Welcome
Hello and welcome to my blog. My name is Peter and I am a forex money manager who manages exclusively for several wealthy asians in Singapore.
A lot of people have asked me about forex and its potential as a secondary income stream and to trade for a living. And thus I have put together some simple guidelines and explanations
I think the development of an profitable system will really depend on your personality, for example, are you a scalper, momentum trader or a swing trader?
I am a momentum trader which means i "stalk" the market for appropriate moments before waiting for a breakout to take my trade. usually lasting anywhere from 5mins to 8 hours.
Decisively, you need to keep a pulse regularly on the market, look at charts in the longer time frames 4hrs, daily, weekly , monthly. is there a clear trend? is it up or down? if it is neither, you do not trade, if you are clearly trading with the trend , there is a 95% chance you will be profitable if you are patient.
entering at a wrong point in the market, but because you are patient, you are profitable - the trend carries you back into profit.
Indicators wise, i believe most indicators are lagging, which doesn't mean they are useless... it just means they are lagging ..:P
my take would be you master price action if you have not already. this will allow you to take very low risk trades for very high profit margins .
another mistake most would make would be trading without clear stop losses. which would probably not be your problem, i assume you are an experienced trader
before any trade
1. plan your stop loss ( BEFORE you plan your Take profit targets)
- your stop loss should be honored at all costs, and should be within your money management limit and behind FIb levels, trendlines and support/resistances etc) if it is too far away( not viable) this means it is simply a not viable trade
2. plan your take profit targets. again TPs should be at appropriate FIB levels, trendlines / support/resistances. observe how the price react to this level before you take profit and let it run further if possible.
a scalp trade can always turn into a swing trade
3. Once again always trade with the trend , if you don't know what the trend is, stay out of the market.unless you are scalping for small change.
Part 2 with chart examplesA lot of people have asked me about forex and its potential as a secondary income stream and to trade for a living. And thus I have put together some simple guidelines and explanations
I think the development of an profitable system will really depend on your personality, for example, are you a scalper, momentum trader or a swing trader?
I am a momentum trader which means i "stalk" the market for appropriate moments before waiting for a breakout to take my trade. usually lasting anywhere from 5mins to 8 hours.
Decisively, you need to keep a pulse regularly on the market, look at charts in the longer time frames 4hrs, daily, weekly , monthly. is there a clear trend? is it up or down? if it is neither, you do not trade, if you are clearly trading with the trend , there is a 95% chance you will be profitable if you are patient.
entering at a wrong point in the market, but because you are patient, you are profitable - the trend carries you back into profit.
Indicators wise, i believe most indicators are lagging, which doesn't mean they are useless... it just means they are lagging ..:P
my take would be you master price action if you have not already. this will allow you to take very low risk trades for very high profit margins .
another mistake most would make would be trading without clear stop losses. which would probably not be your problem, i assume you are an experienced trader
before any trade
1. plan your stop loss ( BEFORE you plan your Take profit targets)
- your stop loss should be honored at all costs, and should be within your money management limit and behind FIb levels, trendlines and support/resistances etc) if it is too far away( not viable) this means it is simply a not viable trade
2. plan your take profit targets. again TPs should be at appropriate FIB levels, trendlines / support/resistances. observe how the price react to this level before you take profit and let it run further if possible.
a scalp trade can always turn into a swing trade
3. Once again always trade with the trend , if you don't know what the trend is, stay out of the market.unless you are scalping for small change.
the main advantage of any trend trader is of course to know the trend
simply scale out your charts to weekly , daily, 4 hrly, hourly etc... if they all align.. this is the trend
( ie up or down trend , you trade WITH it not against it, don't try to pick bottoms- it is the easiest way to blow your account)the angle of the slope should be approxiamately 25%-45% (2 to 5 O Clock angles) and beyond, if the slope is flat, there is no trend and does not warrant trading
you can use one of the MAs to help discern the trend a bit further( altho it is lagging)
notice the 34 EMAs are pointing 45 degrees upwards and the price bars are above the EMAs, indicating an uptrendLook at the divergence section under the school section here, use an oscillator ( i usually use default MACD) so that you are warned early in advance of any likely change in trends. this will be where you need to be more careful and prepare to take profit.
be aware that divergences may take a while to act out , depending on the time frame you are looking at.
Regular Bearish Divergence.
Warning of possible trend direction change from up to down.
Hidden Bearish
“Sell the rallies”
EJ Hidden Bearish Divergences 4HourlyEU
Use breakouts. this should be adequate to make you a good trader.
as for Fibonaccis , TrendLines and Support /Resistances , T/Ls are easy and their use cannot be overstated
I hope this helps and best of luck with your trading
Kind regards
Peter Pips
As forex is a complicated science. I cannot explain all of it in a short blog post. But there is a FREE TRIAL LESSON that you are encouraged to attend and ask me all you can at these lessons. there is no obligation.
For those who are interested in attending a FREE LIVE TRADING & FREE TRIAL LESSON on chart patterns and how to trade successfully in the forex market for a living or income supplementation. Kindly feel free to call/sms Peter at 92771574 or friends who referred you for a FREE LIVE TRADING SEMINAR & FREE TRIAL LESSON on 1pm to 3pm and evenings ,at Orchard Plaza offered by Asia Investors and Traders Centre.
