0. NOTHING I SAY IS TRADING ADVICE, this has to be clear.
1. I study price action and its cycles and position myslef accordingly in order to make a proft out of the move. Big changes in fiscal, monetary or economic policies are just catalysts; I understand their market repercussion and the price raction reaction on the instruments I trade.
2. If there´s nothing to trade on; i.e important news releases I will spend 2h that day checking on my positions and price alerts and reviewing my entries and exits.
3. I use MT4 and a set of indicators for my "blank canvas" charts. This indicators mainly give me move exhaustion levels. I use a squawk service and have it on always when I´m in front of my charts.
4. We will be hsaring setups and trades. You can also share your setups here for discussion.
5. Posting charts on developed trades, possible scenarios and long term targets is highly recommended and sought after, this is what I would be doing too.
I´ve decided on tradimo to keep a trading blog. Why you may ask? well it´s simple, I know them and believe in their work on spreading knowledge and educating to persue financial independence.
Let´s start with one big rule of mine:correlation does not imply causation. Exactly, even if 2 pairs are stongly correlated you do not ever jump in blind, you look for setups and then take the desicion to jump in or not.
This is a place for discussion so if you don´t agree with my analysis please post your chart so we can discuss it, you might save me a few pips by doing so.
A little bit about my style:
- I trade on the higher time frames and hold on to my trades a few days in average, until my targets are hit (or my stops for that matter).
- I focus on levels, overextended trends and market cycles.
- I look for high inflection levels to pick tops and bottoms. I can´t qualify myself as a contrarian but I do often trade against the current trend.
- I monitor many markets but mainly focus on 14 forex currency pairs, spot gold, light sweet crude oil, and the e-minis.
Rules of engagement:
- Never risk more than 3% on a single trade.
- Start with half a position and scale in the rest once we have definite direction.
- Move stops accordingly to protect profits; moving them to the next areas of support or resistance that have been breached. A move back to them might invaidate your trade.
- We don´t scalp. We need a bettern than 1:1.5 RRR to enter a position and a target of at least 30 pips; but we focus on 100+ pip intrawaeek moves
- Whenever the market allows you to buy dips and sell rallies between your entry and target. (same RRR rules apply)
- Stops are determined by the market, big enough to let my position breathe; decide on position size accordingly.
- Never add to a loosing position.
- Never let a winner become a looser
TBC: I will be expanding my trading concepts on this first post.
October 13th 2013 $eurusd short reversal on high risk environment
October 16th 2013$gbpusd rally before a massive bear move
November 14th 2013Long $usdjpy and analysis pre GDP release
1/ $audusd long from 8900: 825 pips
2/ $gbpaud double harmonic cycle: short on bearish bat completion and long after target is hit on bullish bat completion
3/ $usdjpy countertrend trade: Reversal on harmonics and divergence at resistance
HARMONIC TRADING profiting from the natural order of the financial markets by Scott M. Carney
Helpful stuff : indicators and how tos
Harmonic patterns explained
How to trade a triangle break out
Money Manager Indicator
This is Linda Raschke´s Classic Indicators (part1)
Daytrading explained by a Chicago futures floor trader
Money and Speed: Inside The Black Box
The Wall Street Code (Marije Meerman, VPRO)
Mark Douglas - MIND OVER MARKET
US Energy Information Administration
UK Office of National Statistics
White House: POTUS speaches
Federal Reserve: Chairman of the Fed speaches and FOMC announcements
International monetary fund live stream
Federal Reserve: Recent developments / News releases and speaches / FOMC / Economic research
European Central Bank: Publications / Press
Bank of England: News releases / Speaches and articles
Bank of Japan: News releases / Speaches and statemetns
Reserve Bank of Australia: latest news / Media releases / Speaches
Reserved for future challenges
'Scuse me while I kiss the sky