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.

Tuesday, August 31, 2010

Small profits for two days straight

 It was not the best of my performance but at least they are in the money for straight two days. Was not sure how market is moving and only took small profits for EUR/USD.

Today marks the third straight profit month for me. Well done!

Your trade results will show if you are doing what is correct or you are doing what you like

Monday, August 30, 2010

Quiet Friday with dramatic moves at night

Market last Friday was very quiet as investors are watchful over what Bernake has to say.

Interestingly, he did not say much and market just go haywire for a good 2 hours. Market dived and surged with no reason, simply chaotic.

As there is no clear sign of where the market is going, it is best to just take small profits and exit. There's always another day to take money off the table.

Your trade results will show if you are doing what is correct or you are doing what you like