usd/chf signal/opinion 30/4/2013

 good morning fellow traders, yesterday my eur/usd was not triggered , it reverse few pips to my entry............ i took advantage of usd/chf, dew to their correlation. i will only exit my sell position if the candle formation for tomorrow 1st of may speak otherwise by the end of the day

eur/jpy entry

pending buy limit @ 123.56 ............... apply same trading principle

eur/usd entry

we entered two pending positions, buying eur/usd par-adventure we are not on sit, the key point is price reaction and candle formation @ the support  which is our entry. keeping in mind the possible interest   rate reduction or hike in the euro zone, our approach to the market will be flexible this week.

EUR/USD POSITION FOR THIS WEEK 28/04/2013

we are working with this levels on 4hr, the blue and red circle, for this week and next if the market fail to break those levels. candle formation at those level will be key in determining our entry and exit when the market opens, and our trading opinion or signal will be posted as well.
Earlier, i said this week and next, i said that because the market will still have the memory of those price level, same principle on 1hr,4hr and daily............. same price action strategy, we only observe the market  memory of price,


thank you

PRICE ACTION STRATEGY MAKE'S TRADING EASY

For some month now, i have been following price action base on post i see on forum on face book, posted by ahize chris, i thought working with pivot point was the best i will ever know. i did more research and realize that the market has memory, at time short memory when applying price action on  1hr chart and those level where we notice market reversal or price action has i have unlearn to learn.......  what the term price action, or “action price” actually means. Well, there is no true definition of these terms, but in simple English, it is a trading technique that allows you to read the market and make trading decisions based on the actual price movements or action of prices as they undulate on a chart, rather than relying on lagging indicators. Most indicators are derived from past prices on the chart, so they are in fact, giving you information on lagging price movements. Stop the madness of using indicators and learn how to trade by understanding how to read a price chart today!
Why would you want to base your trades on past information when the most important factor in trading is what prices are doing right now, and what they are most likely to do in the very near future? Using our strategies, we can help you to learn what prices are most likely going to do in the near term, rather than trying to guess using lagging and misleading indicators. There are some traders and some large institutions that actually fade the indicator movements for the sole reason that so many losing traders use them to base their trade decisions. That alone should tell you that they are a losing game in most cases.
One of the most common themes we hear in trading is that “the trend is your friend!” This is a very true statement, but the second most common theme to losing traders is that they are always looking for tops and bottoms and thus end up counter trend trading the majority of the time and this causes them to lose money. The million dollar problem to trading with the trend is knowing when the trend is in play, and when it is actually ending and a new trend is beginning.
The market can actually only do three things. It can trend up, it can trend down, or it can chop around in a trading range.

Start Thinking in $ and Not Pips! by one of my mentor (Barisiba kelvin s)

It constantly amazes me when talking to traders and they work out profit or loss in pips. A common question I get asked is “how many pips should I make trading price action” Or another example is “should I have a minimum pip profit target each month?” What the traders asking these questions fail to understand is pips don’t determine whether you are profitable or not.

Negative Pips but Positive $

The reason traders need to stop working out profit and loss in pips is because pips are deceiving. Traders can be negative pips over a few trades but can still be making money. To some reading this they will be wondering what I am talking about so stay with me as this is article is definitely for you!

Before we enter trades we should be working out the correct trade size. We should always be risking the same percentage of our trading accounts on every trade. The only thing that will change is the stop size. Depending on how big or small the stop size is will determine how big the trade is we need to put on.

By doing this we will be risking the same percent every trade, no matter how big the stop loss is in pips. This means that every trade we enter will be a different amount.

Many traders simply see a trade and enter the same size trade regardless of the stop loss or pair they are trading. This is very dangerous because placing the same size trade every trade does not mean we are risking the same amount of money every trade.

The stop size for each trade will change dramatically. We could have a 20 pip stop on the 1 hour chart but a 200 pip stop on the weekly chart. If for example we are entering both these trades with the same 2 standard contracts the amount of real money risked in both trades will vary massively. The loss the trader would take on the weekly trade is 10 times the size the loss they would take on their 1 hour chart trade.

Correctly Calculating Positions Size

Most traders work out their risk per trade using the 3% method. What this basically means is each trade no matter what the pair or stop size, they are willing to risk 3% of their trading account capital. One trade may have 30 pips for a stop size but another trade may have 150 pips stop. In both trades using the 3% method the trader will be risking 3% of their account total.

Using this method the trader will have to open a different amount for each trade, but they will still be risking the same percentage of their trading account.

To work out the trade size the trader needs to put on for each trade I recommend using a position size calculator. There are many of these that can be found on the internet. Simply Google “position size calculator”. This tool will look like this:

Start Thinking in Money Terms

Now you have learnt how to open the correct size trade it is important you start thinking in terms of money and not in pips. As I said at the start of this article you could be negative pips for the month but making money!

An example of this is you place two trades. Both these trades are risking 3% of your account. On trade 1 you lose the trade that had a 200 pips stop. You are now -3%. You then open a trade on the 1 hour chart and have a stop of 20 pips. You win this trade and make 40 pips or double your risk which would be +6%. So whilst overall you are down 180 pips you are still positive 3% in your trading account!

As you can see from the above example working trades out in pips makes no sense. Start working out each trade using a position size calculator and never over risk on any one trade. It is still important to track your pips made and lost but it does not determine whether you make or lose money.

Now you have the knowledge of how to correctly manage your trade size there is no reason to ever over risk on any one trade. There is also no excuse to not place trades because the stop loss is too large. As you have just learnt it doesn't matter how big the stop loss is because you will be simply altering your trade size depending on how large the stop is.

Thanks for your time.