I am starting this thread so i can hopefully help people on there way to becoming consistent disciplined traders.

Foreign Exchange is a hard beast to tame and most people as you read all the time usually lose everything they put in and it's usually because of poor discipline and because people are impatient.

If you think that you are going to demo trade for a few months and then start a real live account and make heaps with out doing your time in the market and working towards getting a set of rules that suit your style and then having the discipline to follow them then you are dreaming and you will find your dreaming will quickly turn in to nightmares!

For 2.5 years i battled with the market, just like most people that have been learning how to trade for 1 or 2 years i have tried many indicators, many systems and read many many ebooks.

I would have to say that i now understand if i had the discipline back then that i now have i think almost all of the systems that i tried would of been profitable, some more then others but i'm sure looking back that i was always focusing on the wrong things and didn't have the mental strength to stick to the trading plan of the systems that i was using. (Hands up if this sounds familiar)

I remember i went through periods where i really thought i had finally made it, i had been profitable for almost a week and the indicators that i was using were working so well and then the market would break out of the range that it had been in all week and in one foul swoop would take my weeks profit and some all because i didn't really have a trading plan i just had some indicators that worked well in a ranging market.

So what i am going to do is just introduce some ideas, key points which i use everyday to keep me out of the wrong trades and in and out of the right trades.

I'm not a guru or anything like that and i still make mistakes just like last night, i had price alarms set up and at 4am in the morning they went off so i charged into my office and made a huge mistake, i rushed into a trade with out taking time to look at all my rules and with in the next couple of minutes after looking at all my charts for me it was an easy decision, take the $78.38 loss because it was a silly entry and i could see that the downside of that trade could damage my account, in the past it wouldn't of been so easy to take that loss and many times i have let that loss turn very nasty but not now as i have a system and if i make a mistake my rules don't change. (The trade quickly turned my way and i would of made a nice little profit but i have no regrets as i would rather miss out on profit then take a big hit on my account from a poor entry.)

I only trade the EUR\USD

Most of my system is based on Maths and Zones.

First get a chart up on a demo account and add a Daily Range Calculator Indicator and a Auto Pivot Indicator (If you want the one's that i use you will have to PM me an email and i will send you them as i can't find a function here at MMG to attach them)

As an example i will post a chart which will show what i mean about Zones and the Daily Range and explain why they are so important.




Now price as we know can move a lot more then just 100 pips above or below the Daily Pivot so this is just 1 thing which alerts me that we may be getting into a position to look for a trade.

You think about what has really happened when the price moves 100 pips from the daily pivot and gets near the S1 or R1, people that have gotten on the trade at the Daily Pivot and got the direction right are now looking for a spot to take profit and that is where the support and resistance points are so important because lots of people use them to set profit points and set there orders up off of them.

Once again you can't just trade off this idea alone but it's a very important part of planning a trade.

Now the thing about trading off the Daily Pivot is that most times you are in the middle of the Daily Range so if you get it wrong it may be some time before price comes back to where you are, if it goes to the edge of the daily range and takes all day and you are - 100 pips then all the pivots reset because it's a new day your account could be in serious trouble, where as if you get it wrong when you are on the edge of the Daily Range you are a good chance of getting out at Break Even and even in profit if you use the right Money Management and the right strategy.

That will be enough for today and it may be a bit confusing but just fire some questions at me and i will help you understand where i am coming from.

I better put a Risk Disclaimer up as i am not Qualified to give Financial Advice yet this is just a thread designed to show how i trade, i have not taken into consideration your Financial Situation or Needs.

Risk Warning Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary.

These ranging conditions that we have had all week is starting to get to me, i just took the worst trade.

Broke all of my rules and was lucky to get away with a net result over 2 trades $12.45 profit.....

I took the first trade way to close to the Daily Pivot and way inside the Daily Range, i only took the trade because it burst through the bolinger band on the 5 minute chart which is not by it's self a good enough reason to take a trade.

Here is a picture of it:



Very happy to of gotten away with such a shocker!

GP

PS: Here is a couple of websites that i check each day, they have both proven to be very accurate most times with there analysis:

LM - Daily Video EUR/USD

GainScope / Forex Signals



This post has been edited by Globalprofits: Jun 18 2009, 11:02 PM

are you sure that last trade wasn't during some kind of news release?
also, what TP and SL are you using?

Yes i was sure that it wasn't during news and i don't use stop loss's as i monitor my trades and most of them don't go much longer then 5 minutes, my take profit depending on how close to the edge of the daily range i am is either off some EMA's on the 5 minute chart or 5, 10 or 15 pips.

This trade was just a very bad entry for me and my rules, i almost broke all of them!

GP

This post has been edited by Globalprofits: Jun 19 2009, 05:15 AM

I finished the week with a few nice trades which i will use as an example of how i trade.

I placed my first order a little bit early and ended up closing it for a small loss of -$17.30 but made $128.55 on my second entry and $190.06 on my third one.

Live Go Markets Standard Account




There was a lot going for this set up, it burst out of the Bolinger Bands with power on the 5 and 15 minute charts and the 1 hour charts and then got through the R1, Weekly Pivot and 1.400 which was a lot of Resistance and it made a weekly high but couldn't close above it.

So for me it is just common sense that people would be looking to take profit at this area, the indicators that i use had all reached the areas that i needed them to so this was an easy trade.

There was no news last night so it was all just TA and common sense, you should be thinking like this every time you go to trade, you need to know where and why you are going to be in the trade, how and why you are going to exit a trade and just remember that forex is made up of a lot of people just like you so that is why common sense plays a part, you have to remember that all of these other people have to set there orders and take profits somewhere and normally they are at key points.

You just have to be patient and get some time in the market and you will start to get a feel for the Rhythm of the market.

Have a great weekend and feel free to ask as many questions as you like.

GP

This post has been edited by Globalprofits: Jun 19 2009, 04:03 PM

Hi GP,
ts fr sharing yr strategy,i always wanted to learn from an experienced n succesful trader n not many people are willing to share their success fomuale.
anyway, to start with, I would like to have both the indicators u mentioned in my MT4-forex meta and gomarkets.can u please send me these indicators?
tks n regards
mrudula




This post has been edited by msvkar: Jun 24 2009, 03:07 AM

Hello Globalprofits, can you send me your 2 indicators, i wanna try to understand what you have post here comparing my chart. Sorry i could not send you pm, maybe too new to this forum.

Hi MelisaQueen,

I have sent you a PM with an email that you can then send me an email address that i can send you the Indicators to, i hate posting email's on forums, they get filled up with spam.

msvkar,

I have sent it to you as well.

Sorry that i have not been around as i said in my other thread we had to deal with a tragic death in my wifes family which has not been much fun.

GP

Dear GP:

I've been reading your new thread and would love to check out your indicators if you have a moment to send them. I'm fairly new to ForEx, but I'm into it, studying a little every day. I got the Megadroid, but after trading on a $10K demo account on Forex-Meta, it wouldn't trade on the $1K live account I set up with FXDD, and Megadroid support has been a wash, telling me to be patient, etc...when I'm telling them the robot hasn't been trading at all for weeks. Haven't tried FapTurbo yet. In the meantime, I'd like to be proficient in placing manual trades, and have had some success with LMT...

Let me know...

Regards,


CBrigante

Hey there CBrigante,

I will pm you my email and then you can email me and i will send the indicators to you.

As for the problem you are having with Forex MegaDroid, are you running it on default and if you answer yes to that then what you need to do is work out the 2 hour window that MegaDroid looks for trades and sit and watch your brokers spreads, they may be widening as this window has very low liquidity because most of the worlds markets are not opened so if you find the spreads are more then 4 most of the time during that period then you need to find a broker with fixed spreads or MegaDroid will hardly ever take a trade for you.

I hope that helps.

GP

Hi Globalprofits, I follow your topics and posts here and find them very helpful. I've been testing a demo account with zulutrade.com; I was curious to see if you have ever used a site like this?

Sorry i missed your post, i signed up to follow a lady's trades once but i wasn't that impressed.

It's just a clever way to get you to sign up to a broker through them.

GP

thanks! i enjoyed reading your post the other day
although some people say that only a handful could really be successful on forex trading.,

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