Strategy: Harmonic Pattern Trading

Target profit: 75pips per week
Indicators: Channel Movement, Harmonic Patterns, RSI
Important chart pattern: double-top/bottom and Head & Shoulder, divergence and convergence
Important candlestick: Doji, bullish/bearish engulfing

My Trading Mantra

1. Objectively identify my edges - I have a system here that works.
2. Pre-define the risk of every trade.
3. Completely accept the risk. Consider the money GONE.
4. ACT on my edges without reservation or hesitation. Follow the rules and take every trade that meets the conditions.
5. Pay myself as the market makes money available. Take the profits and be happy. Even if compounding my account, pay myself something out of my profits each month.
6. Continually monitor my susceptibility for making errors.
7. Understand the absolute necessity of these principles, and therefore I never violate them.

Sunday, July 26, 2009

Things successful forex traders do - from Investopedia

Approach
  1. Trading Timeframe
  2. Methodology / Strategy
  3. Pairs that validates by the strategy
Attitude
  1. Patient. Wait for strategy to validate entry.
  2. Discipline. Pull the trigger when strategy tells you so, especially for stop loss.
  3. Objectivity. Do not be emotional, just rely on your strategy that gives consistent result.
  4. Be realistic on how much you can earn from your trading timeframe.
Implementation
No system will trigger a 100% sure win. The art of profitability is in the management and execution of trade.

The Bottom Line
There is only profit-making or loss-making trade. Therefore, remember the following 2 rules

Rule 1: Never lose money
Rule 2: Remember Rule 1
Your trade results will show if you are doing what is correct or you are doing what you like
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