Wednesday, July 21, 2010

" Before we go into 7 rules of Forex Trading, that have been approved by a number of full time and successful traders, I'd like to narrate this story.

There was a lion, a donkey and a fox all keen to go out rabbit hunting together. After a productive day of hunting, the three of them sit around the pile of rabbits and the lion asks the Donkey, "Mr Donkey, would you please divide the pile into equal shares for the 3 of us?". The Donkey obliges and counts the rabbits into three equal piles for each of them. The Lion immediately roared and pounced him. He then piled all the rabbits on top of the donkey and asked the Fox "Mr Fox, would you please divide the rabbits up evenly between us?". The Fox takes out 1 scrawny rabbit from the pile and puts it in a pile for himself then say "There you go, Mr Lion, that's your pile" pointing to the large pile of rabbits. The lion says "Mr Fox, where did you learn to divide so equally?" and the fox says "The Donkey taught me."

The moral of the story is to learn from others' mistakes. Now we proceed to our 7 rules. These are for you benefit as mentioned earlier, from experienced, successful traders.

Rule #1 Never risk any more than you can afford to lose, you will lose money, all traders do, make sure you're not sacrificing anything else important in the process

Rule #2 Never risk any more than 2% of your margin trading account on a simple trade. For mini account holders, 2% of $300 would be $6 so realistically you would need around $15 so you can make this 5%. As soon as your account size is big enough, make this 2%.

Rule #3 Always use a stop loss order. If you haven't figured out where your stop loss order and limit order should be at the start of your trade then you shouldn't be trading.

Rule #4 Know your exit point before you enter a trade.

Rule #5 Demo Trade First: Become successful with paper trading when there's nothing on the line before you open a real account.

Rule #6 Take a breather when your equity has taken a dive.

Rule #7 Don't let your emotions call the shots: Stay cool, calm and collected. Patience and a clear head will win the game."

Taken from

Enjoy your reading.

Monday, July 19, 2010

This week : The bear comes hard on Friday.
it may continue this week as all the price on GY & EY is below 50SMA & Engulfing pattern has shown.

find SELL only.

happy trading.

Tuesday, July 13, 2010

Ok, Lets learn the most basic thing about candlestick.

Lesson no.1 -
Candlestick shows us the high, low, open and closing price in graphical mode. It was introduced to the world by the Japanese traders but elaborate deeply by Steve Nison- who also known as a candlestick pioneer. (ye ke??)

Lesson no.2 -
To differentiate it, we put color into candlestick ie - Red for candlestick which have closing price lower than opening price and Blue for candlestick with closing higher than opening price.

To be continue to Candlestick Basic no.2
To all readers,
please apologize me...
I didn't put any update here lately. The truth is, i also didn't trade much during this period of time.

I'll try my best to give some time to write down here the signal and the strategy as well my comment on current market condition.

Hope you don't mind.
till then, Happy Trading.

P/S - if the market looks like this until tomorrow, we may see BEARISH this week, which translate to SELL GU GY EY....

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