Sell High & Buy Low

Let me share how I trade here.
I have been trading forex for over 5 years. I started on forex factory right here in 2006.
Let me tell you, it has been a ride. I have purchased almost every the trading system and indicators that are in the market today. If you see it on the internet on or eBay. I may have tries it.
I became a systemoholic.
back then If you told me you have the best trading system. I want to buy it.
The funny thing, I lost everything I have and almost have a divorce over forex.

How did I recover?

1. I realize the simple truth is that Indicators, EA and other people’s system are all garbage and does not work.
2. I realize the only system you need is to know when to buy and when to sell.

I start playing a game call “Buy Low & Sell High"
I know a lot of you heard that terms before and never want to apply this to forex. I can tell you this is all you need to trade forex.
Let's start with Buy Low
Suppose EURUSD is trending upstream. In my book, all I am looking for is to go long at the right time.
Some clever traders will tell you to wait for brake out of some resistance level before you enter.
I say they are wrong. You need to enter way before the breakout.

In the following posts, I will start talking about what I consider Buy Low and What I consider Sell High.
Please, do not post any comments yet. Wait for me to finish with my crazy strategy and then you can start stonning mo me to death. Please, be aware that English is not my native Language so you might see some errors. I am doing my best.

Wow, you guys are really serious about this forex thing.
Ok.
I will admit that I had an addition like most of you here on FF. You will not admit it, but I know you guys are waiting for me to start talking about the amazing trading system so you can start trying it.
The truth is, I do not have an amazing trading system. I only Buy Low and Sell High and that is the bottom line.

1. I look at a chart in a Daily Time Frame. I am not too concern about all these technical analysis. They are too confusing and too boring for me to be wasting my time on. As you may already know, most of your trades are always ending up in the wrong side. So the forex market itself does not follow technical analysis when it comes to taking my money so why should I?

1. I determine the intermediate term trend with the Daily and 4H and the long term with the W1 and MN. This is easy to do with your naked eye. No need for expensive indicator. If you are addicted to indicators then do like the other idiots are doing. Drop a 200 EMA on your charts and say to yourself if the price is above the 200 EMA, the trend is up and if the price is below it the trend is down.

1. I looked at where the price is located in relation the highest point in the chart and the lowest point. By this I am referring to the true support and the true resistance level. Or for new guy, this means the highest the price has been before returning back down and the lowest the price has been before returning back up. You can do all this with your naked eye.

1. I am waiting, waiting, waiting for the price to reach once on these level.

The entry strategy with some pics is coming later today. I have stuffs to do. Now you can continue bashing as much as you want. I do not care. This is my story and I am sticking to it.
Happy trading to all

great, a simple trading setup, so you buy in support level and sell in resistance level,
but it become a mess, when there is a support breakout or resistance breakout, when you trading without a stop loss, your position will be drag by this impulsive waves ...


Best Regards,

Jin Shan

There is a stop loss and I will explain later. It has to be explained as It is too simple to be understood by the pros traders here.
I know I am going to get a lot of negative comments about the strategy I used, so I promise I will not be mad.
Later.

Take it easy abg ,there is no one throw you with a negative comments,
as we know the real pros trader trade in a simple way, or KISS( Keep It Simple Stupid).


wait for your next posting.

Best Regards,

Jin Shan

http://i1140.photobucket.com/albums/...ompu/daily.png

As I said earlier, I use a Daily chart to indicate the current direction of the trend.
As seen in this daily chart, the trend is down.

I have 2 important points to point out in this picture. They are the Support and resistance.
I will only sell this pair, if the price reaches the resistance level and I will only buy this if the price reaches the support level.

I know most of you will say this going to take too long. You are right, but I do not care about that. There are another 21 currency pairs I can look to search for trades. My goal is to get the best possible trade at the right time.

More information is coming later. I am very busy. I can only post small piece by small piece.

Nice setups abg, keep on posting.

Best regards,

Jin Shan

I will have time this weekend to post the entire strategy so we can have it all in one location. I will do my best to include as much chart examples as I can to help. In the meantime, let me explain the nature of forex from my prospective.
For every move there will be a counter move. It may be 25%, 50% or 100% of the prior move, In general everyone will agree that the chart pattern is like zigzag motion and there will be a counter. These are facts that I have and it happens more than often to accept it. So knowing that piece of information will help me gather my thoughts on how I want to trade. This has nothing to do with technical. This is just plain common sense for me.
http://i1140.photobucket.com/albums/...unter-move.png
Let’s take the news for example. Some people trade news and it all good. The problem is they trade news the wrong way. They trade the effects of the news instead of the reverse psychology of the news.
Remember that news does not necessarily change the trend. It only affects the direction of the main trend for a short period of time until everybody settle down in their crazy emotion. Once everything settles down the trend continue doing whatever it was doing. So I will use that in my favor if I want to trade the news.
Now let's get back to bashing indicators

I am going to take some of the most popular indicators and I am going to show you why I do not use the them according to the rules.

MA crossing
They are the leader in a line of indicators. The idea is to select 2 MA of different period based on your preference and to wait for them to cross.

If they cross to the upside we will buy or go long. If cross to the downside we will sell or go short. Now if you look at a chart, it easy to be conveince that the concept works. In reality this is rarely true. Think about it. If this is all you had to do, then everyone would be making money in forex. People would be quitting their job to trade forex with MA crossing.
Here is the reality. When you are trading with MA crossing, the theory asks you to buy or sell at the cross. However, by the time you see the cross of the MA, the price is already passing that point and it is ready to reverse to the other side. That’s why you always ending up losing.

http://i1140.photobucket.com/albums/...pu/reality.png

But you do not really figure this out because you are too busy blaming yourself for not studying enough technical theories. The fact is the technical theories are the problem with the forex traders.
To help with the MA crossing issues, some clever traders decided to add some more indicators on the chart. They call them filtering indicators.
For example: MACD, STOCHASTIC, LAGUERRE, RSI and many more.
Stochastic is another dumb indicator.
This indicator is the same as the MA crossing. Just the mini version to confuse those that are so naïve to think that over 80 is overbought which indicates that the price is going down and let’s all sell.
Bellow 20 is oversold which means the price is going up and let’s all buy now. Whoever creates this junk may have been smoking crack or something. If you study stochastic carefully, you will realize that it does the same thing that MA crossing does. Except is even more dangerous because you may be enter a trade at the right crossing and the indicator move on your favor, but the price only move about 5 pips and then reverse against you and the price move anther 200 pips.

Hopefully this weekend I will post the entire strategy on how I rade.

Thank you for your efforts, go ehead,please,

Indicator is not bad at all,just don't make decision for entry or exit, using indicator alone,must combine it with a technical analysis like support resistance, trendline and more.
indicator helps us calculate complex calculation like the overbought and oversold condition, or help us to calculate the average price in last ten days.
Indicator become handy, if we know how to use it.

Jin Shan

How will you trade EUR/USD pair using your method? What is your vision of situation in this pair? Thank you,

You may be right, but the more indicators you have on your chart the more confused you become.
The problem is each indicator will tell you something different. Which one to go with?
In addition, price history is a guessing game when it comes to forex trading.
It is simpler to just buy low and sell high if you can determine where the high and the low is or just flip a coin.

The only indicator that I will favor is the support and resistance concept. You can also use MA for the same purpose of support and resistance as long as you do not use the crossing concept but price action concept within the MA
I also use currency pair movement indicator as they are mechanical ways of looking at and compare different currency pairs. Trend line would have been a great tool, but hands drawing trend line is rarely accurate therefore I am back to price action.

Thats why I say, dont make a decision from indicator


You right ABG, Im agree with you, price action is the best

For those Traders who love to read this Brilliant Simple Concept, I personally agree, and what is Brilliant system !! from him. I like it and would be very glad for his next post and i wish to learn lot more from him.

DenOzi

Jesse Livermore said it best "Trade the Line of Least Resistance."

He was referencing the Daily and Monthly charts.

ABG good to see your thread is keeping these long term perspectives in mind. IMO it is the ONLY way to make money in the FX market.

Hallo ABG,

Where are you?

Please finish what you have started.

Thanks and Regards,
Anton

Dear ABG,

I am still waiting for further, I would be glad if you will get back with EA.

DenOzi