Forex Studies
June 12, 2006 by Trader Rich
For the last week, I have been sticking to my conservative plan which is outlined as follows:
- Study Chart Patterns, new and past; triangles, broadening formations, wedges, head and shoulders, pennants, etc
- Don't make any live trades if a pattern is spotted. Trade this in demo mode
- Trade the News: I am trading the news in live and demo mode via FX Engines. I will trade live the major US economic announcements like Retail Sales, Business Inventories, and PPI tomorrow. I will demo trade the non-US announcements.
- For instance, before going to sleep last night, I noticed that the PPI was expected out of the United Kingdom at 4:30 am EST. I put 2 news spike trades (1 long, 1 short) via FX Engines to activate at 4:00 am. The short trade went off automatically at 4:16 a.m. and was good for 15 pips. The stop/loss on this trade was 10 pips.
- Continue to look for a mechanical system created by me
- Take a look at other trading systems created by others
I don't want to put all my eggs in 1 basket so having a couple of different methods to make pips would be ideal. I want to rely mostly on myself in making trades but if I find other methods (ie: FX Engines) to generate income, I will surely welcome it.
Popularity: 1%
Loading ...
Rich,
Please allow me to sound like a mom for a minute here. :laugh:
Wouldn’t it feel good to master just one trading method?
And if you mastered this method to the point where you could recognize common setups, and know which entries would be most likely to succeed, and which exits would be the most profitable, and that a certain number of losses are built into the system, and could practically trade the method in your sleep, wouldn’t that be like trading a “mechanical” system?
This is a journey of self-discovery for all of us, and of course you need to follow your own path, but perhaps this is something to consider.
I’m not an expert and won’t presume that everyone feels the same way I do about trading, but all that churning of systems made me feel like I was moving farther away from the solution (and I still look at other systems, but won’t switch!).
Say whatever you want. I appreciate the comments. Yes it definately would feel good to master 1 trading method. I think that is why I’m concentrating on chart patterns. Yes, I’m dabbling in other things too and that is sometimes my problem, jumping all over the place and never concentrating fully on one thing. I am trying this time to concentrate mostly on chart patterns but with my technology background and love of statistics and numbers, I just find it hard to stay away from programming a mechanical system….