This is one thing that I hate most. A lot of people asking for my trading system. I know what they are going to do with it. They will take the hard work of many years, code it into an expert advisor and let it run on automatic trade.
For those of you who already has a succesfull system, you may share similliar view. Unfortunately for those who are still looking for a profitable way to trade, this is one of their easiest option. I dont blame them, creating a profitable system is not an easy task. It takes years to develop and test a system with no guarantee of success.
For those of you still looking for a way to be profitable in forex, there are system available on the internet. One of them is Zulutrade. Zulutrade is a place where signal providers (like me) test out their trade system with thousands of traders. It like a competition for traders. Good news is people can open an account and pick which signal providers they want to auto trade their account. Best thing is, its free. Yes, its free. You dont have to pay 30% of your profit to your account manager.
I personally never have used their system but am trying to register as a signal provider. Those of you can try it out if you want. All you have to do is open an account with them. Fund the account and pick which signal providers you want. Dont take my word for it. You have to go to Zulutrade and investigate yourself. Remember its your money.
dimanche 9 novembre 2008
samedi 8 novembre 2008
WHAT HAPPENED TO TRADERS I KNOW?
When I started to venture into the world of forex, there are a few local traders that I knew. They are either seasoned or newbie like me back then but now it seems that most of them are gone. They are no longer in the land of forex and they are doing something else.
It seems the saying is true. Most people will not survive the 1st 6 months in forex. Those who survive the 1st 6 months will have a tough 2 years. Some people lasted longer but they no longer trade. They have become and IB living on commission. One person whom I know doing that is henrycarol. Before he was an IB for Northfinance, now he is an IB for a different broker. Personally I do not think he trade anymore. This is because the commission is too small compared to profit in forex. If you cannot profit, then your option is taking commission on volume traded by others.
I am heading to my 3rd year in forex. I survived this long by controlling my loss. You cannot win all the time in forex but make sure when you lose, you loss is small. When you win, make sure its big. There will come a time when you have series of losses but those losses can easily be recovered with one big win.
At the moment I am managing an account. Its a loss account where the owner already given up hope. It has a very small margin. Apart from that there are 3 more offers. All of it with the amount of over RM20,000.00. All these offers came from people who have actually watch me trade. I now know that account statement means very little. People wants to see how you trade and they want to see you are winning in front of them.
At the moment my trade system have reached it 3rd revision. I have 2 students at the moment but unfortunately for newbie, the amount of information they have to digest is too much. They easily get lost in it. The hardest part is not the amount of information but following orders. Any system in the world will have specific instruction. It seems that humans are very bad at following instructions. It is in our nature. No matter how simple my system is, there will always be times when people do not follow the rules and human like to blame others on their mistakes.
Enough of that. My last signal actually survive the spike of the rate cut. If anyone following that, you will be in profit or break even. The rest of the pair didnt survive the spike.
At the moment I am holding 2 post that is:
1. Short EURUSD @ 1.2830
2. Short AUDUSD @ 0.6670
One of my students followed me during the trade late friday. Hopefully we will see a trend continuation and the above trade will generate hundreds of pip if not thousand next week. Good luck to all of you. Keep on learning and someday you will be there.
It seems the saying is true. Most people will not survive the 1st 6 months in forex. Those who survive the 1st 6 months will have a tough 2 years. Some people lasted longer but they no longer trade. They have become and IB living on commission. One person whom I know doing that is henrycarol. Before he was an IB for Northfinance, now he is an IB for a different broker. Personally I do not think he trade anymore. This is because the commission is too small compared to profit in forex. If you cannot profit, then your option is taking commission on volume traded by others.
I am heading to my 3rd year in forex. I survived this long by controlling my loss. You cannot win all the time in forex but make sure when you lose, you loss is small. When you win, make sure its big. There will come a time when you have series of losses but those losses can easily be recovered with one big win.
At the moment I am managing an account. Its a loss account where the owner already given up hope. It has a very small margin. Apart from that there are 3 more offers. All of it with the amount of over RM20,000.00. All these offers came from people who have actually watch me trade. I now know that account statement means very little. People wants to see how you trade and they want to see you are winning in front of them.
At the moment my trade system have reached it 3rd revision. I have 2 students at the moment but unfortunately for newbie, the amount of information they have to digest is too much. They easily get lost in it. The hardest part is not the amount of information but following orders. Any system in the world will have specific instruction. It seems that humans are very bad at following instructions. It is in our nature. No matter how simple my system is, there will always be times when people do not follow the rules and human like to blame others on their mistakes.
Enough of that. My last signal actually survive the spike of the rate cut. If anyone following that, you will be in profit or break even. The rest of the pair didnt survive the spike.
At the moment I am holding 2 post that is:
1. Short EURUSD @ 1.2830
2. Short AUDUSD @ 0.6670
One of my students followed me during the trade late friday. Hopefully we will see a trend continuation and the above trade will generate hundreds of pip if not thousand next week. Good luck to all of you. Keep on learning and someday you will be there.
jeudi 6 novembre 2008
October Nonfarm Payroll (Consensus Estimate: -200,000 to -250,000 Jobs)
The September jobs report was rather gloomy as U.S. employers cut payrolls at the steepest rate in five-and-a-half years. An unexpectedly high 159,000 jobs were slashed as employment thinned for a ninth straight month, strongly suggesting the economy may be in recession.
The unemployment rate was unchanged from August at 6.1 percent—the highest rate since the colossal 212,000 job decline in March 2003—as 121,000 people left the workforce.
Job cuts were across the board in September following revised losses of 73,000 jobs in August and 67,000 in July, showing an acceleration of decline in employment. Nearly 51,000 manufacturing jobs were lost last month on top of 56,000 cut in August, bringing the total number of consecutive months in which manufacturers slashed their payrolls to 27.
For week ending November 1, the Labor Department reported that the advance figure for seasonally adjusted initial claims was 481,000, a decrease of 4,000 from the previous week's revised figure of 485,000. They also reported a four-week moving average of 477,000, unchanged from the previous week's revised average of 477,000.
Despite September's dismal numbers, total job losses remain historically low based on revisions to July and August data. The economy has lost nearly 750,000 jobs since employment peaked in December 2007, which is when many economists say a recession began. By contrast, however, payrolls fell an astounding 1.63 million during the period between March and November 2001 in the recession of that year, and continued falling for almost a full two more years, bringing the total amount of jobs lost to 2.7 million.
Given that the labor market typically lags the broader economic cycle, however, there is little doubt that the worse is yet to come as the economy's cyclical downturn continues.
Now that the presidential election is over, focus is sure to shift back to economic matters. All eyes will be on this week's NFP which—if consensus numbers are accurate—will almost certainly hasten the decline of U.S. equities and give a strong boost to U.S. treasuries, boding well for the greenback.
What is the NFP report?
Of all the world monthly economic reports, the monthly U.S. Non Farm Report (NFP) is the most highly anticipated and has the most dramatic impact on the currency market.
The report, which is released on the first Friday of each month and states the previous month's numbers, provides detailed industry data on employment, hours and earnings of workers on nonfarm payrolls. These numbers are the best way to gauge the current state of the US market as well as the direction that the economy is heading.
What's more, the employment numbers provided by the report are used by the Fed to shape their interest rate policies. The health of the U.S. economy and interest rates translate to the strength or weakness of the U.S. dollar.
Risk with News Trading
As with all major economic releases, there could be significant price volatility with this announcement. Currency spreads will typically widen just before the release and will remain wide for a few minutes after. If the announcement is a shock to the consensus estimate, the price of the currency pair could gap significantly. For example, the price on the EURUSD trading at 1.2820 - 1.2822 just before release could gap up 60 pips to 1.2880 - 1.2882, without any available prices available between the price of 1.2820 and 1.2882. A Buy Stop placed before the announcement at 1.2830 would turn into a Market Order and would be filled at the prevailing price 1.2882. The same would be true with a Sell Stop.
Approximately four years ago we saw a gap of approximately 200 pips on the GBPUSD on a Non-Farm Payroll announcement. While this is an extreme example, it nevertheless is a possibility with trading during economic announcements. Consequently, plan on the spreads widening and, if you are trading with a Buy or a Sell Stop entry order, do not anticipate being filled at your entry price. You will be filled at the prevailing market price after the release, which could be significantly different from your desired price of your entry order.
Please be advised that due to the volatility of price fluctuations during the news, it is possible to see a delay in execution due to the additional verification necessary for each trade.
Article from IBFX. It seems news trading is not a good option if you do not know the news before it breaks out
The unemployment rate was unchanged from August at 6.1 percent—the highest rate since the colossal 212,000 job decline in March 2003—as 121,000 people left the workforce.
Job cuts were across the board in September following revised losses of 73,000 jobs in August and 67,000 in July, showing an acceleration of decline in employment. Nearly 51,000 manufacturing jobs were lost last month on top of 56,000 cut in August, bringing the total number of consecutive months in which manufacturers slashed their payrolls to 27.
For week ending November 1, the Labor Department reported that the advance figure for seasonally adjusted initial claims was 481,000, a decrease of 4,000 from the previous week's revised figure of 485,000. They also reported a four-week moving average of 477,000, unchanged from the previous week's revised average of 477,000.
Despite September's dismal numbers, total job losses remain historically low based on revisions to July and August data. The economy has lost nearly 750,000 jobs since employment peaked in December 2007, which is when many economists say a recession began. By contrast, however, payrolls fell an astounding 1.63 million during the period between March and November 2001 in the recession of that year, and continued falling for almost a full two more years, bringing the total amount of jobs lost to 2.7 million.
Given that the labor market typically lags the broader economic cycle, however, there is little doubt that the worse is yet to come as the economy's cyclical downturn continues.
Now that the presidential election is over, focus is sure to shift back to economic matters. All eyes will be on this week's NFP which—if consensus numbers are accurate—will almost certainly hasten the decline of U.S. equities and give a strong boost to U.S. treasuries, boding well for the greenback.
What is the NFP report?
Of all the world monthly economic reports, the monthly U.S. Non Farm Report (NFP) is the most highly anticipated and has the most dramatic impact on the currency market.
The report, which is released on the first Friday of each month and states the previous month's numbers, provides detailed industry data on employment, hours and earnings of workers on nonfarm payrolls. These numbers are the best way to gauge the current state of the US market as well as the direction that the economy is heading.
What's more, the employment numbers provided by the report are used by the Fed to shape their interest rate policies. The health of the U.S. economy and interest rates translate to the strength or weakness of the U.S. dollar.
Risk with News Trading
As with all major economic releases, there could be significant price volatility with this announcement. Currency spreads will typically widen just before the release and will remain wide for a few minutes after. If the announcement is a shock to the consensus estimate, the price of the currency pair could gap significantly. For example, the price on the EURUSD trading at 1.2820 - 1.2822 just before release could gap up 60 pips to 1.2880 - 1.2882, without any available prices available between the price of 1.2820 and 1.2882. A Buy Stop placed before the announcement at 1.2830 would turn into a Market Order and would be filled at the prevailing price 1.2882. The same would be true with a Sell Stop.
Approximately four years ago we saw a gap of approximately 200 pips on the GBPUSD on a Non-Farm Payroll announcement. While this is an extreme example, it nevertheless is a possibility with trading during economic announcements. Consequently, plan on the spreads widening and, if you are trading with a Buy or a Sell Stop entry order, do not anticipate being filled at your entry price. You will be filled at the prevailing market price after the release, which could be significantly different from your desired price of your entry order.
Please be advised that due to the volatility of price fluctuations during the news, it is possible to see a delay in execution due to the additional verification necessary for each trade.
Article from IBFX. It seems news trading is not a good option if you do not know the news before it breaks out
mercredi 5 novembre 2008
FREE FOREX SIGNAL 6/11/2008
Signal 1
Long AUDUSD @ 0.6720 or better
SL 0.6680
TP on your own
Signal 2
Long GBPJPY @ 154.80 or better
SL 154.10
TP on your own
Long AUDUSD @ 0.6720 or better
SL 0.6680
TP on your own
Signal 2
Long GBPJPY @ 154.80 or better
SL 154.10
TP on your own
mardi 4 novembre 2008
TRADE OF THE DAY - GBPUSD
This morning after looking at a bunch of chart, I have selected GBPUSD as trade of the day. GBP is weaker compare to other currencies. It would be much better to short it. At the moment hovering around 1.5960 and waiting for a confirmation to trade. Watch out for it.
lundi 3 novembre 2008
THE RABBIT HOLE IS FAR INDEED
It seems that the rabbit hole is far indeed. It has moved too far that the trend has turned but now its time for a reverse trade. I am not going to give you a signal but fyi, GU, GJ and GCHF is going long now.
Update:
Volume has been very low for the whole day. A long signal presented itself but with no volume to support it, its not turning. With such a low volume, pairs just slide with the trend. No trade for me anymore. I have ate my stop loss today.
Update:
Volume has been very low for the whole day. A long signal presented itself but with no volume to support it, its not turning. With such a low volume, pairs just slide with the trend. No trade for me anymore. I have ate my stop loss today.
dimanche 2 novembre 2008
GOOD MORNING FOREX
As usual its Monday morning, but unlike before this morning its a fast mover. As usual forex class started at 9am. Who entered the morning class should be in profit by now. I personally got 100 pips off EJ. Now I am not trading anymore. Monday morning got a lot of work to be done. See you again at 3pm.
UPDATE: 3:56PM
As promised earlier. I am trading again at 3pm. This time the signal is not as favourable as in the morning. We have here is a short signal in an uptrend formation. Still it is tradeable but the level of risk is higher.
In the chart there are 2 symbol of hands pointing up and down.
Hand pointing up:
1. Time: 9am Malaysian time
2. Signal: MA cross and RSI>50
3. Trend: Uptrend formation. This is easy picking. I entered 5 minutes earlier and exit 100 pip later. I could have followed the trend but due to office work on monday morning I cannot monitor it. An early exit of 100 pip on Monday morning is not a bad trade.
Hand pointing down:
1. Time: 3pm Malaysian Time
2. Signal: MA cross and RSI=50
3. Trend: Uptrend formation. This is a hard trade. Short signal on an uptrend formation. This trade most probably be a short one. At the time of writing, SL has been moved +10 pips. So I am at a profitable position now. Let see how far the rabbit hole goes.
UPDATE: 3:56PM
As promised earlier. I am trading again at 3pm. This time the signal is not as favourable as in the morning. We have here is a short signal in an uptrend formation. Still it is tradeable but the level of risk is higher.
In the chart there are 2 symbol of hands pointing up and down.
Hand pointing up:
1. Time: 9am Malaysian time
2. Signal: MA cross and RSI>50
3. Trend: Uptrend formation. This is easy picking. I entered 5 minutes earlier and exit 100 pip later. I could have followed the trend but due to office work on monday morning I cannot monitor it. An early exit of 100 pip on Monday morning is not a bad trade.
Hand pointing down:
1. Time: 3pm Malaysian Time
2. Signal: MA cross and RSI=50
3. Trend: Uptrend formation. This is a hard trade. Short signal on an uptrend formation. This trade most probably be a short one. At the time of writing, SL has been moved +10 pips. So I am at a profitable position now. Let see how far the rabbit hole goes.
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