[2010-01-04] Review
[2009-12-28] Just realized that today is UK holiday. Close off the trade, don't play play...
Monday, December 28, 2009
2009-12-28 GBPUSD Live Trade
[2009-12-28] Just realized that today is UK holiday. Close off the trade, don't play play...
Trading Discipline
I was discussing with one our traders last Saturday and a very interesting point that I felt that I must share.
In our journey of learning how to trade, it is extremely common that we would blame ourselves for not being discipline. Is it really the case? We recollected our experiences, through courses that we have taken up, books that we read, information from the internet, we gathered the "fact" that as a trader we must be discipline.
It is ultimately true, but before we can learn to be discipline, the actual steps is to learn the right skills, build it up through experiential learning and become aware of what we know. And not blindly follow rules and call it discipline.
It's like in the army, I would not just order my soldiers to follow orders, but to explain to them the rationale and get their understanding before issuing an order (whenever possible). If it's blind orders, soldiers tend to be rebellious or perform the required in a haphazard way. The same would be applied to ourselves as a trader.
In our journey of learning how to trade, it is extremely common that we would blame ourselves for not being discipline. Is it really the case? We recollected our experiences, through courses that we have taken up, books that we read, information from the internet, we gathered the "fact" that as a trader we must be discipline.
It is ultimately true, but before we can learn to be discipline, the actual steps is to learn the right skills, build it up through experiential learning and become aware of what we know. And not blindly follow rules and call it discipline.
It's like in the army, I would not just order my soldiers to follow orders, but to explain to them the rationale and get their understanding before issuing an order (whenever possible). If it's blind orders, soldiers tend to be rebellious or perform the required in a haphazard way. The same would be applied to ourselves as a trader.
At the end of the day, trading is still about knowledge and skills as our foundation.
It is not about finding a system or strategy.
Thursday, December 24, 2009
Identifying Price Patterns over MTF
This is one of the exercise done by my students during the class. It's a great example of identifying price patterns over MTF
Monday, December 21, 2009
What a Trader needs?
I have been asking myself what it takes to be a trader that trades for a living. It took me months before I get to find out the answers. That's right, answers - plural form.
Most of us would start out looking for systems, strategies or techniques to trade. They do form the various components of the answer, but they aren't the answers. Like any profession or business, it order to survive and do well, you need a framework.
What is a framework? It is a set of thought processes, execution procedures and management rules. They are required to govern the day to day operations, set pace towards achieving the goals set, and to manage the exceptions that surface every now and then.
As a trader, the thought processes would largely involve analysis and the decisions to put on a trade. And having a consistent approach to our trades provides us the when and how to get into trades. However, what directly affects our P&L or bottom line is how we manage the entire business of trading. I strongly believe if we have all these being pieced up together, profitability would become a by product.
Most of us would start out looking for systems, strategies or techniques to trade. They do form the various components of the answer, but they aren't the answers. Like any profession or business, it order to survive and do well, you need a framework.
What is a framework? It is a set of thought processes, execution procedures and management rules. They are required to govern the day to day operations, set pace towards achieving the goals set, and to manage the exceptions that surface every now and then.
As a trader, the thought processes would largely involve analysis and the decisions to put on a trade. And having a consistent approach to our trades provides us the when and how to get into trades. However, what directly affects our P&L or bottom line is how we manage the entire business of trading. I strongly believe if we have all these being pieced up together, profitability would become a by product.
Friday, December 18, 2009
GBPUSD 2009-12-18 Live Analysis
My analysis. I won't be trading today. TGIF!!!!
End of Day Update:
Understanding of price action would help traders to plan their trades. And it is a must in Technical Trading. It doesn't matter if you use indicators or not, without the understanding of Price Action, you are just driving in a pitch dark road with a torchlight (not even the car head lamps)
Thursday, December 17, 2009
2009-12-17 GBPJPY Live Trade
Entered this morning, long struggle. But someone gave me some wise words.
"The difference between winning and losing involve correctly identifying the reversal zone and placing the stops correctly. So even if the movement is crap (it is most of the time in reversal zone), it can still be a high probability trade if the zone is correctly identified and SL placed correctly."
For those who have not learnt to trade, the above sounds like bs, talking the obvious, but as a true trader, you would know how tough it is to do the above.
"The difference between winning and losing involve correctly identifying the reversal zone and placing the stops correctly. So even if the movement is crap (it is most of the time in reversal zone), it can still be a high probability trade if the zone is correctly identified and SL placed correctly."
For those who have not learnt to trade, the above sounds like bs, talking the obvious, but as a true trader, you would know how tough it is to do the above.
Trading Signals - Why I don't give?
I have been meeting a lot of people these few weeks and a common question that I would get is if I could give them trade signals. And my answer is a flat "No". Even for the analysis I put up on my blog, sometimes I am worried that readers would take the face value and jump into trades. Trading involves money and thus I do have social responsibilities in the stuffs I post.
The are many reasons why I do not give trade signals. Firstly, it's the trade management skill. When two traders taking the same view on the same trade, it does not mean that both would profit. One may lose money or get out with a small profit while the other could have rode the trade and hit his 150pips target. Moreover, the loser could be trading on a smaller account size and thus the risk would look sizable, say 3% risk, whereas the winner who is on a much bigger account size would feel more at ease as this trade could be just taking 0.8% risk.
At the end of the day, we want to learn how to fish and not get a fish from someone else. Trading is never simple, it is hard work.
The are many reasons why I do not give trade signals. Firstly, it's the trade management skill. When two traders taking the same view on the same trade, it does not mean that both would profit. One may lose money or get out with a small profit while the other could have rode the trade and hit his 150pips target. Moreover, the loser could be trading on a smaller account size and thus the risk would look sizable, say 3% risk, whereas the winner who is on a much bigger account size would feel more at ease as this trade could be just taking 0.8% risk.
At the end of the day, we want to learn how to fish and not get a fish from someone else. Trading is never simple, it is hard work.
2009-12-16 GBPUSD Live Trade
I must admit that I was gambling on this. Making a bet with potential good rewards.
Tuesday, December 15, 2009
Monday, December 14, 2009
EURUSD 2009-12-14 Live Analysis
Monday: 14th
Price has come down to this lower level after the break last week, expect price to fluctuate in between this level before the market decides to rally or do more correction.
Price has come down to this lower level after the break last week, expect price to fluctuate in between this level before the market decides to rally or do more correction.
Friday, December 11, 2009
Quick Update
Slow market, most pairs are caught in a triangle. I would wait for a breakout first then look for new opportunities.
There is a saying "To win the trading game, you need to learn how to survive long enough to see the outcome"
There is a saying "To win the trading game, you need to learn how to survive long enough to see the outcome"
Thursday, December 10, 2009
EURUSD 2009-12-10 Live Analysis
I think I need to give myself a *bonk*. Price already moved. Woke up late and have to give this a miss. Price sat on the support and formed a nice double bottom.
Wednesday, December 9, 2009
Monday, December 7, 2009
Saturday, December 5, 2009
Friday, December 4, 2009
2009-12-03 AUDUSD Live Trade
Took some time for the point D to form, but it still came.
Result: +20pips
The setup has been invalidated. Closed with 20pips profit. Still a sluggish day
Result: +20pips
The setup has been invalidated. Closed with 20pips profit. Still a sluggish day
Thursday, December 3, 2009
Trade Management
How well we manage our trade affects our bottom line directly. Knowing the basis of getting into a trade and thereby determining the criteria when the trade is confirmed by the market and the criteria where the entire setup has or going to fail, is therefore important.
As the trade progress, knowing when to move your stops, and revising your failure criteria would determine how much you can profit from the trade.
As the trade progress, knowing when to move your stops, and revising your failure criteria would determine how much you can profit from the trade.
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