Take it as it is

I've had a few people ask me how I trade and so here goes...

I will introduce what I do and how I do it and why it works for me. A little introduction first.

I am by no means a 'pro' but I do know a thing or two about Forex, I have spent a great deal of the last 5 years of my life studying it! Don't freak out though, not everyone has to spend 5 years doing the learning curve to get it down, some can make it in as little as 3, although I have not yet met anyone who has though.

It's up to you to do the leg work and understand how this works, this game of Forex is NOT I repeat, is NOT for the faint hearted nor is it for anyone looking to get rich quick. I'm sorry to say, it's the damn truth. Anyone telling you otherwise is probably trying to scam you or has never worked it out for themselves. This is a profession you can quiet easily spend a decade learning and spending and still may not have it right, but let's be honest, you never stop learning, right? I know I don't.

Everyones tolerance for patience is different, everyones psychology is different and so for this reason you all need to find what works for you, you need to mould it, treasure your ideas and work on them until they work for you.
If your reading this then you've probably no doubt tried various trading systems and your off to try the next one. Let me say, it's never ending... I know, I've done it.

There comes a point where you realise it's not so much the system anymore... you run out of systems to try so you end up trying to develop your own, then your getting somewhere, your really trying to do this for yourself.

........Still trying?

---------------------------------------------------------
PERSONAL LIABILITY DISCLAIMER FOR VitaminBeer

I AM NOT...

1. A Licensed Financial Advisor
   
2. A Licensed Professional Business Counselor
   
3. A Psychic
   
4. A Fortune-Teller
   
5. Luke Skywalker
   
6. The Messiah
   
7. Someone with a "Holy Grail" Trading System
   

I CAN NOT...

1. Foresee Future World Events
   
2. Guarantee you will be profitable trading Forex
   

I make no guarantees as to the amount of money you may profit or lose by employing the strategies stated in this thread. FOREX Trading is risky for all involved and the potential to lose your entire investment is very possible. I make no promises as to future earnings by using the strategies or ideas in this thread. Employ all ideas at your own risk.

This thread "Take it as it is" is for educational purposes only and for no other reason, if you choose to trade the ideas I have presented then you do so at your own risk.

Next post please!

I'll take that as a yes, otherwise you wouldn't still be reading...

So what I am about to show you is not new! In fact, it's been around for a long, long, long time. So if you think I'm about to show you some new wonderful colourful indicator on a chart that tells you when to buy and sell, your sorely mistaken, and you may even want to leave. Like... right now, okay?

This is extremely boring when it's done right and you've been doing it for a while, but that's good, it's meant to be boring! What about mowing the lawn or driving your car? Is that exciting? Do you get all sweaty hands and heart palpitations? No? Well think of trading the same way. You should start your mower up and start pushing, or riding like it's automatic. You don't think about what your mowing statistics are going to be, whether or not you did it in record time, how much fuel you used in the last 5 minutes, did you run over a dog poo? Or better yet, did you remember to pick up the pegs from the clothes line first? What about the trimming you can't reach or that tree in the middle you hate so much because you have to go around it and stuff up your mowing pattern. Do you think that maybe, you think too much? Try to take it easy... life's too short to be worrying all the time about the small things.

A little bit about Support & Resistance.
This is the basis of Technical Analysis, this is everything squarely put away nice and neatly into one term. Everything expands from this one term into branches and ferns (systems) and flowers (indicators) that eventually fall off and clutter up your beautiful looking lawn. At the end of the day, the roots lead back to Support & Resistance. This is the core to trading, get it yet?

More to come, I'll get to the point shortly, just hang in there...

So back to 'the core' again.

If I was to show you a chart with nothing on it at all? Absolutely nothing but price, what would you make of it? Do you feel like your missing something?

Does your mind race to try to understand what is going on here? Mine probably would too. Just relax... everything will or I hope make sense real soon.

Here, let's try an example



Any ideas? Do you like simple? I do...

I'll be back with more later.

A busy man has a lot of things to do.

Look long and hard at that chart and see if you can see the $ sign yet ....

Seems logical! Keep it on, please!
FXcube

So you have a blank chart, you must be wondering by now what to do with it. Do you notice anything on it out of the ordinary?

Do you happen to see it going up and down perhaps? Do you wonder how you can profit from this?

Let me give you an idea.

Let's start by giving an example of the same chart but with what I would qualify as important areas to watch out for (Now this can be subject to the chartists and comes with time)
There may be more areas but this would be good enough for me. Always try to keep in mind though, that less will lead you to clearer outlooks and time making decisions.



See if you can take this example and apply the following on any currency pair of your choosing, the same rules can be applied to just about any market. Try to go 1 Hour charts and above to keep things simpler.
You will hear it over and over again, supply and demand is the key to trading and it's the truth, period.

Now practice this for a while, practice, practice and practice until you're an expert. This will take some time, also I cannot help you do this, this is something you have to do for yourself, it is all part of the equation to your journey into trading. This is the part where you must learn to do it yourself!

A few tips on drawing these lines, look for multiple touches from the up & or down side in a specific area, they can be previous High's and Low's, areas of interest will usually be quiet visible to the eye.

You'll also notice now that once you have done this, you can theoretically break the chart up into 'sections', everyone likes sections, office buildings, parks, schools, hell even land zones have 'sections'. This makes it easier for people to manage and organize things, it's stops the noise coming in through one section to the other, and this will help you stay tuned to what you are doing once your all setup and ready to go.

We're getting there...

Before I go any further I wish to state that it is super critical that you have learned or are willing to learn to accept losses just as easy as accepting winners.
This is very important - It can take some getting used to this concept, you must grasp this and always remember it.

Put a big sign on your wall if you have to!

I keep reading ... very interesting

thanks

I subscribe and like something like this, pure chart.

trying to understand it...thanx....

More coming soon

Looks interesting .

Let me try .


mixter

Now, I don't want to go too fast and freak everyone out. So one step at a time.

There is some theories behind all these pictures that need to be understood first in order to understand the underlying principals.

So, in a trending environment we have Highs, Lower Highs, Lows and Lower Lows. For anyone who does not understand this, you may need to take a moment and check out babypips.com - I'm sorry, I did say you will have to learn!

If you get on a weekly chart and imagine your going with the ebbs and the flows of the ocean, you'll notice the waves are quiet large.
That would be the major primary trend.

Now, pretend to do the same thing with a Daily chart and as your working your way down, each ebb and flow is coexisting inside the weekly ebbs and flows.

Following me so far?

Now, as you gradually work your way down the scale to the 1 Hour chart, you will now find yourself sitting inside a trend, which is inside a larger trend, which is also inside another even larger trend.

To put short, your in a trend of a trend. The more all the trends are in agreement the better off your going to be, it might sound ironic, but the trend is your friend... right? right???

When I say in agreement, it means all heading in the same direction. This is not to say that they all have to be, this only helps give your trade the strength it needs to carry on because your going with the 'flow'.

Now, the larger the time frame you apply your Support and Resistance lines to, the more significant they become.

Good Stuff VB, Subscribed

Thanks Jay,

I'll keep everyone posted soon, just gotta put together the next part

Will let what's been said so far have some time to soak in

VB, i like drink it haha! waiting for further reading..

...just as easy as....
Excellent!

Thanks VB. I trade S&R too, basicaly my style.

Subscribed