Forex Trading Workbook: Chapter 3 (Rough) “You want to be on the The Line of Action”

The foundation to base your journey is an all-important strategy to that you must be willing and ready to master. This strategy is simple: identify  the prices that hit support and resistance. Support and resistance lines are are exactly like they sound. Support is your floor, and resistance is your ceiling. How do you draw support and resistance line? capture-gbpchf-oct-weekly

You want them to be where the action is. Your S/R lines are lines of action where the price bounces off of or breaks through.

The way to make money LONG in the market is to buy low and sell at a higher price than where you bought. An excellent LONG setup would be after my first arrow in the picture above, where the price dips and responds to “the zone” or “line of action” and reverses.

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Forex Trading Workbook Chapter 2 “Why should I win Trades?”(ROUGH)

Why is trading worth creating a strategy for? Anything worth obtaining is going to have a cost. Life is fair. You are smarter than the market whenever you execute a trade that wins. You are dumber than the market whenever you execute a trade that looses. You are no different than anyone in the market place. You do not need inventory. There are no licenses, or permits, no employees, no over-head costs.

Forex Trading Workbook Chapter 1 (Rough):

PRE-PREFACE: Personally, I am a skim reader. I am not a naturally patient person when I have information that I want to extract in front of me, and I want to have the most important pieces of knowledge taken away as quickly as possible. If you can relate to me, then this is the book for you! I will keep the introductions brief, and dive into the “meat” as concisely as possible. Thank you for reading and happy trading!

 

PREFACE:

In a complex world, why bother to make life even more worrisome by diving head first into the foreign exchange market? The simple answer is: you shouldn’t; at least not without the right 1) information and 2) strategy. I will tell you now and I will tell you honestly, trading in any market is a losing game without the right plan. Learning how to trade is a decision that people make to live their dream of having freedom in terms of time, money, and location. Your actions are as important as your dreams and it up to you to make them happen.

A brief tour of trading:

In our society, cash is king and prices moves up and down freely. The principle of trading is to make money off fluctuations in price. Let’s take an example of an imaginary wanderer named the Trading Traveler. Our adventurous wanderer here makes a trip to Europe and buys the EURO with the American dollar. Over the course of his trip, the price of the EURO goes up and the price of the American dollar goes down. When he gets back , he sells the EURO for a higher price than when he bought it. The Trading Traveler just made a neat profit my friends! What’s the difference between you and the Trading Traveler? Don’t answer that question because there isn’t. You may not be thinking about a trip to Europe rather to have fun than to flip a currency, but the good part is, these transactions can be done remotely at your own leisure. As a matter of fact, I prefer the Foreign Exchange Market over the Stock Market simply because of the Foreign market is open 24 hours a day, 5 days a week. This allows you to make transactions while building your capitol and offer income potential to live quite comfortably.

A little secret about money:

Take the entire concept of what you believe money is supposed to be, the power it has, and the importance it carries everywhere you turn. It is all an illusion. Why do I say this? Illusion is a strong word, but I say so with dire intentions. The reason money works as a concept and as a substance is because of the faith people have in it. So what’s the secret? This illusion can be taken to your advantage. You no longer have to be a slave of finances when you know how “the martix” works. A bad economy, increasing unemployment, or a falling GDP are no longer excuses for a person who is protected from these uncertainties. Traders make money in bad economies and in good ones. Why? Because any change in price means there is potential for profit. As a matter of fact, while most people were loosing their jobs, their life savings, and peace of mind during the Great Recession of 2008, there were individuals who were paradoxically cashing out with extreme profits. These opportunities were not just with day trading or the Foreign Exchange, but with Real Estate and other assets that fluctuate in value as well. The question I have for you is which side do you want to be on?

Next Chapter:

Playing to Win rather than to avoid loosing

 

A letter to Sarah Joy

“By taking someone who is undeserving through your emotional obstacle course, you risk losing not just a good person and potential life partner, but yourself.”- Shantell Jamison

Yesterday was beautifully disappointing. I’ve met this girl and am growing strong feelings for her. Yet I seemed to be in the friendzone. I don’t believe the friendzone is somewhere you go without having the blame. However; I don’t exactly know what I’m doing wrong, and I feel as if I still have a chance at her heart. So I wrote this letter:

 

Dear Sarah Joy,

A love letter may seem a little intense after just three weeks, but I hate having important feelings unspoken. With as many deep convos as we’ve had, I’m sure you can handle it 🙂    I know what’s real when I see it, and I want to consume every part of your being, to laugh nonstop, to be lost in your eyes when you’re talking. At the same time, I want to never talk to you again because I don’t want to pay for anyone else’s wrongdoings or past pain when I know the happiness we have is real and new. i know that sounds harsh, yet I’m willing to risk the superficial sugarcoating in order to tear down your walls and find what’s on the other side.

 

Sincerely yours,

Carnell Tate

The Winning Spark

When people start limiting the amount of success they desire, I assure you they will limit what will be required of them in order to achieve success and will fail miserably at doing what it takes to keep it. – Grant Cardone

Today I learned that I am not successful. What a revelation indeed. However, knowing this, there must be so limiting belief I have that is and has been keeping me back.

My success philosophy comes from a weird paradox. We live in two worlds. Two universes. The first universe dictates that everything that will happen will happen. There is no choice. Current and future actions are byproducts of actions that have already occurred; this universe obeys no one. The second universe is a hard working servant bound by the all causes, choices, and actions that are being made. There is no limit to any request it is given, and this universe discriminates to no one. Any free person can oblige this universe for its servitude, and any free woman can have their requests granted.

Reality is somewhere in the mix.

Losing Recap

Now is the perfect time to get back to my roots and assess where I am.

Trading was never meant to be easy, and I don’t expect it to be.

However, I do know that with enough hard work and dedication being profitable is possible.

The common thread I have noticed is the timing of my trades, the quantity, and the timeframe.

What do I do best?

I do best when I enter a trade on data and instinct. Pick the best pairs and do analysis. Time your entries after the best three pairs are analyzed.

 

The quantity work best is with patience. After my first trade, I must immediately figure out what went wrong adjust for the second trade. Trade no more than 5 every 15 minutes.

Best case: $12 profit

Good case: $2 profit

Eh case: $6 loss

Worst case: $15 loss

Even a $2 profit in 10 minutes is great!

 

The time frame is important as well

I can use the 15 minute, 30 minute or hourly

The maximum amount of trades I can make in one hour are 12

Start your trades like this:

2×15, 2×30,1×60

3×15, 2×30,

3×15, 2×30

Recap of Week Oct 1

The best strategy is the one that works. Rather than some magical formula that you haven’t found yet.

The 5 energies of the market

Trend- Check the Oanda volatility charts. Look at the hourly. Anything above a 0.1% change is fine.

Momentum- For an uptrend you want momentum to >0. You also want retraces to be above zero. If not the trend is not strong enough and you have to throw out all assumptions. Draw as trend line on your

Cycle-Stochastic: Use Length 2, D-3,K-5. If it disagrees with your overall trend, then the direction is going to change. Its a leading indicator and use it with momentum. Drawn a trend line for you momentum line and if when there is a cross

S/R-Leverage this with multiple time frames (3:1 ratio) and Support levels

Fractals- Each time frame should be referred to. Used