I have actually decided to trade on micro lots. I took this decision when I wiped off my account and did some analysis. Micro lots means every pip gain gives a 10-cents profit. Many traders actually do not know that brokers do offer micro lots. The common ones are the standard (1 pip = $10) and mini lots (1 pip = $1).
What's the main reason why I want to trade micro lots even though I make so little money? I want to train myself to be emotionally detached from my trades. Well, I only make $2 for a 20-pip gain. When I did mini lots then, I was quite greedy that I started overtrading. But I won't stick on to micro lots forever as you really can't make much from micro lots. Micro lots are just to train up my trading psychology. As I get better at it and am emotionally detached to my profits and losses, I will go back to mini lots.
The most important thing that a trader must possess is a solid trading psychology. The best system won't get you the results if you don't have a structured trading plan and proper trading psychology.
Thursday, February 19, 2009
Tuesday, February 17, 2009
Not much trading..
I've been quite busy for the past few days to do any real Forex trade. I've been attending courses and will be attending full-day courses this weekend as well. So I won't be able to update my blog as frequently.
Just today, I went for Forex Asia Academy's Forex Intensive Workshop by Choo Koon Lip. He shared a few strategies and he touched on market openings. When the London market opens at 4pm SG time, GBP/USD will have huge moves and when the US market opens at 9pm SG time, EUR/USD market moves substantially. I myself have witnessed this and I can say what he is saying is true. During the Asian session when only the Asian markets like Tokyo and Sydney are open, the movement will most probably be sideways for these currencies. When the respective market opens, BHAM! It can move 100-200 pips within a few hours!!
I'll update more with charts and my backtesting soon..
Just today, I went for Forex Asia Academy's Forex Intensive Workshop by Choo Koon Lip. He shared a few strategies and he touched on market openings. When the London market opens at 4pm SG time, GBP/USD will have huge moves and when the US market opens at 9pm SG time, EUR/USD market moves substantially. I myself have witnessed this and I can say what he is saying is true. During the Asian session when only the Asian markets like Tokyo and Sydney are open, the movement will most probably be sideways for these currencies. When the respective market opens, BHAM! It can move 100-200 pips within a few hours!!
I'll update more with charts and my backtesting soon..
Saturday, February 14, 2009
My first ever post
After much deliberation, I decided to publish my own blog to pen down my trading journey.
I'll tell u a bit about myself first. I was introduced into the world of Forex and trading by attending a weekend Forex workshop. My Mom actually attended the course previously and it was so positive for her that after she attended the course, she signed me up for it as well. I went for the course in June 2008. And since then, I've lost a substantial amount of real money (or rather paid tuition fees to the market). After I lost my money in my own account, I traded my Mom's account and blew her account as well!
I started live trading in Sept 2008 and within just one month, my account became $4 from $1000. There were a couple of reasons for this to happen:
1) Not enough experience in the market
2) Not putting stop losses for many of my trades
3) Entering trades when the trading signals was not proper (eg. entering when one of the signal was not formed and anticipating its formation)
4) No money management at all!
5) No trading plan
6) Weak trading psychology
7) Blah blah blah....
The list can go on and on but these were the essential grave mistakes I've made within that one month....
Now, I'm on the sidelines and am being a good boy and am back to demo trades.
What I've done this year so far to improve myself:
1) Read up on trading psychology
2) Came up with a proper trading plan
3) Came up with proper risk management
4) Backtested my strategy thoroughly
5) Read up the Forex forums. Namely, the ForexFactory forum
6) Analysed the charts thoroughly. What do I mean by analyse? I have sat down for hours to drag the charts back-and-forth to see what happens when there's a doji candle, what happens when there's a MACD crossover, what happens during the market openings, what are the market psychology, why does price behave in such a way during a particular news, etc.
I'll post my goals and what I want to achieve in Forex trading in my subsequent posts. Look out for that...!
I'll tell u a bit about myself first. I was introduced into the world of Forex and trading by attending a weekend Forex workshop. My Mom actually attended the course previously and it was so positive for her that after she attended the course, she signed me up for it as well. I went for the course in June 2008. And since then, I've lost a substantial amount of real money (or rather paid tuition fees to the market). After I lost my money in my own account, I traded my Mom's account and blew her account as well!
I started live trading in Sept 2008 and within just one month, my account became $4 from $1000. There were a couple of reasons for this to happen:
1) Not enough experience in the market
2) Not putting stop losses for many of my trades
3) Entering trades when the trading signals was not proper (eg. entering when one of the signal was not formed and anticipating its formation)
4) No money management at all!
5) No trading plan
6) Weak trading psychology
7) Blah blah blah....
The list can go on and on but these were the essential grave mistakes I've made within that one month....
Now, I'm on the sidelines and am being a good boy and am back to demo trades.
What I've done this year so far to improve myself:
1) Read up on trading psychology
2) Came up with a proper trading plan
3) Came up with proper risk management
4) Backtested my strategy thoroughly
5) Read up the Forex forums. Namely, the ForexFactory forum
6) Analysed the charts thoroughly. What do I mean by analyse? I have sat down for hours to drag the charts back-and-forth to see what happens when there's a doji candle, what happens when there's a MACD crossover, what happens during the market openings, what are the market psychology, why does price behave in such a way during a particular news, etc.
I'll post my goals and what I want to achieve in Forex trading in my subsequent posts. Look out for that...!
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