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