The Mindset of a successful trader - quantina forex news trader ea 2015

The Mindset of a successful trader ~ quantina forex news trader ea 2015

THE MINDSET OF A SUCCESSFUL TRADER!
For those of us who have been following this thread for quite a while, you should have by now been in a position where you take trades with confidence. That notwithstanding, I will today discuss the following specific steps on how to think and act to develop the mindset of a successful forex trader for ease of reference:

Step 1: Trade the Masterchart. It should be your No. 1 guide. The levels on the Masterchats I posted here are products of extensive research. What is happening in the forex market is that series of bad/good news (fundamental), manipulation/greed by the big players and most times fear/panic will always push the price from one support/resistance level to another. The truth of the matter is that the world economy generally is in shambles that is you will constantly see series of bad economic news followed by some good news resulting in “bull+bear+bull+bear” usually repeated over and over again.

Step 2: Trade in the direction of the weekly chart: The most reliable direction in the forex is the direction of the weekly. If the weekly is in a bear/bull mode it could stay that way for 4-10 weeks. Read the post on understanding trend to better understand this.

Step 3: The best trading opportunities are in the weekly: To increase your chance of success, sell only the top of nN, mM and buy around the base of V, U and W on the weekly charts. To identify these level signs, open a weekly chart, look closely and you will begin to recognize them. This simple trick will make your trade live a lot easier. I will begin to post this signs here

Step 4: Use money management: Use my recommended money management lots/account size ratio as follows:

0.01 lot for $1000 Trading account (max of 5 open trades at the same time)
0.10 lots for $10000 trading account (max of 5 open trades at the same time trades), etc

If you gather more experience or make money regularly, you can gradually increase your lot sizes or open trade to double the recommended lot sizes.

Go through the early part of this thread for a better understanding of my views of money management.

Step 5: Trade 1000+ Pips circle. Read and understand the 1000 pips price actions analysis. For the major pairs from the pin of a weekly candle expect 1000 and more before any major reversal. If the destination of 1000 pips PAA is closer to a major support/resistance on the master chart anticipate a touch of that level. Identifies expected levels in advance and you only monitor price reaction around such areas.

Step 6: Avoid think in terms of pips. Avoid thinking in terms of pips but in terms of actual currencies e.g. cent, pence, etc. If you think this you will avoid the graveyard of most forex traders (i.e. chasing low pips (5-100). If you think in terms of currency you will realize that a move 1000 pips move by GBPUSD move from 1.54000 to 1.64000 is a mere 10 cents. Further a 1000 pips move on GPBJPY from 130 to 120 is a merely 10 yen.

Step 7: Use H4 50 Pips Price Action Analysis. Utilise on price movement on H4 candles within 50 pips range to determine where to enter a trade. If you do this you will realize that you can have up 16 hours and more to enter a trade. Trading this way you do not need to sit in monitor your chart endlessly to get trading opportunity. In the worst case scenario you only need to check the chart every 4 hours.

Step 8: Enter trades using only M15 trade-friendly chart: When the price get to your desired areas on the higher time, enter your trades at the best discount by using M15 on a trade-friendly chart. If you need further explanation read most posting about creating a trade-friendly chart.

Step 9: Understanding the importance of 50 point level on RSI: 50 point level on RSI on your trade-friendly chart is usually an area where price normally stalls, changes direction or continues on any time frame.

Step 10: Set concrete zone on H4 chart: Price usually trade for most currency within 250-400 pips over a period of time within a concrete zone. The concrete zone is a good guide on where to place stop losses. Place stop losses slightly above the concrete zone for your sell and slightly below for your buy. Read my previous postings on concrete zone for better understanding of the concrete zones.

Step 11: Take profit at pre-determined level: Set your take profit at pre-determined points depending on your expected returns. If you are trading the weekly chart anything less than 200 pips is a waste of efforts. You should be aiming for 200 pips and above.

I attach the monthly and weekly charts for a better understanding of the above analysis
More info for The Mindset of a successful trader ~ quantina forex news trader ea 2015:

Read More..

Understanding Trends - forex news spike trading ea

Understanding Trends ~ forex news spike trading ea

What I will discuss today is understanding trend. I still have one or two things to discuss before finally discussing my current trading style.

Understanding trends

Many traders find it very difficult to understand trend. The simple truth is that you can only understand trend if you follow the weekly time frame. What most traders dont appreciate is that if a trend is up in the higher time frame it can remain up so for a month, 4-5 weeks, 35 days etc. Your chance of success will increase significantly if you trade in the direction of weekly time frame using the lower time frames to enter into trade. Put differently, if the weekly trend is down, your best bet is to sell the pull backs at least until price moves in that direction by about 900-1000 pips. On the other hand, if the weekly trend is up, the most profitable thing to do is to buy on the pull backs at least until price moves in that direction by about 900-1000 pips. Let me illustrate my analysis of the price action from in the last five months;

a) In April price the highest point for the year at 1.67460
b) Between May and July price fell by about 1000 pips to 1.5780 and pulled back to 1.6618 (838 pips) and present fell to a current low of 1.57050 (913 pips so far)
c) The monthly support and resistance are the horizontal red and yellow lines.

The above analysis is simplu a guide and had nothing to do with understanding trend. To have a proper understanding of trend, let us look at price action on the weekly time frame.

a) In terms of weeks, the fall was completed by 10 weekly candles and the rise by about 5 weekly candles
b) In terms of daily time frame about 35 candles
c) in 4 hours time frame perhaps hundreds of candles

I attach the monthly, weekly, daily and H4 charts as usual.
More info for Understanding Trends ~ forex news spike trading ea:

Read More..

ANALYSIS - free forex news trader ea

ANALYSIS ~ free forex news trader ea

GBPUSD MPAA - The best time to begin to look for short is between April- June (Wait) 1000 PPAA: 1.6270-1.630 is the place to short (wait) Weekly - The weekly candle has been consolidating since Jan. 29. The valid weekly pins were pins were given on the 2nd & 26th of February Daily Trade Friendly Chart: - The sell signal was given on the 1st and 8th of February EURUSD MPAA - The best time to begin to look for short is between April- June (Wait) 1000 PPAA: 1.3600-1.3630 is the place to short (wait) Weekly - The weekly candle has been bouncing between 1.300 - 1.3500 for about 5 weeks. The valid weekly pin was given on 19th February. Daily Trade Friendly Chart: - The sell signal was given on 24th of February GBPJPY MPAA - The best time to begin to look for short is between April-June (Wait) 1000 PPAA: 130-133 is the place to short - 135 is the round figure (wait) Weekly - There is no pin on weekly candle yet, where this week candle closes will determine whether we will have a pin at 133.48 (Wait) Daily Trade Friendly Chart: - The sell signal was given on 16th of March 133.48 My parameters for trading The general guide on these parameters is available on the mindset of a successful trader. What I will provide here are the practical elements of the mindset. Trading should be guided by clear parameters. If these parameter are not met, there is no point entering a trading. Here are my trading parameters now in the order of priority: 1. Monthly Price Action Analysis (MPAA) - There are clear months for long and clear months for short. Read my posting on MPAA to understand this circle 2. 1000 Pips Price Action Analysus (PPAA) - Major players trade 1000 pips. For short term trades divide the 1000 pips into 4 equal parts of 250 pips. You can begin to look for long in the first 250 pips and long in the last 250 pips. Personally I prefer the first 150 pips and the last 150 pips. For the Yen pairs extend the 1000 pips to between 1300-1500. 3. Trade Weekly pins - If there are not signals in the first and second parameter, the weekly pins (topmost and bottoms) will give you clear signals concrete zones. Concrete zones could be between 300 to 500 pips. You short as close as possible to the top of the concrete zone and buy as close as possible to the bottom of the zone. Pins after about 3-4 weekly candles are most reliable. 4. Daily Trade Friendly chart: If there is no signal on MPAA and 1000 PPAA and you want to trade for 200 pips or less check the daily trade friendly chart, a touch of the red zone is a good signal to sell, while a touch of the yellow zone is a reliable signal for buy. It is usually more profitable to trade in the direction of the weekly. If you sell when the trend is up on the weekly chart, take profit on the touch of 50 points on the daily RSI. If you buy when the trend is still down on the weekly take profit on the touch of 50 Points on daily RSI 5. 50 Pips Price Action Analysis: No matter the parameters you are using go to 50PPAA to actually place trades, that way you gets trades at the best discount. I attach some charts, but will find time and attach more later.
More info for ANALYSIS ~ free forex news trader ea:

Read More..