Ken's Continuing Successes with EO's system

My New Years wish for everyone is that you acheive happiness in your lives. Keep a open mind in search of trading success . The answer may come from a direction you least expect.

Just because the path is difficult means the rewards will be sweeter.

When you do something right reward yourself. people forget to appreciate themselves. If you can't be happy with yourself, why would anyone else want to spend time with you.

I leave you with this Youtube . Never ever think your life is difficult beyond repair. So many before us have done so much with so much less than we ever had.

Cheers and have a great 2011, Ken

Well that's why we should analyze HT's and make our plan how to catch that bus.
Happy new year to everyone.

If anyone was trading yesterday I hope you are still with me on GU, you should have at least half a position left depending upon your MM, and there were plenty of chances to readd. Watch the London fix, it's the end of the week and the end of the month so I'll be closing my second position (from the London breakout) at that time regardless of PA.

I agree 100%. When I hear about manipulation, I immediately think about the central banks around the world, and the overwhelming majority of money that is traded via intrabank/ECN vs "bucket shop". BUT I don't think about it for long, because I believe that my job as an aspiring technical trader of the EO method is to learn to spot patterns and areas of interest on the HTFs, then use the 15M for entry; and also to spot range trade opportunities on the 1H/15M and use the 15M for entry. I'm having a hard enough time with just those two things so I don't worry about the man behind the curtain. (After all, if there is a man behind the curtain, he certainly loves EO's method!)

Nice end of the year Trade Doc. 200 plus pipper,

Thanks Ken. I went and dug up the post, it all goes back to this for me: http://www.forexfactory.com/showpost...postcount=3231

I think Trotty had a similar "aha" moment after reading that post as well. Learning to spot a failed breakout on any TF (not just the 15M) as a potential H&S, or at least a very strong higher low / lower high, has gotten me in more long trades then any other tidbit of trading advice.

Thanks for the best VDO, I will keep in mind, don't give up.

res·o·lu·tion
n. 1. The state or quality of being resolute; firm determination.
2. A resolving to do something.
3. A course of action determined or decided on.
4. A formal statement of a decision or expression of opinion put before or adopted by an assembly such as the U.S. Congress.
5. Physics & Chemistry The act or process of separating or reducing something into its constituent parts: the prismatic resolution of sunlight into its spectral colors.
6. The fineness of detail that can be distinguished in an image, as on a video display terminal.
7. Medicine The subsiding or termination of an abnormal condition, such as a fever or an inflammation.
8. Law A court decision

Above top 8 defintions for resolution, as it is that time of year again.

When choosing a New Years Resolution , care should be given in the course of action required and your ability to acheive those goals. Even in the case of unimportant or even joking.

To commit oneself to a directional change with no intent of follow thru, is just reenforcing your inability to control your own descisions .

Which is the underlying issue of many of us to our inability to trade properly. The ideas and mechanics of trading have been completely outlined in many threads or websites by people that are doing it. the mechanics are easy they don't require great strentghs or even vast amounts of equity to get going.

The MAJORITY FAIL, Why ? because they can't control themselves. It isn't so much thier fault or mine. It is a problem of how we have been controled our whole life. We live in a society where almost everything we do is dependent on us to follow a certian path to arrive at different levels of quality of life.

We have made a choose to learn a new skill set and become Forex Traders. We are two different groups in this endeavour , There are those that are more interested in trading as a investment. Then there is probably a bigger group that is looking at this as speculation taking a amount of funds and parleying it into a subtantial amount of never ending capital.

So having some ideas of what it takes to trade, It is now time for us all to look back with a VERY VERY critical eye . and try and understand why we haven't achieved those goals yet.

Divide your trading into the three main catagories. Stops, Entries and Profit Taking. be brutally honest when looking at each .

Do you get stopped more than you should , or let them run against you to far. Maybe you don't really have a clue where to place them which gives you all the reasons in the world to continually slide them around. Whatever it may be if you have a issue with stops. To me this is the number one killer of accounts. get this under control.

Entries we show many good very practiced and succesfull entries they are like a roadmap and require no thinking on your part. You just have to watch for them and enter when they appear. This is much simpler than stops. yet we see again and again , The confusion that seems to be associated to them. The PDF and EO's thread are full of ALL the information to many great entries if you don't understand them or they location within the daily cylce where they accure . The only person to blame is yourselves. As there are many people standing by to answer your questions regarding this. Why this and many threads exist. So as they say ( who the hell are they?) "The only bad question is the one not asked."

Profit Taking , second only to bad stop control is this one. This is where most of us find oursleves in this new year. The ability to extract all the gains possible from a good entry is what holds most of us back from seeing greatnes in this Forex trading game. I after doing some soul searching know for a fact , that the idea of become comfortable right after entering a trade is folly and will lead us in the path of being comfortable and maybe making a comfortable living. But the path to greatness has and always will require a step outside the box and normally a unconventinal approach from the norm.

Having said that it doesn't require anymore risk. Risk is set by your intial stop and entry, The moving of that stop or taking partial profits is how we can be limiting oursleves to a life of medicority. So just think about being a bit more aggressive once your trade has gone POSITIVE.

EO made his great gains risking very little , But all he covered straight away was the cost of the trade . He also added to his trades at the right areas as well as skimming profits. The market moves up and down as well as sideways. After a long time of watching and the struggle learning entry signals and stop areas you should have a great idea what this cycle looks like and a far better than 50% idea what the next move is , so not adjusting your trade to fit that cycle move in is where we are missing the boat. ( " my ship came in shame I was at the airport").

So stay engaged with the market and your trades. As another thread states learn to dance with it.

So our project is to determine what our problems are, Then to set a course of action including goals to be achieved within a given amount of time. A Bussiness plan or forecast. is useless without checks and ballances. So you most say I will be better by march regarding this isssue. If your not and you have trully been working on the issue setup another set of ideas to correct the problem.

I am as guilty as anyone to think that all of a sudden a light will come on and it will all just fix itself. This may happen and to some it does, but the normal way is that some effort is required by us. If we aren't willing to provide that effort then maybe we should devote our energies else where.

This all goes back to will power and discipline . Most peole have had those great ideas or dreams to start or acheive great things. And almost all of them fail after great starts. Not because people don't want to, but because they can't hold that determination long enough to start to see the potential. I know what this market can give us . I see it daily. I still struggle with doing the right things myself. But I will never give up.

The excuses are the same but they are just that excuses. So be brave and take the bull by the horns and control your life , Get away from being controled by your job and others. Just having bills steals control from what we want to do. the freedom that can come from trading well and the stress removed from worry , Is my number one goal and HEY if we become ubber rich so be it. LOL

Trade well my friends and set some resolutions that you can measure and achieve but never ever give up. That is not a option.

Happy and Profitable Trading To All, Ken

Why is it a person can see undeniable proof yet not do the right thing for himself ? That is what I always wonder. I guess if it was easy to do we all would be happy, rich, skinny and fit.

i don't really 100% understand the reasoning behind the daily cycle , We have been reexaming latelly but I did do some research and it is basiclly the same as it has been for 3 years.

Not everyday but the major majority of times and when one pair isn't enjoying it another is. That Steve guy may have just noticed the cycle and wove a very good tale.

But for some reason it finally struck a cord with me. I have always none I was mising the bigest part of trading with scalping gains. Unless your willing to commit a major amount of your equity to grab small gains you will too.

True scalpers I know do just that . But also have stops that run in the single digit. they try and get a entry that goes staright to profit which requires a late entry for most of us. I tend to be on the otherside of the fence and take entries to soon.

Anyway you will see on many a thread that they focus on higher time frame trades with big profit targets even on those that teach more than one strategy like J16 teaches long term first before anything quicker.
That seems to be a good idea as once you start grabbing small gains it seems hard to quit.

But watching that webinar and seeing the cylce as a tradeable idea in it's own right. The taking into consideration eihter big players market makers or not. But thise orders want to be filled. Then seeing the move just as it has unfolded time and agian.

My focus this year is to trade the cycle not the entries. The EO system has always been enter as a scalper with tight stops but once in hold like a longer term swing trader. A lot of us are just grabing a few pips off our entry not waiting for the move to really get started.

If you look at the captians trade posted on EO's threadn and then Doc's 200 pipper frome thursday / friday . That is a 650 pip gain available with easy entries. That is how the best traders of that thread were aming there awesome gains. I can scratch 20% a week just grabbing 20 or 30 pips a day . just think what 650 would do.

So that is my goal just get the right entries right on time or even late as a continuation then let them ride. move stop when prudent and add on as dictated. taken gains at known retrace spots. Basiclly staying active in market. The best enties are pre frankfurt/London so I will be trying to be up forn those as much as possible . My entries maybe riskier as I may try for the first peak entry. but with those a stop move may not happen as it is after the test of that high or low that a move should be considered.

The signals are the same as always. Just I am not going for small tp's , But either fib extstions or s/r areas. That move doc had on the gbp ended smack on a major fib / ma and s/r line.

I see a few post from a couple of guys that are good at holding but not as good at entries as I am . but they far exceed my gains by holding the ones that do run. thye may get stopped all week only to catch one like fridays move making back thier losses and then giving them over a 20% gains as well.

So for whatever reason I just had a mental adjustment that i need to be following . whatever you would call it , Big money or just loads of little guys. But those moves once started need to find the opposite end to be able to close . because again every order requires a counter order so it has to be a spot other might think of reversing.

here is the link to the Captain's post

http://www.forexfactory.com/showpost...ostcount=33806

Hey Ken,

Pretty new to this thread but your ideology of taking smaller timeframe trades and positioning them with the daily trend is what I'm working on myself.

Great thread you've got here and im looking forward to posting more when I feel it would be beneficial. I have my own method at this point but I dont want to clutter up the thread until im more acquainted with what's going on here

Kind Regards,
Erik

Hi Ken and all

I have also come to the conclusion that most traders fail or fall short of their goals because of what is between our ears. So I have decided that for this year that is going to be 100% of my focus. My trading systems are solid for me, now it is my brain cells that need working.

Or as I like to say

"Get the brown matter out of the gray and white matter"

If the above phrase doesn't catch on, step into the gutter a little bit.

So I have set up goals for 2011 devided up by months where ever possible. I have set them high and am going to hit each of them.

Trade safe all and enjoy 2011

Rufus

Awesome posts! I completely agree about the advantages of focusing on the bigger moves. I've found that even just making a commitment to use the 5EMA in an escalating fashion (use the 15M 5 until the 1H close, then the 1H 5 until you get 4 1H candles, then the 4H 5, etc) goes a very long way.

The only downside is that it can get a little discouraging -- you get caught in a lot of smaller moves that end up consolidating. You can go an entire day or more (2-3 days on some weeks) without getting a good 50+ pip trade and that can cause some bad "forced" entries. To me the holy grail would be to combine scalping and trend trading the way that EO and Infinity did so masterfully but it seems very, very tough to do. Or, maybe it makes more sense to just scan the HTFs of several pairs and go for big trades on all those pairs when they reach key levels (as opposed to trying to combine scalping and runners on 2-3 pairs).

Anyway, I've been strugging with how to approach this, so I'm very interested to see what approach you end up taking.

Speaking of runners, here's my weekend homework for A/U. The main area I'm watching right now is 1.017X-1.018X. I'll look for a signal to buy at the retest of that area, and if we don't get one I'll watch the daily close. If we close back below that area, I'll look to go short. There's a lot of levels to keep an eye on below 1.017X-1.018X but a close below there after a weak break of the previous high on the daily probably means we are in for a sell off (false breakout). Daily, weekly, and monthly attached.

E/J homework..

We did just close across the 5EMA on the daily but we've got those wicks coming off of 108.9X. Ideally I would like to find a short up the wicks of those candles and then look for a long once we get below 108, just in case the potential inverted H&S on the weekly gives some momentum upward. But I'm watching to see how we react at 108.3X. Daily, weekly attached.

G/U.. This is the last pair I trade. The weekly chart is a mess because we are in a retracement area so I've got two sets of major fibs drawn on there. I took the fibs off the daily chart to post it because it looked incoherent.

We closed above 1.557X (previous week high), the bounce off the 35/50 and major fib level couldn't send us below that. So that's a bullish signal, but 1.566X is a strong area. I'm looking to buy around 1.557X if I get a signal off a lower time frame chart, and sell off of 1.566X if I get a signal. If I'm already in a trade when we get to one of those areas I'll let the 5EMA tell me what to do; if I get stopped out on either side of that range I'll look to reverse on the breakout.

On the topic of resolutions, I was wandering if anyone had any specifics for how they plan to tackle their trading differently this year. I think if we all shared them it might give each other some ideas, etc.

Personally my plan is to do a better job at preparation and review: 1) Update my key areas at the close of each monthly, weekly, and daily candle; 2) Take a screen shot at each entry so that I can see how all the charts looked, including the working candles on the HTFs, at the point of entry; 3) Review my charts at the end of each day and week, look at: winners, losers, and missed opportunities; 4) Spend a minimum of 1 hour per day working on my trading plan until I'm consistent in my approach.

These are very simple things, I do all of them pretty often -- but I never do all of them consistently. When I think of the top things that I could do to become a better trader, those are them, so I know I need to be doing them on a daily basis.

Hi Doc.

Here is some stuff I have been working on

Trading for 2011

　

　
I have a lot of great expectations for 2011. Considering my upcoming work schedule and my goals for the Forex markets it is going to be a balancing act of work, sleep, family, and Forex.

My “day job” trimming houses is looking to be busy this year. I know of at least four homes that are over 4000 square feet. All loaded with trim and various wood work. Then with only one other carpenter working for me, we will have our hands full. This is not including the onslaught of little houses as well. So I have also been thinking through different ideas to keep me active with the markets.

1. Bring my laptop to work and catch Tokyo open for swing setups.


2. Start setting up pending orders with strong S/D areas.

3. Looking at more pairs to give me further options for swings.

4. Working Saturday and Sunday to free up trading days during the week.
　
Also in May or June I am planning on being able to use trading profits to start covering some household expenses.
　
My Focus on the Charts 2011

1. Multiple Pairs. I still need to decide which ones and how I will be trading each. Some will be swing trades off S/D only. Others will be wide open to anything in my plan.

2. Fibonacci will be used on all time frames. Higher the time frame the more validity will be paced on it. Any current move over 60 pips will get fibs.

3. Supply Demand zones will be my understanding of the charts as a whole. All positions will be played in light of them.

4. Gartley Patterns. This one is still in its infancy. Right now my thinking is to use them as added confirmation. Also use them on 1 hour charts and above.
　
　
2011 Trading Goals

January


Trade all the time I can with A+ setups. Increase account by 15%.
I will be working by my self this month so at times this will be tricky. My thinking right now is to trade the EU only while at work. So my time is not distracted as much and will be able to get the trim work done. Again only A+ setups

February

Exactly the same as January. I will be getting much busier this month and will be putting Mark back to work. Trading here may get limited again. I will still try to catch the Asian open.

March

15% is my goal for every month.
With the start of March I will add whatever I need, to the account to get the balance up to $xxxx+.

April

15% every month now.

June

By the end of June I want to be in a position to be able to start using this account to pay some personal expenses.
　
Itemized Goals

Start seeing $xxx dollar days.
Start seeing $xxxxweeks.
$xxxxx in account by the end of the year.
Set up better trading computer and 6 monitors
Set up corporation with subsidiaries

Hello

My frankf/london EJ trade, close 90 % at 108.44

Cheers

edit. looking for short now at this area, fib zone and weekly pivot there

edit2 try to short at 108.46, waiting for 1h close

Great trade kodziro! I really like the way you play with the 1h, it is a badass timeframe! Keep those examples coming

I did something pretty similar to you on ejs brother eu earlier. I wonder where I picked this one up

http://cdn.forexfactory.com/images/icons/icon14.gif nice bro

Got BE with that short but thinking of buy at 108.49 later , after 1h candle second rejection (entry one) i usually move sl to BE, third attempt to test ppa line 60-70 % time equal brekaout