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Forex Journey Interview on Forex Education

Hey Team!

Click here to hear a recent interview I did with Interviews with Prosperity on the importance of Forex Education.

Happy Trading!!

Forex Education Tip – 5 Steps to Successful Forex Trading

Close to 95% of all Forex traders will lose money. We're not just talking about novices, either. Whether you trade Forex for a living, as a hobby or just for fun, odds are against your success. That's a simply astonishing fact. However, the remaining 5% of Forex traders somehow manage to break even and there are those lucky few that actually make money in the currency market – consistently!

Like the TV show says … “How’d they do that, anyway?”

That's the million dollar questions, isn’t it? Countless books, seminars and expos have been hosted to answer this very question. That sad fact is that thousands of books have been written and countless seminars and interviews have been conducted in an attempt to answer the magic questions. The reality of the situation is that there is no magic formula; no one single Holy Grail of Forex trading.

So what do the successful traders do that the rest of us have simple not comprehended. They have mastered a process of winning where they combine and customize several factor to produce consistent results. They have mastered the Process of Trading.

The Process of Trading is:

Strategy > Money Management > Self-Mastery

Here are some simple Forex Education tips to help you master the process of forex trading:

Forex Success Tip #1 – You’ve Got To Have a Plan

You must have a written business plan that will detail all aspects of your trading. When are you going to trade, how much to risk, strategies for entries and exits are just o name a few. To become a consistent (profitable) Forex trader you have to plan your trade sand trade your plan.

Simplicity rules! Don’t make this plan too complicated. One sheet of paper for you mission statement and another for your trading plan should suffice. Anything more is probably too complicated.

Forex Success Tip #2 – Focus on Your Personal Psychology

Knowing yourself will allow you to master the discipline necessary to execute high quality trades with solid money management techniques. Lack of discipline is fatal in Forex trading. Go on a personal journey to identify you attitudes towards risk and money. Get intimate with your strengths and weaknesses as a trader and build in to your trading plan strategies to minimize those weaknesses and maximize your strengths.

Different personalities lend to different trading styles. Get familiar with all the different styles and over time you will begin to gravitate towards one particular style. Don’t fight the urge like I did. I insisted I was a day trader, but had only limited results. I found my winning percentages were much higher when I entered swing trades. Guess what’s my bread and butter strategy now!

Forex Success Tip #3 – Be Realistic About Your Expectations

This is a hard one, I know! I am on the internet every day and the amount of advertising is staggering. Brokers are offering free education (fox in the hen house if you ask me), forums of all different trading styles and points of view. Gurus pushing their system as “the one” that will make you the big bucks. How do you get through all that noise?

Let me tell you loud and clear right now – everyone is right and everyone is wrong. You have to make a personal commitment to become a successful trader, find a trading style that works for you and expect a slow and steady approach to wealth building through Forex.

What works for me may not work for you. Expect to go through an exploratory period where you are learning and at the same time exploring yourself as a trader. Keep an open mind and don’t pay attention to all the noise out there.

Forex Success Tip #4 – Be Patient

Rome was not built in a day and neither will your trading account. In fact, I tell all of my students that while they are studying to become successful Forex traders they should not look solely at their account balance as an indication of success or failure.

By tracking and increasing your percentage of high quality trades you execute is a far better barometer of your progress than your account balance. Cause and effect rule here. Over time when you increase your probabilities through the execution of high quality trades your account balance will respond accordingly.

Keep the focus on the process and with time your results will blow your mind.

Success Tip #5 - Money Management Is Top Priority

I would rather have a shaky strategy and excellent money management techniques than the other way around. This topic warrants its own blog post to do it justice. Limited your exposure (read “risk”) allows for you to stay in the game and allow the laws of probability to work.

Let’s take a casino for an example. They need gamblers to frequent their slot machines to make money. Why? They have a game that has a greater than 50% chance of making money for the house. The more people that play the slots, the greater the casino’s profits.

The casino controls risk by payout tables (always favoring the house!) and increases their probabilities by keeping gamblers at the slot machines (read “free drinks”). As a trader you must limit your risk by committing only 1% - 3% of available capital to a single trade. When you execute enough trades with a high probability strategy you too can clean up like the casinos – but only by staying in the game long term.

In conclusion, Forex trading is not easy. It’s hard work and will test the limits of your patience and perseverance. If anyone tells you otherwise .., buyers beware! It can be a very rewarding and profitable venture if done correctly. In the end it is a profession that requires a learning curve and practical experience, no different than an airline pilot or engineer. Understanding how to approach and learn this game will allow you to reap all the benefits advertised. It is your Forex Education that you will master the Process of Forex Trading.

Happy Trading!!

Forex Education Tip - Stops

Let me just give you a quick tip about setting stop losses.

I once took a class where I was instructucted to place my stop loss 30 pips below my entry. Why 30 pips I asked? I was told it was an "acceptable" risk. Based on what? I see a lot ot traders basing their risk management strategy on some pre-defined pip value risk without any consideration for support and resistance.

Don't do this!

Like I say - trading Forex is a process and setting your stops is a key component. Your stop should be placed near support and/or resistance based on the charts and not some pre-defined pip value. Caution: stay away from the herd!

Simply:

1. Locate support and/or resistance for your stop
2. Calculate your target to determine a reward-to-risk ratio
3. Determine whether you can afford the trade
4. If all systems are a go then pull the trigger

Setting a pre-defined stop makes no sense if all you can guarantee is to get stop out of your trade and have it eventually go in your direction. Let the market tell you where to protect your trade and when to take profits. This is why 2 traders can look at the same charts, establish the same trade and one trader pull the trigger an the other traders pass.

Follow YOUR trading plan and begin to take your trading to new heights. Your Forex Education is the path to true Forex profits!

Happy Trading!!

Is Paid Forex Education Worth It?

I am scanning the internet looking for information about how I can be a better trader just like most people out there. I am on a quest looking for each and every golden nugget of information out there on the web. I have alerts set up so Google can email every keyword topic of choice.
I have been getting fired up recently about the amount of just plain bad Forex advice slewed across the web. It is definitely a “buyers beware” market and every word of advice (including mine) should be taken with a grain of salt. Why? Because everything I say and write is based entirely on my own experiences.

One of the topics gaining some momentum is the fact that everyone pitching a Forex product is not a trader, but a marketer and if they were a trader they would be trading and not trying to sell you something.

What a bunch of BS!

Yes, I do believe all the information that one needs to trade the Forex profitably is available free on the internet. I challenge anyone new to Forex to assemble the information, study and execute without any assistance. I would imagine every trader out there has gathered free information and put it to use, but the truly valuable information often is not free!

Example – I read Steve Nison’s books and DVD’s (highly recommended by the way) to gain the necessary insight into candlestick charting. I also paid a couple of hundred of dollars to attend a live seminar. During that seminar Steve Nison made one comment that allowed all of my previous work in candlesticks to click and take my trading to the next level! Was it worth it? Hell yah! That one comment was the only peice of new information I gathered, however it has paid for the seminar 100 times over. Not only that, the opportunity to network with other traders introduced new ideas and approaches that I hadn't thought of previously.

In the end it's a personal decision. After all it's your money. Trading is a profession just being a pilot, a doctor or an engineer. Each requires dedicated training, personal development and instruction to gain proficiency. You would never go to a dentist that learned how to fill cavities on the internet (this information is available there too!), so treat your Forex account the same way.

I am calling all you freebie seekers out! Stop being cheap. Your Forex Education is an investment and not a cost. Cutting corners will only cost you more money in the long run.

Happy Trading!!

Forex Education Tips - Overcoming Fear

Have you ever been in a situation where you have evaluated the market, saw your strategy set-up perfectly and then just couldn’t pull the trigger? You become paralyzed, unable to move even though you know your high probability set-up has just triggered.

This fear is very real for many traders and very detrimental to your account. Fear is a powerful emotion, distorting fact from fiction and often creating an emotional response. Many experts tell you to trade without emotion, but is that really practical? We are indeed human. Remember the basis for the reaction is real, but the fear usually is not.

Fear blocks your ability to execute high probability trades and we must find strategies to manage our fear. With time comes experience and for traders it is the ultimate super hero for fear.

In the meantime, if you are struggling with fear-based execution challenges here are some simple tips to get you over the hump.

Embrace the Emotion

Acknowledge your emotions. If you find yourself analyzing a trade to the point of paralysis don’t try to ignore the emotions. Separate yourself from this river of negativity. Visualize yourself on the river bank as these torrents of emotions are flowing by. You will gain great awareness to the triggers and learn a lot about who you are as a trader.


Separate Fear from Fact

If you fear pulling the trigger because of loss (what if I am wrong?), that will stop you from enjoying the profits the market may make available to you at any given time. Don’t avoid the action that might cause the loss, but re-frame the problem as fear itself. You have evaluated the market, figured out your reward –to-risk ration and accepted your potential for loss through your stop-loss and money management plan. At this point loss is not the obstacle – fear is. There is no such thing as failure, only feedback and that will guide you to consistent and profitable trading.


Re-Think the Consequences

If your mind is off to the races with all sorts of possibilities what’s the worst that can happen if Murphy’s Law gets enacted during your trade? You have already addressed this in your trading plan. Plan your trade and trade your plan. Again fear is trumped and the only way it can be realized is if you didn’t follow your plan. Sticking to your plan is the clearest way to distinguish between a losing trade, which is just a part of business, and a bad trade which is a career killer!

Act in Spite of Fear

Feel the fear and do it anyway. Return to your mission statement or your “why?” statement. The reasons you trading should be big enough to overcome any possible obstacle your fear emotion can conjure up. Acknowledge the fear and do it anyway. You may not have a winning trade, but you will have executed your plan and over time probability will pay you back.

What is all comes down to is the intangibles of trading. Why do I and so many others drive home discipline-based Forex Education and Training approaches. You will never get rid of fear, but with practice you can turn it into a manageable obstacle and deploy it to your advantage.

Happy Trading!!

Daily..Hour..or Mnts Chart

When you look at this following screenshot figure, you might be very surprised how can a trader get such big profits. It’s real…and everybody can make it including you !. As I told before that every trader has their own characteristics and discipline. If you want to get “ peanuts” just trade in minutes by using 5 or 10 minutes chart. But if you want to get big fish you got to use long period chart.




Nothing is wrong…5 minutes or 10 minutes and 15 minutes could be used to get the pips. The difference is only fluctuation or whipsaw . Using 5 mnts chart will fluctuate much so that what your indicators show now might be changed in a few minutes. It will be dangerous to the old men and women. He…he..he…. I don’t want to suffer from heart attach just because of small pips. I can not do that.

How is about combining Daily, Hours and Minutes Chart to decide an entry point ?

That’s what we wanna talk now….all the above figure can be reached by combining all time frame chart.: Daily, Hour and Minutes..

Daily chart :

Look at this chart !!!




I use only Support and Resistance Level or
Bolinger Band (20.0.2)
Conclusion : Get the highest point and lowest point.



4 Hour chart :

Look at the chart !!!




I use only
Bolinger Band or Band ( 20.0.2)
MACD2 (12,26,9 ) : Fast MA periode = 12
Slow MA period = 26
Signal MA period = 9

Brain Trend1 Signal : Numbars = 500


Conclusion : You have to wait the signal in the highest and lowest band together with MACD crossing.

That’s all…but we have to wait the same signal or direction with the above daily chart or Direction.



30 Mnts Chart

Look at the chart !!!




I use only :

Bolinger Band or Band : ( 20.0.2)
Brain Trend 2 Signal : : Numbars = 500
RSI : 14
Stochastic : 5,3,3


Conclusion : Here is the entry point:
Red Signal will come up for DOWN and
Black Signal will come up for UP direction.

What you have to remember is 30 minutes chart….The signal will be coming from this chart. Be careful...and watch out....

Here is all the Indicator Colletion.

You can put all the indicator to your Metatrader directory :

C:\Metatrader\expert\indicator\
- Band
- RSI
- Stochastic
- BrainTren1 Signal
- BrainTrens 2 Signal
- MACD2

I hope you can all get big pips without working too hard, right ?

Happy trading

It's easy to get PIPS

Yestarday's posting I wrote one amazing indicator that give you
incredible pips. Did you use it ? I attached also my real trading
chart using the indicator. I did not tell you a lie, Iam not a
signal provider who just send the numbers but I gave you my weapon
on how to get the pips.

Let's take a look at yesterday's performance as your reflection.



Today the indicators shows an incredile winning pips as I attached here.
Do you use the indicator ? If you don't use it meaning that you are still
looking for uncertain indicators like many other traders. It's so real
that the indicator make pips, you don't have to do many thing but only
follos one single indicator, Single indicator....right.

I try to help the beginnner who read this blog and as a gift for all of
you I give everthing free...free... and free.....

This is my trading chart today. Take a look.



I get many pips..right......


Happy trading.

Let's use this Strategy

As I told you before that I never created any
single strategy by myself because I can find
many out there for free. The things that I always
remember is just how I use them to make profit.

Never searh for the holy grail, you will never
find it, but a very simple strategy could be
a holy grail if we can use them "nicely". To make
a strategy nicely or friendly to us is just to
ractice it and observe.

Many traders sais that one strategy is profitable
for them but at the same time many traders said
also they loose money with the same strategy.

Let's take a look at this example.


''The Tlatomi Method''

SETUP
1 - 4 Hour chart (This system works best with GBP/USD, GBP/JPY

2 - NonLagMa_v4

Filter=20
Color=1
ColorBarBack=0

SHI_SilverTrendSig

Allbars=0
Otstup=30
Per=9.0

Don't forget to change the colors also (0=blue-1=red)


FX Sniper's Ergodic_CCI_Trigger

pq=4
pr=8
ps=5
trigger=

Notes : For All indicator in Tlatomi you can downloaded
HERE

and template HERE

Enter long when :
1 – a blue dot appears
2 – the ergodic CCI crosses up the trigger line ( blue line
crosses up the red one )
3 – NonLagMa color changes to yellow

Enter short when :
1 – a red dot appears
2 – the ergodic CCI crosses down the trigger line
( red line crosses down the blue one )
3 – NonLagMa color changes to yellow


Exit

Exit when a new dot appears (red if you are long and
blue if you are short). This method gives you mecanicals
trades. Don't hesitate to transform them into a
discretionnay trade after because you can see things
that the system can't.

Sometimes, it will be the difference
between a 30 pips trade and a 300 pips trade. Once you
move your stop to breakeven and add a trailing stop –
you can't wait alittle more time to see what the market
wants to give you.

Stop

In general, I look for previous daily Resistance-Support
but I don't have only one method for my stops.You can also
looks for the high or low of the previous bar.

Remarks

Price enter :

The price enter is the open price of the candle or bars
where the NonLagMa is yellow.

Ergodic_CCI :

The signal is stronger when the FX Sniper's
Ergodic_CCI_Trigge is above 300 or under -300







Note :

Please download Metatrader 4 and insert the
three indicators into: \\metatrader\expert\indicator
and template :\\metatrader\template
You open firstly the template and drag all indicators
to your chart.

Happy trading.

Look at the chart....Get Your PIPS.

I assumed that most of you have lost your money in Forex
Trading, right ? I never learned Forex Trading at the
University, believe me… because that’s not my subject at
the time. That’s why I don’t care and I don’t know what
really mean “ moving average, slow stocastics, MACD, and
many other educational termination. And I don’t have to
know them either in order to make pips.

I would be very disappointed if some “ experts” in many
Forums talk over all the above termi as if he were
talking to his students at the university. Are you going to be
A teacher of Forex or just pip maker….. Are sure that they
make profits during their trading ? Nonsense….Finally they
will sell you their ‘books”. And the funny thing is that
“they make more money from selling
their books than make pips or profit from their trading”. He…he…..he…….

Four years ago I bought one expensive books which is ticker
than a bible, and what I can found is only the above
terminations….and how they come, how they use but we are not
told how to make pips. Crazy….I spent $250 for the rubbish.

Now Iam going to put money in your pocket….he..he…he sorry …
I will not charge you a cent…

Look at the chart…….that’s money right….




That’s the real chart !
Do you need the indicator ?.......Ok…I’ll give you free..
because I got it free….from my friend….

Here is the rule :

-Each candle on the chart is accompanied by a blue
line or a red line.

-The blue lines indicate a long position whilst the
red lines indicate a short position.

-The coloured lines attach themselves to each candle
at the beginning or during its formation.

-When you notice a new coloured candle after a series
of opposite coloured candles, enter a position as soon
as you notice the colour.

-If you notice a candle with no colour, do nothing.
Maintain your position.

-Place your initial stop loss order just below the most
recent swing low or swing high.

-When you are 50 pips in profit, move stop loss to
break even.

-Exit on opposite coloured candle and reverse your position

That's it! Do you see how simple this trading system is?

-Use in ONE HOUR chart.

Here is the indicator

When you have downloaded the indicator, copy it one
of the following directories (depending on your setup):

C:/Program Files/Metatrader 4/Experts/Indicators
or
C:/Program Files/Strategy Builder FX/Experts/Indicators

Once you have placed the files in the relevant directory
depending on your setup), restart the trading software
and look for the indicator under "Custom Indicators".
Drag it to the relevant charts and enjoy better profits
from that point on.

Note :
Moving Average

Happy trading.

Forex Education - Fully Present

This means rejecting thinking that doesn’t support your current trading objectives, including rejecting non-trading related mental chatter (what’s for dinner, balancing your check book, who’s on American Idol tonight, whatever). Your goal is simple -- to zero in on the trading task in front of you. Enter your personal trading zone. Deny all incoming calls. Don’t check your email and please do not even think about logging into your Instant Messenger account. You’ve got to be in a place and time where you can trade without being disturbed.

Ask yourself – Where Am I? The answer is - Here

Ask yourself – What Time Is it? The answer is – Now

When you become fully present on the task of trading, you are able to achieve peak performance and gain an edge on the other traders in the market at that moment. How many times have you often have you been trading, felt in rhythm with the market, and then you become distracted, surfed the web (OK, you busted me!), checked your email and all of a sudden, your trade fell apart because you overlooked an indicator or failed to see what economic releases where due out during your trading session.

Trading in the here and now is not only powerful, it is extremely profitable! When you can direct your focus on your trading task without distractions you become invigorated and infused with the energy that comes from requiring yourself to be fully present when trading, you’ll find that your trading all of a sudden becomes a little easier and enjoyable. When you reach this state, stop briefly to observe it and how you feel so that you can summon this mental state more easily in the future. And journal it so you can recall all the factors that contributed to your success. That way you’ll be able to set yourself up in a repeatable, successful trading environment. Your journal will become the greatest trading tool you'll ever own!

To not become fully present when trading is to short-change your Forex Education AND you’re your account balance … it’s like not accepting the greatness within your at the time the market provides you with your pip rewards.

Which mental time zones do you what to be in for your trading? There are only three: past (FEAR), future (ANXIETY) and HERE. It’s been said that most traders spend only 1% of their time in the present. Could you imagine what kind of profits your mind can produce when you become fully present when trading?

Carpe Diem and Happy Trading!!

We're #1

Well, as I return to my desk from a break to welcome the new addition to my family I was pleasantly surprised to received notification that Forex Journey has been ranked as the #1 Forex Blog by CurrencyTrading.Net on their “Top 25 Forex Bloggers.

Check it out ==> http://www.currencytrading.net/2007/top-25-forex-bloggers

Thanks everyone for inspiring me to follow my passion!

Happy Trading!!