My forex readings for the day

These are my prefered on

The Reality about Leverage

Live account vs Demo account

A Mathematical Approach to Eliminating Emotions

Trading Psychology and Drawdowns

Probabilities in Trading

Stop Placement

Trading Psychology- Accepting the Risk

Trading Around the News

Trade Invalidation Management

Adjusting Profit Targets

Trading Plan Follow Up: Following the Plan

Planning Your Trades

Trading Psychology- Recency Bias

Creating a trading plan

What Makes Prices Move?

A must read even if I don't like much the analysis from FX360. Enjoy ;-)

Eurusd in consolidation range

Eurusd consolidation range still holding. Would short on top of range with good risk reward.

Eurusd remain capped 1.3680 and 1.3440-50.

Gbpusd downside channel capped spike

Check this downside channel (1h chart) that capped asia spike post good confidence number.

Would stay short as long this channel holds and go long once we confirm breakup (around 1.51).

Currently holding shorts 1.5033 1.5032 1.5022 may add more.

Key factors involved in successful trend trading

Key factors involved in successful trend trading.
Trend traders: 

  • NEVER attempt to predict where the market will go
  • NEVER attempt to pick "tops" and "bottoms" of price action
  • ALWAYS respect the trend and align their trades accordingly
  • Let the market tell them when the trend is finished, not their "intuition"
  • Realize that they will necessarily sacrifice some pips at the beginning and end of a trend as they
  • Wait for confirmation that the trend beginning and end are authentic
  • Look at price action from a long-term perspective and don't get shaken by volatility
  • Understand that they will go through some potentially significant but temporary periods of drawdown as the trend matures
  • Understand that trend trading can lead to large gains but also equally large losses
  • Understand that trends can take place on multiple time frames
Profitable trend trading is 99% mental.

Found it in an Ebook reading right now.

Closing a partial order in Metatrader 4

Well one of the features that I thought was missing in metatrader trading plateform was inability to close partially a position in order to secure pips. But finally I was wrong!

In fact all you have to do is click on close trade then modify volume. So you will have a comment on your trade "split xxx" and you can then bank 1/2 or 1/3 of your current position.

However you can't post partial stops and limits! But you can use an EA to do that or scripts.

Some intersting scripts for managing your trades if you wish to digg more.

Otherwise beware 99% of metatrader brokers are dealing against their customers and big risk of requotes and slippage. Will explain more in another post.

Gbpusd scalp 2 Mars 2010

OK here is a trade that I loved.

See chart for GbpUsd 15 min (click on chart):

My setup:
Upside trend line on 15m is being breached. So I posted entry short order at 1.4910 for 10 pips. I avoided previous levels where trend got support and expected momentum would push cable lower. It worked fine and fast! +10 pips.

Of course I took bigger risk than reward but placing target very close to entry and far from resistance. And best part this order was triggered and close when I was way.