Equity:853.03 - Longer and simplier, and a book

Lost the trade in the previous post, and now use simplier theory.

Using Daily Candles now. What goes up must come down. From the chart, it seems like the trend is going down slope again. I entered the trade when it rose up a little (After 3 small green Candles). Set my Stop-loss at the previous high.

This is a longer and slower strategy, which I suppose will take around 3 working days. In the mean time, I will buy a Forex book and absorb it.

I searched the net and quite a few people mentioned about Kathy Lien's book, which is the below. Think she used to be a Forex strategist for one of the big investment banks. So, it is pretty cool for someone high up in the corporate ladder to expose the knowledge and strategy she knows.

Think I will order the book online now, since its like 25% cheaper than buying from a bookstore. Sad that bookstores and many physical shops are declining due to internet stores. But well, change is the only constant. If you are Singaporean and want to purchase books online, you can try what I am using, Fishpond.com.sg.

Equity:869.17 - I'm in

Entered without confirmation of a Red candle.

Reason is because if it were to dip by too much, my Stop-Loss gap will be very big. Previously, the candle surged upwards and bounced back again from the resistance line, which is now my Stop-Loss.

Equity:865.83 - Target, and a life lesson

The above is currently what I am waiting for. Just waiting for the Hourly chart to dip, and I will enter the game. It is strongly backed by a downward trend in the Daily chart.

Forex aside, today I learnt a life lesson. I have come a long way since childhood, being a socially awkward person to someone who can now speak pretty well in some groups of friend.

But one of the barriers I haven't cross is occasionally, I get angry when my popularity gets snatched away by someone else. I really hate myself for it, and from my point of view, it is really petty of me. But somehow, I have no control over myself, the self where it naturally have certain emotions. And everyone else also have a certain set of unique emotions to react to different situations.

You can see it like my logical self is trying guide and understand my little brother, which is my emotional self. Today, the same situation arose, and good thing is everyday is a learning day. But the most crucial and difficult part is not to run away from it. It is meant to teach you something and improve yourself.

How I dealt with it is that I realized that the more I dislike or hate someone, the more I should talk to the person. It is because the person, unknowingly, has power over me. The more angry I am with him, the more I implode inside. Especially if that someone is the most popular in the group, the more I should converse with what the person say because

• It helps to build my voice in the group
• It also helps me to hate the person less

Equity:865.83 - Died

And that's how it ended, failed.
The horizontal line is the Stop-loss.

Equity:896.13 - Haven't end

Previous trade went back down again, but it is still surviving.
Not sure how it will end, but I reckon a good way to judge will be to look at the bigger picture, which is the Daily graph.

So from how the above looks, it still seems more like an upward trend. Hopefully it breaks through the previous high soon.

Equity:918.30 - Getting close

Did well yesterday, and it seems I am close to my Limit-stop again.
Hope this is not lucky but a good strategy.

Equity:890.26 - Metallica in Singapore

I will be going for my first ever rock concert, and it is also my favorite band in the world. Metallica!
It has been 20 years since they last came here. I have been listening to their music since I am around 15 years old, and man... its been 15 years already.
I am old :(

Previous trade in the previous post, I won. And the above trade I just placed follow the same logic. Actually, I am still using most of the rules I used a month ago.

• Limit-Stop at 2 times Stop-Loss
• 20 SMA crosses the 50 SMA, wait for a small dip/surge before buying

Just that the difference now is that the above rules must fulfill 2 charts instead of one. Look firstly at the Daily graph first. If condition hits then proceed to the Hourly chart.
So that in this way, there is more solid confirmation of 2 forces driving it, the Daily and Hourly chart.

Equity:848.90 - Again

My account dipped again, and I stumbled upon another idea.

Use 2 graphs, one long term, and one shorter term.
I will use the Daily candle chart and Hourly candle chart.

From above, I see a downtrend in the daily chart, proceed to look at the Hourly chart.

From the Hourly chart above, there will be a sell opportunity when it dips. This is aligned with my previous 2 principles, which is to

• sell when the 20 SMA is under the 50 SMA.
• sell after a rise

So, I will be waiting for the AUD/USD to reverse downwards before I enter the trade.

Equity:872.96 - Going back to basix

After accumulating many rules and still depleting my account cash, I go back to the basic rule. The rule which started all the other modifications afterwards.

• 20 SMA crosses above 50 SMA, possible strong buying trend. Likewise for selling.

Entered the above trade today. And I tried to keep the stop-loss a smaller distance.

Equity:864.24 - Homework (Daily charts)

Equity:882.76 - Weekend Homework

Equity:882.76 - New theory

New strategy is to try to predict and enter the trade before the 20 SMA crosses the 50 SMA. This is likely to happen when the 2 SMA lines starts to converge towards each other after spending some time moving apart (like the Leaf shape).

Entering the trade early provides an advantage. The Stop Loss, which I usually set at the previous high/low, is smaller. And the potential to have a bigger profit is also bigger.

Since many people follow the strategy of entering the trade when one SMA line crosses over the other, I hope this new theory of mine will be able to beat the market.

Equity:894.67 - Additional rule

• With so many 20 SMA crossing 50 SMA, choose only those that have risen for some time, and it is time to fall (like the above trade I just entered). What goes up must come down. Likewise for those that have fallen for some time.

Equity:896.31 - What goes up must come down

Lost another trade just now. Due to sudden surge in USD. It is not related to the above chart. The above chart is just to show you the difference when I use a 250 candlestick chart.

Previous few posts, my graph only consist of 100 Candles. From now, I will be using 250 Candles in a graph. I can see a bigger picture from it.

Most of the graphs of other currencies, when view in 250 Candlesticks tell you the same story. What goes up must come down. Hope I start changing my fortune soon!

Equity:923.14 - Back to square 1

Lost 1 trade, and manually exited another yesterday. 2 things I learnt, 

• Even when you want to manually exit a trade, use the same strategy as when entering the trade. Sell when there is a dip.
• Try to trade before or during the start of the formation of a Leaf. That way, you are able to set your Exit-Stop further away.

Equity:946.88 - Summer holidays

Heard from one of my college that July and August is the Summer Holidays for US. So for this period of time, maybe the stock and forex market might be more quiet.

Regarding the previous post, I just cancelled the trade before I travel to Malaysia, as there was not much movement.

The below is a trade which I entered last night, and it has yet to hit the both stops.

The blue circle above is the point I entered the trade. As you can see, I did not wait until the 20 SMA cross the 50 SMA, which was one of the rules I have been using for a long time.

My strategy now is just to visualize and predict the movement of the 20 and 50 SMA line. Ideal situations are when the 2 lines form a 'Leaf' like shape, which opens in the start, expands at the middle, and closes at the end. The bigger the Leaf shape, the better the profit. Therefore, it is good to catch it at the start of the Leaf.

So for the above, I saw that the previous Leaf was closing. It looked to me another leaf was forming downwards, the situation which I hope will happen. If it does happen, I earn 2 times the stop loss. If it does not, I lose the stop loss. In other words, on the long run, if I lose 1 trade and win another, I will still have a good profit.

The only other rule which I still follow is to buy after a dip. I buy after the trend goes through a slight dip, and the previous candlestick must a rise (green color). The opposite goes for a sell trade.

I am off to eat my dinner soon, hope the trade goes well!

Equity:925.25 - Upwards or downwards?

Lost the trade from the previous post.

The above has just been entered. The stop lost is around the same distance as the limit stop. Maybe it is because I see  from the chart that it has already been going upwards for quite sometime.

Another reason I entered the trade was because I think there is news that US will taper its lose monetary policy next month. Therefore in the long run, it should be strengthening.

Equity:944.36 - Another one

Lost the previous one, and re-entered the trade again.

Equity:952.01 - Another trade

Enter a first trade today.
Set the stop loss higher, and also it seems like the beginning of a rally downwards after 20 SMA crossed the 50 SMA.

Its close to 7pm now, and I am off to get Macdonalds for dinner~

Equity:952.99 - Nailed

Above is from the trade last night, and I made around $35. Yay!

Blue circle is the entry point, and bottom horizontal line is my limit stop.

:)

Equity:917.00 - Bet of the day

That is my bet of the day.

Currently, I am puzzled and uncertain about my rules. I am just trading on the basic theories, which is to sell when it is the start of a downtrend (20 cross 50 under). And also to sell after a little rise.

What I am doing differently in this trade is that I set a higher stop loss, which paid off for me as I avoided a spike upwards, as seen in the graph.
Hope this trade goes downwards and hits the limit stop when I check the results tomorrow.

Night~

Equity:915.39 - Weekend homework (8 hours)

Equity:915.39 - Weekend homework (1 hour)

Equity:923.85 - Before market closes

Previously, the 2 trades I had, 1 lost and 1 won. So there is not much profit or loss.

Just placed the above trade, and came out with an additional rule.

• Do not trade if the realistic profit cannot be at least twice that of the stop loss.

Usually, I will place the stop loss around the previous high/low, like the above graph. I skipped many trades yesterday as the stop loss was simply too high. This is so that when I have 5 win trades and 5 lose trades, I will be able to make more than a break-even.

Good luck!