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BreakOuts are the key

Discussion in 'Forex Trading Systems and Strategies' started by rpchost, Dec 23, 2007.

  1. rpchost

    rpchost Private

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    Forex Trading is not that easy, all traders before they enter this business, they think that they will be rich very quickly and make $20 000 in one or two weeks, but when they begin trading they discover it is not true, it is not easy to make money especially when we work with money. Very tricky business, many of us think that there is a conspiracy planned by “THE BIG GUYSâ€, they know what we think what we plan to do and they do the opposite to steel our money, many times we think to make the opposite of our decision (if I see the market is going up then I will sell). And we begin searching for someone to help us making at least 200 or 300 pips a month, probably many of us work with signals advisors who simply took our money and probably do not make us decent profit. Many of us thought stop trading many of us quit trading but I think most of us will not quit that easy because we see in it a golden opportunity to have our own business and make our fortune.

    Forex is an opportunity to make a fortune and it is an opportunity to loose our money, we can make a fortune if we knew how to handle forex, if we don’t know how to control forex it will jump on us and brake us, so we must be stronger than it, and if we don’t know how to control it with our own hands it will brake us too. So how I can be stronger than this ferocious beast? it is simply by learning, observing, and practicing. The market will not go anywhere it will be trending and ranging for ever, so learn from experienced traders how they became that good, observe charts and look for common points look for the reason why the price change direction, and when you discover the reason which influence a currency you will have in your hand the first tool that makes you control. And each reason you discover, try it on a practice account, see if it is valid or develop it. In this article I am helping you to find your way, I am not giving you the fish but I teach you fishing. There is no conspiracy theory in this business, no big or small guys, we loose because we don’t know, and the first thing to become good trader is to admit that we don’t know and we must always learn.

    I will give some clues and I will leave you learn, observe and practice. First of all you must know that you must use fundamental and technical analysis in conjunction, both complete each others, so don’t rely on one and leave the other. Fundamental is one of the reasons which influence the market, so if you are in a long trade and suddenly the currency went down so go and see if a report was released and see what its forecast and what was the released data and compare this data to your chart and you will have your first tool to control your business.
    Second, in my opinion all the technical indicators didn’t help me at all, I tried all the combinations nothing work, indicators describe you the status of the market but don’t give you information about the next direction. I read an article about a guy who describes his strategy, I was completely lost, he uses a combination of 12 indicators EMA340, SEMA890, EMA2900 etc… and he inserted FIBONACCI in it. I was lost. Even if his strategy worth 95% success I will not use it because I can control the market by using simpler techniques. So we don’t need to seek indicators, only one indicator I use it the Bollinger Band which is the perfect weapon in our battle against forex. So I want you to look to the Bollinger Band and see how it affects a currency, focus on it and you will discover a lot of things, and you will have your second tool.
    Third, suppose you are in a long trade and suddenly for no reason it went down, there are no released reports it just turns down, this is weird. But weird things are those we don’t understand, but if you observe your chart and go back several hours or days and drop a break line from higher swing points you will see that the price turn down because it touches that break line, you see there is no mystery. So this break line will be your Resistance and if price breaks it, it will continue going up, but going where and till when? …. observe very carefully and you will learn as I did. And no need for midnight or afternoon candles, be simple as you can, that beast is not as ferocious as you think.
    So breakout is your third tool


    Fourth, what timeframe to use, it is up to you to choose the suitable timeframe, H1, H4, D1 … I don’t know, compare the charts and you will see the suitable timeframe.
    Timeframe is important and when you find it you will have your Fourth tool.


    And that’s it, I repeat observe your charts and focus and think in these clues and the more you think the more you discover.

    I do good profit from my strategy because I program it, I gave my system the data and leave it do his job. This eliminates the fear factor and gave me more time to go out and have fun.



    I hope I gave you some tips and techniques which help you in your trades.

    Good Luck



    Joe Chalhoub

    Rpchost.com
     
  2. kca$h

    kca$h Private

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    i quite appreciate ur tips they r commendable but u see im relatively new to this market and ive been following on with the free signals sent in by felix, i dont kno if u do too but ill like to ask specifically when using fundamentals, what time frame is ideal on the charts to pick good entry points.....?
     
  3. jebat1978

    jebat1978 Private

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    hi kca$h, actually we have a fundamental which have a long term effect and short term effect,so base on the news,im not quite good too about fundamental,but for sure you could read on bloomberg to knows what is the leading indicator and fundamental view,for me,i use technical for entry base on 4h or daily time frame with a basic trading only.support and resistance;)
     

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