What trading system is best for you?

Total Result for 1/13/09
EUR/USD: +65 Pips
USD/JPY: -47 Pips
________
+18 Pips

Yesterday's Trades:
Time: 11:17PM
USD/JPY 4HR TF
Short: 89.12
Hit S/L at 89.59 (-47 Pips)

Today's Trades:
1)
Time: 9:23AM
GBP/USD 4HR TF
Short: 1.4530
S/L: 1.4583 (-53 pips) A little higher than my normal S/L rule. I usually use a 50 S/L cape.
TP1: 1.444 (+90 pips)
TP2: 1.4350 (+180 pips)
R:R 1 : 1.69 : 3.39

Results:
Time: 9:35AM

Trades closed out early because of strong, large ranging prices and strong votility in this pair. I know that I have mentioned earlier how you should stick with your trading plan. However, you will learn after trading for a while that you can sense a market rhythm in the prices. I will explain what is the market rhythm* in a later post.

Trades Closed at 1.4528 for +2 pips

2)
Time: 11:45AM
EUR/USD 4HR TF
Short: 1.3172
S/L: 1.3241 (-69 pips) A little higher than my normal S/L rule. I usually use a 50 S/L cape.
TP1: 1.3100 (+72 pips)
TP2: 1.3050 (+122 pips)
R:R 1 : 1.04 : 1.76

Results:
Time: 2:23PM
Currently running: 1.3172 (-2 pips)

This trade was placed because two previous candles were bearish and it bounced off from the 21EMA to 8EMA. The opening of the third candle was a break through from the 38.2 Fib line. Also, MACD indicate a TC signal.

WHAT TRADING SYSTEM IS BEST FOR YOU?
One of the most time consuming task for me was to find the "Right" trading system to fit your trading style. If you're still looking for the "Perfect" system, then please do not waste your time any longer. I'm sorry to dissappoint you, but there is no such thing as a forex "GURU" trading system. I think trading systems are usually taylored to your personality and style. After trying out systems after systems for months, I finally came across a system that was similar to my trading style. I would like to give credit to Mr. Phillip Nel* for his 4HR Strategy (MACD) system. You can learn more about this system and many other systems at www.forexfactory.com. After forward testing and placing over 100 trades for the past 4 months, I finally can produce a consitant number of pips per month. Everyday is a new lesson when it comes to trading. You can never stop learning.

First you must establish your trading style. As for me, I have a full time job, so I don't have time to sit infront of the computer all day long to wait for the right signal. That is why I chose the 4HR time frame instead of the lower time frame. I use the lower time frame to place early entry signal and use the 4HR time frame for confirmation. I did not use the 1day time frame because it requires using a much larger S/L (stop loss), which is too steep for my pocket at this stage.

Trading Forex takes a lot of patience and self educating. I will put a list of recommending books on my later posts.

Topics for the Next Post:
*What is Forex and why should you know about it?
*How to start trading Forex?

What is Financial Freedom?

*Updated*

Before writing anything, I just want to say that English is my second language. So bare with me. Thank you.

How do you define financial freedom? Some people will say: Financial freedom is when you become a millionaire, or have a lot of money in the bank. Is that true? How much money is enough money? To me, financial freedom is simply being able to pay your monthly bills and still have extra money for savings. I know that's easy to say but hard to do. Especially with today's economy, not everyone is fortunate to still have a job. Because job security is no longer that secure, people must have a plan B for "just in case" situation.

Fortunately for me, I have already established my plan B two and a half years ago. I decided to become a part-time forex trader. I know trading is not for everyone. But to me, it is one of the best decision I've ever made in my life. I am yet to become a professional trader, however, I am determine to become one in the near future. I will continue to educate myself.

I will use this blog to post my daily forex trading positions, whether it's a winning or a losing trade. I feel that you can only get stronger if you can learn from your mistakes. Also, I will use this blog to post any topics that are related to forex.

Today's Trades:
1)
Time: 10:50AM
EUR/USD 4HR TF
Short: 1.3234
S/L: 1.3281 (-47 pips)
TP1: 1.3174 (+60 pips)
TP2: 1.3100 (+134 pips)
R:R 1 : 1.28 : 2.85

Results:
Time: 1:11PM
TP1 Hit with +60 pips

*Updated*
Time: 4:27PM
Note: TP2 did not hit, but instead S/L out to BE at 1.3229

Move S/L to BE (Break Even): 1.3229 (5 pips for spread)
TP2 still running at +50 pips

Reasons for my trade:
Price bounces off from 21 EMA to 8 EMA. Trend continuation indicate in the MACD. I will explain my template in the later post.

2)
Time: 4:41PM
USD/JPY 4HR TF
Short: 89.12
S/L: 89.59 (-47 pips)
TP1: 88.18 (+94 pips)
TP2: 87.24 (+188 pips)
R:R 1 : 2 : 4

*Updated*
Time: 10:16PM
currently running: -44
*Eventhough I know that it is closed to being S/L, I will still stick with the plan. It is very important that you stick with your plan. No matter how stormy and windy the market gets, you stay with the storm.*

Time: 6:00PM
Currently running:
-30 pips

Reasons for trade:
This trade was an example of bad practice. A lesson that all trader must learn is to never trade without a well define plan. I placed this trade out of instinct . As I was looking at a lower time frame to search for early entry signals, I decided to position my trade with MACD indicating a TC (trend continuation) signal. I disregarded the EMAs and just based the position on MACD. This is a higher risk trading technique. I do not recommend traders to trade using only MACD as an entry signal because you can get burn in the long run.


NOTE: Once I know how to navigate this blog better, I will post screen shots of my trading charts.