"Take Risks: If you win, you will be happy; if you lose, you will be wise. Nothing ventured, nothing gained."

Friday, October 30, 2009

The Art of Triangles.

HiHi!!! O yes if u haven realize... this is my first image post!! lol. Ok lets cut the crap and share the good stuff aye??

This chat shows 30M timeframe. This trade was done in the morning (Singapore Time) with no news or anything. (USD/JPY)

Notice that the trendline i drew forms a descending triangle. To get this line, there are a few points to note. The high close for each candle forms a descending trendline that links quite well, and as u can see from the chart, the level of 91.26 was touch several times but bounce back. For my case, 5 times before it break down. This 5 points hence form the straight line below, forming a descending triangle.

Point of entering will be after candle close below 91.26. It signals a moment of downtrend i should say. Reason being its a 30M chart. It maybe temporary retracement on bigger timeframe. With proper TP set on either FIBO support or trailing stop. A nice 40pips profit is achieveable. SL will be just above the horizontal trendline. 91.25 and above for this case.

But some points to note as well, notice that the stochastic is showing otherwise? Yea,but i entered trade due to past experience that sometimes these oversold oscilators still remains oversold when there is a breakdown. So i chose to ignore this signal.

So as u can see, my time of using this technique is during NO NEWS period. And i also chose to ignore one of my indicators. Right or wrong? More tests needs to be carried out i guess.

Thats all folks. New traders can try this technique cause as a Noob myself i managed to close a profit trade. WHY NOT U??!!

We are still surviving, are we not?

Friday, October 23, 2009

Usd/Jpy & Gpb/Usd

Watching the price for two hours already. Have not entered any trade, USD Existing Home Sales report to be out in half an hour. price may strike in any direction.. so... play safe. ripped a 20 pips last night Usd/Jpy.

The above, is Usd/Jpy yesterday 22 Oct 2009, where i dangerously shorted 20 pips off retracement from top of UPtrend. dangerous? yes, i believe so as i was trading against the trend. that was why i quickly took the pips and went to bed. Check out the price today..

23 October 2009. Price is still moving along the trendline. Well, let's juz watch. This is still at the price of good resistance. To top it off, there is a good forecasted USD Existing Home Sales coming up next.

Check that damn long candle in GpbUsd's chart TODAY! godammit! horny S.M. girls would love such a LONG LONG CANDLESTICK! congrats to those who "rode the stick", and well, sorry to those s/l that was wiped along the line.

Last day of the week, have patient, dont jump in, we always have a monday. :)



Hello its me again, Bottle. Its been quite sometime, yea... when i say i want to learn more ways to fight that fuckup forex chart.. i really do! And yes i've been away meditating.......

Black comment that i haven been updating for quite sometime and ask me to wake the fuckup and do something. I say OK!! I guess he is feeling cold in here alone. Seeing only posts ending with Your Sincerely Black Yours truely Black Regards Black Thank You Black. =D

NO! I haven got myself some ultimate chart smashing techniques that can let me earn a million overnight during these absence. Yes i've been trading and was doing quite good. I followed quite strictly to the rules i set for myself.. notice that i use the word "Quite". Indeed, i did stray away from Mr Discipline sometimes. Hence, some trades' profits were not maximised.

I have been scalping quite alot lately. Closing usually around 10 - 20 pips with slightly bigger lot. Highest hit profit size is 40pips using smaller lot. Due to the higher SL/TP hence smaller lot.

One secret to my small little puny success (it really counts for nth, but im proud of it!! Noob's style) on the above mentioned. Patience.

Its really simple. Once candlesticks and indicators shows a trend. I choose not to go in straight and instead, i wait for confirmations (etc candle close, crossover) After which still i wont go in, i will wait for it to really happen, then i will go in during retrace @ my FIBOs or Bollinger. The ultimate pussy style. But i rather u him she they anyone else call me pussy than getting myself a floating loss. Stuck in the middle of no where at the mercy of the chart. If u get wat i mean.

There are times when i waited for a good 2 hours for 2 Hourly candlestick to form before i go in. Notice that in one of Black's post, he waited for a good few hours too. Result is positive. Still, this is the noob way of mine. Lets hope i can come up with something that is not so time consuming~ =D

The techniques that i rely on are FIBOs Bollinger Band and EMAs. Mostly scalping on the EUR/USD 1.500 level. Short on FIBO resistance , Long FIBO support. Only on candles confirmation before i go in. As in after a long white candle, i will wait so patiently for it to retrace back to FIBO resistance before i short it. TP @ FIBO support. No news no nothing.

Thats all folks!!! Happy trading!!! May the gods watch over me and have mercy on my poor account!!! AH WOO AH WOO!!!

The Trend is your friend, your friend is a Trend. Follow a friend who is a Trend. Hand in hand, pips by pips.

Wednesday, October 14, 2009

Forex - A Lesson Learned the Hard Way

Below are few of my trades this week. Ripped my virgins to some new pairs. Was watching the Nzd/Usd on monday night. So far, only Nzd/Usd first trade gives me bad news. I ripped +121 for my first Aud/Usd, +65 for my Usd/Jpy. But forex isn't just about the first trade, its about consistency.

Few cross-over towards the downside. Trend pattern downwards, it tapped my top of trendline to give a good sell signal. Instead of strolling down the trend, it ranged thru' the fibonacci, hit my S/L (2%) when NZD Retail Sales report was good. Should have (notice how many should-ve i used this post) sold before the annoucement although was at a losing trade, becuz the forecast was good. Well basically my Nzd/Usd didn't had a positive profit points @ all, 5 pips spread, Woah~ thinking twice before i pick-up another Kiwi in future, lesson learnt.

Next up, feeling good with the Koalas due to the week before. I too, short the pair. Gold price is reaching new HIGH, oh so high, so was Aud/Usd (in fact right now too). Looks pretty resisted at the top of my trendline and close to fibo, i think its time Aud/Usd might retrace. My S/L was lower than 2%, slightly above the nxt line of fibo. It ripped thru my S/L the nxt morning.

Tuesday was looking at Usd/Jpy pair. Looks to me like the Elliot Waves' forming.. coming towards the downslope. Short at the top of a candle, as usualy Stop/Loss @ 2%, before next line of resistance. 25 points trailing stop in place. ranging price throughout the day. Till this morning it began to continue trending downwards. I could see USD depreciation among major pair most of today. Reach home to see a +80pips, another classic. maintained my trailing S/L, till it finally hit. Pocket about +65 pips at the end of the trade.
About two hours after the above, i decided to take a bit of a Eur/Usd a few pips, with HIGH LOT. and i lost high LOT. and i tried even HIGHER LOT to make up what's lost, and i lost even HIGHER LOT! 3 weeks of consistent profit - lost in one afternoon.

Small retail players like us, especially new ones, should maintain small lot size. The difference? Of course winning and losing amount! U wanna win big? u think forex is a fast pace market, u CAN win BIG! i win BIG in one trade before, about 20%+ of my account in one trade. and that, spellls the start of my disastrous habit i couldn't kick which tore my account big time.

"You can swim a great amount of distance in the rapids (high volatility and liquid market), but without the fundamentals of swimming and water treading (price analysis, knowledge and MONEY MANAGEMENT), your course of journey (trading life) will just be swept (S/L GOT HIT) across." - Black

So please, Black, for the last time (i hope), control your LOT SIZE, and VENGEANCE MINDSET!

the reason i can profit consistently (even though small, but compounding effect is magic) becuz i had been controlling the lot size i enter in a trade. calculate the number of pips towards the price it might go against u, from there then u determine the lot size to enter, and make sure that the multiply of the two does not exceed 2% of your account. even a losing trade, gives u hope, becuz u got more allowance to let the price move against ur trade, juz like what happen to my Usd/Jpy this week, let it ride its actual course towards ur goal. but using mini lot in few hundred dollar account is suicide.

Take a deep breath, and life goes on.

"Don't let a losing trade knock your pride, if you never give up, there will be glory ahead for you to ride"

Sunday, October 11, 2009

The Forex Journal

Have u come across this magazine? The Forex Journal. I have been looking for some magazine on forex so that I can keep up and read on more knowledge on the subject. Recently, i came across a press-stop basement of a shopping centre. i saw this Forex Journal. i decided to buy one as a try-out. for the thickness of the magazine, SGD$11 is a little expensive to me, but nevertheless i got one home to read.

it covers interesting and valuable subjects on forex. i was contemplating on subscribing to a 2-year on the magazine, but was still thinking of checking out for any other forex magazine first before plunging in. because SGD$11 is really a bit too high. last saturday, i went back to the press-stop and saw the new October issue (picture below).

they have redesign the cover with more 'IN' font, haha. this time i saw the price was covered by a piece of sticker read $10. i thought woa, this press is reducing the price so i bought it on the spot. i went up to times and saw the similar issue, and then the original was actually priced SGD$9.80 WTF! kena cheat TWO FUCKING MICRO LOTS! twenty cents isnt big impact to me, but as a trader, if u trade one micro lot, thats the amount of the spread cost U NOE??? im juz kidding lol anyway its the principle that matters argh. nvm. anyway back on the magazine content..

it covers topic such as, swing trading techniques, monthly reviews on currency pairs, importance of money management, economic calendars etc. contributed mostly by forex experts. all of them are very useful knowledge especially for new traders like us. i love to read on different forex experts opinions regards to some things, although a lot are commonly similar, like the money management stuff, but forex is a ever-learning business. we always come across things we are new to, right? u read money management a lot, but frankly speaking how closely do u follow it? sometimes these things are meant to drill into our heads.

i will still be following closely with upcoming issues before i would decide to subscribe to it tho. will keep it updated.


Thursday, October 8, 2009

Week of the Koala - Aud/Usd

Hello. Here are few of our updates, as Bottle has mentioned, this week started badly. We made losses for the first two days. First night, eur/usd approaches the low, we sold on the trend after the candlestick was formed (with s/l, t/p all in place), and went to bed. the next morning i wake up, i checked the price and it was bad, it hit my s/l when im in office.

the next night, the price was trending upwards so we longed, and same procedure we went to bed and wake up seeing the price hit my S/L again! as bottle said, SELL BECOME SUPPORT, BUY BECOME RESISTANCE. we felt fucking miserable on wednesday. it was at a point of time we felt so helpless and dont know wad to do. buy wrong sell wrong. so that day i decided we should open ourselves up to more currency pairs.. i have a full time forex trader friend, who gives updates on his trade and forex world thru twitter. i learned from him on wednesday the Reserve Bank of Australia has hike their rates to 3.25%, which is a good news for Aussie. i also do update myself daily on Bloomberg & Reuters currency section. i went back to look at eurusd as usual, and open up Aud/Usd. scalped on eurusd quickly, i know scalping is not an advisable method, but i dont do it aimlessly. most of the time i look out for indicators of reversal. in, take a few pips and out i go. i do that using higher lot (high based on the capital i am holding LOL) than usual.

Before me and bottle end our night, i was watching Aud/Usd closely, it has been wandering @ my fibo support level for some time, on top of that, the hike in Aussie interest definitely attract much traders into holding their currency. I asked bottle about longing the pairs with minimum lot size, becuz we were still unfamiliar with the pair. he was ok. i hesitated and went back to ask him if we should hv drop the idea, he say.. I HAVE ALREADY EXECUTED THE TRADE DAMMIT! ok, let's do it then i say. price looks good, we set our t/p and s/l and went to bed. i woke up in the morning to see +40 pips, definitely was good move. i was about to left home for office when i went back to my computer and decided to secure my profits by setting a trailing stop at 15 points, therefore extending my take-profit to another level, since profits are secured. i longed aud/usd the night before @ 0.8879, initial s/l @ 0.8850, initial t-p @ 0.8950, further extend to 0.9000. +121 pips closed. my highest pip trade since my LIVE trading, definitely motivating.

fundamental + technical combined. it is not always u got such opportunity, therefore u see those expert traders only trading a few times per month, and are so HIGHLY profitable! they only go in on opportunity, not like us! like humping girls in out in out in out and in out! we're trying not to overtrade. every trade every week gives us a new lesson to learn.

Most of articles u read on money management, would tell u about only risking 2% of your account and a 1:2 risk-to-reward ratio. i m highly agreeable to the first, on risking no more than 2% of ur account in any one trade. becuz of the draw down, and if u are in the situation where price is likely to move more than 2% meaning ur s/l, better don't go in, always wait. some of the night when i juz watch and wait for opportunity, and some times went to bed without any trades, can feel good, better than juz 'wanting to be in the trade' and bring losses to bed like i always did.

As for the risk-reward, i can only say apply it same as above, meaning if u do not see a reward opportunity higher than ur risk, do not enter. but this is harder to fulfill. alot of times i find myself ripping reward halfway before a retracement, or price would hv almost touches ur t/p and retrace to ur s/l. in another perspective, i believe in flexibility. but end of the day, still, discipline is needed. if u are highly discipline like the expert traders, then most likely u wouldn't find urself in a situation above like me.

We love the Koalas this week, although the lot earned was small, but we're trying our best to rip PIPS, definitely the 'IN' thing in the long run! Happy trading.


Ps: the profit we ripped thru the aud/usd trade went the most profitable when aud unemployment rate was annouced. The result was far better than forecasted. That was partly the caused of the spike in the morning (singapore time). Check out news annoucement @ forex factory - link at our forex knowledge portal!

Wednesday, October 7, 2009

"Dark Cloud Cover"

HelloOoo~~~!! Its me Bottle again. See my title?? It says F you Bottle give me all your pips. BYE BYE!!!!

Yes its really a Dark Cloud Cover for me these past few days...

Good news bad news, 2 news to share. Good news is simple, both Black and I manage to keep our discipline in terms of number of trades a day. Black got 2 trades and myself, 1. No bubble tea treats nothing... Now the bad news... =(

Bad news is... we were both watching closely @ the news. News with great impact shows favourable to the USD. So we both decided to short EUR/USD at our desired price. The moment we short... Our price suddenly became a support line for the price.. it is so common. So god dammit common, for us at least. Cut the story short man, we waited and be good boys, follow system ya?? We shut our comp and went to sleep, sweating...

And instead of going down as the news suggested and we expected, the price shot up and pierce thru our ass from the bottom hitting our SL. Both of us bleed to death in our dreams that night.

Next day, we decided to revenge against the Forex Chart. He poke our ass, we decided to poke him in the eye in return. No news that night, we were using our technical skill~~~ though ours sucks. A ascending triangle was spotted and we went Long the moment it pierce thru my resistance that has been hit a few times. We did wait for it to close over before going in, it was great! Rising to around 8 to 9 pips the moment we went in. BUT!!! For no reason it went back down into my triangle... Same old story dammit!!! Our long price becomes a resistant line !! Again, we set our TP and SL and went to sleep. It go against us and hit our SL, again. 2 straight nights.

Feel so tired... Things just keeps going against us. That 2 night were big losses to me man. I cant believe it. Our Long becomes resistant price, our Short becomes support price. 50/50 chance but always end up @ the losing side. But that doesnt mean i trade only depending on luck! I did my works u know~? Looks like the Gods really have no mercy on noobs. Loves disturbing us. They just keep tickling our balls. PLEASE!! MY CAPITAL IS RUNNING LOW! STOP TICKLING!! IT HURTS!!!

So following news may not be the ultimate way to success in Forex. I think~ cause we've been betrayed several times. Mayb these few days is just part and parcel of our trading journey? Mayb we just need to brush up on our technical skills??

O ya.. Dark Cloud Cover is a term for top reversal signal! Read it up. It helps.

Im a sad fuck

Monday, October 5, 2009

Target for 1st Monday of OCTOBER

Yes its another Sunday night.. Trading starts in less than 6hours time from now.. Old memories starts flooding in. Not really old though.. its only less than 3 months!!

Yea... its a Sunday night about 2 to 3 months ago. The night that Black and I started our very own LIVE ACCOUNT! So excited... Fiiled with dreams n hopes n goals n this n that bla bla bla... "GUN DOWN THE FOREX CHART!!! AH WOO AH WOO!!" we shouted..
Black even suggested we stay up for the night till market open and rip our first virgin live trade... Close and take profit @ 2 pips!! A good start is a good sign! Muahaha. I would have agreed if im not working the next morning...

Now when i think of it... i wonder why are we so anxious to clear our account... i have barely a fifth left of my capital now.

Was chatting with Black on MSN.. i thought we should first improve on our discipline towards trading. So we set a target of only 2 trades for tmr(Monday) night. Only 2 trades. Aim well, enter well. Exit loaded with pipppoosss... And thats it.. no more, be it lost or profit. We both agreed and signed on dotted lines... Bubble tea treat from whoever broke this "2trade tonight" treaty.. $2 bubble tea = 20pips in micro lot dude.. thats alot of pipssss.

This entry serve as a reminder to both of us. So is the bubble tea. Truthful and honest result will be posted on our next entry.

A trade a day keeps the lost away.

Saturday, October 3, 2009

Helluva Night Op Rome

O yes helluva night ytd with Black.. dammit.. But there wasnt a hand for me to hold when i needed one~~~ =(

Was doing trading the whole day u know.. and all was well in the noon when it was ranging, great.. followed system and stuff. PROFIT! Nice word...

Then the night falls... the urge to trade is here once more. Its just like some animal instinct. The best time to trade is approaching and i guess a Noob like me cant resist the temptation to jump into trading... So is Black.. he is a Noob too.. wahahahaha. Hate to admit this, but i realize seasoned/pro traders dont have this habit...

Yea as predicted, my Noob instinct got into me a mess even though i keep telling myself wat not to and wat to follow... i told myself to go in if price hit new low again this and that. SUDDENLY!!!
Im in trade even before this happen.. this is common my friend, we've been struggling with this illness of trading. And not to mention, right beside my trade shows my profit in Pips. -14. GOD DAMMIT!!!!!! HAVE THE GODS NO MERCY!?!?!?!?!?

F*** it u know... then i turn on my MSN and look for Black.. type and type and type and flood his whole message screen and hope to get some assurance from him though sometime he just bullshit to make me feel better, but it really helps u see.. Yea i typed alot but there is no reply from him, my trade is plunging into darkness and way beyond and needed a hand to hold on to to tell me that everything is fine it will come back soon... BUT!! he is outside somewhere doing major transaction and heard he lost 1micro lot.. wahahahahahahaah!! i m seriously luffing in real life. I wont tell wats that transaction about though.. he may get embarrassed... !!!

Anyways, loss keeps accumulating, goes down more and more. News is coming and i dont know if it will support the breakout further. In the end, it wiped out my trade profits in the noon as well. Back to square one. See the danger of just not following the RULES that u set for yourself? So is the $$ management in this case. I lost all profit says everything. DONT LAUGH! IF U R NEW TO THIS!!! I BET THIS WILL HAPPEN TO U OR HAPPENED BEFORE!!! BEWARE!

I want to grow up to be just like them~~

Operation Romeo

its been helluva week. I did not enter much trade earlier this week as i didnt see much opportunity to my knowledge. But first friday of the month, which was yday, where u.s unemployment rate data and non-farm payroll report will be out.

This is the challenging part. Some traders are good at trading at no-news hrs, wher price is trending and they could analyse better using their technical analysis knowledge. For a news nite, thats wher the breakout traders gather. Im still lookin for the one that suits me. After yday, trading on news was seriously very SCARY! I was waitin for the news, before that i wld only do trades that i will close before the annoucement. When news out on bad payroll and highest unemployment rate in u.s, the eur/usd if u were watching, rise rapidly about ten pips, and then in a split second it goes down 40 pips, and continue falling to a new low since 3 sep.

Base usd annoucement suppose to be rise for eur/usd, becuz of weaker counter currency (on the right), and vice versa. If u were to follow the data FIRST, u wld hv been stop out so fast before u fuckin’ realise it! I was!! But was on micro lot. I took back my loss on retracement buying the lows, separating three micro lots in three different trades. I find it more flexible like tis tho.

But u nv noe, if the price wld put further down. But perhaps thers been buyer like tis buying at lows, result in an hr plus time, rapid rise of the eur/usd.. The actual reaction prior to the data! I made losses and profits last nite, but still profitable in overall, but i wasnt delight. With the high no. Of trades and scalping, and entering on retracement (which i m nt so good at yet), i find that i won the battle unlike my previous post - which was more gloriously. I wouldnt be so lucky next time. Its like fightin battle with ur enemy so hard but u won due to his childhood injury reacted or he fell into the drain. Put it better, u set a trap for him cuz actual fact u cant win him so he fell in and u win..

I have drafted me and bottle a chart, on a weekly and per mth basis, using strict money management and timeline needed to gain back our account, calculatin in even losses. Therefore, we need to follow it closely. But tings wldnt be that smooth sailing yea.. At least we work out as a guideline to fight back wad was once belong to us! And we will do it!! Ahh woo ahh woo!!


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