Blog Your Way To Miracles

Success Prowlers, here is where it gets really serious. This is all about Forex Trading. If you are new, have no idea what you are doing and are just sniffing around for a quick money making opportunity, this is NOT for you.

Forex Trading, is a skill, art and poetry to be construed beautifully at the individuals’ perspective, all rolled into one. It has taken me months, if not years to learn it and it is a very very new unregulated industry. If you have the guts to play with your own money, live with your decisions and be able to think on your feet, come join me. Otherwise, please step back and let the men weave their magic.

In this section, i will be posting you daily tips and ideas about all that there is to Forex Trading. I used to post my tips off another blog at getcashingonline.blogspot.com but i got bored of the traffic response and switched it off after awhile. Due to overwhelming response, i am back in business now and want to feed my hungry forex readers of more juicy underground secret tips. You better stay tuned and subscribed to catch all the news…

To Our Success!
Seeni J G

My Strategy

I am not a chartist. Yes, i don’t read charts. Using Fibonacci, OA, Heikken-Aishi, Candle-Stick, MACD and everything else you can imagine was my core competent strength before. Then again, how well can you read the chart and in turn the market? Do you know that even the top 1% of Forex Traders in the world lose millions of dollars every month? No one, absolutely no one can predict the market. Of course, they make much more and hence their coveted stature in the financial world. However, they are probably backed by banks or investment giants and can afford such “temporary losses”. As an investor with limited capital(basically from years of savings and borrowed money), i could not afford to take risks like they can. I therefore needed a strategy that will work, always.

The 3 Emotional Blunders by Traders

Traders for that matter, not just Forex traders, are always manipulated emotionally. Emotions play a significant influence on your split second decisions to quit or enter a trade. If you feel bullish about the market, you might jump into a trade with the least movement. If the market is bearish, or had a bad trade before, you might not even enter a trade even if you see a huge positive deviation. All you know is after expecting the market to make a reverse trend, you would have just seen a huge one way trend unfold infront of your eyes. Then when you realize that this is really a good overall trend that you should be part of and confidently get into the trade, the market reverses and goes the other way! You suddenly feel that your broker is watching your moves and manipulating the market in every other direction to make you lose money! Sounds familiar?

Well, most traders are bound by 3 emotions;

- Hope - when the market is going nowhere and straddling sideways, you expect a miraculous spike.
- Fear -  when you have got a paltry 5- 20 pips,  you fear losing that profit and exit.
- Greed -when you have a nice lofty profit of 100 pips or so, you still want to make somemore and wait for it to hit sky-high levels. Unfortunately, it doesn’t and reverses in the other direction. You then run helter skelter to close your position out making a pathetic number of pips.

So, let me ask you, and you are probably asking me as well, what kind of trading can you do;
- if there is no speculation in hope of movements
- if there is no reading of charts or trends?

My Strategy - News/Spike Trading

Every week, there are countless reports that come out from established government bodies/statuory boards and financial institutions all over the world. They are so powerful that they can move the market, often shaking or crashing it even. However, if you really start watching and observing the news releases versus their market effect, there will be only about 10-20 key news reports every week which can cause serious damage.

This is what i do;
1) Get ready for the news abt an hr in advance.
2) Watch the overall market trend of the currency that might be affected by the news release.
3) Review past history of this report and what numbers have come out before, which should give me a fair understanding of what kind of numbers can give what kind of changes in the market.
4) Mentally estimate my numbers to gauge what you should do when these numbers are released.
5) When the actual news release comes out, i have to make a split second decision to enter a trade.
6) In a few seconds or up to a few minutes at the most, the market will start stabilizing or retracing. At this point,  i will exit my position and close my trading.
7) Wait for the next news release or enough work for the day if i have already met my daily target.

Often, there might be days without any tradeable news releases. However, the reports i watch on are so powerful, that if they do happen, i will at least make 50-100 pips with each trade.

After months and almost a year of trying out this particular strategy, it is close to perfection. I hope to share with you my earnings reports in the next few months.

Take Care,
Seeni J G