Clash of Clans

It has been years since I played video games.  Then my little nephew tells me of "Clash of Clans" and since it looks like Warcraft, which I played 20 years, I decide to install it... now I'm addicted!

The funny thing is...

Clash of Clans has made me a better trader!

• Clash of Clans is a good addiction to keep me busy and away from trading when I'm bored.
• Clash of Clans lets me evaluate my "trading mind set".  If I make mistakes in the game, I know I'm not fully awake and alert for trading.
• Strategy games challenge your mind and get your wheels turning.  Quasi training your mind.
• Weekends are kept busy playing Clash of Clans to offset trading withdrawal.

Download Clash of Clans here

Join my Clan

Crashed my Account again... I QUIT!

April Fool's.  My account is just fine.  I just thought I'd get your attention.

It's been a while since I crashed an account.

Here are some tips to keep your stress levels down:

• DEMO:  Don't trade with real money unless you have successfully traded your strategy in demo for some time
• LOT SIZE:  I know you are going to trade with real money anyway, so at least trade with micro lots.  0.01
• Create multiple accounts with your broker
• Your main account should have the amount you are comfortable losing and walking away from
• Your other accounts are your backup accounts in case shit hits the fan. And it will.
• PROGRESSIVE LOTS:  After each successful trade, double your lot size.  0.01 becomes 0.02, then 0.04, 0.08 and so on.  Sure it's small but you are better of making small profits than taking huge losses.
• LOT SIZE: Find a lot size that you are comfortable with.  Starting and Ending.  Perhaps after SEVERAL MONTHS of consistent gains, 0.1 is a good start and 1.0 is a good max lot size.

If you are consistently losing then lower your lot size, change your strategy, go back to demo, or take a break.  Why?  Because at this point you are GAMBLING and not trading!

Forex Alerts

I am happy to announce a new service that I am offering my clients.  Forex Alerts.

If you have read my blog then you know that I am a big believer in semi-automated trading.  I believe in automation to provide Forex Signals to review potential trading opportunities with the goal of making a profitable trade.

For this reason I have developed Forex Alerts for 6 of my proven Strategies.  These Alerts are based on Daily, Hourly, and Correlational Strategies that I have been developing for EURUSD, GBPUSD, USDCHF, EURJPY, GBPJPY, USDJPY, AUDUSD, AUDJPY, USDCAD. 

The Alerts provide a trend, bias, trendlines, upcoming news, notes, and Screenshots to make better trading decisions.

Here are some Sample Screenshots of the type of email alerts you can receive.  That's right, these are actual picture attachments that are sent to you via email.   Most signals are boring, they are nothing but text.  Worse yet, how can you make a trading decision without seeing the chart?   
Included are trend analysis, commentary, a weekly bias, and my personal bias.

Forex Signal Subscription

• "Week Ahead" Trading Commentary
• Session Reports
• Trading Tips
• Signals for 6 of my Trading Systems
• with Chart Analysis
• and Chart Screenshots
• plus a Weekly Bias
• and my own personal Bias
• Average of 7 Signals per Day
• PLUS an Introductory Email sharing 6 of my proven strategies!
• Starting at Only $29 for a 3 Week Trial

Sign up to my one year subscription and I guarantee you will make more profitable trades!

No Results - No Fee. 

Subscription Options

Trial - 3 Weeks $29.00 USD 3 Months $99.00 USD 1 Year $299.00 USD

Upon receipt of your payment you will be contacted to confirm the email address to use for the subscription.

Testimonial
"Signing up for the alert service has really been beneficial for me over the last month.  I have had the most profitable month yet with the bonus of not having to check the charts all the time.  The alert emails have been letting me check the charts only when the market is moving to a potentially good entry point.  The screen shots with the bias on them have been a huge help in making higher probability trades.  Thank you so much for taking the time to create a well thought out, well executed alert system that only sends out meaningful information!" --- Brendan, April 2015, Presently Traveling South East Asia, Living in Calgary, Alberta, Canada

Boxing Day

When I was a kid I thought boxing day was about a boxing match...  turns out it is an English tradition of "boxing" up your old clothes to give to the poor and needy.  Hence "Boxing Day".

As I'm packing for my flight to Cambodia I'm going through my wardrobe and finding all sorts of shirts that I haven't worn in a long time.  To my surprise they fit great and look better than I remember.  Possibly because I've lost a lot of weight since doing Yoga Daily.  I think I'm down 10 kilos now.  Maybe because I'm just more toned and the shirt fits my complexion better.  Or it looks the same and not having worn it in a long time it looks "new".

Trading can be like that too.  One day a strategy you haven't used in a while, or a currency you haven't traded in a long time, looks quite appealing.  For me that's AUDJPY.  In the past I have had some of my best trades with it.  But I typically stick to EURUSD.  And you know these days I have even traded GBPUSD quite successfully while in the past I found it to be a pain.   Maybe it's that I'm up earlier now and trade the Asian session, or maybe it's my new strategies.  Maybe it's the old strategies I have started using again.

Whatever the case, if it's working.  So this boxing day, perhaps have a look at a new currency to trade.  A new (or new again) strategy to explore.  The holidays are a great time to do some analysis and figure out what your New Years Strategy should be.

Rice Pudding

I remember as a kid growing up Friday's were always special.  My elementary school in Vienna Austria would have something sweet for lunch.   Rice Pudding was my favorite.  I still haven't found anything like it.  It was thick, creamy, had clumps of goodness and freshly shaved Milka chocolate on top.  I lived for Friday's.

These days I live for Sunday's.  Because that is my "Free Day" and I can eat whatever I want.  Monday to Saturday I stick to very healthy organic home made foods.   So when it comes to cooking, healthy or not, I find myself either buying too many groceries or missing a couple ingredients to perfect that dish I've been looking forward to. 

I have been giving that a lot of food today and that had me thinking back to my childhood and that Rice Pudding that I can't get out of my head.   And I also remembered having a set menu at school.   Friday's were always our sweet days.   Other days were less exciting for me but nonetheless the routine was there.  So I have now adapted it to my cooking at home.   I have my google calendar filled in with what I will cook, thereby making my shopping easy. 

You might think it's boring, but it's actually exciting because I look forward to my meals and I can plan ahead and get all the ingredients I need.

In other words I have streamlined my cooking routine, and made it fun.

What does this have to do with Trading the Forex Market?

A few things.  First off you need to establish a routine.  You need to make that routine enjoyable and learn to love it.  You need to plan ahead.  And you need to give yourself something to look forward to, like Rice Pudding, or perhaps a nice meal out.  A beer.  Whatever gets you excited.

You need to review your calendar.  Set alarms if you have to, to remind you.  For example for FOMC, NFP, ECB, etc.  I use an Android App for that.   Sometimes as I'm trading or doing whatever it is that's on my agenda, I want to ensure I don't forget about an upcoming news event.

I also like to have a routine that gets me into trading on Monday and gets me to slow down on Friday.   Tuesday, Wednesday, Thursday are my prime trading days.

And as for all those other todos and things you have on the go?  Do yourself a favor and start planning for those too.  An organized person makes a great trader.  When your personal life is in order then trading becomes a breeze because you can focus on it.  Like a professional athlete that needs to be ready for the big match. No distractions.  Focused. In the zone.   His sh!t in order and ready to rock.

Get organized and enjoy the week ahead!

NO Water Cooler Talk

It's 1:30am and I'm beating myself up because I've done it once again....   I chatted with a good friend who happens to trade Forex too...  and everytime I do it's the same old thing.... 

We compare analysis.... he wants to go long... I see it as a short opportunity and before you know it I'm going long because in the back of my mind I keep hearing my friend tell me to go long and how he's aiming to make a couple hundred pips....      maybe he does... maybe he doesn't...

The thing is...  When you're trading it's somewhat lonely and you feel like sharing what you're doing. Talking about your successes.  Comparing Notes.  You miss that "water cooler talk".

You're better off WITHOUT the water cooler talk!

What I have found time and time again, that sharing trades with other traders is the worst thing to do.   The good traders usually keep to themselves.  The ones that talk a lot are like the empty can that rattles the most.

Don't get me wrong, my friend can make money at the market.  BUT his style is totally different.  I don't like to wait for hours or days for my setup to go in the right direction with a huge draw down. 

The other issue I have is that my friend will always pry on my trades.  "Got any trades open?"  "How many lots?" "Where did you enter?"   I remember visiting him in my home city of Vienna Austria and I happened to be in a bad USDJPY trade.  Analyzing the market however I knew it would just take some time to come around.  So while I was busy exploring the city for a few days all he would do is tell me how far in the minus I am... and that it will come around again.  Gee Thanks!  Despite me telling him not to worry about it and not to update me.....  Painful... 3 days.... I finally closed in the plus and was able to get BOTH monkeys of my back.

You're better off keeping to yourself!

The thing is when it comes to trading you need to just keep to yourself.  Do It Your Way!

Well my rant is over and (hopefully) I have learnt my lesson.

Ultimately it's my fault for letting it come to this.  I should have just put my foot down and not gotten into a trading conversation.  It's best to just put the instant messages on ignore and change the subject, talk about something else, and after the air has cleared tell your trading friends that you trade better on your own, completely focused on trading.

Manic Mondays

For most people, Monday's are Manic.   It's "back to the grind" for many.  Off to work.  The weekend (and all the fun) is over.  Time to be serious again. Meetings. Things To Do.  All those "I'll do it later" items catching up with you.

Even though I don't have a "J.O.B."  (J.ust O.ver B.roke) anymore, I can still relate.  In fact for quite a while I felt just as manic.  With all that free time, suddenly having to trade again, and all these things I had to do.... like get passport pictures done, make travel plans, shop for a new badminton racket.  Different problems.  Good problems.  None the less...  it used to stress me out a little.

The best way to tackle Manic Monday's as a Forex Trader is to ease into the market.  Ease into trading and...

Plan for the Week Ahead

I have written about this before.  Here is a different spin on it....

1. Use Google Calendar to Plan Out Your Week.  What does Monday, Tuesday, Wednesday, Thursday, Friday look like....  what are the plans for the weekend.  What preparations do you have to make and when.  
1. Your to-do's
2. Your commitments
3. Important Economic Events
4. You Time!!  
2. Don't plan to trade on Mondays.   It's better to trade because you have the time than it is to feel beat up because you couldn't get to it.  Besides Monday's can be the direction setter for the week ahead.
3. Start Small.  I started scalping again and I ease into it with a small lot size and then start doubling up and before you know it I'm using a lot or two.   It's like a warm-up at the gym.
4. Be Realistic.  I have written about S.M.A.R.T. goals before.    The biggest problem is that people bite off more than they can chew.   Give yourself lots of wiggle room.   If you can scratch all those to-do's off your list quicker, great.  No need to overcommit and then feel bad about it.  Pace yourself.  Bite-Size-Junks!

It's 1pm Bangkok time and I only glimpsed at the charts.  Didn't see anything interested.  Moved on.  Did yoga in the morning.  Some laundry.  Studied Thai.   Talked to a couple Thai friends.  Lunch is cooking in my rice cooker.  And I'm about to check on the Yogurt I'm making and get some water.   I'll likely start analyzing more in depth in an hour or so.  Maybe I won't get around to it till Europe opens at 3pm Bangkok time.  Maybe I won't get to it until the US Open at 8pm.    It's okay.  I'm getting things done.

That's what it's all about.  Getting things done.  Do Now. Do Later. or Forget About It.

Enjoy your week ahead!

Stretch Much?

If you do any kind of sports you likely stretch and warm up.  If you don't you should.  And if you're trading the Forex Market then you should consider doing the same.

As I mentioned the other day I started scalping again.  First with 0.1 lots, then 0.2, then 0.5, then 1 lot.   That used to be my routine when scalping.

Warm up with a small lot size. Get a feel for the market.  If I'm wrong (ie. something hurts while you're stretching) then you take it easy.  And on days where the warm up isn't feeling good all together then I don't play.  In other words if I flunk out with a small lot size, I stay there. Flunk out again then call it a day.  If I however get into the swing of things then I start increasing my lots size.

Give it a try.  In your demo account of course! :)

There Are All Types

Today I did something I haven't done in a long time...  I scalped the EURUSD, 11 trades in about 2 hours...  I used the minute chart and went in the direction of the major trend.  EURUSD has been a short for a while.

It's been a few years since I scalped.   I remember when I first started trading it brought me great joy.  There is an argument to say that's the kind of person I am.  Get in, get out. Rest easy.   That's how I like to exercise, that's how I like to shop, and that's how I like to date. hehe

There are all types of Traders...

So the question is, what kind of Trader are you?

Scalper

• Typically in and out within minutes or even seconds.
• Never leaves a position open overnight.
• Goes for as little as a pip.  Typically not more than 10 pips.
• Trades the minute and 5 minute chart.
• Given the small Take Profit, currency pairs with the best spreads are favored. 
• News times are typically avoided.

Day Trader

• Stays in the trade only for the day.  Closes (even at a loss) at the end of the day.
• Trades the 15 minute, 30 minute, and 1 hour chart.
• Take Profit is between 10 and 50 pips.
• Some Day Traders love trading the news, the majority will wait till after the news release and volatility has settled.

Swing Traders

• Hold Trades beyond a day but never beyond a week.
• Trades the 1 hour and 4 hour charts.
• Take Profit is between 50 and 200 pips.
• Wait for several confirmation signals.  Requires a lot of patience!
• Extremely technical traders.
• News is considered noise.

Position Traders

• Trades can last weeks, months or even a year.
• Trades the monthly, weekly, and daily charts.
• Well versed in the financial market and it's long term direction.
• Not concerned with short or mid term market conditions.
• Requires some serious balls in my opinion.   Emotions can run wild and patience is a virtue.

Robot Traders

• Technical Traders that have programmed their software platform to trade automatically for them.
• Backtest their trading plan and adjusts their code on a regular interval (monthly at a minimum).
• Hands-free trading while the computer trades for them.
• Somewhat dangerous as the Robot is only as good as it has been programmed to behave.
• Often successful for a short period of time before suffering major drawbacks.
• Many accounts have been wiped out for these "Holy Grails".

What kind of trader are you?  Well that might not be an easy answer.  If you have done any type of personality test then you might know that the results change over time.  As you grow, your personality adapts.  As you trade, your trading style adapts.

I used to Scalp all the time.  Then I started day trading, and swing trading, and then meddling between all 3 styles.   While I feel comfortable as a Day Trader, I'm starting to feel like Scalping again for a period of time.

As the market changes, your trading style may change.  Same goes for your lifestyle.  

It's like golf really.   As you get better with some clubs, you end up not using the others as much.  But you've had lots of practice with them.   As the course changes and your four-some changes, you adapt.

If you haven't done so already, try each approach, on a demo account of course, and see which one you are happy with the most.

Take a Break

The other day I was in Singapore to get my Thai Education Visa renewed.  Going in I knew that the Singapore embassy was one of the toughest and unfriendly Thai embassies there is and getting my Thai Education Visa renewed was a coin flip.

You see after 1 year of studying Thai at a private school I was starting to get bored with my routine and it was interfering with my trading.  The only teacher that I found I could learn from had classes just around the time I like trading.  Europe Open on Tuesday and Thursday.   Sure I could trade around that but given that my learning was plateauing it made sense to focus on what was more meaningful and fun.

So when I was denied my Education Visa and got a 60 day tourist visa (extendable to 90 days), it wasn't the end of the world.  Sure it's a pain in the ass however now I am going to take a break, be a tourist for 90 days, and trade more.

You see taking a break sometimes helps you get better at something.  For me at this point it will actually help me improve my Thai langauge skills because I can practice what I learnt and learn more on my own.   I can always go back to school, find a tutor, or practice with the many beautiful Thai ladies there are here in Phuket.

What does this have to do with trading?    Simple.  Taking a break from Trading can be the best thing you can do to improve your trading.  Just like in sports or exercise you need to take a break and let your muscles rest (and grow!).  You see often we are so determined we get caught up in it, be it studying, trading, sports, etc and we tend to overdo it, while for a short time that is beneficial, in the long run it can hinder your growth.

Taking a break from trading can really help you.  Like a vacation to recharge your batteries.   Take a week or two, then slowly start just analyzing the markets.  Start looking for new strategies, review your existing ones.   Don't trade.    Put on your observer hat and just get a feel of the market.   Feel the force ;)

Soon you will be in the full swing of things and you will find that those 2 steps backward while taking a break helped you accelerate and run forward, perhaps leap forward.

Perhaps get ahold of your Forex Mentor or Coach and he can guide you to a new start.

Taking a break from Trading can be the best decsion you've ever made.  And boy is it fun trading again after a a couple weeks or months away from the market.

Smart Goals

When I was building businesses for a living one of the most important aspects of owning a business was to have goals.  And not just any goals, but Smart Goals.  Without them you don't have a business and you don't have a trading plan, you're just winging it Gambling per se.  I can tell you here and now that any business owner that had Smart Goals did 10 times better than business owners without.   Having me coach them and hold them accountable helped too. ;)

S.M.A.R.T.  Goals are Specific.  Measureable. Attainable. Realistic. Time lined.

• Specific.   General goals like "I want to make money from trading" are too vague.  You need to be precise and concise.  Know what you want and be specific.  Ask yourself, Who, What, Where, When, Which, Why.   A specific goal would be "I will start trading a demo account and trade every weekday for at least 15 minutes."
• Measurable.   Without a sense of urgency or commitment, goals can be like your New Years Resolutions.   They're there but have no substance.  You have to hold yourself accountable and set yourself up for success.  You need to be able to measure your success and put some numbers to them.   How long will you trade per day?  How many trades will you make?  How much money do you need to make?  (Read Pips versus Dollars tomorrow).  When will you know you have hit your goal? 
• Attainable.  When you set goals, start thinking about the possibilities, obviously those opportunities should be attainable.   So be honest with yourself and know what you can and can not do, in what timeframe.  What skills do you need to develop.  What preparations need to be done.   Will you do it on your own?   Do you need help from someone to coach you through it?
• Realistic.  Don't be afraid to dream big BUT make sure it's attainable and realistic.   Your goals must be realistic.  Your goals should be high enough to motivate you and give you a little bit of struggle.  Low goals don't motivate and give you little in return.    Financial Freedom, sure.  Leave your job tomorrow and start trading with your life savings. NO.   Trade part time, study, learn, improve your skills, first using a demo account, then if certain goals are met, with a real account.   Again ask yourself if you want to travel the road by yourself or have an experienced professional, a coach, available to guide you through it.
• Time lined.    ASAP (As Soon As Possible) or PDQ (Pretty Damn Quick) isn't good enough.  You might as well just say "I will do it someday".     You need to have specific time lines in place.  Your goals have to be timely or tangible.
  
  For example, I will trade a demo account for one year, with the help of a professional, while learning the fundamentals and basic, 4 hours a week to start, and then 2 hours per week after the first month, and 1 hour per week after the first 3 months.  As my learning curve goes up, my time and effort goes down.  I intend to make 10% ROI (return on investment) on my demo account in the first 3 months and re-evaluate my ROI once I have had 3 months experience.   In one year I intend to have made more positive than negative trades, and more positive pips than negative pips.  I will have weathered the four season of the forex market, made mistakes, learned from them, and I intend to update my trading plan every month and adjust it where necessary, with the help of my coach.   I will have enough free time to spend with family and friends, and not overcommit my time to trading.  Family. Friends. Work.  Come first.   At the end of the year I will revisit my trading plan and with the new knowledge and experience I have gained I will plan the next year, 3 years, and 5 years.  I will have completed my goals when I am making sufficient money from trading where it is more than just extra income and will consider trading full-time.  Or part-time.  Depending how I feel about my job, finances, and family time.  Trading will help me live the life-style that I choose. 

Sounds simple? It can be.  Just put your mind to it and make sure you put the time and effort into it.  The payoff is directly proportional.  Next you need stop thinking about money and start thinking pips!

Stop the Insanity

Yesterday I wrote about Insanity being a full time job.  Today I'm going to give you some tips in the event you have gotten of course and are struggling with trading or perhaps in life in general.

• Change is the only constant.  First and foremost realize you have the ability to change.  When you want to change the outcome of your trading or life, you need to change your approach.   Is that Starbuck's employee constantly in a bad mood?  Smile at them first.  It's sometimes hard to be friendly first but when you are then others will usually return the favor.  By changing your approach you are changing your outcome.  Having a bad trade?  Stop, think back, and analyze what you did wrong.  And perhaps it's time for a new strategy.  (new approach)
• Short Term = Tactics.  Don't think just short term.  Even if you are a scalper or prefer short term (day) trades.   You need to think like the general and plan ahead.  You don't want to be the foot soldier in the trenches.  You want to think strategy. Long term.  What is the trend.   Today, this week, this month, this year.   Where is the market moving to. From. How long has it been moving in this direction.  What has, historically, happened in the past (think major trend lines).  Sometimes it's as simple as thinking when do the bullets stop coming, I'll take a break then, or in Forex terms, when does the market volatility (news) stop and I can ride the remaining wave.  Just like in surfing, you want to catch a good wave.   But when the waters aren't choppy and too intense.
• Long Term = Peace of Mind.  If you are constantly thinking short term and trading on a whim, on the seat of your pants, or better put, you are "gambling" and "making quick decisions" then you need to stop the insanity and calm your mind.  It's all fine if you make a good short term trade. (Catch a good wave)  But when you make a bad trade,  and you end up in a dangerous wave then the undercurrents pull you down, you will panic and regret that decision.  So instead of making quick decisions, make smart decisions.  Think ahead.  Analyze the trend. Analyze the market.  Analyze the news.  And like a trip to the mountains, plan ahead, what will you take with you, how long will it be, if it rains what is your alternate plan.  When do you return, etc.

You need to set S.M.A.R.T. Goals!  More on that tomorrow :)

Reality Check

Every once in a while you need a reality check.   For my students I start with weekly reporting and then month and quarterly reporting.  You should on a regular basis review your trades and ask yourself the following questions:

1.  In the last month / quarter how many pips did you make?    What was the profit?
2.  If you had losses, what did your technical analysis reveal was your error?
3.  If you had losses, to correct your error(s) what steps will you take?
4.  If you were profitable, what can you do to improve your trading results over the next quarter?
5.  What have you learned over the last month / quarter?

Most traders just wing it and live in a constant state of denial.  They know what they are doing wrong, but fail to correct it.   You and only you can keep yourself in check.   You must be willing to put in the work and effort to analyze the charts, your trades, find your mistakes, and correct them.