759 - Manni

I am screening 24 currency pairs now, the same as MasterGunner.

I am thinking of entering the above trade, as a Big Shadow appears after being rejected by the Support zone. Currently the Candle is red again, might see how this current Candle closes first.

This trade of mine is not going too well. But I will see how thing develop. Might close it if the current Candle closes as a red Big Shadow.

Also monitoring this one, as a Big Shadow appears after the double zero zone, which is also a Resistance zone. The Candle is also in the red now. The Big Shadow is also not that distinctive.

The above has a massive Big Shadow, very tempting to enter the trade. It has rebounded fiercely from the Support zone.

Another of my current trade, doing very well.

751 - Fast and furious

My 2nd trade of the night.
From what I learnt from Naked Trader book again, there is a double bottom.
And the 2nd bottom is slightly higher than the previous bottom, which makes it a more certain Bull.
Just that I entered the trade a little late. But I am gunning for big.

750 - MasterGunner

http://forums.babypips.com/show-me-money-swing-trading/50672-forex-portfolio-how-gain-consistent-profits-staying-market-24-7-a.html

Currently I am learning from the above forum-er in BabyPips.

You can read from the beginning of his thread, which has more than 100+ pages now.
The introduction of his thread is very enticing, and I think the number of pages in his thread shows that he should be taken seriously.
Was reading his thread in office today, and I jumped straight into action once I am back home from office.

Above is a trade I just entered.

I am currently following 16 different currency combinations now.
And to scan them fast, I follow 2 quick and simple steps.

• Lookout for resistance/support horizon
• Read the Price Action

The above current price is along a Resistance horizon.
You can see a Big Shadow and also a Pin developing.

I now use the minimum micro-lot, which is 1000 lot. This is because I will be looking to trade many charts, to diversify. Therefore I can only trade the minimum for each.

One important thing about MasterGunner is that he always aim big. That is why you do not see me place a Limit Stop in the above chart. In fact, he normally will not use a Stop Loss too. He aims for very big movements, and will only give the trade up once he see that the Price Action is working against him.

Anyway, my above trade is also going against how he trades. He is actually a Trend trader.

For losing trades, MasterGunner will hold them for less than a week. For winning Trades, he can hold them for 2 weeks and more.

751 - Understanding history

Today, I spent time looking at monthly charts. I think that it is actually the best way to learn about the market, and how it works. Surprisingly, every chart has a beautiful story to tell. And good thing is, I naturally love history. I have always loved to visit historical places.

So what have I learnt today? The biggest movement in markets is actually the ambitions of the governments and their central banks. What they plan, and announce they will do, will have the biggest impact that could last for many months.

Take a look at the chart about. Due to my weak knowledge of the economy, I will only point out 2 obvious movements in the JPY/USD Monthly Chart.

• USD slide from 2007 onwards to 2012, as 2007 is the start of the their QE program.
• Around close to 2013, Japan's Abe announces that the JPY is too strong, and wants to weaken it.

Above is the UK pound vs US$. The crazy slide in 2008 is due to Gordon Brown's policy to devalue the Pounds, in an effort to prop up their economy.

If you know the intentions of different governments, you will have hell a lot of an easier time. Looking only at short term charts might drive you mad, as there are many instances that some short term happenings, rumors or announcements will bring your trade to a Stop Loss.

The point is that is it good to know the bigger picture. If there is an announced intention of a country's governments, it is better to start shorter term trading in the same direction. 

756 - SGD

Bet on the USd to appreciate against the SGD. There is actually a  Bullish Big Shadow forming at the previous low. But the main reason why I bet on SGD to fall is because US job data showed positive results, and the motivating sentiment should be likely to last for days or weeks.

745 - Chat with uncle

Had a chat with my uncle, who is also a trader. After awhile, I realized that he and my other trader friend in army also trade in the same way. They actually trade the market, and less so focus so much on technical analysis.

The difference between Market traders and News trader is that Market trading is more long term. News trader takes action once a news is realized, taking advantage of the emotions of people when the news are released.

Market trader read often and update themselves. They are like a compilation of News trader, who gather information and try to use it to make sense of the market. They come to a conclusion where the currency should be heading. That is why it is important to understand the fundamentals of the market. Using various reports to understand where the market will be heading, and how it will affect the currency.

My uncle mentioned that the Market is more important than Charts. Does the Market moves the Chart or does the Chart moves the Market? Understanding the market will give you a good prediction about what will happen to the chart. Spend more time thinking, understanding and predicting the market, then you use the charts to help you enter a trade.

750 - Price Action Notes

Price Action strategy mainly consist of 2 most important factors.

Resistance/Support lines and Price Action. They have to exist together to form a confluence.

The faster way to look for any opportunity to trade this strategy is to actually scan for any Price Actions signals first. 

• Pin
• Big Shadow
• Head n' Shoulders
• Inside bars

The reason is because these signals happen rarely, and there is no point in wasting time looking at Resistance/Support zones when the signals are not there yet. 

Also, use 4 hour instead of Daily charts, as there is a higher frequency of Price Action. 4 hours is also the minimum recommended by Nial Fuller, any lower time frame will have a plenty of noise on the chart.