1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

How I became a successful part time trader

Discussion in 'Forex Articles' started by rpchost, Oct 17, 2007.

  1. rpchost

    rpchost Private

    Joined:
    Oct 9, 2007
    Messages:
    16
    Likes Received:
    0
    How I became a successful part time trader


    Introduction

    I am Joe Chalhoub, a computer engineer, Forex trader and strategy builder. I began trading currencies 3 years ago. The first 3 months trading were complete failure, I remember I lost all my money and I was about to quit, but I couldn’t, I felt if I quit now maybe I am missing the chance of having my own business. So I stopped trading and began observing, studying, analyzing and practicing.

    Observing: I began observing the market, what causes movement, reaction, ranging and trading.

    Analyzing: I began working with technical and fundamental analysis; how each analysis can predict and redirect the market and how I can use them both for my own benefit. I will talk about these analyses in the following paragraph.

    Reading: I bought Forex Trading Books and read them, books explaining different strategies and tactics used by experienced traders.

    Practicing: I created free accounts and began trading virtually and each technique I invent I tried it and monitored its performance and validity.


    After one year of studies, analysis and practicing trading techniques and after many failure and frustration I reached my own strategy and it is working very well and each month my profit is positive.



    Implementation

    I reached my targets and I built a successful strategy, but that’s not enough; to make profit I must not miss any opportunity and forex market is full of opportunities because it is the most active market in the world, for that reason I must sit all time and watch and detect opportunities all day long from Monday to Friday.

    How to resolve this problem, I can’t sit and observe the market hours and hours, I have my career and my family, so I thought I must program my strategy, let the Information Technology do the hard work for me, and nobody is discipline as a software, so I created an artificial intelligent software which collects data from the market and implement my strategy on this data and detect opportunities 24/24.
    This program analyses fundamental and technical data and generates forex signals which are forwarded automatically to my broker platform where the signals are executed automatically and forwarded also to my website members. All this is done without my interfering, I just run the program, it analyses and makes its decisions (Buying, Selling or stay aside).

    How to succeed in Forex Trading

    Five over hundred traders succeed in this business, what differentiate those five successful from the 95 others is one thing, it is the HARD WORK. Forex trading is not an easy business, and who tells you that he can make you rich in one night is one of those 95. Only one thing can make you a successful trader, HARD WORK, and nothing else. Don’t rely on other traders or advisors to help you, rely and have confidence on yourself.

    Don’t begin trading quickly, the forex market will not go anywhere, it will stay forever, give yourself 6 to 12 months of studies, analysis, readings, practice and build your own strategy before begin real trading, it will take a lot of time and dedication but at the end you will reach your target.



    Strategy

    I will not reveal my full strategy but I will reveal some techniques I use which help traders in their trades.

    My strategy follows the following tips and techniques:

    1 – Discipline: Put criteria for your trades, watch the market and only trade when criteria are met, if they are not met do not trade. My program is the most disciplined trader, it takes care of all of this, it monitors the market and only trade if only criteria are met, and the second advantage of this is the elimination of the fear factor, it enters a trade when it sees it is good to enter and fear nothing.

    2 – Money management: It’s the main key for good trading, I exit all trades and stop trading for a specific day if I lost -60 pips, in the other hand I put stop loss for my trades if I reached +25 pips profit, in that case profit will not get under +25 pips and it has open target, and all I have to do is go out and have fun.

    3 – No trades for now: The most important thing in trading is sometime not to trade, I take this decision after looking to my charts and see that there is not enough volatility or there is no enough reports will be released for today and it is better to wait until market is more volatile. I advise traders not to trade during the first days of the month, personally I begin trading at the first Friday of the month when the “NonFarm payroll” report will be released.


    4 – Analysis: I use fundamental and technical analysis while trading. Fundamental defines the trend of the market and the technical analysis is used after the definition of the trend. I trade the news by analyzing programmatically the released data for a specific report and generate signals which are executed immediately on the trading platform and forwarded simultaneously to my members.

    Fundamental and technical analysis must be used together, if one is used without the other this will lead to failure.

    5 – Technical indicators: In the forex market there is a lot of indicators which are used by many traders. I use ADX, Bollinger Bands to identify trends and volatility; RSI to identify an over bought or sold and Moving Average to identify a signal. And the most important technique is FIBONACCI, I advise traders to implement this technique and use it to confirm trades.




    Finally, I must say that Forex is not easy, and many times we feel that someone is doing a conspiracy on us to take our money, but the truth is nothing is impossible, and others successful traders are not more intelligent than us and they are not genius from other planet, the fact is the more you work the more you become closer to become good trader. Do not quit quickly because this business deserves hard work and dedication.



    About the author

    Author: Joe Chalhoub
    Address: Lebanon, Beirut
     
    #1 rpchost, Oct 17, 2007
    Last edited: Oct 17, 2007
  2. jackbill

    jackbill Recruit

    Joined:
    Oct 3, 2007
    Messages:
    5
    Likes Received:
    0
    Trend

    I would wish to know what length of time do i determine and confirm the trend?
     
  3. rpaco

    rpaco Sergeant

    Joined:
    Oct 3, 2007
    Messages:
    184
    Likes Received:
    0
    Wow! Congratulations on your hard work, determination and continuing success. Sounds like you wrote a whole front end. There are a few FX Brokers who provide automatic trading like FXDD and FXAuto but they rely on you subscribing to an independent signals service. Obviously your application has the ability to interface with your Broker and place trades, I wonder if you use one of the brokers that offer auto trading or if you have cracked the ability for your software to "pose as you" in making the trades, which would meant that it could be used on any broker (with mods to access the correct data streams of course). I have to ask if it is written in Java and if it uses IE in it's display since I use Linux and find that it prohibits me from using several platforms written in windows or using IE. I have Wine and IE but most apps that utilise IE will not run . I usually use Firefox 2.0.0.6
     
  4. Black Knight

    Black Knight Private, 1st Class

    Joined:
    Oct 11, 2007
    Messages:
    37
    Likes Received:
    1
    Yes!

    Fantastic advice, Joe. As a professional trader, I couldn't agree with you more. Everyone should take a moment to read this, especially the beginners. I get frustrated always being asked "so should I go long here?", "should I go short?" Take some time, people... go learn.

    -=BK
     
  5. Vettah

    Vettah Private

    Joined:
    Mar 14, 2008
    Messages:
    11
    Likes Received:
    0
    NEw part time trader-values reading

    I have been news trading for almost two years. I am determined to learn how to "really trade". I value your tips, have already experienced them first hand. What I'd offer also is to read about other trader's experiences. I am reading a book of interviews with great traders, and it's so valuable to hear the psychological roller coasters they went through and still may go through. It is helping me gain perspective on trading and build by emotional separation. I think it is as valuable as learning all the technicals, and patterns, and fundamental research.
    Thanks for the thread!
     
  6. Vettah

    Vettah Private

    Joined:
    Mar 14, 2008
    Messages:
    11
    Likes Received:
    0
    Considering "Emotional Bank Account" balance

    Was chatting w/ a forex friend about how we have a dollar account value, but then we also have an emotional account value. If we monitored the emotional account value better-actually inputing our own sense of profit/loss value to a lesson learned or heartache/victory experienced, would we see a correlation in our real account bottom line, hopefully on the positive side?
    Food for thought.
     
  7. digforpips

    digforpips Private

    Joined:
    Mar 4, 2008
    Messages:
    13
    Likes Received:
    0
    The learning curve can be steep in the fx market. Sometimes the pain felt in losing money can be the most profitable experience in the long run. Take the time to get the tools. I agree with the above.
     
  8. gforce1

    gforce1 Recruit

    Joined:
    Jun 3, 2011
    Messages:
    5
    Likes Received:
    0
    thancyu joe. where fibonaci? he is mexico? give me systems pleas. how much cost?

    thankcu
     
  9. Pharaoh

    Pharaoh Colonel

    Joined:
    Oct 3, 2007
    Messages:
    19,655
    Likes Received:
    2,201

Share This Page