For the past 2 weeks the market is not very active. Just now its starting to move. When the market is not active I rarely trade and even if I do trade it would be small TP and SL. At the moment I have 2 post newly open. Its in profit now just hoping for a bigger return.
When the market is not active, I do other things. In these 2 weeks, I have upgraded my pc and car. Pc and cars are my hobby now.
My PC:
At the moment I have 2 desktop and 1 laptop. I wanted to buy a new pc but if I do buy a new pc I will have 3 desktop which is an overkill for me alone. Im not about to open a cyber cafe at my home.
Upgrade Spec
1. Abit AN9 32X RM570.00
2. AMD Athlon X2 +4000 RM235.00
3. Kingston 1GB DDR2 X2 RM278.00
4. Geforce 8600GT RM395.00
5. 350W Power Supply RM110.00
My pc upgrade cost me RM 1,588.00
My car:
I also upgraded my car ekzos system and intake system. It is an upgrade long overdue since the original piping already have holes here and there.
Upgrade Spec
1. Complete ekzos system + muffler RM305.00
2. Intake pipe + K&N filter RM400.00
3. New Head Unit. Now can play SD directly RM398.00
My car upgrade RM 1,103.00
guess what, at the moment it is much cheaper to upgrade your car compare to upgrading a pc.
Then I was looking around the net and found this website. It sells magnetic bracelet. Sort of Bio Magnetic Therapy. I go and buy one and wear it. The first time I wear it, I felt dizzy like I was drunk of something. I cannot even smoke cigarette any more. That night I had a good night sleep. The best sleep since a long time. Its like someone switch off the power. The next morning its all good. Looks like Bio Magnet Therapy really works. The bracelet is good looking, it give you bio magnetic therapy and also its a MLM business. Personally I dont do MLM anymore but since the bracelet is giving you a chance to actually make money, its a very good deal. Not only does it looks good, it keeps you healty and give you good opportunity make money.
Its 3 in one package. Looks good, Feel healthy and make money. woooooo. Anyone interested can contact me @ 016 8178343.
Thursday, September 13, 2007
Monday, September 3, 2007
How The Market Move
After looking at charts for over 1 year now, I have made a conclusion on how the market move. It may differ from other people point of view but at least this is how I made profit or loss in Forex Market.
The Market generally move once or the most twice a day. That is how much Forex market move. There is no point on being stuck in front of the pc the whole day since it will only move once. If you dont belive me look at any pair in timeframe 1 hour or less. Forex doesnt move in straight line but it has a tendency of moving to a particular direction in a zig zag motion.
The idea is to develop a system or set of indicators that will give you an entry early enough for you to profit when the market makes its move. There is no way you can tell the move before its moving. The price must move at least a little to a particular direction before you signal is triggered. Then you enter the market and take the remaining move.
The system must only give you signal once a day or twice the most. Because its a daily trade dont expect much. Sometimes condition are bad even 5 pip is enough. You must remember that if you are trading less than 1 billion you are small fish in the sea. Take what you need and leave or else get eaten by the big fish.
In developing the system that will take advantage of Forex movement characteristic, I sense that I have succeeded. I have a system that will give signal only once a day or twice the most. Like most Forex system in the world, there are difficulty finding the right entry and exit point. An entry and exit that will give you the most out of the move before it will retrace.
In the end, its about how and when you enter. There are no room for mistakes here since mistakes are costly. From the very 1st trade you make till the last trade, the risks are all the same. Experience is an advantage but its not an insurance. Once everything turns bad, there is no saving you.
Welcome to the World of Forex
The Market generally move once or the most twice a day. That is how much Forex market move. There is no point on being stuck in front of the pc the whole day since it will only move once. If you dont belive me look at any pair in timeframe 1 hour or less. Forex doesnt move in straight line but it has a tendency of moving to a particular direction in a zig zag motion.
The idea is to develop a system or set of indicators that will give you an entry early enough for you to profit when the market makes its move. There is no way you can tell the move before its moving. The price must move at least a little to a particular direction before you signal is triggered. Then you enter the market and take the remaining move.
The system must only give you signal once a day or twice the most. Because its a daily trade dont expect much. Sometimes condition are bad even 5 pip is enough. You must remember that if you are trading less than 1 billion you are small fish in the sea. Take what you need and leave or else get eaten by the big fish.
In developing the system that will take advantage of Forex movement characteristic, I sense that I have succeeded. I have a system that will give signal only once a day or twice the most. Like most Forex system in the world, there are difficulty finding the right entry and exit point. An entry and exit that will give you the most out of the move before it will retrace.
In the end, its about how and when you enter. There are no room for mistakes here since mistakes are costly. From the very 1st trade you make till the last trade, the risks are all the same. Experience is an advantage but its not an insurance. Once everything turns bad, there is no saving you.
Welcome to the World of Forex
Wednesday, August 22, 2007
Example trade using Bollinger Bands
This picture is a chart of GJ where you can see my entry, SL and TP. It was taken right after I enter the market. I opened 2 post there.
This picture was taken this morning after the price has moved. Its a beautiful picture and it works most of the time.
This is a daily statement of yesterday trade. You can see that I have closed the 2 GJ post earlier than my TP target. Anyway yesterday was a good day to trade. As for today GJ continue to go uptrend with a correction coming soon. Wait for that correction and enter if the strength holds.
Monday, August 20, 2007
Trading with Bollinger Bands
WHAT IS?
Bollinger Bands are a technical analysis tool invented by John Bollinger in the 1980s. Having evolved from the concept of trading bands, Bollinger Bands can be used to measure the highness or lowness of the price relative to previous trades.
Bollinger Bands consist of:
1. A middle band being a N-period simple moving average
2. An upper band at K times a N-period standard deviation above the middle band
3. A lower band at K times a N-period standard deviation below the middle band
Typical values for N and K are 20 and 2, respectively.
The bands cannot, as some have supposed, be used to make reliable statements regarding what fraction of an equity's prices will lie within a certain distance of the mean value. This is because an individual equity's price does not obey known distribution functions (see stochastic process). For example, if the bands for plus or minus two standard deviations (2SD) are computed, it is wrong to suppose that ~95% of an equity's closing prices will, on average, lie within the Bollinger bands. That would require, among other things, that the prices be normally distributed, which they are generally not. It would further require that the true standard deviation be known. The standard deviation calculated as above, however, is only an uncertain estimate of the true standard deviation. Furthermore, it should be realized that the "standard deviations" of stock prices for finite time periods are not fixed parameters as required to apply classical statistical theory, but instead are variables in constant flux depending on price volatility. The bands give a visual picture of a stock's price volatility. Nevertheless, the bands can be useful in the technical analysis of prices or returns and by Chebyshev's inequality contain at least 75% of prices. These occurrences should be considered in relation to other factors before making investment decisions.
It is of interest to note that faulty interpretation of a price touching or breaching a band based on incorrect statistical assumptions has become so widespread that some traders now use these events alone as trading signals and by so doing may have unwittingly injected significance into these band-touching events that should otherwise be absent. Nevertheless, anyone can observe over time, that for a diversified group of mutual funds, say, the proportion of daily adjusted close prices that breach their 1-month 2SD Bollinger bands varies between 5% and 15% of days, with each fund having a fairly constant, characteristic long-term breach probability descriptive of its long-term, relative volatility.
When the bands lie close together a period of low volatility in stock price is indicated. When they are far apart a period of high volatility in price is indicated. When the bands have only a slight slope and lie approximately parallel for an extended time the price of a stock will be found to oscillate up and down between the bands as though in a channel.
The use of Bollinger Bands varies wildly among traders. Some traders buy when price touches the lower Bollinger Band and exit when price touches the moving average in the center of the bands. Other traders buy when price breaks above the upper Bollinger Band or sell when price falls below the lower Bollinger Band. Moreover, the use of Bollinger Bands is not confined to stock traders; options traders, most notably implied volatility traders, often sell options when Bollinger Bands are historically far apart or buy options when the Bollinger Bands are historically close together, in both instances, expecting volatility to revert back towards the average historical volatility level for the stock.
HOW I USE IT
I use 2 Bollinger Bands with the same value on my technical charts. These 2 BB are for:
1. Trend Reversal Detection
2. Exit Target
3. Entry Point
Before we go on any further, a visual display is needed since we human learn faster through our visual.
As you can see in the graph, there are 2 BB with RSI. There are 5 set of circle indicating when the price cut thru Bollinger Bands. I will try to explain here according to numbers in the chart.
1. Price cut the upper BB at the same time RSI only cut thru middle band. Indicating the price is over bought while RSI is showing weakness. That is your point to short.
2. Price cut thru the lower BB and RSI is doing exactly the same. This showing that the price is according to strength. Exit at will. This also indicates a new trend has started. Take only short position from now on.
3. Same as no.2, this is your exit position. RSI agrees with the price. Continue to trade short.
4. Price cut thru the lower Bands but RSI is in the upper part of the Bands. This is a sign to start thinking of reversal. Lowest price at that point was 1.0550. Normally I would give out signals based on that lowest price.
5. Price makes a new low of 1.0530 and RSI still disagree with it. This is due to last minute trend traders who are pushing the price even lower thinking the trend is still there. I must agree, the trend is still there but the strength is gone long ago.
If I were to trade this pair, I would give out a signal to long @ 1.0550. The price hit bottom at 1.0530. Meaning there was a -20 pip position hold. Now the position is +30 and guess what. Its breaking the middle bands. Once the middle bands is broken and it cut thru upper bands and RSI agrees with it, we have ourself an uptrend. Meaning that I have trade the pair much earlier than most traders do because they are trading on trend.
At the time of writing I am holding ucad long with SL at breakeven. The worse thing that could happen is ucad reverse making a new low leaving me with nothing. If all goes well, I would like to see that upper band and make my exit there.
Of course there is no certainty in forex. In this article I am only showing the possibilities of using only BB and RSI to trade forex. Currently I am using 4 indicators to my technical analysis. Maybe some of you out there can do much better and come up with a better system.
Update:
As you can see in the picture, those circle are my entry and exit point. At the time of writing, I have already closed 2 position with +97 pip and holding 1 position with SL at +8 pip. Thats brings a confirmed total of +105 pip for ucad alone.
Looking at the chart, Ucad is still a long trade but there is not much follow thru. This maybe to the fundamental effect saying usd dollar has been so weak all this while making trader unwilling to enter on usd side.
Bollinger Bands are a technical analysis tool invented by John Bollinger in the 1980s. Having evolved from the concept of trading bands, Bollinger Bands can be used to measure the highness or lowness of the price relative to previous trades.
Bollinger Bands consist of:
1. A middle band being a N-period simple moving average
2. An upper band at K times a N-period standard deviation above the middle band
3. A lower band at K times a N-period standard deviation below the middle band
Typical values for N and K are 20 and 2, respectively.
The bands cannot, as some have supposed, be used to make reliable statements regarding what fraction of an equity's prices will lie within a certain distance of the mean value. This is because an individual equity's price does not obey known distribution functions (see stochastic process). For example, if the bands for plus or minus two standard deviations (2SD) are computed, it is wrong to suppose that ~95% of an equity's closing prices will, on average, lie within the Bollinger bands. That would require, among other things, that the prices be normally distributed, which they are generally not. It would further require that the true standard deviation be known. The standard deviation calculated as above, however, is only an uncertain estimate of the true standard deviation. Furthermore, it should be realized that the "standard deviations" of stock prices for finite time periods are not fixed parameters as required to apply classical statistical theory, but instead are variables in constant flux depending on price volatility. The bands give a visual picture of a stock's price volatility. Nevertheless, the bands can be useful in the technical analysis of prices or returns and by Chebyshev's inequality contain at least 75% of prices. These occurrences should be considered in relation to other factors before making investment decisions.
It is of interest to note that faulty interpretation of a price touching or breaching a band based on incorrect statistical assumptions has become so widespread that some traders now use these events alone as trading signals and by so doing may have unwittingly injected significance into these band-touching events that should otherwise be absent. Nevertheless, anyone can observe over time, that for a diversified group of mutual funds, say, the proportion of daily adjusted close prices that breach their 1-month 2SD Bollinger bands varies between 5% and 15% of days, with each fund having a fairly constant, characteristic long-term breach probability descriptive of its long-term, relative volatility.
When the bands lie close together a period of low volatility in stock price is indicated. When they are far apart a period of high volatility in price is indicated. When the bands have only a slight slope and lie approximately parallel for an extended time the price of a stock will be found to oscillate up and down between the bands as though in a channel.
The use of Bollinger Bands varies wildly among traders. Some traders buy when price touches the lower Bollinger Band and exit when price touches the moving average in the center of the bands. Other traders buy when price breaks above the upper Bollinger Band or sell when price falls below the lower Bollinger Band. Moreover, the use of Bollinger Bands is not confined to stock traders; options traders, most notably implied volatility traders, often sell options when Bollinger Bands are historically far apart or buy options when the Bollinger Bands are historically close together, in both instances, expecting volatility to revert back towards the average historical volatility level for the stock.
HOW I USE IT
I use 2 Bollinger Bands with the same value on my technical charts. These 2 BB are for:
1. Trend Reversal Detection
2. Exit Target
3. Entry Point
Before we go on any further, a visual display is needed since we human learn faster through our visual.
As you can see in the graph, there are 2 BB with RSI. There are 5 set of circle indicating when the price cut thru Bollinger Bands. I will try to explain here according to numbers in the chart.
1. Price cut the upper BB at the same time RSI only cut thru middle band. Indicating the price is over bought while RSI is showing weakness. That is your point to short.
2. Price cut thru the lower BB and RSI is doing exactly the same. This showing that the price is according to strength. Exit at will. This also indicates a new trend has started. Take only short position from now on.
3. Same as no.2, this is your exit position. RSI agrees with the price. Continue to trade short.
4. Price cut thru the lower Bands but RSI is in the upper part of the Bands. This is a sign to start thinking of reversal. Lowest price at that point was 1.0550. Normally I would give out signals based on that lowest price.
5. Price makes a new low of 1.0530 and RSI still disagree with it. This is due to last minute trend traders who are pushing the price even lower thinking the trend is still there. I must agree, the trend is still there but the strength is gone long ago.
If I were to trade this pair, I would give out a signal to long @ 1.0550. The price hit bottom at 1.0530. Meaning there was a -20 pip position hold. Now the position is +30 and guess what. Its breaking the middle bands. Once the middle bands is broken and it cut thru upper bands and RSI agrees with it, we have ourself an uptrend. Meaning that I have trade the pair much earlier than most traders do because they are trading on trend.
At the time of writing I am holding ucad long with SL at breakeven. The worse thing that could happen is ucad reverse making a new low leaving me with nothing. If all goes well, I would like to see that upper band and make my exit there.
Of course there is no certainty in forex. In this article I am only showing the possibilities of using only BB and RSI to trade forex. Currently I am using 4 indicators to my technical analysis. Maybe some of you out there can do much better and come up with a better system.
Update:
As you can see in the picture, those circle are my entry and exit point. At the time of writing, I have already closed 2 position with +97 pip and holding 1 position with SL at +8 pip. Thats brings a confirmed total of +105 pip for ucad alone.
Looking at the chart, Ucad is still a long trade but there is not much follow thru. This maybe to the fundamental effect saying usd dollar has been so weak all this while making trader unwilling to enter on usd side.
Remove Some Advertising
I have remove some advertising. In the beginning, they are there because they are flasy, full of colours with attractive animation. Someone decided to comment that my blogs is full of advertising.
Ok, it is remove. Now I see my blog as empty. Its dark with just text. Any idea to improve the looks of my blog?
Ok, it is remove. Now I see my blog as empty. Its dark with just text. Any idea to improve the looks of my blog?
Sunday, August 19, 2007
I Missed Most Of It
Last week was a busy week + I have a bad flu. I only manage to trade on Friday last week and got out with a lot of pip. Thank god.
As for next week, opening of next week will be tricky. Last friday we saw a jump on GU, EU, GJ and EJ. That last jump really upset the downtrend. It would be very difficult to trade those pairs now.
Last hope is to use a breakout system. Hopefully next week we can see a clear direction of trade. May many pip be with you.
As for next week, opening of next week will be tricky. Last friday we saw a jump on GU, EU, GJ and EJ. That last jump really upset the downtrend. It would be very difficult to trade those pairs now.
Last hope is to use a breakout system. Hopefully next week we can see a clear direction of trade. May many pip be with you.
Sunday, August 12, 2007
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