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.

Monday, July 13, 2009

Do you trade on news at 15mins?

Did a trade with straddle method last Friday on news release at night for Euro/USD. Result was good. Bag around 30pips. However, it did not hit target profit so I let it run over the weekend. This morning, market was on a uptrend. Not sure how strong this uptrend will be. Let's see it at the end of the day.
End of the day check on the open position and was surprised to see profit ran up to 50pips! Straddle method is really good for trading on news. It is widely used for options trading too

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