The Law of Chart

As promised for today, here is the article on The Law of Chart which I am able to share with you from Surefire Forex Trading. It's a long article and maybe boring if you are in a hurry. Please do not skip a paragraph of this article. You need to digest between the line to fully understand it. It takes me some time to master and apply it into my own trading practice. So don't worry if you can't master it in a week or so.

While I am not trading for the past few days, I managed to have a look on the market until the last Friday. And from my post-trading that I made today, the market seems very choppy and in the period of consolidating. All my charts from the 4-hour down to the 5-minute chart does not agree with one another. I guess due to the long awaited bailout plan bill of US 700 billion still hanging around within the Congress.

But I hope by next week the Congress in the States can make up their mind about the current economic situation before the US NFP. I will resume my trading by monitoring the market behaviour on Thursday all the way up to the last minutes before the released of the US NFP. I will be entirely trading on the 1-minute chart.

Until then...happy weekend and have a great celebration on the soon to come Hari Raya.

Last trade of the month with 50 pips profit

Today I had another good profitable trade going long with the EURUSD. By using the advanced method of Sure-Fire Forex Trading, I place my long position at 1.4649 with target place at 1.4699 at about 1:47 am (Brunei). The market hit my target at 2:10 am from a little risk of less than 30 pips.

From here, I am withdrawing my profit of about 300 pips to enjoy for the festive season that will be coming soon. I will not be trading for the remainder of the week until the next US NFP in October. You might be asking why I am not re-investing my profit...well pretty simple rules that I use and practice. I recall Brian Dolan advice "Take your profit periodically, or else the market will take it for you." Experience will tell you it's a good piece of advice.

Until next month...happy trading guys ;)

Brian Dolan is Chief Currency Strategist of FOREX.com
All trading method and system is the property of Surefire Forex Trading developed my Mark McRae and not the works of this blog owner. Shall you require further information about the trading method and system kindly purchase the e-books to get online & live tutorials from Surefire Forex Trading.

A great start on Monday with 83 pips

The 4th week of the month start with a great trade. Today I manage to profit 83 pips on a long trade on the EURUSD. As usual with my practice, it start from a big time frame of the 30-minute chart when the price break my marked 1.4558 level. Once the price break this level, I immediately switch to my 5-minute chart and wait for an entry. It took me several hours to make an entry. I have to watch the market from 3:40 pm until I passed the Sungkai at 6:30 pm where I placed an auto execution mode (pending Buy Limit order). With this in place, my MT4 trading platform will automatically execute trade for me when the price hit my 38.2% retracement level.

The market finally hit my entry at 8:29 pm and finally hit my target and exit at 10:35 pm with 83 pips profit. All this is achieve with only minimal risk of less than 40 pips or less than 2% of my trading fund. Until tomorrow...happy trading guys ;)

Trading with Moving Averages

As promised, for those of you who wish to understand how to trade the Moving Averages (MA), or simply just want to know more about MA, here is a good article from surefire-trading.com by Ty Young. Simply click here to download.

Information, charts or examples contained in this lesson are for illustration and educational purposes only. It should not be considered as advice or a recommendation to buy or sell any security or financial instrument. We do not and cannot offer investment advice. For further information please read our disclaimer.

Good Friday with 68 pips profit

I have a good trade shorting the EURUSD today with a good 68 pips in hand. As usual I trade after the break of price in the 30-min chart before I switch to my 5-min chart. I start entering the market at the 38.2% level (1.4257) and placed my target twice that of my stop loss at 61.8% (1.4285).

No Trade on the 18th

The EURUSD makes a rally on the north side with clear indication for a bull signal, but for me this might just be a corrective pattern for another next bear trend of the pair. Unfortunately, I cannot place any good trade during the reversal price action of the EURUSD because both my 30-min and 5-min chart does not agree with one another.

On the other side using the advance method, I was off guard, aka asleep when the price movement give that good opportunity. It occur sometime passed the midnight in Brunei. I missed to take up over 30 pips profit potential. But well there's always tomorrow....

Until then happy trading guys ;)

A good start on Wednesday with 50 pips

I really like the beginning of this week. This early Wednesday morning I profit another 50 pips from my short trade on EURUSD. I just simply use the advance method that I share with you all yesterday. I enter the market once my trendline has been break and take my profit at 1.4145.

I will wait for the next entry opportunities later today. Happy trading guys ;)

Another whopping 93 pips!

I love the market volatility for today. I bagged another 93 pips on a short trade with EURUSD. The above 5-min chart will tell you how I get it. I made my next entry after I realised the market make a new lows on the 30-min chart then switch to the lower time frame (5-min chart) and immediately draw the fibo line. I place my entry at exactly 38.2% level and placed my target over 2 times by risk at the 61.8% level. After a few hours while I asleep, the market hit my target of 1.4082...

Nice happy trading today...all in all for Tuesday I made a profit of 153 pips ;)

60 pips profit on EURUSD range trading

Let me share with you the advance technique from Sure-Fire Forex Trading. This method, which I can only show the chart without going into details how to do it and when, is so effective during range bound trading or when there's no clue on where the market will be going. I usually use it during this times...where market has really no direction.

Using the above method I can maximise my profit...in today's case 60 pips. I enter the market once my blue trendline has been breach and place my target exactly twice that of my risk. But to use this method you must be very patient and willing to wait for the market to offer this opportunity.

I am really sorry I can't give you all much details on how to use this method, because it's the property of Mark McRae trading system. I suggest you purchase his trading method & system at Sure-Fire Forex Trading.

Happy trading guys ;)

Monday choppy market...Missing good entry Tuesday

The Monday market condition was somehow choppy and only the best will survive. The Lehman Brothers and Merill Lynch headlines creates the havoc across all markets worldwide. Yesterday, I cannot enter the market as all my trading indicators does not agress with one another, except on the lower time frame (the 5-min and 1-min chart). But I don't have the opportunity to monitor it during the day due to my tight meeting schedule.

Again early this morning I missed another good entry to make 80 pips if I short the EURUSD. I will try to catch some market movement today after 4pm....that is my only free time for today to monitor the market.

Until then happy trading...

Is FOREX trading illegal in Brunei?

This question has been in existance among the Bruneians for sometimes. Some advised me it's illegal and some said it's legal. Before I start trading on my own, I worked for a large bank in Brunei and deals with inter-bank transaction and deals with the government funds on a daily basis in a minimum value of not less than 8 digit figures. From the deparment I worked with in the large local bank (I don't want to disclose the name of the bank due to non-disclosure agreement that I bound to) I am being exposed by the Deputy CEO at that time how the banker rotate the bank funds and make money just overnight by placing money overseas and hold their funds in a number of financial instruments.

One of the financial instruments is forex, that if you really know how to fully utilized it is the money making financial vehicle after treasury notes, bonds and inter-bank overnight placements. But bank has very strict and tight rules in forex trading due to the liquidity of the financial instruments and at that time, I cannot trade forex for the bank without authorization from either the bank MD (Managing Director) or the Deputy CEO. And the risk exposure is being limited to not more than 1% of the trading fund!

Forex trading in Brunei so far is only legal for the big guys like the bankers. The Brunei Government through the Ministry of Finance (MOF) clearly prohibits any company or individuals that are not a licensed financial consultant to offer forex trading to the public. The MOF also repeatedly warned the public not to easily fall into forex trading schemes by any organisation, companies and individuals that are not fully licensed by the MOF.

Personally I have a friend worked with the MOF under the FID that controls banks, financial institutions and financial instruments within Brunei. To date there's no companies or person in Brunei are licensed to offer financial consultant for forex. Thus, if you hear anybody that claimed that can offer forex trading consultant or training in Brunei, do not easily enrolled in their program or offer. It is simply illegal!

I overheard that some group of people in Brunei that offer forex trading training, usually the gathering took place at one of the prominent hotel and shopping mall. And sometime daringly took place at IPA! If you do find them or about to join them, firstly asked them about their financial consultancy license. For sure they will have a hard time to show it to you. Beware, this is illegal!

Why it is illegal? They will not be responsible for any loss in your fund and they simply do not have the financial protection act as laid down the MOF. If you refer to the MOF, for a company to offer a forex trading or similar financial instruments to the public, a company must have a minimum financial liquid capital pledged with the MOF not less than B$25 million. However, if you have only B$25 million but do not have an experienced money managers within the organisation and the MOF not satisfied with the company management team, you will be unlikely to get the legal license to offer forex trading to the public.

But if you trade personally with a licensed company such as GAIN Capital Group, FXCM, Alpari UK Ltd, Oanda, ODL Securities or FxPro you can legally trade forex. Personally I need to add here about forex...forex trading alone is far more riskier than stock market. It is very volatile, very liquid and the market movement can easily be moved by so many market variables such as equity markets, bonds, commodities, inflation, and more.

A person should NOT trade the forex market without proper training and mentor. You can easily make losses without it. I trade the forex market with mentor in London, New York and South Africa. All have forex trading experience of well over 15 years in the market. Whenever I am in doubt about the market, I will always ask one of the mentor to give some guidance. The mentorship service are not FREE.

Only trade forex within your capital limit and with mentor as well as within the legal envelope.

Forex Journal?

Sometime this week I recieved an email from a publisher of the Trader's Journal magazine, and it inform me that they are now offering a new trading magazine called The Forex Journal. It's nice to see that there is a dedicated magazine for forex trading. I hope to subscribe to this magazine sometime by the end of next month. It will cost around US 75.00 for Brunei subscriber annually.

No Trade on Friday

Choppy market and some fear on the Ike hurricane approaching the US coast have make the Friday market condition not attractive for me to trade. After all, none of my trading indicators agrees with one another. The chart picture on Friday was ugly.

For next week, I expect the market will make its way back south after a strong rally of Euro against the US Dollar on Friday. I place my own target of next week to get at least 100 pips in profit.

Until then happy trading and enjoy the weekend.

88 pip profit with EURUSD today

A good profitable trade for today fueled by poor ecomonic condition within the Eurozone and lower commodity prices. This condition have elevated the US Dollar against the major currency. Earlier today at around 10:00 am Brunei I enter a short trade on the EURUSD from 1.3986 and aimed an 88 pip profit target. My target eventually hit at 5:00 pm.

It all started from another down leg on the 4-hour chart when it breaks by marked purple horizontal line. From this moment I hunt the market for entry opporunity by drawing a fibo line on my 30-minute chart. Immediately, I placed a sell limit order at the 38.2% level retracement with the usual stop loss at 61.8% level or around 33 pips from my entry. I then usually placed my target at least twice that of my risk.

Looking for another profitable trade in the day to come. Until then happy trading guys ;)

Stop loss hit...now waiting next wave

During the London session, my earlier entry during the day at 1.4124 hit my stop loss that is 43 pips away from my entry. My initial target was over 100 pips but market only make it to over 70 pips then gradually making some reversal over a period before it hit my stop loss just before 5:00 pm (Brunei).

Right now, I am waiting for the next wave that may be generated by the US Pending Home Sales. Price breaking 1.4050's level will make some opportunity for my next trade, providing there will be some good retracement towards 38.2% level. As of this writing the market is coming back to the 1.4130's level after the US number posting a lower than expected number of -3.2% vs expected -1.5%.

I will see how the market develops after yesterday GSE bailout on the troubled mortage firms. Until then happy trading guys ;)

Euro skydive too fast...No trade

The Euro today take a great plunge of well over 200 pips..very rapidly that the risk is just way high for my trading account to handle. The risk for todays trade exceed my 3% risk allowance limit. At time of this posting, the EURUSD seems to make some consilidating works, coupled with quiet New York market session. There raise some worries about the new hurricane developing over gulf in the US which prompted the crude oil to jump a dollar higher than last week closing price. But very little movement can be seen from that effect.

So no trading for today...hope to see some market movement again tomorrow and the rest of the week. Watch out as well on this week OPEC meeting begining today until Wednesday.

Until then...happy trading ;)

A little profit at the end of the week

I was a little bit frustrated on the Friday trading, just before the US NFP release where I was about to the trade the news. 15 minutes before the golden 8:30 time, my internet connection experienced connection problems. Around this time I was about to place to pending orders on my MT4 platform, one a buy stop at 1.4260 and the other a sell stop at 1.4238 and expecting either one of my pending order will be striked by the market strong movements.

But it all went by the minutes and the hours and I missed over 50 pips opportunity. My internet connection resumed normal operation just after midnight Brunei time or just after lunch in New York. I attacked the market quite late and managed to enter the market just about the 38.2% level retracements and I bailed out the market approximately 40 minutes before the closing time. I bagged around 30 pips profit, and by this time the spread on the EURUSD have widened by 5 pips.

Anyway a good week for the start of the month. I hope to trade good trades in the coming weeks. Until then happy fasting month of Ramadhan and happy weekend.

Euro slides over a hundred pips

The market today make a huge leap to fall over the cliff especially the Euro against the Dollar. I am sure the cable also make the same price action. The move is well over a hundred pips, but I did not have that opportunity to trade for two reason.

First, earlier during the London session the price action was not that hectic for me to prompt any entry...only after the Trichet made his speech the price began to make the moves. But marke movements was just to fast that all my trading indicators can't cope with and lost sight of it. The price action did not make it to my 38.2% retracement level. I think today Mr Trichet drive the Buggati rather than the Mercedes.

Secondly, I fall asleep at 10pm (Brunei) and again miss the other opportunity that was available on the 1-hour chart, just after the release of US ISM Non-Manufacturing PMI.

But not too worry, because tomorrow's US NFP will bring in another opportunity. I will not trade before 8:30 pm Brunei tomorrow until the relase of the market shattering NFP.

Until then....happy trading guys ;)

101 pips profit in EURUSD

Today I managed to profit 101 pips on the EURUSD from yesterday last entry. If I take into account of yesterday loss I managed to profit around 6 pips net. It all happens when I realised that on the 4-hour chart makes a new low and then I switched to the 30-min chart for my entry instead. The target finally hit the 1.44150 price at 12:35 (New York) afternoon Brunei time.

Happy trading guys ;)

Biggest Loss in a Single Day

I don't know of what happen to me today. I am too addicted to trading today, it's just like I am taking some drugs or whatever. In this single day I trade multiple lot one after another after, and keep on trading when my orders were being stopped out. In total I traded 5 short traded on the EURUSD and none making any profit. And in total I just accumulate an astonishing 95 pips loss!

I just cannot explain why, but I don't feel any emotion today but I think I try to be a robot but with greed. Even as I write this post, I placed another sell stop order at 1.4516, with a stop loss placed 30 pips from my entry and a huge target of over 100 pips.

Let just see how it goes. But in all trade I never risk more than 3% of my trading funds. I will keep you all posted of the outcome with my hyper trading mood today...but never make any winning trades.

Be happy trading ;)

Profitable Monday with 55 pips

Monday of this month for me is so special. It gives me a 55 pips profit on my EURUSD trade, and it's a good start for a good month. In fact, if I have the time to monitor the market today I can get over 70 pips profit. But with all the round of business meeting during the day, I just don't have the time to monitor the market even for as little as 10 minutes. It just happen I have some paper work to finish in front of my laptop that I find this opportunity to enter the market.
Lets now see how it all began and work just now...

I first scanned the 30-min chart for short trade opportunities as the trend is down since last week. It happen that today, the price breaks the low of last week Friday. From here I immediately switch to the 5-min chart and look for a successive downward price movements, where here I draw my fibonacci retracements line.

As you can see from my 5-min chart, I then quickly placed a sell limit order on my MT4 trading platform on the 38.2% level with stop loss at 61.8% level, I.e. In today's case about 20 pips. Then I calculate to have at least twice my profit from the risk of 20 pips. Anyway, I placed my target level at 55 pips from my entry point. The market hit my target level in about 7 hours later.
See how easy it is to trade the forex market with the Surefire Forex Trading method. It's so easy and tools is very simple. Looking forward for a new trade on Tuesday.

Until then happy trading guys!