Try this.
Set your pivot point start time to London 12am.
Why?
Because FX Volume is highest during London Session. It only makes sense to align ourselves with London.
Thursday, June 6, 2013
B2B (Back to Basics)
Trading is simple, but it is definitely not easy.
What defines a good trader? What makes a good trader? How does one become consistent?
I think life consists of many basic rules - Rules that are sometimes so basic that we tend to overlook them. And yet, once broken, has a big impact on us.
In FX Trading, there are basic rules that cannot be broken. One very good example is that of maximum loss per trade. Let's just say you have been trading consistently and you ascertain that your trade set ups are 90% accurate. So now, you found this set up and pretty certain that it is a 90% probability winning trade.
You initiate a position that is the same size as the previous trade. However, this time around, you don't even bother to calculate the stop loss amount because you are extremely confident that you will win the trade. All of a sudden, you notice price moving against you, and to your horror, your stop loss is actually 100 pips instead of the usual 30. You stand to lose 5% of your capital with this trade.
By the time you look at your position, you are 50 pips in the red. You tell yourself it is a 90% accurate set up and the price will move in your favour soon. You wait it out, but price keeps moving against you. After 2 days, you are mentally exhausted from taking the hit. You close the position, losing 10%.
That is a scenario that I have personally experienced on my trading account.
What I have learnt is that everything in life have basic rules - Rules that cannot be ignored or overlooked. Because once you do, there will be consequences. In the above example, I was very confident that my set up would work. In fact, I was so confident that I neglected the most basic of rules - which is to ensure that my maximum loss for this trade does not exceed 2%.
So... Basic rules ARE important. In fact, all the talk about trading strategies and trading psychology cannot function without first following the basic rules.
Other basic rules to consider:
1. Maximum loss per day
2. When to trade (optimal time of the day)
3. When NOT to trade (upcoming news release)
4. No trading on Mobile Devices
Back to Basics we go.
What defines a good trader? What makes a good trader? How does one become consistent?
I think life consists of many basic rules - Rules that are sometimes so basic that we tend to overlook them. And yet, once broken, has a big impact on us.
In FX Trading, there are basic rules that cannot be broken. One very good example is that of maximum loss per trade. Let's just say you have been trading consistently and you ascertain that your trade set ups are 90% accurate. So now, you found this set up and pretty certain that it is a 90% probability winning trade.
You initiate a position that is the same size as the previous trade. However, this time around, you don't even bother to calculate the stop loss amount because you are extremely confident that you will win the trade. All of a sudden, you notice price moving against you, and to your horror, your stop loss is actually 100 pips instead of the usual 30. You stand to lose 5% of your capital with this trade.
By the time you look at your position, you are 50 pips in the red. You tell yourself it is a 90% accurate set up and the price will move in your favour soon. You wait it out, but price keeps moving against you. After 2 days, you are mentally exhausted from taking the hit. You close the position, losing 10%.
That is a scenario that I have personally experienced on my trading account.
What I have learnt is that everything in life have basic rules - Rules that cannot be ignored or overlooked. Because once you do, there will be consequences. In the above example, I was very confident that my set up would work. In fact, I was so confident that I neglected the most basic of rules - which is to ensure that my maximum loss for this trade does not exceed 2%.
So... Basic rules ARE important. In fact, all the talk about trading strategies and trading psychology cannot function without first following the basic rules.
Other basic rules to consider:
1. Maximum loss per day
2. When to trade (optimal time of the day)
3. When NOT to trade (upcoming news release)
4. No trading on Mobile Devices
Back to Basics we go.
Wednesday, June 5, 2013
Blog Layout
Hi all,
I am thinking of changing the layout of my blog. I need something clearer and something more neat.
Any suggestions?
I am thinking of changing the layout of my blog. I need something clearer and something more neat.
Any suggestions?
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