Trading Insights

"You don't need to know what's going to happen next" - Trading in the Zone

This was the quote that turned my trading around; from a state of helplessness to a state of certainty. Consider a full time profitable professional trader and a novice trader. The professional trader is able to make money even using a mediocre moving average trading system unlike the novice trader who seems to be seeking for the "holy grail". 

Well, its almost impossible to not fall into this trap. It's easy to blame the system and dump it. Truth is, whether you would readily admit it or not, trading goes far beyond a system. In fact, I can almost certainly guarantee that purchasing a complete system from any vendors in the market would still result in losses. So you might ask, how do I know? Let's put it this way, I was the most optimistic person and went down this road. Remember, you don't need to make the same mistakes as I did to learn from them.

Purchasing a trading system that places the odds of success in your favour is the first step of the long journey towards being a consistent and profitable trader.

Like me, you probably found it hard to devise a trading system that places the odds of success in your favour. Go ahead, purchase a trading system that suits your personality. However, what I am emphasizing is not to buy with the expectation of making immediate profit. Trading goes than having a system in place.

Thinking about Trading

Here are some crucial ingredients that you would need to possess in order to become a consistent and profitable trader:

- Trade management

- Managing emotions

- Psychology

- Your view on trading

- Responsibility

- Complete acceptance of risk

Bottom Line

Trading is more than just buying and selling. On the contrary, it goes far beyond what most people think. Just because you are trading and have put a stop loss in place, does not necessary mean that you have completely accepted the risk of trading. I define complete acceptance as the ability to be responsible for all your trades and not experience any emotional pain regardless of what the market does.

WR Trade Setups

Hi Mates,

It's Saturday morning and I decided to wake up early to do my homework. Looking at the charts, I can't help but notice so many fakeout setups (WR setups). I find it a waste of time to plan setups that are likely NOT to occur, meaning that all you see is a bullish or bearish expansion up or down without reassembling any constructive patterns. So today, I would like to share with you setups which already have constructive patterns but are just awaiting for WR to happen. Should you decide to use this, please compliment it with your own analysis. I have done mine, but to keep things short and sweet, it will only show the trigger.

EurAud Setup

Chart speaks for itself...

Earning Money Either Ways With or Without WR

Before I proceed to share how you could make money when a currency pair is moving, I would like to make a disclaimer:

This method although sounds logical, may not work for you if it does not suit your trading personality. It has resulted in a couple of winning trades with only one loss so far. This is NOT a holy grail and you should only add this trigger into your arsenal of triggers if you are comfortable with it. (perhaps do some paper trading/ back testing)

This was what happened on friday. I took this trade and was in a short position. Notice the current red box. What happens if price did the following (see below)?

 

 

 

 

 

 

 

 

 

 

 

If price close above, this would be a WR of two days low, indicating a long trigger. This is what you know. But here's how to trade this IF price does not do that.

Here's the rationale behind this trade idea. Price has broken two day long and shows a strong bear. Price attempts to retest previous support turned resistance and resistance holds. Therefore, price would likely go down resulting in what you will call a bearish expansion :) good to receive the alert that there's a bearish expansion in audchf (which I did). SL would be above the blue line since if price manages to close above, it would indicate its a WR.