Median Trading (Trade 1)

Enter trade between Q1 and Q2(Green zone). Got a profit of $5 on the second day but i held on and on the third day it break my stop loss and -2.99.

Lesson Learn
Eat the fruit when it is ripe but after too long it became rotten.

1st Trade on Hammer

28/07/09 1830
Eur/Jpy 1 HR Chart

Previous candle show a hammer which shadow is twice the body. Went for a long trade @ 135.22 with stop at 134.84 which is 10 pips away for the low of the hammer. Profit targeted at 135.60 which is the previous resistance line. Stop was hit at 1945.


Note
The Hammer was the 2nd candle of a down trend and to confirm a trend, there must be at least 3 candle in the same direction.
The candle before the Hammer wraps around 3 white candle suggesting the market to go down further.
Profit vs loss = 82 vs -62


2.
28/07/09 1930
Eur/Jpy 1 HR Chart

Immediately after the previous trade, i came across another trading opportunity. As the market hit the previous support and i go for a short trade at 135.02 with the stop loss at the high of that lowest candle which is 135.30. Profit targeted at previous Support and resistance line at 134.40


Note
Trade was successful
Didn't spot the correct support line, went for the previous low at 134.24 at first and realised after that.

1st Trade on Bear Engulfing Pattern

Date and time - 26/07/09 10pm

Chart - Eur/Jpy 1HR

Bear Engulfing Pattern observed as previous black candle wraps around 2 candle before it. Went for a short trade and previous high 136.03 was set as stop and profit was set 135.00. Preceedig candle shot up to 136.08 which triggled the stop 136.04. Result in losses of $44.05USD.

Note
1. Spread for this pair is 4 pips
2. Profit should be set at 135.18 which is the next lower resistance
3. Stop should set at 10 pips above last high

4H Box Breakout

DRAW a box connecting the high of the first 4hr candle with the low.(00:00-04:00)
The week starts at the open of the Australian session. Open your MT4 platform(i use FXDD). Press Ctrl+y on a 4hr chart. Lines will magically pop up and at the start of every week the first 4hr candle should form on the line. This is the candle you use for the High and Low.

Box Forming Times:
GMT- 21:00 to 01:00
EDT - 17:00 to 21:00
FXDD time - 00:00 to 04:00

Use Time zone conversion to find out your specific time.

Rules:
- Add a buffer of 10-20 pips on each end of candle
- Buy on upper break of weekly box (including buffer+spread)
- Sell on lower break of weekly box (including buffer)

SL - other side of Box
TP1 - 1x box size
TP2 - 2x box size
TP3 - 3x box size
TP4 - 4x box size

This system works on many JPY pairs.
GBP/JPY
EUR/JPY
AUD/JPY
CHF/JPY
CAD/JPY

May work on other pairs, testing is required however. I like to use 3x-4x box size as TP. I take don't profits at 1x size of box because larger reward is key.

Advantages
- 30 mins a week
- no worrying about charts filled with indicators
- higher reward than risk on EACH trade
- easy to back test

1400-1600 USD Breakout Strategy

Got this simple strategy from a forum. Daily Profit Potentials Around 30-50+ pips. It is also known to be 7AM-9AM New york Time

1. Pull out a M15 Chart for a USD Major pair, example like GBPUSD.
2. Draw 2 vertical line at 14:00 & 16:00 time on your Chart.
3. Draw 2 Horizontal line at high & Low of candles in between the vertical line.
4. Put a buy stop at the high with stoploss at the low
5. Put a sell stop at the low with stoploss at high
6. You may delete the sell stop order if the buy order is triggered and vice vesa
7. Targets Around 30-50pips or place a Trailing Stop of 15pips after target is achieved

Some points to note:

1. There are only 9 candles/bars in the 15 minute chart, between 1400-1600.
2. If the Distance between the high and low is less than 50-60 pips, it could be very profitable.
3. If the Distance between the high and low is more than 50-60 pips, it could be not very profitable.
4. If the price doesn't break the high/low, its a ranging market.
5. The USD news are usually released around or after the 14:00-16:00 phase.
6. The signals are only valid for the current day, Next day u again need to wait for the 1400-1600 time and 9 candles again.

Introduction On Forex

Trading forex is not for everyone. It involves risks. Part of your learning involves knowing how to control your losses and not just about profits making.

There is no gaurantee that you can become millionaire in trading forex or turn $2000 to $200,000 in less than one year. If you are willing to trade with large contracts and to undertake a big financial risk, you might get to somewhere there.

Trading results of each trader differs due to the difference in the level of knowledge about the market, trading styles, trading experience, psychology, the level of discipline and the ability to manage risks effectively.

There are no strategies that work 100% of the time. Do not be taken in by anyone who claims that they have a forex trading strategy that will guarantee you profits. It does not exist.

We can only talk about whether a particular strategy has a higher probability of bringing you profits and not which particular strategy is 100% accurate. One important rule of trading is that if it is a proven strategy that works more than 50%accuracy of the time, you have to stick to it. Don’t throw it away when it didn’t work on you once or twice. Accept the fact that there will be times when the setups do not go the way as planned. If every trade are to work out profitable all the time, then there are no risks in forex trading.

7 Habit of Successful Traders

1) Try demo account for 3 to 6 month before dealing with an live account.

2) Trade only when all the criteria for you to trade is meet.

3) Enter the market promptly at the entry point or you will loss it fast

4) Always put a stop loss for any trade

5) Accept that your wrong if your trade hit stop loss and move on to the next

6) Trade with system, not prediction; Never hope or pray that market goes your way

7) Remember that you don't have to be right all the time