all your progress with this system. I too trade THV and must say that it is quite amazing how successful it can be most times, it makes you feel like you almost know what the market is going to do.

May I suggest though that you read through the whole THV thread, if you have not done so already. Reason being is that there have been some changes to the version you are using which will help keep you out of those trades that reverse on you.

Anyhow, best of luck to...
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