Getting Started....

Charts are the most important thing in forex trading, many platform provide free charts and tools but i found out that Meta trader charts provide the best tools and ease of use.

You could download the charts at http://www.metaquotes.net/ for free.

For stocks you could download at www.chartnexus.com it provide 3 years of data for free.

For meta trader the 3 most common tools i use is Fibonacci Retracement, equidistant channel and trendline.

My setting for the Fibo are

0=0
0.236=23.6
0.382=38.2
0.5=50
0.618=61.8
0.764=76.4
1=100
-0.382=138.2
-0.618=161.8
-1=200
-1.618=261.8

Let me know if you need any help in setting up your meta trader.

Long Euro/Usd

This is one of the trades i did weeks back on the July 27.

I post it on my forex group but not my blog.... therefore decided to do some back tracking of my trades....



Long around the brown area

1. Manage to count RED 1-2-3 and another GREEN 1-2-3-4 within the RED 1-2-3
2. Draw a line between the GREEN 1 and 3
3 Long when it close above the line and just nice when it close above 1 and 3 it closes above 5p

Took profit at the close of the top candle

Reason: does not seem it got strength to break the resistance at 1.4219 mark and the stoch are all over brought


With the closing of this trade it look like another good trade to short with the completion of the RED 1-2-3-4



With the closing of this trade i shorted the euro, i try to post the rest of the trade.....

All the analysis was done before hand, before the other part of the charts are form....i not Ma ho pao hor.... wait for charts to form le then say oh is this is that....

Just some thoughts to share

1) Law of nature 101 - Everything happen for a reason, no matter how big or how small... it is actually a set up for a bigger movement/change to come...

2) Law of nature 102 - Everything that happens will happen again, it only a matter of time

3) A small profit is better then a loss

4) A profit is never a profit until it is in your pocket

These are not just tots for trades, u be surprise that life work according to these rules too....

Forex Basic 2 Spread & Pips

1. Contact size
2. Current price

You can see spread as commission for the broker, as what they all like to claim that there is no commission for forex trading which is not true. The true statement should be there are no additional commission other then the spread.

In this case the spread is 2 pips, so if you buy and sell almost immediately you will lost 2 pip.
How much is 2 pips?
It depend on your contact size

standard contact = $100,000 = 1pip = $10
mini contact = $10,000 = 1pip = $1
micro contact = $1000 = 1pip = $0.10

Currently i only know fxcm micro which allow you to trade micro contact, for most brokerage the min is mini contact

I guess that also self explain what is pips.

Forex Basic 1 PAIRS

There are tons and tons of information on "What is Forex?" and term used for forex trading.

I will try to explain everything in layman's term but if you love reading up more there a good website investopedia , they have lots of information on investing not only forex. It worth to take a look.

Back to Forex.....

Forex is also known as currency trading, when it come to currency trading we always do it in pairs.
ie. EUR/USD, GBP/USD, USD/JPY

Some of the common pairs most people trade are EUR/USD, GBP/USD, USD/JPY, AUD/JPY, AUD/USD

This few pairs are more popluar due to pairs with the least spread, better rollover and more movement.

EUR = EURO DOLLAR
USD = AMERICA DOLLAR
AUD = AUSTRILA DOLLAR
JPY = YEN/ JAPAN DOLLAR
GBP = POUND / UK DOLLAR

I will explain using EUR/USD.

MAIN CURRENCY / TRADING CURRENCY
1 EURO = 1.4115 USD
What it means?

You are comparing this 2 currency the euro and the dollar.

When you buy this pair you are buying euro using usd, so when the euro get stronger say the exchange rate hit 1 EURO= 1.5 USD you will earn 0.0885 per euro dollar you buy.

If you will to sell this pair mean you buying USD using euro.

layman's term -
you think 1 EUR can change more USD = buy
you think 1 EUR can change less USD = sell

Next i will talk about spread and pips

Short Eur/Usd

Shorted Euro on 30/4 at about 12am



Went to look at my chart at around 12 plus, saw some huge movement in the Euro... Put in some channel found out that it break the channel.

Zoom out, saw another high point, draw another channel.



Shorted at the red candle.
Almost hit my stop loss at 30 pips, but it went about 90 pips down...

Winning trade but................


I was corrected by my "teacher" that i actually "jump the gun" as there was no clear confirmation.... which is actually quite true. it was basically a gut feel thinking it might be a wash and rinse... i should have look for 1234 and other confirmation before going into the trade.

Sold Singtel for a small profit

Last Wednesday i brought a few lots of Singtel at 2.48....

Sold it for 2.52 today... Reason being the market seem to heat up and cool off rather quickly this few days... 2 days ago when the news 1st mention about the swine flu it went diving... but yesterday they announce that this swine flu is spreading fast, but it seem that it does not bother the traders anymore... I am playing safe, who know will this be like the next SARS


And also it end of my contra period so let it go for a very small profit...