Earn Money in 3 Step: January 2008

Custom Search

Thursday, January 31, 2008

Gainscope Forex Signal

Free Forex Signal

BikinDuit.com

Wednesday, January 30, 2008

Galveston Forex Trading Strategy

5 Minute Chart Trading Strategy.

Refer to our recent chart example for a better idea of our strategy.
------------------------------------------

Rules of Engagement:

1. The range of your last few high/low points is more than 20 pips. High/Low points on our charts are indicated by the red (high) and blue (low) circles. (also called “Mouteki 2 bar high/low points”) These are a high or low point with two bars on each side of them that didn’t make a new high or new low. We don’t use all red and blue circles when deciding if 20+ pips has been reached, we mainly use the points that have shown very little retracement. The exception to this rule is only if your potential trade is in the direction of the overall trend. If so, less than a 20 pip range could still be acceptable, provided the other variables match.

2. Trade the right side of the range. If you are planning to go long, your entry would be in the bottom half of the range between your last few high/low points-closer to the low of the range. When shorting a currency, it would be the top end of the range. If you are in the direction of the overall trend then this rule is less important.

3. Before placing a trade, wait for a breakthrough of any decent support or resistance that’s nearby. Ideally, we like to see double confirmations. If there is a break of the trend line, we like to wait for a break of the nearest support or resistance as well. We do this to avoid reversing our position on what is likely a small retracement. On our chart we have two examples of this. The first trade breaks the trend line followed by a breakthrough of the resistance. The second trade breaks through the support and then the trend line. During the upward move, we also have retracements that break the trend line, but not the support line, therefore we never reversed our trade.

4. Draw smooth trend lines-use clean points with no previous breakthrough. This is important because we think that once the price passes through it, the integrity of the trend line has been weakened. Once a price breaks through our trend line, we modify our trend line according to the previous break. We take our original point and use the high or low of the violation bar as our next point. We then draw a trend line between the old line and the new line, because we would still consider entering that trade on a double confirmation. If the trend line is strong, and the price pulls away from it, only to come back and pass through it, we don’t need a double confirmation. We would consider entering the trade without it, if there are no support or resistance points in the area around the breakthrough.

5. If our trade is going really well, and the trend line looks pretty steep, we often change our strategy a little. We would not be looking to stop and reverse as usual, but be more concerned with not giving back all of our profits. If your price targets have been reached or you feel you are coming up on a strong support or resistance, then feel free to exit the trade. We like to give the trade a chance, usually waiting for a trend line violation or an opposite support or resistance break though. Sometimes there will be no mouteki price points or trend lines in the immediate area, so we look for technical reversal points to exit our trades with still a decent profit while at the same time giving our trade room to breathe.

6. Be conservative on choppy days or days when bars have consistent long shadows. The Forex usually follows some daily pattern, until, of course, it is broken. Because of that some days will be very easy to trade and profitable, and others will be difficult. For the most part the market will be fairly easy to trade and profit from because of the very large daily pip range. The sooner we recognize the type of market we are in the sooner we can adapt our trading strategy to it. One way we can “adapt” is by utilizing smaller stops when the market is trending tightly, and using better positioned stops when the market is more volatile. If we see a ranging market, then we can look to enter on a single confirmation closer to the top or bottom the range. It is easy to trade according to rules, however it is more difficult to recognize and adapt to the current market conditions. By using adaptive rules we can better play specific market conditions.

7. Use technical points for stops. There is no need to risk more than 15 pips on a trade when using a 5 minute chart. If you decide the risk is worth the reward then virtually any stop can be justified, but be aware of the next major support or resistance, as that will likely be your first target or obstacle. Ideally, our stops will be on the opposite side of the top/bottom range point nearest to our trade. If this is not possible then we will try and place our stops just beyond the nearest support or resistance levels that we can find that are within reason. Remember to add your spread (2 pips) and a buffer zone (1-3 pips) to the support or resistance you chose to put your stop behind. The basic idea is that our trades have 3 possible scenarios, 2 of them going our way. The trade could move against us and break out past our technical point; we lose. The trade could move against us, hit our technical point and reverse back, moving our way; we win. The trade could move in our direction; we win.

8. Managing stops can be the biggest determinate between making money and losing money. If we trail our trade tightly, we increase the chance of making a small profit, but reduce the likeliness of making a big profit. Small profits are good, however, if we consistently get stopped out at +5 or so, and are willing to risk 15 pips on the downside, it will be tough to make decent money. More often than not we would miss the big runs. With that said, we need to be intelligent about our stops, both in placing them as well as managing them. Ideally, we just close our trade and take a position the other way. If we are using a trailing stop loss, we need to keep our distance and always place stops behind strong support/resistance points. We trail our stops if we think our stop is in a weak position. The stronger we feel our stop is, the less likely we are to move it (unless the trade moves into good profit.) One strategy that makes stops easier to manage is trading two lots. The first lot we look to exit at the first likely reversal point, thereby locking in profit, (or at least offsetting any potential moves that stop you out.) Trading two positions can free you up mentally by satisfying your need for locked in profits, but also allowing you an opportunity to see your trade run as well.

9. Trading bigger ranges and trading with the overall trend will reduce your risk and dramatically increase the probability of a successful trade. Like we stated earlier trading two or more positions also increases your chance of success. Remember that the trend is more likely to continue than it is to reverse.

10. Do not force or create trades. Wait for the market to dictate when you trade. This rule is the difference between following a strategy and “just winging it”. Modifications can be great, but entering early, really late, or placing large stop losses are recipes for disaster if not thought through.

These Rules of Engagement are based on the results of one lot trading with a few adaptive variables, (e.g. stops and limits.) We have NOT tested trading only with the trend, or trading only large movements. If you decide to do so, please share your results with us.

Additional Information:

Q: When using a 5 minute chart are we not just giving spreads to our broker?
A: That depends on the currency pair. For the EUR/USD, our spread is around 1.5-3 pips, which is a fraction of our allowed stop loss. We want to position ourselves for the larger moves, but even with smaller moves we can overcome a 2-3 pip spread easily. We don’t enjoy paying a spread, but it is a factor that most intraday trading strategies must deal with and overcome.

Q: Why use such a small chart; wouldn’t the 15 or 30 min be better?
A: The 5 minute chart is both the 15 and the 30 minute chart it’s just a matter of how you look at it. Three 5 minute bars are a 15 minute bar, and six 5 minute bars are a 30 minute bar. The 15-30-60 minute charts can’t tell you about a 5 minute chart, and a 5 minute chart can tell you what the 15/30/60 minute charts tell you. That’s why we use it.

Q: Why don’t you use any technical indicators along with your charts?
A: We would be happy to if you know some that would correlate with the strategy that we are trading, and that would act as a confirmation of when to enter or exit a trade. We are trying to keep trading relatively simple; “if this, then that”

Q: Why do you use trend lines along with supports and resistance points?
A: Trend lines give us a glimpse of the possible future, and supports and resistances open or close certain actions within that possible future. The idea isn’t to use a moving average to tell us what we already know; rather the point is to gather information on what we don’t currently know and using that information to predict probable directions of the market.

Final Note:

The point and goal of all of this is to simply make pips, individually and collectively. How we get to that point doesn’t matter, what does is that we make it there. Please test, tweak, develop, and create towards our goal of group success. It is difficult to put onto paper a set of rules that work, because often the market gives us hints on what’s going to happen and opportunities that we could seize but our rules don’t allow for us to do it. It is for that reason that we are working on two other strategies to fill the voids that this one leaves. Our other strategies in progress are for trading supports & resistances and trading range breakouts. You will see that sometimes we miss big trades because we followed our rules, so utilizing multiple strategies just makes sense. We will revise and update these strategy rules in the near future, but for now, please look over this strategy. Test it. Modify it. Do whatever you wish with it! We look forward to any constructive criticism or suggestions or how to make it better. Feel free to stop by our group site or shoot us an email. Thank you for taking the time to read this, have a fantastic Holiday and we wish you the best of luck in 2007.

50 pips a day with real hedgesystem

by jimbofx7 on forex-tsd

This system you win every day 50 pips

Time to open trades, everyday 1 hour before european market opens
day 1
open 1 trade long (TP 50, SL 50) 0.01 lot
open 1 trade short (TP 50, SL 50) 0.01 lot
day 2
open 1 trade long (TP 50, SL 50) 0.02 lot (because loss day before!)
open 1 trade short (TP 50, SL 50) 0.01 lot
day 3
open 1 trade long (TP 50, SL 50) 0.04 lot (because loss day before!)
open 1 trade short (TP 50, SL 50) 0.01 lot
day 4
open 1 trade long (TP 50, SL 50) 0.01 lot
open 1 trade short (TP 50, SL 50) 0.02 lot (because loss day before!)

means every day you open 1 position in every direction, every time you loss, you double the size, every time you win, you start with 0.01 lot

With this system you win every day 50 pips because losses were cleared through martingale system. Important is that the TP and SL stay below range, so 50 pips are ok for EURUSD.

Leading and Motivating

Leading and Motivating
By: Brian Tracy

It’s been said that “Leadership is not what you do, but who you are.” This, however,
is only partially true. Leadership is very much who you are, but it cannot be divorced
from what you do. Who you are represents the inner person, and what you do
represents the outer person. Each is dependent on the other for maximum
effectiveness.
The starting point of motivational leadership is to begin seeing yourself as a role
model, seeing yourself as an example to others. See yourself as a person who sets the
standards that others follow. A key characteristic of leaders is that they set high
standards of accountability for themselves and for their behaviors. They assume that
others are watching them and then setting their own standards by what they do. They,
in fact, lead by example, just exactly as though someone were following them around,
surreptitiously taking notes and photographs of their daily actions for others to see and
act on.
Motivational leadership is based on the Law of Indirect Effort. According to this law,
most things in human life are achieved more easily by indirect means than they are by
direct means. You more easily become a leader to others by demonstrating that you
have the qualities of leadership than you do by ordering others to follow your
directions. Instead of trying to get people to emulate you, you concentrate on living a
life that is so admirable that others want to be like you without your saying a word.
In business, there are several kinds of power. Two of these are ascribed power and
position power.
Position power is the power that comes with a job title or position in any
organization. If you become a manager in a company, you automatically have certain
powers and privileges that go along with your rank. You can order people about and
make certain decisions. You can be a leader whether or not anyone likes you.
Ascribed power is the power you gain because of the kind of person you are. In
every organization, there are people who are inordinately influential and looked up to
by others, even though their positions may not be high up on the organizational chart.
These are the men and women who are genuine leaders because of the quality of the
people they have become, because of their characters and their personalities.
Perhaps the most powerful of motivational leaders is the person who practices what
is called “servant leadership.” Confucius said, “He who would be master must be
servant of all.” The person who sees himself or herself as a servant, and who does
everything possible to help others to perform at their best, is practicing the highest
form of servant leadership.
Over the years, we have been led to believe that leaders are those who stride boldly
about, exude power and confidence, give orders and make decisions for others to carry
out. However, that is old school. The leader of today is the one who asks questions,
listens carefully, plans diligently and then builds consensus among all those who are
necessary for achieving the goals. The leader does not try to do it by himself or herself.
The leader gets things done by helping others to do them.
This brings us to five of the qualities of motivational leaders. These are qualities
that you already have to a certain degree and that you can develop further to stand out
from the people around you in a very short period of time.
The first quality is vision. This is the one single quality that, more than anything,
separates leaders from followers. Leaders have vision. Followers do not. Leaders have
the ability to stand back and see the big picture. Followers are caught up in day-to-day
activities. Leaders have developed the ability to fix their eyes on the horizon and see
greater possibilities. Followers are those whose eyes are fixed on the ground in front of
them and who are so busy that they seldom look at themselves and their activities in a
larger context.
George Bernard Shaw summarized this quality of leaders; in the words of one of his
characters: “Most men look at what is and ask, ‘Why?’ I instead look at what could be
and ask, ‘Why not?’”
The best way for you to motivate others is to be motivated yourself. The fastest
way to get others excited about a project is to get excited yourself. The way to get
others committed to achieving a goal or a result is to be totally committed yourself. The
way to build loyalty to your organization, and to other people, is to be an example of
loyalty in everything you say and do. These all are applications of the Law of Indirect
Effort. They very neatly tie in to the quality of vision.
One requirement of leadership is the ability to choose an area of excellence. Just as
a good general chooses the terrain on which to do battle, an excellent leader chooses
the area in which he and others are going to do an outstanding job. The commitment to
excellence is one of the most powerful of all motivators. All leaders who change people
and organizations are enthusiastic about achieving excellence in a particular area.
The most motivational vision you can have for yourself and others is to “Be the
best!” Many people don’t yet realize that excellent performance in serving other people
is an absolute, basic essential for survival in the economy of the future. Many
individuals and companies still adhere to the idea that as long as they are no worse
than anyone else, they can remain in business. That is just plain silly! It is prehistoric
thinking. We are now in the age of excellence. Customers assume that they will get
excellent quality, and if they don’t, they will go to your competitors so fast, people’s
heads will spin.
As a leader, your job is to be excellent at what you do, to be the best in your
chosen field of endeavor. Your job is to have a vision of high standards in serving
people. You not only exemplify excellence in your own behavior, but you also translate
it to others so that they, too, become committed to this vision.
This is the key to servant leadership. It is the commitment to doing work of the
highest quality in the service of other people, both inside and outside the organization.
Leadership today requires an equal focus on the people who must do the job, on the
one hand, and the people who are expected to benefit from the job, on the other.
The second quality, which is perhaps the single most respected quality of leaders, is
integrity. Integrity is complete, unflinching honesty with regard to everything that you
say and do. Integrity underlies all the other qualities. Your measure of integrity is
determined by how honest you are in the critical areas of your life.
Integrity means this: When someone asks you at the end of the day, “Did you do
your very best?” you can look him in the eye and say, “Yes!” Integrity means this:
When someone asks you if you could have done it better, you can honestly say, “No, I
did everything I possibly could.”
Integrity means that you, as a leader, admit your shortcomings. It means that you
work to develop your strengths and compensate for your weaknesses. Integrity means
that you tell the truth, and that you live the truth in everything that you do and in all
your relationships. Integrity means that you deal straightforwardly with people and
situations and that you do not compromise what you believe to be true.
If the first two qualities of motivational leadership are vision and integrity, the third
quality is the one that backs them both up. It is courage. It is the chief distinguishing
characteristic of the true leader. It is almost always visible in the leader’s words and
actions. It is absolutely indispensable to success, happiness and the ability to motivate
other people to be the best they can be.
In a way, it is easy to develop a big vision for yourself and for the person you want
to be. It is easy to commit yourself to living with complete integrity. But it requires
incredible courage to follow through on your vision and on your commitments. You see,
as soon as you set a high goal or standard for yourself, you will run into all kinds of
difficulties and setbacks. You will be surrounded by temptations to compromise your
values and your vision. You will feel an almost irresistible urge to “get along by going
along.” Your desire to earn the respect and cooperation of others can easily lead to the
abandonment of your principles, and here is where courage comes in.
Courage combined with integrity is the foundation of character. The first form of
courage is your ability to stick to your principles, to stand for what you believe in and to
refuse to budge unless you feel right about the alternative. Courage is also the ability to
step out in faith, to launch out into the unknown and then to face the inevitable doubt
and uncertainty that accompany every new venture.
Most people are seduced by the lure of the comfort zone. This can be likened to
going out of a warm house on a cold, windy morning. The average person, when he
feels the storm swirling outside his comfort zone, rushes back inside where it’s nice and
warm. But not the true leader. The true leader has the courage to step away from the
familiar and comfortable and to face the unknown with no guarantees of success. It is
this ability to “boldly go where no man has gone before” that distinguishes you as a
leader from the average person. This is the example that you must set if you are to rise
above the average. It is this example that inspires and motivates other people to rise
above their previous levels of accomplishment as well.
Alexander the Great, the king of Macedonia, was one of the most superb leaders of
all time. He became king at the age of 19, when his father, Philip II, was assassinated.
In the next 11 years, he conquered much of the known world, leading his armies
against numerically superior forces.
Yet, when he was at the height of his power, the master of the known world, the
greatest ruler in history to that date, he would still draw his sword at the beginning of a
battle and lead his men forward into the conflict. He insisted on leading by example.
Alexander felt that he could not ask his men to risk their lives unless he was willing to
demonstrate by his actions that he had complete confidence in the outcome. The sight
of Alexander charging forward so excited and motivated his soldiers that no force on
earth could stand before them.
The fourth quality of motivational leadership is realism. Realism is a form of
intellectual honesty. The realist insists upon seeing the world as it really is, not as he
wishes it were. This objectivity, this refusal to engage in self-delusion, is a mark of the
true leader.
Those who exhibit the quality of realism do not trust to luck, hope for miracles, pray
for exceptions to basic business principles, expect rewards without working or hope
that problems will go away by themselves. These all are examples of self-delusion, of
living in a fantasyland.
The motivational leader insists on seeing things exactly as they are and encourages
others to look at life the same way. As a motivational leader, you get the facts,
whatever they are. You deal with people honestly and tell them exactly what you
perceive to be the truth. This doesn’t mean that you will always be right, but you will
always be expressing the truth in the best way you know how.
The fifth quality of motivational leadership is responsibility. This is perhaps the
hardest of all to develop. The acceptance of responsibility means that, as Harry Truman
said, “The buck stops here.”
The game of life is very competitive. Sometimes, great success and great failure are
separated by a very small distance. In watching the play-offs in basketball, baseball
and football, we see that the winner can be decided by a single point, and that single
point can rest on a single action, or inaction, on the part of a single team member at a
critical part of the game.
Life is very much like competitive sports. Very small things that you do, or don’t do,
can either give you the edge that leads to victory or take away your edge at the critical
moment. This principle is especially true with regard to accepting responsibility for
yourself and for everything that happens to you.
The opposite of accepting responsibility is making excuses, blaming others and
becoming upset, angry and resentful toward people for what they have done to you or
not done for you.
Any one of these three behaviors can trip you up and be enough to cost you the
game:
If you run into an obstacle or setback and you make excuses rather than accept
responsibility, it’s a five-yard penalty. It can cost you a first down. It can cost you a
touchdown. It can make the difference between success and failure.
If, when you face a problem or setback, and you both make excuses and blame
someone else, you get a 10-yard penalty. In a tightly contested game, where the
teams are just about even, a 10-yard penalty can cost you the game.
If, instead of accepting responsibility when things go wrong, you make excuses,
blame someone else and simultaneously become angry and resentful and blow up, you
get a 15-yard penalty. This may cost you the championship and your career as well if it
continues.
Personal leadership and motivational leadership are very much the same. To lead
others, you must first lead yourself. To be an example or a role model for others, you
must first become an excellent person yourself.
You motivate yourself with a big vision, and as you move progressively toward its
realization, you motivate and enthuse others to work with you to fulfill that vision.
You exhibit absolute honesty and integrity with everyone in everything you do. You
are the kind of person others admire and respect and want to be like. You set a
standard that others aspire to. You live in truth with yourself and others so that they
feel confident giving you their support and their commitment.
You demonstrate courage in everything you do by facing doubts and uncertainties
and moving forward regardless. You put up a good front even when you feel anxious
about the outcome. You don’t burden others with your fears and misgivings. You keep
them to yourself. You constantly push yourself out of your comfort zone and in the
direction of your goals. And no matter how bleak the situation might appear, you keep
on keeping on with a smile.
You are intensely realistic. You refuse to engage in mental games or self-delusion.
You encourage others to be realistic and objective about their situations as well. You
encourage them to realize and appreciate that there is a price to pay for everything
they want. They have weaknesses that they will have to overcome, and they have
standards that they will have to meet, if they want to survive and thrive in a
competitive market.
You accept complete responsibility for results. You refuse to make excuses or blame
others or hold grudges against people who you feel may have wronged you. You say,
“If it’s to be, it’s up to me.” You repeat over and over the words, “I am responsible. I
am responsible. I am responsible.”
Finally, you take action. You know that all mental preparation and character
building is merely a prelude to action. It’s not what you say but what you do that
counts.
The mark of the true leader is that he or she leads the action. He or she is willing to
go first. He or she sets the example and acts as the role model. He or she does what he
or she expects others to do.
You become a motivational leader by motivating yourself. And you motivate
yourself by striving toward excellence, by committing yourself to becoming everything
you are capable of becoming. You motivate yourself by throwing your whole heart into
doing your job in an excellent fashion. You motivate yourself and others by continually
looking for ways to help others to improve their lives and achieve their goals. You
become a motivational leader by becoming the kind of person others want to get
behind and support in every way.
Your main job is to take complete control of your personal evolution and become a
leader in every area of your life. You could ask for nothing more, and you should settle
for nothing less.