Manage the stress with nature/zen tracks

Finally, I found a nice method to take care about our health when trading. Yes, I really thing that trading ain't good for our health, because the stress involved by fast scalping sessions hurts your nerves...

This week I'm going to trade listening relaxing nature sounds, like rainforest, sea waves and birds. They really help relaxing me!

Check out these beautiful "songs":

http://www.youtube.com/watch?v=YjciQMz_irU&NR=1&feature=fvwp

http://www.youtube.com/watch?v=0bcVuDi9PIk&feature=channel

http://www.youtube.com/watch?v=-K6thJUU7hc&feature=channel

And my favourite:

http://www.youtube.com/watch?v=3WyRX8nCmsg&feature=channel

Anyway, you can also choose to listen to some "zen" tracks, like:

http://www.youtube.com/watch?v=utA9yENx-QA

http://www.youtube.com/watch?v=Tj1z29uxmhY&feature=related

http://www.youtube.com/watch?v=2qqmwsxFOK4&feature=related

They are all beautiful and peaceful songs, I suggest you to give it a try!

However this was a quite good week, I met great trend moves with many pips gain... watch out my last trade of today (9 pips profit):

The Ultimate Method

"When fun meets the truth"

I would have given this title to this my new review, but later I thought to call it "The Ultimate Method" just because it's more attractive.

Please read all before judge.

No, I'm not joking. I discovered the Ultimate Method and now I'm here to show it to you.

After months of study, screentime, price action observations I finally found how to enjoy a long-term success in the forex market, and even in all other markets!

Like a lot of other traders, I was looking for the holy grail system. Here follow a screenshot of the best I've ever created:

Don't you see how much accurate are entry and exits rules are? That was almost a piece of art... however I was looking for something more... the legendary holy grail system.

I tried to switch the timeframe to H4 then to weeks. I opened a trade the last year and it's still running on my MT4 platform, but I think I'll be able to bring back home about 50 pips closing it the next month. Not a good deal anyway.

I studied charts for over six months, 7 days a week, 20 hours a day... and I was very angry... no holy grail at all...

So... Why the hell some trader are able to make a lot of money with forex? How?!?

One night, I was very tired so I didn't reload my usual chart template... and voila, I saw something that I've never seen before: a clean chart.

I decided to watch it for some minutes. After one minute I wasn't able to resist to fill it with some indicators... but something captured my attention. I watched the chart with other eyes, and I found about hundreds of ways to make profitable trades... I noticed that prices always break some known levels... I discovered supports and resistances!! (or them revelance?)

Anyway there were some problems...

On higher timeframe R/S breakouts could create failse signal... and there were some hours over the day with choppy market conditions, with so many false signals!

However, I checked some timeframes, smaller: M15 then M5 then M1 and then the 1 or 5 seconds timeframes... I noticed that in those timeframe false signals were much less...

With another two month study I finally found out that price volatility is high on market open hours... so the "choppy market" problem was solved. I could feel the smell of the holy grail!

What about exits?

I added to my chart another 12 indicator to spot the maximum profit possible every trade... with no success. No one idicator was perfect... so... I was angry again.

Then I asked myself: What happen if I'll try to close my positions without any indicator?

Ouch! At a first try I blew up my new account, but with some other demo training I understood how to close my position when price stalls... or on some other R/S levels, following the price action...

OMG, I was feeling the market, and the market was rewarding me!!!

CONCLUSIONS:

You know this is a joke. I don't have a trade opened since the last year, lol.

Anyway, from this brief article (review) you can understand the revelance of trading using simple and easy methods, like R/S breakouts methods. By the way it's known that the real holy grail is only you. You are the one that can "feel" the market, you can judge much better than an indicator or a machine if a move is a strong trend or not. You are the only one that can "feel" the trend just monitoring the price action.

Don't waste your time adding indicator to your charts, just find the best timeframe, the best pair, the best trending maket and trade with basics. Indicators can help you sometimes, but you shouldn't use more than one or two indicator for your analysis.

Remember: discipline is the key.

Don't forget money managment.

You'll be also able to trade naked. No indicators. Endless profits.

Hope this helps.

Scalping the trend

This weekend I was finally able to trade during the New York session and the Oceanic session (Sydney/Tokyo).

The results are good, I traded only GBP/JPY with high probability entries. I decided to post a screenshot so you can (if you want) check some of my trades. I had some problem to show the whole image size, so I needed to edit it. By the way, If someone knows how to fix the image size problem, please contact me or leave a comment.... It will be very appreciated.

I tried to be very careful to open a trade only when resistances or supports levels were broken two times in a row. Anyway I'll post soon an "entry point guide" with complete explanation and examples of the most common entry points. That's because in fact, they are very similar and market creates the same cycles every moves.

This is my trades of today, during the new york open, hope you enjoy:

Please note, there's an error: the second trade was about 18 pips profit.

Five golden advices for beginners

Thousands of beginner traders lose their money due to the same errors.

Discern bad ways from the truly right isn't easy. For "ways" I mean everything -like brokers, advices, trading systems- that can make you surely lose money. In other words, scams.

So I decided to create a brief list of things to avoid if you want to reach a long-term success in the forex market:

1. Beware of self made guru: Surfing the web you can find a lot of "guru", traders that claims to be self-made millionaire traders, sometimes claiming to have reached enormous amout of money in just some months. Forex is not a "becomin' rich fast" business, so beware from those guys. Anyway keep in mind that there are true and professional traders that are enjoying great success, but they are living theirs life, so it's difficult that they want to search you to force you for some dollars. To be honest, you shouldn't even trust me without any personal experience!
2. Holy Grail exist... but it's YOU!: There are no "holy grail" system, but only experieced traders that uses high probability entry and exits. That's all. So don't waste your time filling your chart with hundreds of indicators, use your time to find a simple strategy that suit you best... then master it!
3. Avoid Market Makers if you can: Those types of brokers can be a choise only if you trade on high timeframes and spreads/order speed aren't a problem for you. If you are a scalper or even an intraday trader, avoid MM and look for true ECN professional brokers. The differences are enormous.
4. Ignore signal services: Entrust those signal service systems is like gambling to me. That's because the difference between win or lose depends by others, and you even need to pay for that kind of service. Not a good deal. If you spend some more time to improve your trading skills maybe one day you will find the method to make money by your own, but if you won't it's better to change business.
5. If you can, look for scalping or intraday methods: I suggest you to look for scalping system. Why? because scalping involve less screentime, less binds and more gains. If you trade on high timeframe you'll need to monitor the market for much more time, because your orders will stay opens for many time. Anyway the best reason to prefer scalping is that you can make much more money in less time. That's because if you trade higher timeframe you'll make much more pips, but with less capital risk (less lots per trade) and your ROI gain will be tiny. If you scalp, you can use higher lots, and, with more risk, you will get less pips but much more money. 100 pips made with a scalping method are much money than 100 pips made on a long term strategy. And you need less time to make 100 pips with scalping than the other ways.

Evolution of a trader

It may seems odd, but almost all trader's careers are similar. In other words, traders make the same steps -the same errors- before reaching success. Most of us have done so, and many other will do so in the future. I'm not the author of this article, I found it on forexfactory. This article can be very useful if you are still a beginner, so read it carefully!

Here they are:

The beginner time
Starting with a demo and buying when price goes up and selling when it’s going down. Everything fine that’s the way to do it, having monopoly money profit and opening a live account. I will be a Forex millionaire and I’m ready to make that pips.

The indicator time
Chart full of indicators, poor space left for some more. Peeing in the pants while taking a trade and immediately saying: Why the hell I took it? First chance to get out with only some pips lost, than the trend changes and would have made 150 pips if stayed with the trade. Changing indicators hourly because didn’t work. Being occupied with all that fancy colored indis and forgot several times to setup Stop loss and blow the first live account - blaming all system developer and indicator coders.

The signal service threads
Filling the account again and now doing it complete different, lurking in the threads for some secure calls => blowing that account again and blaming the damn traders that showed up with bad trades.

The EA time
I’m failing constantly because I didn’t follow the rules of my system, let a shitty machine do it for me, that thing has no fear and greed.
Buying in Ebay dozens of EA’s and blowing that account again - but faster.

The start up again or give up time
Staying out for a month or so but after stop crying, missing that FX feeling - but how to start again?
Remembering that some guys in the threads said that you should read and all that stuff, ok lets give it a last try. After half a year studying - starting up on a clean candlestick or bar chart with one or two indicators, drawing trend lines Horizontal lines, setting fibs after bigger moves, respecting pivot levels, psych levels etc. and VOILA that works, in all that books was reading also about money management and start to risk only 1 or 2% a trade. Halleluiah now a new successful trader is born.

By Cobraforex

Trend Follower M5 System

"Trend Follower 5 minute system" is one of the first system I traded with. I discovered this system on forexfactory.com, but the original article is here. It's a trend following system that use a LaGuerre (a modified RSI), MACD and a EMA crossover signal to detect good entry, according with the trend. If you're interested, I suggest you to visit the dedicated thread on forexfactory to learn more about this strategy.

This system is published for free, even if his author say that the selling price for it is about 300$. But winning the forex markets depends 90% on the trader and the other 10% on the system.

Buy signals come when:

- Green emas are above Red emas.

- Laguerre cross 0.15 level and ahead to north.

- MACD is above 0.

- EMA 5/8 crossover signal

It is very important that all these signals are on the same single candle or two. Anyway entry signals are not so difficult to spot. Exists are more difficult to spot and you need maybe to manage your trades closing half of the trade on the first pivot point and run the other half until the slope direction line goes red.

I've made a lot of pips with this system but there are some reason to don't consider it a easy strategy. First of all, you need a lot of screentime and study to avoid false signals and there are no way to code an EA for this method, so you need to monitor 3,4,6 or more pairs for the whole session.

To avoid false signal, be sure to open a trade only when the trend is going in your way. If you want to pick only good signal, you have to look for a "breakout", usually on a S/R level.

My final thought: In my opinion TF is a good system, but it depends too much from indicators. Watching six charts 10 hrs a day finding only few signals a week is not a great deal. However the system can be profitable and it is a good system for beginner or even for exerts as a confirm's signal. Entry are easy to spot, it needs just some practice. But exits are much less easy.

My personal rate is: 8/10