BYE BYE 2008.....


I learned to trade only in ONE pair. I don’t want to be a jack of all trades, master of none. Trading only one pair makes you focused and helps you to understand how it moves better.

I learned that once a trend in forex market is in place, it could last for weeks, sometime up to months and years. Those who started selling GPB/JPY on Aug 12th, when the price penetrated the daily lower trendline at 210.xx, might gain a whopping 7,800 pips profit by Dec 27th. :-O

Therefore, I learned only to trade in direction of MAJOR trend. In bull market, buy on dips; in bear market, sell on rallies. I do and still make mistakes, but the market will save me when I trade with the trend.

I learned to have a trading plan. I look for chart patterns at weekly, daily and h4 time frames and find out the crucial S/L levels. Then I go down to smaller time frames only to look for “best entry”.

I also learned the importance of money management. It is not how MUCH you make, but it is how LONG you survive in this business. Trading big lot sizes is not only against the principle of good money management, it also drains you emotionally. Trading small lot size is less demanding; make it easier for you to cut loss as you are aware that there are plenty of opportunities coming along the way.

I learned to trade emotionless. I accept losses in grace, just as I accept wins in delight. I will not revenge my loss, instead I will let the market to play itself out and wait for next opportunity.

I learned to protect my profit by moving stop-loss to break-even. Occasionally, I will get stopped out, but as I trade with the trend, there is a high possibility that the price will keep trending and do not stop me out.

I learned to stay away during important news announcements. You could never anticipate the market moves during the news announcements. Furthermore, if you are making profit during normal trading, why should bother yourself with the news trading?:-"

I also learned that forex trading is not a rocket science. Simplicity is often the right way to trade. For this, I would like to thank Jacko for making me a trend trader.

End year is approaching. Volume will be thin, spreads will get widen excessively, market will move erratically. Better go fishing and come back in January. B-)


  • OK. Wish you Merry Christmas and
    Happy New Year 2009.

    I wish you have happiest and best healthy forever.

    Thanks for your useful comments for me.

    But please be my teacher and give me best advise till I can stand by myself in this business.

    Hope you don't leave me alone.



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