GOODBYE 2007, WELCOME 2008

As 2007 is coming to a close, I would like to post one more entry.

It has been a good year for me, after many years(1.5yrs) of demo trading, I finally started live trading late this year. And the results are very good. I only deposited USD2000 and now my accoutn has grown 5X to USD11365. Next year, I am going to try a new method. Its the MTF STOCHASTIC thread method. I have been demo trading it for the past 2 months, and it proved to be a much better method. The reasons are simple, it consumes less of my time since I am now looking at a 4H chart instead of 15min chart.

Well guys, it looks like my goal to earn 1 million dollars is going very well as plan. I wish the some of you who are also striving for this best of trades.

HAPPY NEW YEAR to all. May you earn 1 million dollars.

Bullish elastic CHRISTMAS EVE 1415GMT 40pips/USD$400

Merry Christmas everyone, I never thought that I would be trading during christmas EVE!!!! But, my computer was turned on the whole day, and when I was checking my email, I saw this setup! Very clear setup being formed. I entered the market. And voila, I have 400 bucks to spend for Christmas.

But take note, try not to trade during holiday season. The stoch may be cheating you sometimes. But like this trade, the stochs are too close together thus supporting their moves.

Bearish elastic 191207 1600GMT 85pips/USD$850

After 2 long days of no trades, I found this setup which wasn't so promising at first as the 30min stoch was still undecisive and wasn't heading straight downwards. However, since the main trend is downwards, it means in the long run, the price should go down. Hence I decided to take the risk.

QUESTION
"Hi kris,
In this last trade, the stoch for the 5M was actually crossing to the upside. Do you not normally look at this?

Secondly, you mentioned in your answers that you wait for the bar end. But if you are trading on the 5M, and waiting for the bar end of the 15m and 30m stoch, that would mean that you are only taking trades on every x:15 or x:30. So, that would mean that you would not take a trade at say, 10:10, as there is still 5M (one 5m candle) to close on the chart. If that is the case, why not just trade on the 15M chart?

Really looking forward to your reply.

Cheers,
K."
ANS
Hi, this is very wierd. When I was trading, the 5M wasnt going upwards! It was actually heading down. The picture taken is quite strange. I checked back my chart, and the 5M was indeed heading downwards. Guess when I took a screen capture during that time, the chart was wrong, I can't really explain.

Now that you've pointed that to me, I am actually quite doubtful about the reliability of that indicator. What if it tells me wrong thing during my critical trading periods?

Anyway, I do follow the 5M to enter trades. I see whether in the short term my trades are going to be up or down trend. I use the 5M to make sure that when I enter a trade, the trend won't suddenly go against me. Meaning, I do not want to be at the edge of a short term trend and end up trying to break even only. I hope this is clear, it is quite hard to say:) If this doesn't make sense, forget about this. I will try to explain another way.

FAQ

There are many good questions raised by some of you, and I shall answer them here.

Q1. Do you wait till the close of the bar, or just using the MTF stoch indicator make the trade when simply pointing the correct direction?

A1. I wait until the bar ends and the stoch has already confirm its move. Because the MTF indicator is known to repaint itself. So always wait for bar ends. If you are looking at the 4h stoch, must wait for it to end. But most trade are based on 15/30min stoch. So we only need to wait 30 minutes max

Q2. What kind of stop loss do you use? What is the margin requirement on your account?

A2. I usually automatic stoploss all my trades to 50pips in the case of power failure. I give my trades lots of room since I noticed that the drawdown for GBP/JPY is very great. But since I find the stochastic to be strong, hence I usually hold on my trades. Even with 120pips drawdown before!

So for stoploss, there is no limit. If the stoch are against you, then just stop your trade after about 30pips.

My margin is 50:1. Hence when I started with only $2k, I had to be extra careful. But now that my account has grown to 10k, I can take more risk.

Q3. Which broker do you use?

A3. Sorry, I do not want to promote any broker. I am using the broker which offers very low spreads. *Hint: 0.9pip spread for EURO. Guess some of you know already.

Bearish Elastic 14DEC 0715GMT 191pips/USD1910 Balance: US$10115

This whole week, the EUR/USD did not produce many opportunity for trading my strategy. I managed to find one at the end of the week. A simple bearish elastic trade. I waited for the 1h stoch (thick blue line) to point downwards and entered the market. I held my position waiting for the 1h to recross 20. But the market was closing, and I don't want to hold a trade in the weekends so I closed it.

FOR those new comers,

the chart is as such,

thin RED line: 15min stoch
thin BLUE line: 30min stoch
FAT BLUE line: 1h stoch
FAT RED line: 4h stoch

FOREX affiliate

Some of you have known that I am a member of Forex affiliate program. I like the promo tools that it provides, such as information about how to trade forex. Furthermore, it provides me additional cash monthly which I will be accumulating to open another investment fund to try another FOREX strategy.

And I am not joking, you can earn alot from it! There are people who won't mind spending $50 to open an account with EASY-FOREX just to try out how FOREX works. I invite all of you to also sign up an account with FOREX affiliate for a side income.

UPDATES

Hi,
I am in the process of writing a manual on what I know about FOREX and the strategy that I am using (MTF STOCHASTIC). This is to help those who are new to FOREX and others too. Besides, it is a hobby of mine to write articles.

Sorry to those who have been asking me for my template. I am having trouble clearing up the mess in my metatrader folder. I have more than 100+ indicators as I tried many different strategies in the past. I will try to find which indicators I am using and save that template too soon.

My account is about $8417 ++ counting interests earned but I will simplify it on my trading journal as I only want to record profits earned from pips and not from interests.

Besides this online trading journal, I also have a hardcopy trading journal which I feel is very important to record all trades. It somehow builds up my confidence in trading. 

Bearish elastic+agreement trade total 270pips/USD$2700 Balance: USD$8405

There are 2 trades here. The first one being an elastic with characteristics of agreement. This means that it is a very powerful trade. And no doubt I got 200pips from it.
The 2nd trade is a simple elastic trade. And it got me 70pips.

For this month, I am trading about +/-10mini lots per trade. I made one pip gain worth $10.
I am amazed at how quickly I could earn this $2700US. Of course it is now possible to lose $500 easily too if I am careless.

I am now going to spend the money on a new laptop for my trading.

BEARISH ELASTIC 40pips/USD400 Balance: USD$5705

Time of trade: 04 DEC 1400hrs GMT
Type of trade: bearish elastic

By now, you should be familiar with this pattern. An easy 40pips trade from GBP/JPY pair.

Profit: USD$400

Trading plan for DEC 2007

Hi, as I have already met the target for NOV '07, I decided to rest for the week and not think about trading. However, I could not stop thinking about setting a trading plan for next month.

 

Here is my brief plan for DEC '07

 

Balance as of today: US$5305

Target balance by end DEC: US$9000

 

PIPS and LOTS PLAN

About $4k profit.

20PIPS/day

400PIPS/month

 

10minilots per trade

 

MOST PROBABLE PIP GAIN FROM

 

EUR/USD: 150

GBP/JPY: 200

OTHERS: 50

 

 

Same strategy: MTF STOCHASTIC (more info soon in next post)

 

 

BAD agreement trade 23Nov 1335hrs -25pips/-USD125 Balance now: USD5305

I rushed into this trade as I thought the 15min would lead the way uphill and 30min/1h was already above 20line. However, the 15min failed to pull them up. In fact the 30min was going downwards. Thus this was a failed trade.

But, actually I could stay and ride this trade as the 4h stoch is moving upwards and the 1h is horizontal. As seen, the price actually increased after that. I regretted going out to fast. And lost 25pips.

2 bearish elastic, 22NOV 1310hrs and 23NOV 0145hrs, Total profit: USD970 BALANCE: USD5430

This are 2 easy elastic trades. Easily made about 1k. In only 2 days.

Bullish Agreement 22NOV 0150hrs 130/USD650 Balance:USD4460

This is a simple agreement trade, however, the 15min stoch has already passed the 80line, thus it has a higher level of risk. Nevertheless, the 30min stoch is still low, and it is moving towards the 1h stoch, thus I decide to take up this trade with 5minilots.

3 possible Agreement trades that I missed TOTAL possible pip gain:300

Here are 3 agreement trades that I missed.

The first agreement trade is the most optimum as all the stoch are neat and tight.

The other 2 agreement trades are not so good, as they are not tight.

The 15min stoch keeps crossing the 20line in the 3rd example, however, if the 1/4h stoch is still moving down, supporting downward move, it is okay to ride the 1h stoch until it recrosses 20line.

3stoch elastic 20nov 0345hrs 135/$675 Total balance: USD3810

1. Elastic trade
2. 3 tight stochs going towards the 4h stoch, should be a very strong indicator.

Lesson learnt

don't quickly close trade once the stochs reach 80 mark. Ride them since the 15stoch never cross 80 to move downwards. Ride the 1h stoch.

How am I going to earn my 1 million dollars?

You may have been wondering how I am going to earn 1 million dollars in a year. It sounds absurd and childish. However, it can be done.

My aim is to earn 400 pips a month.

So let's assume I am consistently earning 400pips for the next 12 months.

1st month, I trade 5 minilots for every trade. Profit=(#of minilots) X (pips earned).
Thus for the 1st month, I should earn 5 X 400 = 2000

For the 2nd month, I will increase my trades to 10minilots.
Profit for 2nd month should be 4000

For the 3rd month, I will increase my trades to 20minilots.
Profit for 3rd month should be 8000

By the 10th month, my trades will be 2560 minilots.
Profit for 10th month is a whopping 1024000!!!

Basically, my trades are doubled every month, thus my profits are also doubled.
But the risk remains the same since the balance keeps doubling too.

BALANCE BY THE 10th month should be $2,056,000

GOSH! That is really a unbelievable feat!
That is why I only said 1 million and not 2 million as my target to give room for some error trades.

Please don't just laugh and say this is impossible, because I am ready to show that it works.
THE ULTIMATE DISASTER OF THIS PLAN? only losing $2000(my initial capital)
BUT THE POSSIBLE PROFITS ARE TOO HIGH to ignore this plan.

Bearish elastic trade 56pip gain Current BALANCE:$3135

I will explain about the new indicator another time.

This is an example of a bearish elastic trade. It's so easy to see. The 15min and 30min stochs have turned steeply and moving towards the bigger stochs. The price will confirm go down, so I placed a sell order at that point marked on the chart. Now let's see the result in the next chart.




56 pip gain!

This trade was easy and I profitted $280 since I traded 5 minilots.

Now my balance is over $3k


The road to a million is going as plan.

Elastic trade 091107 0310GMT Balance: $2855

This is another elastic trade. Notice there are many elastic trades and most of them are profitable.

In this trade I relied on the 30min as an exit indicator which made me earn only 15pips instead of 30pips. Next time I will use 15min stoch as my exit indicator.

But the $75 profit is still nice.

15min pull power trade 081107 2335hrs GMT Balance: $2780

1. The 15min stoch moved upwards while the 30min and 1h stoch were still moving horizontally.
   
2. The 15min stoch successfully pulled the other 2 stochs to move upwards too, this indicates a successful trend upwards.
3. Thus I buy 5 minilots which netted 50pips profit

This trade gave me $250 profit

Another elastic trade on 071107 1230hrs Balance: USD $2530

What is an elastic trade?

Noticed how the 15min stoch is stretched away from the 3 bigger stochs, then it snaps back towards the 3 bigger stochs again. That elasticity gives the name elastic trade.

In this trade, I saw the 15min stoch rising towards the 3bigger stochs which are in the overbought region, this indicates a very strong mini uptrend. I quickly bought 5 minilots and made 50pips gain.

BUY: 1.4665
Closed Trade: 1.4716
Spread: 1pip

Total profit for this trade: 50*5(minilots)= USD $250

Current balance: 250+2280=USD $2530

An elastic trade on 071107 0845hrs (GMT+0)

The 5min stochastic is moving upwards, the 15min stochastic is also moving upwards towards the 30min,1h,4h stochastics which are already at the overbought region. This indicates a strong mini uptrend.

I bought 5 mini lots

Buy: 1.4625
Close trade: 1.4681

56 pips gain

Total profit= 56*5= USD 280

CURRENT BALANCE= USD 2280

Why start Forex trading?

Forex trading is one of the most viable options for someone who's looking at bigger possibilities, bigger profit and greater ease in trading and business. Because of it's high liquidity and speedy transactions, forex trading is becoming a popular game among players in the field of business and marketing. While it's traditionally for companies and corporations with big capital and experience in the field, it has also proven itself to be a good venture for a neophyte though what one calls a Mini Forex account or mini forex trading.

Mini Forex Basics

Mini Forex trading is good for people who have just started in the forex market and with not enough funds to open a regular account. It requires a smaller capital compared to regular forex accounts, a minimum of $300. With mini forex trading, you can control a $10,000 currency position.

The key here is leverage. Because of leverage, a trader can trade in a commodity more than the money available in his account. Say with a $250 deposit, one could trade a maximum of 5 mini lots. This kind of leverage is greater than stocks or day trading. Of course, it is recommended to start with a manageable leverage that allows greater flexibility in transactions.

What are the perks of mini forex trading? With just a small stake involved, you get to enjoy free trading platform and benefits that regular forex traders get to enjoy. These would include state-of-the art trading software, charts and resources. With a leverage of 200:1, the trader can trade in a commodity regardless of the amount of money available to him.

Mini forex trading also allows for lesser losses as the contract size is only 1/10th the size of a standard forex account. There is also greater flexibility with regards to customizing trades and minimizing risks. Ideal for those with smaller capital, the trader has a chance of investing in more areas of the market with lesser risk as there is lesser capital to be lost. He need not be hesitant with his transactions as there is lesser capital involved.

With the same freedom enjoyed by regular forex traders, a mini forex trader can trade as many lots as he likes. Although the standard trade size is 10,000 units, you are free to trade as much as 50,000 units or more. In this way, the trader also builds up his confidence in his trading skills at the same time slowly increase his profit and trading position in the market. He gets to manage his money before going for the higher stakes in regular forex trading.

The trader likewise gets to develop a sound trading strategy without getting too emotionally involved in possible losses and profit. For practice, a newbie in forex trading can practice through paper trading. But in the real market, he can start small with mini forex trading. There is lesser capital involved and the practice builds up the trader's trading gameplan for future explorations in regular, higher stakes forex trading.

Exams coming up, gotta study, Forex on hold until November

My final exams are coming soon and I am busy studying for it. I have to put my Forex trading on hold until 10 November.

This goes to show how flexible earning money from FOREX is. I can trade anytime I want. If I am busy, then I can always trade another time.

I hope I have inspired some of you to trade FOREX. But do note that it carries a very high risk. If you are not ready for it, please do not attempt to trade forex. I have been studying the FOREX charts for 2 years already. Perhaps you can follow my footsteps.

No investments yet

I have not made any trades yet as I am still fine tuning my strategy. Expect my first trade to be around late december.
However, my account has grown slightly by USD2. The interest rate is quite high.

In forex, it is important to paper trade first, so that you do not suffer.

DEPOSITED INITIAL CAPITAL

I have deposited the initial capital of USD2000 with a FOREX broker.

My target is to earn USD 1,000,000 by DEC 2008.

A short info of my trading plan:

400 pips/month, 20pips/day

Purely mechanical trading.

Detailed strategy will be posted soon.

Why I chose to invest in FOREX market?
- it is the most liquid market with 3.2trillion trading volume
- small capital can earn explosive profits with proper leverage and money management
- 24hrs market, I can trade any time I want
- fully automated dealing, no need to call broker
- no broker commissions only small spreads