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Just A Reminder...

Dear All,

I personally urges you to scrutinize any "super "trading system by providing fast rich method or all-in-one signal to realize your dream, before paying fee to them. As we all undertand, the way to fortune is a painstaking process, much due to your hard efforts and practice, do you think people now can produce any super machine better than human brain? Please do not fall victime of "impulsive buying", cool down yourself for some days first before giving your most precious asset: "Money".

Wednesday, June 25, 2008

GBPUSD waiting to turn bearish

I will be watching closely for this pair for an bearish opportunity, maybe after the FOMC meeting. When I scan around the 4-hour chart of this pair, the Stoch trend line seems reaching its support level and maybe breaking the line anytime. Once it break here I will short GBPUSD with trailing stop to protect my pips.

EURUSD right now is trading on my EA and making some 60 pip profit mostly on long position. But as of this writing I see posting a loss of 38 pips.

USDJPY is on a range bound trade and we may see some action on this pair after the FOMC meeting announcement released at 2:15 am Brunei.

I will update on my trading. Happy trading guys ;)

Monday, June 23, 2008

Euro Zone data in RED

My stop loss triggered with 20 pips loss posted in my trading account. This is largely due to bad numbers from the Euro Zone than the forecasted numbers. It's part of the forex trader livelihood winning and losing. Happy trading guys ;)

Monday: Long on EURUSD

This early Monday morning during the Asian session, I entered a long position with EURUSD as follows:

Entry : 1.5612

Stop Loss : Over 20 pips below entry

Target : 1.5700

I expect this will last until the next day or today and hopefully the market will make some movement at the later part of the session. Nothing is guaranteed here, but I approach & enter the market with calculated risk in place.

Happy trading guys and will keep you updated as the market unfolds ;)

Sunday, June 22, 2008

Trading Rules: Never Risk More Than 3%

One of the many trading rules I have in my trading plan is to NEVER risk more than 3% of my trading account. This is very important if you want to see your trading account to survive the long run in the dynamic forex market.

When I first trade the forex market, I don't want to understand this rules as I can never trade the forex market if I stick to it. Because with my startup capital of USD 120, and only risking 3%...my trading account can only be allowed to risk 3 pips! This is impossible to do with any brokers.

Only after I trade for nearly 2 years and after some painful losses I slowly understand the importance of risking only 3% rule. Now if I only have USD 120 and to risk only 3%, and it is impossible to trade risking with that count, then don't trade or only trade with brokers who offer a 5 digit price quote system like the forexte.com

However, I think it will be wise to start trading the forex market with USD 1,000 only to really get the good rewards of it. Or better still, trade the forex market with an initial startup capital of USD 10,000 = BND 14,000 (at the current average forex rate of USD to BND = 1.4). Taking only 3% risk for any given trade, with USD 1,000 you only allowed to risk not more than 30 pips per trade or when trading mini lot you are actually risking USD 30. With a startup capital of USD 10,000 and only risking 3% you only risk up to USD 300 per trade for a standard lot.

It must be understood here, the 3% risk calculation is not to calculate the number of pips to be risk, but it is to calculate the amount of your money to be risk for any given trade. So I have to repeat here like follows:

Capital Startup : USD 1000 x 3% (risk) = USD 30

Capital : USD 500 x 3% (risk) = USD 15

Capital : USD 10,000 x 3% (risk) = USD 300

If, you account balance becomes USD 800 from your startup capital of USD 1,000 you should;

Calculate : USD 800 x 3% (risk) = USD 24

So never risk more than 3% of you trading account when you want to trade the forex market. Risking more than 3% will eventually lead you quickly for a call margin scenario, which is for me quite very painful.

Happy trading guys ;)

Stop & Exit early on EURUSD

With some what flattened market movement on the EURUSD pair prior to the opening of the European session, the cut and exit all my long position early...knowing something is not right. It all started when the European equities open lower than previous day. The market move well over 100 pips from today's high - totally the opposite of my long trades.

Now I am watching the progress of the USDJPY on my 4-hour chart for any bullish opportunity. If the market breaks the 108.42 level that will be my time to concentrate on USDJPY pair for another long trade.

Happy trading guys ;)

Going Long EURUSD as it break NY high

By looking at the above chart, I am going long above the 1.5535 with target above the mark (iii). The Euro has break the NY session high during this Asian session and have breaks several resistance stop. Currently Euro is trading 1.5563 as of this writing. My EA have triggered two (2) long order with the EURUSD with profit target for 110 pips for each order.

I will update on the outcome as it happens. Happy trading guys ;)

Choopy market movements

It seems that after the G8 meeting the market condition is some what choppy and directionless. All the currency pairs that I monitor since Monday (EURUSD, GBPUSD & USDJPY) are all flats with only some minor micro trend (as I called it). So I better stay aside for a while. Even with my auto trading for the EURUSD I have switched it off for the time being to mitigate the risk of higher drawdowns. Because my auto trading system (EA as some of you might called it) will have the habit of triggering pending orders every 4-hour, and some time it place trades against the trend which can be very unpleasing.

Catch you up latter for the day for any trading updates. Happy trading guys ;)

Risking more than 3% is not worthwhile

I abandoning my trading desire to trade the USDJPY as my new assessment with the pair calls me to risk 4% of my trading account. My trading plan is only to risk not more than 3%. So I make the hard call to fore go the trade for good until such better opportunity with 3% risk arise.

There is also an opportunity with GBPUSD but again I have to risk more than 5% to trade which does not meet my trading plan criteria.

Happy trading guys ;)

Looking for USDJPY entry opportunity

For this week, I seems like to trade the USDJPY pair as it already caught my attention twice. It's being bullish, initially breaking the 106's level and now breaking the 108's level. The Dollar now trading hands against the Yen at 108.02 as of this writing. Now here is my initial strategy for entry:

My entry based on the last hour calculation at 9:00 am New York is 107.45 with a tight stop 30 pips below. My target is generally twice of my stop. But since the pair now trading well above 108's level, I will be assessing my entry point, until such time I can see some retracement in my 30-minutes chart.

I will update again as it happen. Happy trading guys ;)