La madre y la construcción de zombis o el vaciamiento de sentido de la maternidad

In order to describe how to incorporate all of the preceding trading tools and techniques into your daily trading process I am going to describe the weekly and daily processes that I follow. Initially if you were to follow them it would take you 4 times the normal amount of time. As I have been doing this for years I sail through the processes very quickly.

For an overview of the forex trading process please choose the link below:-

The Forex Trading process

16.1 Money management and trading psychology

I have lost enough money in my earlier years by breaking my own Money management rules for the potential pain to be too big for me to ever break my 1% risk per trade, and not more than 2 deals active at the same time rules. So, money management is now easy for me. I stick to my rules through all market conditions. That resolves the money management aspect of my trading and is also a check against over trading.

I have also adopted set and forget approaches to my trades which resolves most psychological trading challenges. I do the coin spinning exercise when I become insecure about losing streaks. This neutralises most psychological trading challenges Forex traders face.

I can therefore concentrate all my efforts at stacking the odds in my favour during my trades. I don’t have any pressure and I know I will sleep well in the evenings. I will enjoy my Forex trading. This peace of mind is important.

COURSE OVERVIEW

16.2 Weekend Forex trading activities

I like using the weekend to prepare for the next week’s trading as well as analyse the previous week’s trading. If I have had losses I have a good look at why my trading signals may have failed or why I may have misread the market. I try to make my losses learning experiences.

Often unexplainable market behaviour caused by over reactions to an announcement or random price spike causes negative trades. The market will always do what the market will do – so I am not too hard on myself. I just have to consistently maintain my trading edge to come out at the top.

I also like to anticipate the week’s announcements and read Forex market commentary out of interest. I find www.dailyfx.com a good source of market commentary and trading information. In this respect I must warn you – I read the market commentary, but I trade what I see on the charts. The charts show reality – talk and commentary is cheap. I read the commentary out of interest and to see if there is something new to be learnt.

I have not changed my simple trading approach for years now.

I also use the weekend to look at the longer term charts and clean my trading charts up by removing old information and adding the new support and resistance areas.

I have a 2 dimensional view of my trading charts.

I look at 10 chart setups daily so the week end is a good time the clean these charts up and prepare for the next weeks trading.

I have setups containing the monthly, weekly, daily, 4 hour, multiple average and clean charts of the 6 currencies main currencies I trade. EUR, GBP, CHF, JPY, EURJPY and the GBPJPY (6 setups).

 I only use 1 indicator:- The RSI set at 4 periods.

 The only other “indicator” I use is a straight line

 The multiple moving average chart uses Fibonacci numbers for its moving average settings

 The clean chart is to view the candles and chart formations more clearly. See the example of the EURJPY below.

The EURJPY appears to have strong sell momentum on the long term charts with a retracement buy occurring on the short term charts. This is where one would then have a closer look at the EUR and the JPY charts individually for more clues.

On the next page is the view of all the currencies in the weekly time frame which may give us more information about the EURJPY.

I am a swing trader using Monthly, Weekly, Daily and 4 hour charts to make my trading decisions. There is however no reason why the same concepts can not be applied to the 1 hour, 30 minute, 15 minute and 5 minute charts for faster deals

Then I have one setup for the monthly, another for the weekly, another for the daily and another for the 4 hour of all 6 currencies (4 setup). See the example below.

This perspective is quite interesting as it shows the EUR in a sell trendline breakout and the JPY in a momentum and trendline sell signal. The odds in favour of a EURJPY sell have increased.

The other activity I would do is to check the relative strength of the currencies when compared to each other. The method I use could be seen as crude but it has served me well over the years. See section 5.4 for the method I use to determine the relative strength of a currency. I looking for trading signals where I am trading the strongest currency against the weakest currency.

COURSE OVERVIEW

16.3 My daily Forex trading activities

I can do the full days analysis and enter the deals in 5 to 15 minutes as my eye is trained to see the signals. Some days the deals just jump out and smack me in the face they are so obvious. Other days I can not see a deal for looking.

The market is like that and don’t trade if you don’t feel comfortable about what you see. I make most of my decisions prior to the European market opening at +/- 6h00 GMT. If I am uncomfortable about the market I wait for 3 hours and then look at the market again. Alternatively I look for the best straddle opportunities. Big Ben type trades.

Because I only use 1 indicator and straight lines to show support and resistance my charts are quite simple and easy to analyse. As described in my weekly activities I scan and update my 10 chart setups. I spend most of my time looking at the 4 hour charts and then referring to the daily, weekly and monthly charts for confirmation. I am primarily looking for trendline bounce (Channel) and trendline breakout opportunities.

I used to formally write down and tick this process. These days I do this process mentally. My aim is to:-

1. Classify the currencies as strongly trending, trending in a slow wavy manner or trading sideways as discussed in section 12 of the course.

2. Establish the currency trend and the general market trend compared to the USD.

3. Establish the major horizontal support and resistance 4. Establish the major non horizontal support and resistance 5. Establish the phase the momentum indicators are in 6. Look for Channel trading opportunities

7. Look for price patterns 8. Look at candle formations

Particular setups I scan for are:-

1. Momentum signals where 2 well formed waves are present and the momentum has just or is about to break through a trendline.

2. Potential Trendline breaks that are supported by good trading signals. 3. Potential Channel bounce opportunities.

4. Potential Horizontal support and resistance breakout or bounce trades.

I can normally find 2 to 4 trades after this process and I then narrow the trades down to 2 high probability trades. My job is now to stack the odds in my favour so that the one or 2 deals I will enter will have the highest chance of success.

I will also confirm any strong trading signals with longer term or even shorter term charts to make sure that these charts confirm the trade.

So I tend to go with the deals that give me the lowest risk, return on risk ratio. It takes a minute or two to enter the deals and then my work is done until the same time on the next day.

COURSE OVERVIEW