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My FOREX Trading Plan
1. Weekly target profit : $150
2. Risks : $150 . I do not follow the
norm of 2-4% of account size as I only maintain a small account ($5000)
and only do 1-2 trades at any 1 time.
3. Leverage : 1 to 100
4. Trade in mini lot (10,000)
5. No losing of sleep over the trade.
6. Stop trading after 3 consecutive win of
lose.
7. Trade only USD/JPY and EUR/YEN until
profit target can be achieved for 6 continuous months.
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How do I trade
1. Preparation.
Read up on whether there are any major news to be announced such as Job
employment rate, non-farm roll results etc. Forex factory.com provides an excellent
information portal for these data with their perceived impact on foreign
currency trading. Avoid trading during those times.
2. Observation. Observe
the trending of the currency pairs for 10-15 mins to see whether there
are any trading opportunity. Do not rush, Study and
observe the indicators and watch for tradable signal.
3. Decide. After studying and ensuring
that the indicators signals a trade, set up the order, determine the
entry and possible exit points (Stop lost and profit limit which should
be preferably at least 1:1).
4. Execute. Execute
the order. To save a few pips, I often goes into a 5 min chart to
wait for the opportunity to long or short at the right time. |
My Trading set-up - Go with the
Trend
1. Daily chart with following indicator
a 20-day simple moving average. This assists to ascertain whether the
trend is up or done. If prices are above 21 SMA, then up trend,
below 21 SMA, then down trend. Be careful when prices are hugging
the 21 SMA. Trend is uncertain and can go either way.
2. After ascertaining the trend, I move to
the hourly chart with the Bollinger Bands indicator (2 and 3
deviations).
3.
If the trend is down, then we look for Short trading signals -meaning we
want to sell high. This would be when the prices break the upper
Bollinger band. Entry at market after price closed between upper 2
and 3 deviation of the Bollinger band. Stop lost at 15 pips above
3 deviation Bollinger or 5 pips of last high. Take profit at 1-1.5 times
the risks.
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