Archive for October, 2009

End of Month..


Well October is over trading wise and it’s been a cracking month. I certainly feel like I’m settling into a nice routine of late and it’s certainly paying dividends results wise. I stepped into Forex back in late June and I thought how hard can this be? I always thought horse racing was tough but Forex takes everything to a new level; discipline, emotions, money management. Everything is multiplied. However, I really think the more time I’m experiencing the markets, the more comfortable I’m feeling. My thirst for knowledge is pretty big and if I’m not trading I’m either reading some articles or doing some research on my strategies. I’m starting to understand each pair I trade and how they correlate to each other. I’ll never stop learning but I can honestly say I am a long way on since I started a few months ago.

Next week is a monster week for news releases with NFP, GBP cash rate, US Fed release and Aus RBA cash rate. GBP is expected to increase their QE and Australia is expected to raise their rate for a 2nd month. Any deviations should cause quite an impact and I’ll hopefully be positioned well enough to take advantage if anything is wide of the mark. NFP is always entertaining. One thing I haven’t managed to work out is why the NFP can be so far wide of the mark when the ADP NFP is released two days prior to it. Surely that should give a leading indication? Answers on a postcard please…

Enjoy your weekend, I’ve got the Abu Dhabi F1 to watch, should be fantastic!

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Fantastic week, discipline and gumby's…


This week is fast becoming incredible and I’m feeling on top of the world. These purple patches seem to occur once a month without fail lately and it’s always a timely added boost to the monthly gains. I’ve had two trades this week go to -24 pips, 1 away from my SL before slowly making the climb back up and hitting my scalp target. These types of trades make for hard viewing but keeping the discipline is equally as hard. I’ll talk a lot about discipline throughout this blog as I feel it’s priority number 1 when it comes to dealing with any form of trading, gambling, car racing etc.

You can have all in the talent in the world but without discipline you’ll never get anywhere. Keeping your cool when things get bumpy is extremely important and I try and help others keep their discipline and focus in the daily trading room I use. We are all mostly beginners at various stages of our trading careers and we all have our weaknesses. The main benefit of a trading room is the ability to share ideas and help each other work on various weaknesses/strengths. It is also a massive help when it comes to breaking up the boredom of a trading day, there are many dull hrs and being able to have a chat really helps.

The US GDP q/q release was always going to be an interesting event, I personally thought the forecast of 3.2% was high but as I hedge the news, I am personally not too fussed as to whether it’s over or under. It turned out to be higher than expected and caused a massive upswing on EURJPY. I ended up exiting even a little too early but whenever I can take home 65 pips, it’s a welcome bonus! Speaking of news, the NZD release late last night wasn’t a firecracker but I did manage to gain 15 pips on the short. I await my rematch with it next time out, we still have unfinished business.

There’s an interesting thread on FF here and I have to say I’m amazed by the rudeness of some people. I guess there is no helping some people. Any community should be a friendly one and rude, arrogant members really need to wind their necks in. Nobody can argue with the that fact pips are not the be all and end all of trading, they simply tell part of the story. Anyway, I’m not going to let a few gumby’s get in my way. Onwards and upwards..

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Fantastic week, discipline and gumby’s…


This week is fast becoming incredible and I’m feeling on top of the world. These purple patches seem to occur once a month without fail lately and it’s always a timely added boost to the monthly gains. I’ve had two trades this week go to -24 pips, 1 away from my SL before slowly making the climb back up and hitting my scalp target. These types of trades make for hard viewing but keeping the discipline is equally as hard. I’ll talk a lot about discipline throughout this blog as I feel it’s priority number 1 when it comes to dealing with any form of trading, gambling, car racing etc.

You can have all in the talent in the world but without discipline you’ll never get anywhere. Keeping your cool when things get bumpy is extremely important and I try and help others keep their discipline and focus in the daily trading room I use. We are all mostly beginners at various stages of our trading careers and we all have our weaknesses. The main benefit of a trading room is the ability to share ideas and help each other work on various weaknesses/strengths. It is also a massive help when it comes to breaking up the boredom of a trading day, there are many dull hrs and being able to have a chat really helps.

The US GDP q/q release was always going to be an interesting event, I personally thought the forecast of 3.2% was high but as I hedge the news, I am personally not too fussed as to whether it’s over or under. It turned out to be higher than expected and caused a massive upswing on EURJPY. I ended up exiting even a little too early but whenever I can take home 65 pips, it’s a welcome bonus! Speaking of news, the NZD release late last night wasn’t a firecracker but I did manage to gain 15 pips on the short. I await my rematch with it next time out, we still have unfinished business.

There’s an interesting thread on FF here and I have to say I’m amazed by the rudeness of some people. I guess there is no helping some people. Any community should be a friendly one and rude, arrogant members really need to wind their necks in. Nobody can argue with the that fact pips are not the be all and end all of trading, they simply tell part of the story. Anyway, I’m not going to let a few gumby’s get in my way. Onwards and upwards..

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A nice start…


So far this week has been very pleasing, Monday got the week off to a flying start and a 90 pip gain on the day. Quoting pip totals is actually one of my pet hates, I’ll explain why in a minute. Tuesday was also a strong day closing with +90 pips again. This time most of my gains were through a news trade and my new strategy I’ve been working on for a while which I’ve just gone live with for a small % risk compared to what I’ll be doing if it continues to show this great potential. I’ve been trading it on demo for 3 weeks and whilst demo trading is important, I feel there is no replicating trading with real money. You need to know how it performs under human interaction, emotions and so forth. On demo you have zero emotion and you can easily talk yourself out of a losing trade blaming it on x, y or z. Live accounts do not lie.

Anyway, onto why I dislike people quoting pip gains as a means to how successful a system/strategy is. Let me use two examples of two different strategies. Strategy A uses 3% risk and has a SL of 150 pips. Strategy B uses 3% risk but with a 50 SL. Strategy A makes a total of 1,500 pips a month…sounds amazing right? Whilst Strategy B made 750 pips.  Joe public would pick 1,500 pips over 750 pips every day of the week based purely on the higher amount, I know I did when first starting. However, look a little deeper and do some simple maths and you’ll find it isn’t as straightforward as picking the higher total. I do the following to work out a % increase for any strategy. Divide the risk % by the SL which will give you a % per pip. For strategy A that gives each pip a value of 0.02%, for B it gives 0.06%. Triple the value. So strategy A made 30% over the month and B made 45%, a massive 50% better return. So before diving straight into something with astronomical gains, stop and have a little think and work out if it’s actually any more beneficial than something with less pips but have % value.

Where Did I Begin?


Well after a great weekend of 24 hr karting, it was back to business today. I thought I’d get this blog underway with a brief description of what strategies I use to try and make a living from trading.

My Father came across a website that gave independent reviews of various paid services such as horse racing systems, football bets, spread betting, practically everything to do with gambling. One particular method caught his eye and from there I decided to do further research and thus began my journey into the Forex world. The software is called TUFXP (The Ultimate Forex Predictor) and the gentleman on the site had been detailing all of his trades since trying the software on a 30 day money back trial. The website selling the software gives the usual sales pitch of it being a glorious, never seen before, simple point and click method to make very attractive money. It’s very easy to be sucked into well pitched sales blurb and it makes for impressive reading but you should never take anything at face value especially when someone is trying to sell you something for a large amount of money. 

 

I did some serious googling and reading and quickly found out that it wasn’t as clear cut as ‘point and shoot’. However, it was clear that the method detailed on the independent site held some promise. As it was this method that attracted me in the first place I decided to take the plunge and take the 30 day money back trial. TUFXP is published by Canonbury who after a little research are a trusted company and do honour their guarantees so I felt it was worth the purchase.

 

I’m not going to go into too much further detail about TUFXP as I’m certainly not trying to sell the software to anyone and do not want to this to seem as  just another sales pitch. However, through a lot of hardwork and research and discipline I have managed to make TUFXP work for me and it forms the backbone of my trading portfolio.

I decided a couple of months after purchasing TUFXP that it would be smart to try and learn other strategies away from the software. As I was a complete beginner I was a little unsure of how I’d be able to do this but a few clicks sent me to babypips. This is a fantastic place to start for any Forex beginner and gave me a good starting point. I also found forexfactory which has to be the most active forum I’ve ever come across. It contains literally thousands of ideas and is full of useful tips and knowledge.

To cut a long story short, I now trade major news releases and a simple MA crossover strategy which I’ve made my own with  some help from forexfactory. I’m also working on something which I’ve created from scratch and so far in demo live testing, it’s proving a revelation. 

So, there you have it, a little insight into what I’ll be discussing here and how I try and make this tough game pay. Forex is vastly more complex and deeper than horse racing and you could spend weeks and weeks reading the thousands of posts all over the net about Forex so it makes picking a strategy very tough and it can easily become over bearing when you read people’s posts claiming to make 1000’s of pips a month. My advice would be to take your time and make sure you research and really study anything you’re thinking of trading. Go that extra mile and eventually the work will pay off.

Zulutrade


So, why the link for Zulutrade? Zulutrade offers the chance to follow signal providers trades. You’ll see very impressive results in the performance section but I have  a few warnings. Firstly, no signal provider is trading on a live account, they only allow demo accounts. This doesn’t mean the signal provider isn’t trading live it just means that all trades are run on a demo account unless it’s bridged through something like Dukascopy. Secondly, a lot of the top performers use massive, massive stops with complete disregard for money management.

I plan on copying every single I trade I perform on my live account onto a demo account and hopefully gain a few followers a long the way. I’ll make a more detailed post about my trading strategies later. I think it’s a great way to share good strategies and it really highlights any weaknesses in a strategy. I will not be running ridiculous stops and neither will I be scalping for 2 pips. Let the games begin..

Introduction.


Hi, welcome to my very new blog. I’ve decided to join the blogging roll as a means to write down my thoughts and ideas that I seem to have everyday that I usually end up arguing with myself about!

I used to write a blog detailing my life whilst gambling for a living but through lack of updates it fizzled out to nothing so here I am for take 2. This time I’ve turned my attentions to Forex.  I’d never even heard of Forex until this year and ever since then I’ve been hooked on learning as much as I possibly can.

This blog will serve as a means to update my results, ideas and everything else. I’m madly into motorsport and participate as much as I can when the time allows.

I hope everyone can gain/share something from this blog, it should be a fun ride! My ultimate goal is financial freedom away from Horse Racing as the Forex markets offer vastly deeper liquidity and a chance to really make some big money.