This is Shawn William Byrd, and I have a new link for you.
Just published my BrandYourself profile, do me a favor and let me know what you think! http://shawnwilliambyrd.brandyourself.com/?sh=74
The 2012 Guide to Electronic Trading just came out, and our friends at TradeAlliesFX are listed inside! They have methods and tools available to help the individual trader make additional money in the FX markets.
These are mainly tools and semi-automated methods for making trades and extra money. There is no better computer than the human brain, but our desktop PC’s can execute instructions far faster than our fingers. It’s the melding of two great assets to help you Succeed At Trading©
Ok, I don’t have a picture, but you can get the idea from a description. This is what you do:
Go to your chart (any time frame, but for scalping I use 1M & 5M) set an SMA14 (or other favorite period).
Set another MA, but EMA this time. Change the line type or color as visual aid.
When the bars have traveled over (or under) both right about the time the MA’s crossed AND the bars are not hitting the MA’s AND there is a noticeable gap between the MA’s, you draw a trendline.
Draw this trendline starting about where the MA’s cross, and roughly bisect the gap. Follow the chart and gauge the gap.
When the price breaks the trendline, place your trade. Follow it to whatever feels comfortable. This more of a price-action following and revert-to-normal type of trading. Really, I’m just following the price as it swings back to get in balance.
Here’s some pictures (I changed my mind), you’ll see:
It works better when the price is swinging away from both MA’s, and has to whip back on the curvature it drew on the chart. This could also be a momentum-type of trade. I don’t really care, because a) it works, and b) it follows the price rhythm. The diagonal trendline is dynamic from time to time, so there are no worrys about psychological price levels, etc.
This was on a 5-minute chart, at about 4 in the morning, London, so it was slow. That break was worth about 3.5 pips. Not much, but for this time of night, for finding that setup, it’s just fine. By the way, the next bar continued up, and made a total of at least 8, although I would have been happy with 4. Hey, free money!
Oh, and a great piece of advice that took me a long time to accept: Wait For The Setup!
People always want to know how to trade. One method day traders use is quite simple. When there is a new high (or low) for the day, trade when that level is broken higher (or lower). Depending on the time frame of the chart, you could squeeze out a few pips, or more. This would be considered more of a break-out method. Check on the lower and higher time frames, to aid in confirmation.
Don’t just do it blindly. Sit there for a few minutes when it is close, to gauge the sentiment, and to look for spikes in the price action. Remember: everything gets built into the chart. News, volume, any other current events, even market-movers. It takes some practice, but can be done. On larger time frames, many pips are possible, but if you are scalping, a few should be plenty.
A modification of this is during slow trading sessions (holidays and off-hours), watch the wave patterns that develop, and avoid trading the breaks. During peak hours is the best time for this, because of the energy other traders impart to the markets.
How much money do you want to make? A lot? How quickly?
When people see Forex or Futures, they think fortunes WILL be made. I believe they think this because it is all about money. Buying and selling money. How someone goes about making it is an entirely different matter. A bank has a lot of money (well, you don’t see it in person like you used to), but that doesn’t mean I will get a lot on my savings account.
There are plenty of people, myself included, who have made large amounts of money in a short period of time. It is a good feeling when, after a basic analysis and then placing (3) phone calls for a grand total of 15 minutes, profit shows up to the tune of about 1000 bucks! Know what? It’s lost just as easily, faster even.
As a trader, you MUST determine your emotional capacity for risk (time and money), as well as your account’s ability to absorb losses. You want to come out swinging, but remember that you will miss at times. So, you want to be able to come out swinging AGAIN and AGAIN.
2% is my magic number. It may seem counter-intuitive to reverse the leverage, but staying power does have it’s benefits. This is actually prevalent among the traders that I view as successful. It may seem like almost nothing at all, but if you make a small amount on each trade, and are able to duplicate that 2, 3, 5, 10, or 20 times per day, guess what? You are well on your way. Do you realize that if you have a micro account with, say a $100 balance, and you pull 2 cents per hour (2 pips at 1 cent, minimum trade size), that comes to 48 cents per day. So what? But look: There are roughly 250 trading days per year. 0.48 x 250 = $120. That’s over 100% ROI per year! Not too bad. And it’s “only pennies”.
Overtrade, and you most likely will blow out your account (many of us have done that). Undertrade, and I don’t know. Undertrade using many methods, and the large numbers you want could show themselves before you know it…
Welcome. I am here to discuss trading methodologies, their applications to my trading, and what I see and experience in my trading life. Whether it is about new ideas or the things that cross my path, I will try to put down what I think and how I go about analyzing it.
Let me say that I am more of a technical trader than a fundamental one. Now, there are times where one cannot ignore the fundamentals, but those eventually get built into the charts, and then they can be traded on a technical basis. I am better with numbers and such, so although pretty pictures look nice, it really boils down to “the odds”.
The pictures that charts make are extremely useful, because it is easy to notice patterns at a glance. The human brain is far more intuitive than any computer, especially when it comes to making sense of the abstract. Once patterns show themselves, then I am able to analyze the heck out of them. Have you noticed the waves that often develop? How about the fluctuations that occur during the day? I see sine waves all the time. If it looks like a regular pattern, chances are it probably is (within reason). That’s all you need for the basis of a method: anything you notice that has even a remote repetition.
Whether you trade using Stoch, RSI, Volumes, MA’s, etc., it all ends up being technical. Track how many times or not you buy or sell based upon any given indicator. What is your record overall? Those are the odds, my friends.
I hope what I do becomes as helpful to you as it has been in helping to get me here.