Hi All,
Everyday lot of traders ask me what trading system i use and they also ask my opinion about what trading systems they can use. The best advice that any experienced trader can give to another inexperienced one is to find things yourself. Not only in trading, in any sphere of life, only those things which we learnt by ourselves and which we spent time in understanding and imbibing would stay with us throughout our life. Those things which are got for free without much effort would either not stay with us at all or would leave us soon. We would understand the full value of anything only if we struggle and achieve it.
So try and learn trading and systems on your own. Go around the net, look into forums and forex sites, read read and read and gain as much knowledge about all the things as you can. The net has an equal number of scamsters and very helpful people as well. So be careful and spend your time finding out who the scamsters and who the nice guys are. Of course, you would lose money and time in the process but it would be well worth it. Learn the basics first, then how to see the charts, then learn the important indicators and then try to develop your own trading system. Of course, lots of system are freely available on the net. Learn as many as you can and if you feel comfortable with any of them , go ahead and use it. Or find out the good points of the system and try to incorporate them into your own.
Even today, though i may have 2-3 trading systems of my own, i spend every weekend trying to look for a new trading system which is better than my current one. I look around the forums and also look at the charts myself to develop my own. No trading system would be 100% successful but you can keep looking for systems which get close to that figure. The closer you get, the more money you would make. The process of learning and improving never stops. So keep reading and keep learning. It will always be useful whichever stage of your life (trading and otherwise) you are in..
Happy Trading!!
Saturday, June 30, 2007
Friday, June 29, 2007
4000 and counting...
Hi All,
It gives me great happiness to inform you all that this blog now has had 4000 visitors to it as of yesterday. It was only 3-4 days back that we crossed 3000 visitors and it is great to know that we have crossed 4000 so soon. This shows that the popularity of the site is growing by the day and i am very happy about that.
Once again, i would like to thank all of you for your great support to this blog and with your continued support, i hope to keep this blog running and share whatever little knowledge that i have in the currency market. Please continue to support this blog and please spread the word around.
Happy Trading!!
It gives me great happiness to inform you all that this blog now has had 4000 visitors to it as of yesterday. It was only 3-4 days back that we crossed 3000 visitors and it is great to know that we have crossed 4000 so soon. This shows that the popularity of the site is growing by the day and i am very happy about that.
Once again, i would like to thank all of you for your great support to this blog and with your continued support, i hope to keep this blog running and share whatever little knowledge that i have in the currency market. Please continue to support this blog and please spread the word around.
Happy Trading!!
Newbie Syndrome..
As expected and as posted in todays article, the crosses have begun their upmove and i feel that it would go on for a few days. Today, i would like to discuss about what i call the newbie syndrome. Most of us, when we start out, have small TPs in our minds and we all enter forex after some thorough study and all studies tell us that we need to have strict SLs. So when we start out trading, we have good TPs and SLs and we trade diligently.
With this kind of trading, we slowly accumulate our profits and suddenly we find that we have doubled our account and we feel happy and proud. But as the size of the account grows and as we make more and more successful trades, we forget our good habits and slowly fall into bad ones.
We forget that we need to have SLs, we forget that we need to set good TPs. So what do we do? We find that some of our SLs get hit and then the pair travels in the direction of our trade. So, slowly, we stop using SLs. We keep losing trades and we keep hanging on to them hoping that somewhere somehow some magic would happen and we would get back to parity on our trades. We also become greedy and start having impossible TPs. We forget the strategy that we used to make so much of profits and start trading with no strategy at all. This slowly leads to degradation of our account and one fine day, we find that our account has been wiped out totally.
The best way to make money is to be patient with our profits and impatient with our losses, but we always do it the other way around. We are impatient with our profits and we close our successful trades with very small profits. We are very patient with our losing trades and we keep waiting and waiting hoping that it would come back but the trade never comes back and it either closes out our account or someday we get a flash, understand that the trade would not come back and finally close the trade with a huge loss.
The above is the newbie syndrome and i guess many of us would have gone through it. So find out what strategies made you make a profit and stick to it. Dont change it. Times would change and your trades would keep going up and down but stick to strategy. Keep studying the market, its changes and keep analysing and keep developing new and better strategies in sync with the changing market. Analyse your new system thoroughly and make sure that it would be a profitable one in the long run before you decide to leave out your previous trading system and switch to a new one.
Happy Trading!!
With this kind of trading, we slowly accumulate our profits and suddenly we find that we have doubled our account and we feel happy and proud. But as the size of the account grows and as we make more and more successful trades, we forget our good habits and slowly fall into bad ones.
We forget that we need to have SLs, we forget that we need to set good TPs. So what do we do? We find that some of our SLs get hit and then the pair travels in the direction of our trade. So, slowly, we stop using SLs. We keep losing trades and we keep hanging on to them hoping that somewhere somehow some magic would happen and we would get back to parity on our trades. We also become greedy and start having impossible TPs. We forget the strategy that we used to make so much of profits and start trading with no strategy at all. This slowly leads to degradation of our account and one fine day, we find that our account has been wiped out totally.
The best way to make money is to be patient with our profits and impatient with our losses, but we always do it the other way around. We are impatient with our profits and we close our successful trades with very small profits. We are very patient with our losing trades and we keep waiting and waiting hoping that it would come back but the trade never comes back and it either closes out our account or someday we get a flash, understand that the trade would not come back and finally close the trade with a huge loss.
The above is the newbie syndrome and i guess many of us would have gone through it. So find out what strategies made you make a profit and stick to it. Dont change it. Times would change and your trades would keep going up and down but stick to strategy. Keep studying the market, its changes and keep analysing and keep developing new and better strategies in sync with the changing market. Analyse your new system thoroughly and make sure that it would be a profitable one in the long run before you decide to leave out your previous trading system and switch to a new one.
Happy Trading!!
Thursday, June 28, 2007
Support and Resistances for June 29, 2007
Hi all,
As updated yesterday in my last post, i still feel that the crosses are getting ready for a breakout on the long side. They are caught between some strong resistances right now and once those are broken, we should be able to see a good upmove. What all would happen before the resistances are broken, we can only wait and see.Below are the supports and resistances for the JPY crosses for today:-
USDJPY - Important support at 123.05. If that is broken, next support is at 122.75 which is a very strong support and the final major support is at 122.35. On the topside, the resistance is at 123.40 and then at 123.85.
EURJPY - Important support at 165.20. If that is broken, next support is at 164.85 and the final major support is at 164.10. On the topside, the resistance is at 165.80 and then at 166.25.
GBPJPY - Important support at 246.10. If that is broken, next support is at 245.35 and the final major support is at 244.60. On the topside, the resistance is at 246.90 and then a major resistance at 247.60.
Happy Trading !!!
As updated yesterday in my last post, i still feel that the crosses are getting ready for a breakout on the long side. They are caught between some strong resistances right now and once those are broken, we should be able to see a good upmove. What all would happen before the resistances are broken, we can only wait and see.Below are the supports and resistances for the JPY crosses for today:-
USDJPY - Important support at 123.05. If that is broken, next support is at 122.75 which is a very strong support and the final major support is at 122.35. On the topside, the resistance is at 123.40 and then at 123.85.
EURJPY - Important support at 165.20. If that is broken, next support is at 164.85 and the final major support is at 164.10. On the topside, the resistance is at 165.80 and then at 166.25.
GBPJPY - Important support at 246.10. If that is broken, next support is at 245.35 and the final major support is at 244.60. On the topside, the resistance is at 246.90 and then a major resistance at 247.60.
Happy Trading !!!
Market is primed for a breakout
Hi All,
Just now checked my charts and all my signals and the crosses seem primed to a breakout. My guess , from the signals that i have, is that it is about to breakout on the buy side. This should be confirmed on the same time when the news releases. Too bad that i would not be on at that time. Anyway, good luck guys. If the crosses stay at the same price or above the price right now (246.25, 123.02 and 165.62) even after the news releases, i guess it would be good for longs. Please use your discretion while taking trades. Markets have known to make fools of even great traders.
Happy Trading!!
Just now checked my charts and all my signals and the crosses seem primed to a breakout. My guess , from the signals that i have, is that it is about to breakout on the buy side. This should be confirmed on the same time when the news releases. Too bad that i would not be on at that time. Anyway, good luck guys. If the crosses stay at the same price or above the price right now (246.25, 123.02 and 165.62) even after the news releases, i guess it would be good for longs. Please use your discretion while taking trades. Markets have known to make fools of even great traders.
Happy Trading!!
The Road Ahead...
Hi All,
Was a bit busy today with the trading and all that and so could not post much earlier. I apologise for the posts on GBPCHF as i realise that me taking a profit may not be so important to many of you that you need to know about it through my blog. Anyway, it seems that all is set for even more gains ahead for the crosses.
The crosses just seem to be caught in a range for now but i feel that this is just a consolidation period for now and that the crosses are getting ready for the next move up. The next move up should target 125 for UJ, 250 for GJ and 168 or 169 for the EJ. Please note that all these are just predictions based on my intuition and knowledge from what i have seen and not something which is got through some great analysis. The crosses keep changing their character everyday and so they need to be monitored on a daily basis. They might go down and make me look like a fool as well.
But the daily analysis and what i think would happen on a daily basis, i would continue to post them on my blog. So far today, the crosses have had a nice run up and i think the market is waiting for the rate statement due out today. That should give the next direction for the market.
Nowadays, the news seem to have less and less effect on the pairs especially the crosses and the technicals and the overall news of carry trades seem to be the driving forces behind the moves. This makes it all the more important that the traders , especially the smaller ones, dont trade the news. Like all newbies, i also used to trade the news, but i slowly began to understand the futility of trading the news in the midst of brokers, market makers , big traders etc. So i stopped trading the news and am just as fine for it if not better. Thats what i advice the new traders as well. Trading the news would be very tempting looking at the volatility but in the long run, it is just not worth it. So watch out.
Happy Trading!!
Was a bit busy today with the trading and all that and so could not post much earlier. I apologise for the posts on GBPCHF as i realise that me taking a profit may not be so important to many of you that you need to know about it through my blog. Anyway, it seems that all is set for even more gains ahead for the crosses.
The crosses just seem to be caught in a range for now but i feel that this is just a consolidation period for now and that the crosses are getting ready for the next move up. The next move up should target 125 for UJ, 250 for GJ and 168 or 169 for the EJ. Please note that all these are just predictions based on my intuition and knowledge from what i have seen and not something which is got through some great analysis. The crosses keep changing their character everyday and so they need to be monitored on a daily basis. They might go down and make me look like a fool as well.
But the daily analysis and what i think would happen on a daily basis, i would continue to post them on my blog. So far today, the crosses have had a nice run up and i think the market is waiting for the rate statement due out today. That should give the next direction for the market.
Nowadays, the news seem to have less and less effect on the pairs especially the crosses and the technicals and the overall news of carry trades seem to be the driving forces behind the moves. This makes it all the more important that the traders , especially the smaller ones, dont trade the news. Like all newbies, i also used to trade the news, but i slowly began to understand the futility of trading the news in the midst of brokers, market makers , big traders etc. So i stopped trading the news and am just as fine for it if not better. Thats what i advice the new traders as well. Trading the news would be very tempting looking at the volatility but in the long run, it is just not worth it. So watch out.
Happy Trading!!
Lol...How quick was that...
Lol...Maan...that was quite quick...and with minimal drawdown, i am up 50 pips on GBPCHF...with potential to go further i guess...lets see though...
Wednesday, June 27, 2007
GBPCHF long signal on my system.
Hi All,
GBPCHF gave a signal on my system for longs with atleast 40 pips as TP. This is just a testing part of my system and so i would not advice anyone to trade this. If you do it, its at your own risk. The yen crosses have also broken out of resistances and as i had said in my previous post, the crosses did break out for longs today. So far so good.
GBPCHF gave a signal on my system for longs with atleast 40 pips as TP. This is just a testing part of my system and so i would not advice anyone to trade this. If you do it, its at your own risk. The yen crosses have also broken out of resistances and as i had said in my previous post, the crosses did break out for longs today. So far so good.
Supports and Resistances for June 28, 2007
Hi all,
The crosses have had a wild day so far in the past 6 hours. They broke thru many resistances and rose up a lot but as of this writing they seem to have corrected back again to a great extent. Data out of Japan was bad today and so i think the crosses have begun their next leg up. There will be a retracment as we are seeing now but i think those are just that, retracements. I feel that today will be good for longs. Lets see though.Below are the supports and resistances for the JPY crosses for today:-
USDJPY - Important support at 122.70. If that is broken, next support is at 122.35 which is a very strong support and the final major support is at 122.00. On the topside, the resistance is at 123.40 and then at 123.85.
EURJPY - Important support at 165.20. If that is broken, next support is at 164.65 and the final major support is at 164.10. On the topside, the resistance is at 165.65 and then at 166.25.
GBPJPY - Important support at 245.30. If that is broken, next support is at 244.70 and the final major support is at 244.05. On the topside, the resistance is at 246.15 and then a major resistance at 246.85.
Happy Trading !!!
The crosses have had a wild day so far in the past 6 hours. They broke thru many resistances and rose up a lot but as of this writing they seem to have corrected back again to a great extent. Data out of Japan was bad today and so i think the crosses have begun their next leg up. There will be a retracment as we are seeing now but i think those are just that, retracements. I feel that today will be good for longs. Lets see though.Below are the supports and resistances for the JPY crosses for today:-
USDJPY - Important support at 122.70. If that is broken, next support is at 122.35 which is a very strong support and the final major support is at 122.00. On the topside, the resistance is at 123.40 and then at 123.85.
EURJPY - Important support at 165.20. If that is broken, next support is at 164.65 and the final major support is at 164.10. On the topside, the resistance is at 165.65 and then at 166.25.
GBPJPY - Important support at 245.30. If that is broken, next support is at 244.70 and the final major support is at 244.05. On the topside, the resistance is at 246.15 and then a major resistance at 246.85.
Happy Trading !!!
Martingale strategy and EAs
Martingale is a betting strategy used for a long time right from the 18th century. It is a strategy which is supposed to be used in those cases where the probability of success is 50% like in the toss of a coin. What they do is that when a person bets, he keeps on increasing his bet exponentially for every loss that he makes. This makes sure that even if he wins once, he would be able to recover all the losses plus the money which he had used for betting the last time.
I used to go around many forums a lot (i do it even now) and i read all trading systems with special interest just to understand the strategy behind it and try to imbibe the good points in them. I also see a lot of EAs nowadays and i find that most of the so-called successful ones are based on the martingale strategy. Believe me, if the martingale strategy comes off, its fantastic. It helps you recover all your current losing trades. Here is one example. I start off with 1 lot and for every 20 pips against me, i open another trade in the same direction but with double the number of lots. So if i buy one lot, say at 100, and the price goes to 80, i buy 2 more and if it goes to 60, i buy 4 more and so on.
We use this strategy cos even if the market recovers a bit, i would be able to recoup all my losses with the last biggest trade and if the market recovers a lot, i do make a huge amount of money. So what can go wrong in this?
Two things...First one, it assumes that you have infinite amount of money in your account. Lets say that the market goes against you for 200 pips, you would have to open more than 100 lots to work out this strategy. How many of us have that kind of money? If you start with this strategy, you need to stick with this strategy throughout till you get back your losses else you are in a big soup. You can follow this strategy till you have abt 20 trades open when the market goes off 100 pips against you and then after 100 pips, change your strategy to either stop it or say, change it to increase your lots exponentially every 30 pips. Nope...that cannot be done for this strategy to work.
Second, this strategy assumes that the probability of your success is 50% always. In the market, that probability of success is never 50%. I am not saying that it cannot be 50% or higher. You can make the probability greater than or equal to 50% by your knowledge, experience, study etc. but with none of the above and with just a blind strategy with no consideration of the price action, your probability of success is close to 0%.
The above strategy would seem to work during ranging markets with well spanned out and strong retracements but just as it can make you and help you come out of losing trades, it can wipe you out in next to no time. Everything in this market is like a knife which can cut both sides. Just as things can make something work great for you, things can make them equally worse for you. So watch out.
For those who use EAs based on this strategy, please be advised that it is very dangerous. But if you still insist on using them, make sure that you keep withdrawing your money as you as u make some so that you dont lose everything that you made at one shot when things start going against you.
Happy Trading!!!
I used to go around many forums a lot (i do it even now) and i read all trading systems with special interest just to understand the strategy behind it and try to imbibe the good points in them. I also see a lot of EAs nowadays and i find that most of the so-called successful ones are based on the martingale strategy. Believe me, if the martingale strategy comes off, its fantastic. It helps you recover all your current losing trades. Here is one example. I start off with 1 lot and for every 20 pips against me, i open another trade in the same direction but with double the number of lots. So if i buy one lot, say at 100, and the price goes to 80, i buy 2 more and if it goes to 60, i buy 4 more and so on.
We use this strategy cos even if the market recovers a bit, i would be able to recoup all my losses with the last biggest trade and if the market recovers a lot, i do make a huge amount of money. So what can go wrong in this?
Two things...First one, it assumes that you have infinite amount of money in your account. Lets say that the market goes against you for 200 pips, you would have to open more than 100 lots to work out this strategy. How many of us have that kind of money? If you start with this strategy, you need to stick with this strategy throughout till you get back your losses else you are in a big soup. You can follow this strategy till you have abt 20 trades open when the market goes off 100 pips against you and then after 100 pips, change your strategy to either stop it or say, change it to increase your lots exponentially every 30 pips. Nope...that cannot be done for this strategy to work.
Second, this strategy assumes that the probability of your success is 50% always. In the market, that probability of success is never 50%. I am not saying that it cannot be 50% or higher. You can make the probability greater than or equal to 50% by your knowledge, experience, study etc. but with none of the above and with just a blind strategy with no consideration of the price action, your probability of success is close to 0%.
The above strategy would seem to work during ranging markets with well spanned out and strong retracements but just as it can make you and help you come out of losing trades, it can wipe you out in next to no time. Everything in this market is like a knife which can cut both sides. Just as things can make something work great for you, things can make them equally worse for you. So watch out.
For those who use EAs based on this strategy, please be advised that it is very dangerous. But if you still insist on using them, make sure that you keep withdrawing your money as you as u make some so that you dont lose everything that you made at one shot when things start going against you.
Happy Trading!!!
Tuesday, June 26, 2007
Supports and Resistances for June 27, 2007
Hi all,
The crosses seem to be at the crossroads(!!) and they are still waiting for a direction so that they can move along in that. Yesterday was a topsy turvy day with the GJ and other crosses swinging wildly between their highs and lows. Today, it seems quiet so far as the crosses dont seem to know which direction they need to move. The best thing would be to wait and see the direction before entering. Of course, you could always trade the S and R.Below are the supports and resistances for the JPY crosses for today:-
USDJPY - Important support at 123.05. If that is broken, next support is at 122.85 which is a very strong support and the final major support is at 122.55. On the topside, the resistance is at 123.40 and then at 123.85.
EURJPY - Important support at 165.20. If that is broken, next support is at 164.65 and the final major support is at 164.10. On the topside, the resistance is at 166.65 and then at 166.25.
GBPJPY - Important support at 245.40. If that is broken, next support is at 244.70 and the final major support is at 244.05. On the topside, the resistance is at 246.15 and then a major resistance at 246.85.
Happy Trading !!!
The crosses seem to be at the crossroads(!!) and they are still waiting for a direction so that they can move along in that. Yesterday was a topsy turvy day with the GJ and other crosses swinging wildly between their highs and lows. Today, it seems quiet so far as the crosses dont seem to know which direction they need to move. The best thing would be to wait and see the direction before entering. Of course, you could always trade the S and R.Below are the supports and resistances for the JPY crosses for today:-
USDJPY - Important support at 123.05. If that is broken, next support is at 122.85 which is a very strong support and the final major support is at 122.55. On the topside, the resistance is at 123.40 and then at 123.85.
EURJPY - Important support at 165.20. If that is broken, next support is at 164.65 and the final major support is at 164.10. On the topside, the resistance is at 166.65 and then at 166.25.
GBPJPY - Important support at 245.40. If that is broken, next support is at 244.70 and the final major support is at 244.05. On the topside, the resistance is at 246.15 and then a major resistance at 246.85.
Happy Trading !!!
Money Management again...
Hi All,
I apologise that i could not post much today as i had some problems with my system and was busy thru the day with my trading and work. So finally, as expected, the crosses had a good retracement today. At the time of writing, they seem to be recovering a bit. Lets see how far they go in their recovery. My system picked up the short in the GJ and i made a good 100 pips thru that today.
The USD rate statement is scheduled for tomorrow and so hopefully that will divert some of the attention to the USD tomorrow. For the last 10 days all the attention and the action have been on the crosses. It is not time yet for longs in the crosses, but i feel that the time might come soon for the longs. This is why it is so important to have good money management and good stop losses.
Having good money management and stop losses helps you to switch positions and turn on your toes whenever the direction changes. Forex is a market where everything happens so quickly especially on the crosses. So you need to be flexible and ready to turn when the market turns. You should not be like a ship which takes 30 mins to make one turn.
If you dont have good stop losses and if you spend too much of your account in holding on to one position, then you would not be in a position to take advantage when the market turns. You will realise the market has turned and you will see that everything that u predicted is happening but you dont have enough money in your account to take advantage of that. So always have good money management and enough money in your account to make use of market turning opportunities.
Happy Trading!!
I apologise that i could not post much today as i had some problems with my system and was busy thru the day with my trading and work. So finally, as expected, the crosses had a good retracement today. At the time of writing, they seem to be recovering a bit. Lets see how far they go in their recovery. My system picked up the short in the GJ and i made a good 100 pips thru that today.
The USD rate statement is scheduled for tomorrow and so hopefully that will divert some of the attention to the USD tomorrow. For the last 10 days all the attention and the action have been on the crosses. It is not time yet for longs in the crosses, but i feel that the time might come soon for the longs. This is why it is so important to have good money management and good stop losses.
Having good money management and stop losses helps you to switch positions and turn on your toes whenever the direction changes. Forex is a market where everything happens so quickly especially on the crosses. So you need to be flexible and ready to turn when the market turns. You should not be like a ship which takes 30 mins to make one turn.
If you dont have good stop losses and if you spend too much of your account in holding on to one position, then you would not be in a position to take advantage when the market turns. You will realise the market has turned and you will see that everything that u predicted is happening but you dont have enough money in your account to take advantage of that. So always have good money management and enough money in your account to make use of market turning opportunities.
Happy Trading!!
Monday, June 25, 2007
Supports and Resistances for June 26, 2007
Hi all,
So finally some correction is beginning to take place in all the crosses, something that was long overdue. My system shows that all the crosses are getting ready for a short though the signals are not confirmed yet. Today should be an interesting day and i have a feeling that today will set the direction for the crosses for the next few days. Throughout this week, all the news are related to the USD but so far, for the past 2 weeks, all the action seems to be coming from the crosses. Let see.Below are the supports and resistances for the JPY crosses for today:-
USDJPY - Important support at 123.35. If that is broken, next support is at 123.15 which is a very strong support and the final major support is at 122.90. On the topside, the resistance is at 123.63 and then at 123.85.
EURJPY - Important support at 166.02. If that is broken, next support is at 165.65 and the final major support is at 165.40. On the topside, the resistance is at 166.41 and then at 166.82.
GBPJPY - Important support at 246.55. If that is broken, next support is at 246.02 and the final major support is at 245.70. On the topside, the resistance is at 247.10 and then a major resistance at 247.65.
Happy Trading !!!
So finally some correction is beginning to take place in all the crosses, something that was long overdue. My system shows that all the crosses are getting ready for a short though the signals are not confirmed yet. Today should be an interesting day and i have a feeling that today will set the direction for the crosses for the next few days. Throughout this week, all the news are related to the USD but so far, for the past 2 weeks, all the action seems to be coming from the crosses. Let see.Below are the supports and resistances for the JPY crosses for today:-
USDJPY - Important support at 123.35. If that is broken, next support is at 123.15 which is a very strong support and the final major support is at 122.90. On the topside, the resistance is at 123.63 and then at 123.85.
EURJPY - Important support at 166.02. If that is broken, next support is at 165.65 and the final major support is at 165.40. On the topside, the resistance is at 166.41 and then at 166.82.
GBPJPY - Important support at 246.55. If that is broken, next support is at 246.02 and the final major support is at 245.70. On the topside, the resistance is at 247.10 and then a major resistance at 247.65.
Happy Trading !!!
GBPCHF...
Hi All,
So my fifth signal using the system has worked fine again and i made abt 45 pips on the move..Not bad i guess especially considering the fact that the drawdown for the all the signals so far has been less than 50 pips..Only the fourth signal was not too good but still got out with a profit. Waiting for the next signal.
So my fifth signal using the system has worked fine again and i made abt 45 pips on the move..Not bad i guess especially considering the fact that the drawdown for the all the signals so far has been less than 50 pips..Only the fourth signal was not too good but still got out with a profit. Waiting for the next signal.
Sunday, June 24, 2007
Supports and Resistances for June 25, 2007
Hi all,
So a new and very interesting week has begun. Lets see how things go. Over the weekends, there were comments by many experts about how there were signals on Friday about flight from risks, risk aversion etc. Moreover, there were also scathing comments against carry trades and in favor of yen from BIS in the Central Bankers meet at Basel. All this should have led to a big drop in the crosses but so far, there does not seem to be any effect and the cross train just seems to be chugging along. Lets see how the day and the next couple of days pan out. Should be very interesting.Below are the supports and resistances for the JPY crosses for today:-
USDJPY - Important support at 123.82. If that is broken, next support is at 123.64 which is a very strong support and the final major support is at 123.44. On the topside, the resistance is at 123.93 and then at 124.05.
EURJPY - Important support at 166.50. If that is broken, next support is at 166.03 and the final major support is at 165.60. On the topside, the resistance is at 166.98 and then at 167.42.
GBPJPY - Important support at 247.45. If that is broken, next support is at 246.85 and the final major support is at 246.02. On the topside, the resistance is at 247.91 and then a major resistance at 248.50.
Happy Trading !!!
So a new and very interesting week has begun. Lets see how things go. Over the weekends, there were comments by many experts about how there were signals on Friday about flight from risks, risk aversion etc. Moreover, there were also scathing comments against carry trades and in favor of yen from BIS in the Central Bankers meet at Basel. All this should have led to a big drop in the crosses but so far, there does not seem to be any effect and the cross train just seems to be chugging along. Lets see how the day and the next couple of days pan out. Should be very interesting.Below are the supports and resistances for the JPY crosses for today:-
USDJPY - Important support at 123.82. If that is broken, next support is at 123.64 which is a very strong support and the final major support is at 123.44. On the topside, the resistance is at 123.93 and then at 124.05.
EURJPY - Important support at 166.50. If that is broken, next support is at 166.03 and the final major support is at 165.60. On the topside, the resistance is at 166.98 and then at 167.42.
GBPJPY - Important support at 247.45. If that is broken, next support is at 246.85 and the final major support is at 246.02. On the topside, the resistance is at 247.91 and then a major resistance at 248.50.
Happy Trading !!!
Expert Analysers
Many of us, when we start out trading try to look for short cuts tosuccess in trading. And one of the easiest ways to make money seems liketo go for EAs (short for expert analysers). So what are EAs? EAs are programs which are written to trade automatically. They are mainly used in MT4 platforms but now many other platforms have started supporting programs for auto trading.
So how does this work? You can program your trading platform to buy or sell under certain conditions. The conditions can be anything. It can be as simple as 'buy if price goes below 1.1000' to something as complicated as 'buy if 10 ema crosses 13 ema and MACD value is 1' or whatever. The indicators used in your platform can be called as functions by the program and parameters can be passed to it, indicator values can be returned for the parameters passed and then a buy or sell can be executed. It can also be programmed to give a audio or visual alarm when the trading signal appears.
The EA is the height of automated and mechanised trading. Nothing can beat it. No human intervention is required and everything happens mechanically. This has both its positives as well as negatives. The biggest positive is the emotional turbulence and hence the confusion of a human mind in trade is avoided. Since there is no human intervention,errors like seizing up when a signal is there cos you are too scared,taking profit early, refusing to execute a stop loss cos you somehow feel that the position will come back and other human errors born out of emotion can be avoided. The negative of this is the same as the positive. Just as being mechanised totally is good in a way, likewise,too much automated trading is not good. Whenever a signal is generated,there needs to be an analysis of the background of the signal, the market conditions, market sentiment etc before you enter a trade. Blind following of the signals will eventually lead to a huge loss.
Enter any discussion forum and you find that there is a huge demand for EAs. Why? Cos people are lazy. They just want to sit back and relax while all the money is made automatically by the EA. But they fail to realise that nothing in this world comes easily, without doing any work.Nothing wrong in using an EA but atleast an effort should be made to understand what is happening in the EA, how it works, when it works,when does it not work. etc. No EA will work under all conditions and at all times. So a thorough study of the EA needs to be made to understand what happens in the background so that the EA can be correctly controlled at important points of time so that its power can be utilised to the maximised extent.
My request to all new traders is to spend some time in forex. Spend sometime understanding how forex works, how the market works, how the indicators work, how the trading systems work, how EAs work etc. Spend lot of time studying. Nothing in this world is got freely without hardwork. There are no freebies in this world. If it looks like one, then it surely aint. So work hard, sweat it out, learn it the hard way. That is what will make you consistently successful.
Happy Trading!!
So how does this work? You can program your trading platform to buy or sell under certain conditions. The conditions can be anything. It can be as simple as 'buy if price goes below 1.1000' to something as complicated as 'buy if 10 ema crosses 13 ema and MACD value is 1' or whatever. The indicators used in your platform can be called as functions by the program and parameters can be passed to it, indicator values can be returned for the parameters passed and then a buy or sell can be executed. It can also be programmed to give a audio or visual alarm when the trading signal appears.
The EA is the height of automated and mechanised trading. Nothing can beat it. No human intervention is required and everything happens mechanically. This has both its positives as well as negatives. The biggest positive is the emotional turbulence and hence the confusion of a human mind in trade is avoided. Since there is no human intervention,errors like seizing up when a signal is there cos you are too scared,taking profit early, refusing to execute a stop loss cos you somehow feel that the position will come back and other human errors born out of emotion can be avoided. The negative of this is the same as the positive. Just as being mechanised totally is good in a way, likewise,too much automated trading is not good. Whenever a signal is generated,there needs to be an analysis of the background of the signal, the market conditions, market sentiment etc before you enter a trade. Blind following of the signals will eventually lead to a huge loss.
Enter any discussion forum and you find that there is a huge demand for EAs. Why? Cos people are lazy. They just want to sit back and relax while all the money is made automatically by the EA. But they fail to realise that nothing in this world comes easily, without doing any work.Nothing wrong in using an EA but atleast an effort should be made to understand what is happening in the EA, how it works, when it works,when does it not work. etc. No EA will work under all conditions and at all times. So a thorough study of the EA needs to be made to understand what happens in the background so that the EA can be correctly controlled at important points of time so that its power can be utilised to the maximised extent.
My request to all new traders is to spend some time in forex. Spend sometime understanding how forex works, how the market works, how the indicators work, how the trading systems work, how EAs work etc. Spend lot of time studying. Nothing in this world is got freely without hardwork. There are no freebies in this world. If it looks like one, then it surely aint. So work hard, sweat it out, learn it the hard way. That is what will make you consistently successful.
Happy Trading!!
Fifth signal from system
Hi All,
My system has given a signal for shorting GBPCHF. This pair has already moved about 20 pips since the signal came and i expect the pair to move down by atleast 40-50 pips more. So short at 2.4583. This is the fifth call from my newly developed system. The first three calls went great and the fourth one,though i got out with about 10 pips profit, was not great and ended up being wrong. Lets see how this one goes.
Happy Trading!!
My system has given a signal for shorting GBPCHF. This pair has already moved about 20 pips since the signal came and i expect the pair to move down by atleast 40-50 pips more. So short at 2.4583. This is the fifth call from my newly developed system. The first three calls went great and the fourth one,though i got out with about 10 pips profit, was not great and ended up being wrong. Lets see how this one goes.
Happy Trading!!
3000 and counting...
Hi All,So we have reached the next milestone much sooner than i expected. Just6 days after getting 2000 visitors, we have reached the next milestoneof 3000 visitors. Yes, so far this blog has had 3000 visitors and about5000 page views in just 20 days since its inception with absolutely noform of advertising or marketing at all. This has been made possible bythe continued support and patronage of people like you all. I wish thatyou all continue to visit and support this blog and spread the wordaround as much as possible. Thanks All!!
Subscribe to:
Posts (Atom)
