Diary of a Novice Forex Trader

Indicators:

Supper Signal Channel
Xb4d 5 and 55Stochastic 5.3.3

Xb4d5 for entry
Xb455 for trend

Below is the typical chart
this is daily chart, you can use any timeframe.This pair is Eur/Jpy-Daily
The trend is sell because Xb4-55 is in red. you wait for sell arrow and xb4-5 to trigger red. Draw vertical line at the arrow touching the trigger red bar and the trend red bar.Having met this setup check with weekly chart and see at the vertical line the xb4-5 and 55 are in red i.e. intrend.Set the target at arrow change to buy. you can extend the profit to weekly. See Weekly chart

see chart below
This is binary trade using 30 chart-call
two calls enrty here. Look at vertical line where the indicators are aligned here, arrow call, both color macds changed to same color, stochasistic crossed and precision color changed. Use 30 min. expiry

                                           

review the chart below:

It is a call when at the vertical line, the precision change color, the stochastic crossed up and both Macd 20 & 30 bar change to same color and the price bar is white. use only 30 min. expiry

As of now, I am not getting any where with Forex. It is not the system. when you have a good set up it goes with all other systems. I have bought  many systems and EAs, they work for a while. It has a lot to do with yourself. I am quite lost. One day I am very confident, the next time I get frustrated and confused. Now I have this mental blog, Nothing is going to work for me. But still I am not quiting. You have to find " to do it in a certain way"

Forex can be very exciting and also very frustrating. When you were doing right, you thought you know the trade and feel confident. With the same set -up you lost the trade, then you lost your confidence and get confused. After attending the course the other day, I realised that I have a lot to learn, it's not just using indicators, you have to know the price patterns and news that may affect the prices. I am committed to this trade because it is affordable and it is me alone to make it works and make money.

ingintahu
There is not short cut to riches in forex, you really have to learn, really understand the price movements, not just playing with indicators. Learn the price patterns.

It has been a wild roller coaster ride. In the past two months, I've lost a bunch of money trading, gained them back for some profit only to lost them again. I'm now working back on my way up. Nonetheless, it has been a precious experience you can't get unless you go through it yourself. It's been fun learning all those financial terms and following the news which used to be so alien and boring prior to my involvement in forex trading.

I think I'm getting a better hang of the market. I'm still very, very wet behind the ears, but what can you expect from a two-months old novice?

I'm also getting my feet very wet with automated trading systems. You see, we can program the trading terminals to buy or sell depending on the behaviour of the charts. It's like a robot working 24/7.

There are many expert advisor (EA) scripts available on the internet, which you could use to trade. Some are good, and many are really bad. I've been testing several of them with the data from the past two years. One particular script I really like multiplied my equity 100 times in two years. In the simulation, I started with USD100 and ended up with more than USD10,000. Ain't that awesome?

Of course there were some lost trades, but the way the script was written, losses are minimize while winning entry would be allowed to maximize the profits. And unlike humans, computers are not emotional. Greed and fear, the greatest two obstacles from being a successful trader, are just not in their system.

Having said that, backtest results are nothing. We've got to forward test it in real time. I'm looking to install a broadband connection once I've settled down at a new place I'm moving to. With an old PC, I'm gonna let it automatically trade continuously with a demo account, and see how it would perform in a real situation. I expect the internet connections would fail me many times, and we'll have to manually reconnect the robot to the web, but for the time that it's on the web, we could see how the EA script would handle the forex market.

If automating trading does prove to be profitable, my next project would be to put a dedicated server in a data center and let it be the cash cow, while I concentrate on more fun things to do with life (not that manually trading is not fun, but one can only do it a couple of hours a day without getting a brain freeze). ;)