TA Forex Trading

Here's the NU weekly line chart Jav...shows a clear breakdown.

all have a SAFE New Year --me and mine are staying home with some WELL SPIKED eggnog -too old for partying anymore lol
Let's make this our best year for gathering those PIPS

Happy New Year to everyone!

As some of you may remember, at the start of last year, I decided to try an experiment to see if I could use consistent gains and the power of compounding to turn a small amount of money into a large amount of money in a couple years. I set a goal of 10% a week. My intentions were golden. What was not golden is that when I decided to do this, I had an open trade when the market was closed. A fairly large NZD:USD long. Within hours of posting my plan to the IHUB board, an earthquake hit New Zealand and my account got slammed when the market opened the next day.

Like an idiot, I tried to double down and get it back quickly. Instead of compounding my gains, I compounded my losses. Now I’m ready to try this experiment again.

My biggest problems trading are psychological.

1)   I bank profits and ride out losses, so even though on average I have many more winning trades than losing, in dollar terms my losses are often greater than my gains.
2)   Confirmation bias—there are so many signals to pay attention to that I over-weight the ones that tell me what I want to hear.
3)   I hit psychological walls at certain dollar amounts--I can’t trade $1,000 the same way I trade $100—so success at one level can turn to failure at another.

In an effort to bring more discipline to my trading, I will take this approach:

1)   To minimize confirmation bias, I will keep the charts simple. Just use a few of my favorite lines and indicators.
2)   Make fewer higher percentage trades. If I am having success with a particular pair, stick with that pair until the luck runs out.
3)   Stay all cash if there isn’t a good set up.
4)   Part of identifying a good entry is identifying when the set up has failed. Set stop-losses and stick to them.
5)   If I leave a trade angry, I will go all cash for at least 2 days.
6)   Never under any circumstances carry an open trade into a market close. Exit the trade (generally shortly after lunch Friday). If trading is normal, I will get a chance to reenter at the same spot or better. If news drops, I may miss a big gap in my favor, but anticipating news is not trading, it’s gambling.

Last time I set 10% a week as a goal. That’s too aggressive. This time I’m scaling back to 5%, which can be achieved averaging 15-20 pips a day.

The account I will do this with has $60.00 in it. At 5% per week, that $60 will grow into $758 in one year. Ok, still not a lot, but that’s a factor of over 12. At 2 years, $8,700. And that $60, increasing 5% each week is, after 4 years, $1,261,154.40.

Only FOREX makes returns like that possible for the average person. You don’t need insider tips, you don’t need luck, you don’t even need a lot of knowledge. You just need ironclad discipline.

In a separate post I will discuss my first trade.

Hey gang, I'd like to announce that Kermit has accepted the role of Global Moderator here on the Forum to help me out while I'm away. Kermit and I go way back on IHUB...ten years now I think. He has a great grasp of technicals and, like me, he's progressed to a point where "less is more" on the charts rather than trying to find the "next great indicator". I know he'll do a great job here.

Welcome Kermit! And I'd like to add that the trading program rules he has listed are definitely something that everyone can benefit from. Discipline, patience, solid technicals, and the ability to take losses are all part of trading if we want to be successful at it. Thanks so much for your help here Kermit and for your many years of charting and trading experience that you bring here to us on the board. 

When does the market reopen ?

Tks just couldn't find info anyplace

I expect them to open at the usual Sunday night time--6 PM EST, I think. Jan 3 is a bank holiday in Japan so volume will be light until the European open.

AUDJPY 1 HOUR-been really watching it