Million in forex

Since there is no good set up at this time in market let me cover up a piece of advice to new traders entering forex market.

You might have read the posts i have put on this blog . If you havent then start from the very first post of the blog here.

Today i will cover the issue left over.

The issue of trading lot or unit size.

For absolute newbies its advicable to start trading on demp first with an account of same size you plan to fund when you go live. Yes exactly same size . Dont get overwhelmed by the amount that brokers on demo provide like say 50000 or 1 million. Be realistic. Open an account with same amount you plan to open and fund your live real account.

This is very important. Then use the minilot to open a trade. Use the lowest of the lot available to open a trade . I deally placing importance on the money managemnt make sure you calculate the account margin used by the minilot and better if you could adjust the units accordingly which is available on very few brokers though.

Using minilots would give you an idea of psychological up and down you would see on looking at the trade turn either positive or negative . This is very important aspect for newbies . This would give you an idea of the what would happen wehn you go live.Its better to write down reason of every trade taken and its outcome to help you understand the reasoning behind the strategy you will be looking to dvelop or use on live account.

I have been posting last 3 days about DOW and EUR/JPY trades.

W e are on that..Eur/jpy has given already more than 300 pips in profit on the bets tradable set up i posted yesterday

And DOW as posted  previously has given its bull run a good bye and got on track with bear run.

Now the next question arises where is it gonna lead us?

Are we gonna see the bears pushing the DOW to retest the previous lows?

It seems likely as fundamentals arent quite clear to help the bulls get back after being beaten so heavily by bears.

We have to see more of the worst part as i suspect many more biggies to declare bankruptacy sooner than later .

2009 is a year of war between the fundamentals and technicals and many more hidden data is  yet to come in front of public as many market experts have to say…

Let see whats in plate for us this year !

This week we have a set up which is very rare and most profitable .

I wait for these set ups most of the time as they are the ost profitable ones.

Now we have such set up on EUR/JPY weekely .

Here is chart i am posting for you to see.

You can clearly see the weekly pin with long nose closing below the important ppz .

This is what i call the best set ups .

Entry is at the break of this pin and first tp at 126 second at 122 . Stop loss 135.50

Nothing more to say .

I bet this will make a lot of pips to you .

Hope you are enjoying the weekend free from trading.

As the week is over lets have a look at Eur/usd chart to look for trading opportunities.

On weekly we have got an inside bar on Eur/usd  .

Inside bar is widely traded by large group of traders so when the breakout occurs its usually powerful and pushes price in direction of breakout for good number of pips .

The bias stays to downside as the H4 channel we were in broke to downside .

Also we are seeing a pullback on usd index after the large fall which will take the price to atleast 1.31 region on eur/usd .

We can aslo see this move extend to 1.30 region where the buyers would be waiting to load longs due to the region being important PPZ with round number.

This is what we have after we see the charts.

So be ready to load your positions at right time!

I have posted yesterday that Dow is at important level.

A level where sellers are interested and also with friday and last few days of month remaining i would be looking at this phase interestingly.

With not so good news about google cutting more jobs  and also Johnson Controls Inc doing the same , i would expect sell off to begin soon.

Futures showing sell of already and so too Dow .

There is bullish trendline holding dow buyers above it.

I would be looking at the break of that trendline to enter my shorts .

The trendline is at 7550 level a daily close below that would bring in sellers .

I would have loved to add a chart here but due to some problem i am not able to do that . Will do that tomorrow with weekly outlook .

Enjoy the weekend !

Dow futures are at interesting zone that i am looking at currently .

I am posting a chart for you to see what i am gonna talk.

We are at the level which interests everyone most .

Both buyers and sellers are looking at the 7800 to 8000 level with great interest as the breach of this level will bring in buyers and a bounce would bring in sellers .

We have been seeing rally in market everyday for last week or so taking us nearly 1100 points higher than the low .This is very important as this push up till day was very powerful with lot of buyers but was it due to short covering? or option expiry? If so we will see the fall coming  from this 8k level on dow . Or else if this is true recovery we have a good entry on confirmatory break of this level for long term haul.

Looking forward to grab either of the opportunities for a wonderful trade!

All of a sudden everyone is seeing  the bright side of the future moving markets higher .

I am surprised how would the situation turned so dramatically in a  short time?

Or is it just a simple correction in a bear rally?

Or the big play by big players to load shorts at higher level?

Or the government intervention?

Lot of things to look at in this situation  as its just a case of speculation looking at various fronts moving market .

Suddenly the money has started flowing with the buyers coming in pushing the market higher each day .

So is everything we were talking about recession  over ?

I dont think so but who am to decide?

I am staying away from the market till everything is clear..

Today i would like to show you world of forex from bigger prospective …

Yes so big that they have come from the forex master !

Yes here it comes:

” The biggest trick with trading Forex is that we are lead into it thinking about all the riches just waiting to be picked up. What most of us hear all too late in the game is that there are simply times where a trade isn’t there. In fact, there can be several days in a row that there are no trades worth taking. Like the submarine that tracks an enemy in the open waters, there has to be a planned out attack. You don’t just fire randomly. You have to be able to plan you emergency exit, (stop loss) what to use for you attack, (sizing) and how to exit. (uh….your exit strategy.) Trading isn’t all that different.

How many of you actually have an exit strategy? Getting into trades is the easy part. When you exit can decide if you are going to be profitable or not in the end.

There’s an old saying, “Nobody ever went broke taking profits.” I would say that’s a very dangerous way to think. It is a strange thing to think that you can be “right” 30% of the time, and yet be profitable. Or you can be like I was when I started, “correct” 75% of the time, and break-even or slightly down at the end of the day. That really, really sucked. (A nod to “Letting profits run.”)

Have you ever looked at a chart after the fact and said, “Wow! Look at how easy that trade could have been, if I was just there….and hung onto it?” You tend to think only the best and brightest were in that trade. Why in the hell can’t this be you? The answer is “It can.”

It comes down to taking better trades over taking random ones. When you enter a trade, how many reasons do you have for being in it? “It looks cheap!” is not a valid answer. I like to have at least 2, and more often than not, 3 reasons to take a trade.

I have gotten to the point that I only take about 5-10 trades a month. What I have found is that one good trade can make up for a couple of “so-so” ones. Eliminate the “so-so” trades, and you are talking great returns.

If you can make 3% on one trade, or 3% on 20 trades…which one makes more sense to you? Do you enjoy the extra stress involved with pulling the trigger all the time?

The very first part of how I look at charts will deal with perspective, and what matters as far as order flow. You have to be able to see where the largest “barriers” of orders are. Markets tend to go from Point A to Point B over and over, despite what some people will tell you about randomness.

Of course I am talking about support and resistance, the basis of all trades I take. In fact, most of the time it’s where a bar is that matters more to me than what shape.

I am going to show you how I look at S/R in a few. This will be the start of charting for those of you that absolutely can’t wait. I would say though…focus on some of those first posts. Ask yourself questions about these things. If you are rushing to find your millions based upon a few random charts I post, you’re in a heap of trouble.

This is not a get-rich-quick scheme. It’s about enjoying the ride AND getting rich.”

Oh man Chris speaks the truth from the bottom of his mind!

I am just storing his gems in my mind and implmenting them in my own trading.

I would request or rather ask any forex trader to store them for the path to success in forex trading!

There are some traders i always look for any views and posts and letters from them.

One such trader is Chris.

He defines and simplifies everything so easily.

Here is the latest posts he made that are strikingly truth and go in depth straight to heart for any forex trader!

” When we start trading, we do it based on some idea of what is possible. Normally we see some ad that has a rich-looking person standing next to their Lear jet or something like that. Of course that can be us, all we have to do is make a shitload of cash buying the Euro! (That’s what we think at first.) We are going to make a ton of money, because trading is so damn easy. I mean come on! What’s harder work? Climbing a ladder to paint a house, or pushing buttons on this ATM we call a computer???

Well, it doesn’t really work like that does it?

I know you get into trading to make money, and to become rich. But think about it for minute: What are you really trying to obtain? Freedom.

Money allows us freedom to do things. Freedom to travel, freedom from certain worries. We can pay the electric bill with ease. We can get out of our crappy jobs and sleep in. Freedom to not be somewhere at 8 A.M. on Monday morning.

Money itself is nothing. It’s the ability to do things and more importantly the freedom to do things is what we want.

A paradox arises for a lot of traders after a few trades. They give up on freedom, because at any moment - they could make money trading. So they sit at a computer for 16 hours a day. They trade 5 minute charts and stress out for 15 of those 16 hours. Is this freedom? I don’t think so at all.

So why would someone do the opposite of what they are trying to accomplish? I don’t understand it to be honest. (Although I admit to falling into the same trap myself when I started.)

I really want you to think about it. Even if you are making money, is it worth it? It all comes back to this being a positive experience.

This is why you won’t see 15 minute charts on this thread….I tend to work with daily and 4 hour bars. On rare occasions, I will use a 1 hour bar, but only after I have decided it’s time to get in anyways. Even in these circumstances, I use the 4 hour and daily to guide my 1 hour trade. I also use the higher time frame to set my leverage. (I’ll explain this when a good example shows up.)

Believe it or not kids, you too can place a trade and walk away like I do….I promise. “

Now this is what i call a gem !

Read it atleast 10 times to get hang of what he is trying to say and you will start thinking this forex as business of freedom both financial and in matter of time!

Hats off to Chris for such wonderful outlook(? or should i say  inlook).

So you call yourself a forex trader?

Do you really? Oh i hear you –You say you are successful?or are you forex trader giving all your bank money to forex market?

Whatever is your answer go on to read these question…

And also try to answer them at least to yourself in truest of your sense..

Puzzled?

Read on …

Do you really enjoy staring at this stupid screen all day?

Would you like to know where and when your trades are likely to happen days beforehand?

Does trading add or subtract from your happiness?

What are you looking for? What’s the goal for you?

Stupid answers like “I wanna get rich, man” are spoken by people I call liquidity. I want to work from home and raise my kids…..that’s a simple way to define it. ? ??!

Now so simple questions are they ..

You got your answers ?

Really ?

Oh if you got them why dont you reply with comment on this thread?