FOREX TRADING,BUY/SELL SIGNAL AND FOREX TRAINING

Coping with Losses

ADEDEJI ABIODUN — Thu, 19 Jun 2008 09:24:43 +0000

Coping With Losses: A Major Key to Successful
Trading. By- Norman Hallett.

Be warned.
“Part of overall winning is taking losses along the way.”
“If you have 55% winning trades,you’ll win in the long run.”
We’ve heard it said a million times in a hundred different ways.
In any trading system, we will experience losing trades as well as
winning trades. We know this. So why is it that as we moved forward
from trade to trade, we become frozen with doubt when the losing trades
appear in bunches?

If you think about it, when winning trades appear in bunches, we get
motivated and we look for reasons to find the next trade. We’re on a roll
and we love it. We’re on top of the world.
The words “genius” and “professional trader” seem to fit us perfectly.
Conversely, when losing trades appear in bunches, we become fearful of the
next trade and look for reasons to shy away from following our system.
We become filled with doubt and the words “gambler” and “loser” seem to
describe us best.

OK, so why?
It’s because you are viewing your trading outcomes as reflections of you
as a person.This leads to the destruction of virtually all failing traders.
Negative personal evaluation leads to your being emotionally out of
control, which leads to straying from your tested trading system … and the result…you’re
trading by the seat of your pants (which should be pulled down and you spanked!).

You see, you must develop the mindset (and the true understanding) that
you are a winning trader whether you are experiencing a run of losing trades or
winning trades.Your self-image of a winning trader allows you to glide through losing
streaks so you can be there for the winning streaks.
Most new and “intermediate” traders do NOTHING about their mental trading
fitness. They are willing to spend thousands of dollars on “holy grail” systems and
out-of-town seminars, but are totally neglecting mental conditioning.
You should be training as hard on your mental fitness as you do on preparing your
trading signals.
As a broker/trader/CTA for 21 years, I have probably seen 50+ trading
systems that were money makers, IF you had the mental/emotional strength to follow them!You need to find a system that suits your personality , back-test
the system, appropriate the money to trade the system, and then GO FOR IT.
The “go for it” part won’t actualize without the mental strength to take the good with the bad.

7 TIPS FOR MONEY MANAGEMENT AND TRADING HABITS

ADEDEJI ABIODUN — Fri, 30 May 2008 17:26:35 +0000

Maximum 5% risk per pair.
Your risk to profit ratio has to be minimum 1:2.
That means if you are taking a 5% risk on a trade make sure your profit target would be at least 10%.
Always have realistic targets.
More trades you take the more you expose your account for losses.
No trader in this world can profit from every single market move.
Patience plays a big part in trading.
Take the trades only if you are at least 90% sure of profiting from it.
If you are not sure stay away from the trade.
Staying on the sideline is as good as winning.
Always have a trading strategy … make a habit to stick to it doesn’t matter how desperate you are.
Always trust your strategy but not bloomberg or some statement from citibank.
Your charts are your forex bible. Everything what you need to know about forex is on your charts. You will learn something new everyday from you charts.
Specialize in one or two pairs. Every single pair has it’s own characteristics.
No two pairs are the same. Don’t trade all the pairs your broker can offer.
If you specialize in one or two pairs very soon you will be able to read the pair like a road map .
Stay away from the ranging markets. Don’t try to chase every single pip or market movement. The more you trade there is more risk of losing your money.
Remember there is no easy way to become a good consistently profitable trader.
No one can become a profitable trader overnight. As everything else in life it takes time, patience lots of sacrifices and learning.
Don’t be afraid of mistakes.

SEE U AT THE TOP

7 FAVOURITE TIPS TO HELP A FOREX TRADER AVOID LOSSES

ADEDEJI ABIODUN — Fri, 30 May 2008 17:19:17 +0000

The Forex market is a very demanding environment and for a trader to
maintain a success level, constant currency trading training is necessary.

The following 7 favorite tips can be used as timely reminders and need to
be read and absorbed on a regular basis:

# 1 - Take Responsibility
“The buck stops here.” Don’t blame the markets, or a host of other factors
for a losing trade. You entered it for whatever reasons you had at the
time. Take responsibility for it.

# 2 - Use Each Losing Trade As A Stepping Stone
You lost a trade? Good. It will help you focus on a potential problem in
your trading method. If after careful analysis you are satisfied you
worked according to your plan, fine. Move on.

# 3 - Never Become Impatient With The Market
New traders in the early stages of their currency trading training can be
eaten alive by the market. During periods of consolidation with little
liquidity the anxious impatient trader will force trading opportunities
where there is none.
Learn to accept the fact that around 70% of the time price will be in a
consolidation channel.

# 4 - Focus Daily On Improving Your Trading Skills
Currency trading training is an ongoing process. Day by day, step by step
the trader improves. So rather than be preoccupied with profits and
losses, concentrate on developing the skills. Your account will start to
reflect your focus in time.

# 5 - Be Pleased With Well Executed Trades Whatever The Outcome
Is this possible? Yes. You can feel well pleased even with a losing trade
if you stick to your methodology and executed the trade well. It is
dangerous to feel good about a winning trade when you went against your
trading method to achieve it.Learn to plan and execute the plan!

# 6 - If In Doubt Stay Out
The feeling of regret can drain a person mentally and emotionally from
entering a poorly considered trade. Once the trigger has been pulled and
the trade starts going wrong, the agony of watching it inch towards your
stop should renew in the trader the determination to stay out when in
doubt!

# 7 - Always Have A Good Reason
Currency trading training involves careful analysis of reasons for
entering a trade. Just because price is high is not a reason to go short
or long if price is low. Price will do what price wants to do so rather
than trading from gut reaction, e.g. “Price can’t go any higher (or
lower)” learn to detach emotions and use pure technical analysis to
establish a number of reasons why you should take a trade.

As currency trading training is a long term commitment, skills and
disciplines learned can sometimes be forgotten as bad habits creep in.

It is necessary to constantly renew the thinking processes by repeating
over and over the habits of successful traders.

3 trading routine for forex traders

ADEDEJI ABIODUN — Fri, 30 May 2008 16:07:23 +0000

With your goals for making your millions trading forex in six months set, you need next to have a trading routine to work with. A trading routine is another of the six components of a decent trading plan. I will show you the make-up of the trading routine component of a trading plan. I believe by now you have decided on your trading goals and are now dra wing your road map to your first FX million
There are basically 3 sub-components of a trading routine:
1. Preparation and thinking time (When you get up each day to prepare for each day’s trading activities)
2. Events Watching/Trading Time (When you would be in the market to watch
probably cash in on the trading opportunities you previewed or analyzed earlier)
3. Evaluation Time [When to sit back and evaluate your trading day and activities: time to correct errors and mistakes and pick up new disciplines).

TRADING SIGNAL FOR FRIDAY 9TH MAY 2008

ADEDEJI ABIODUN — Fri, 09 May 2008 18:07:56 +0000

Time: 12:00pm. Event: CAD Employment Change.
Previous: 14.6K. Forecast: 10.0K.
Recommendations: First you have to consider that the CAD Unemployment
Rate
report coming out at this time. But general consensus points to a no
change for the Unemployment rate. So, if there are no contradictions I
will recommend you Buy USDCAD if actual is -5.0K or more negative for
40pips or more.
Sell USDCAD if actual is 25.0K or higher for 40pips or more.
Time: 1:30pm. Event: USD Trade Balance.
Previous: 62.3B. Forecast: 61.4B.
Recommendations: Buy USDJPY if actual is -60.4B or less negative for
30pips or more.
Sell USDJPY if actual is -62.4B or more negative for 30 pips or more.
However, you may also decide to go with the CAD Trade Balance.
Previous: 4.9B. Forecast: 4.5B.
Recommendations: Buy USDCAD if actual is 4.0B or less for 30 pips or
more
in the first hour.
Sell USDCAD if actual is 5.0B or higher for 30pips or more.
That will be the end of the trading week

Forex trading signal for monday and tuesday (14th and 15th april 2008)

ADEDEJI ABIODUN — Sat, 12 Apr 2008 13:55:49 +0000

Monday April 14. Time: 9:30am. Report: GBP PPI Input. Previous: 1.7%. Forecast: 1.8%. Recommendations: Buy GBPUSD if actual is 1.9% or 2.0%. If higher than 2.0%, please trade it on the retracement but pay attention to price before release. Sell GBPUSD if actual is 1.5% or lower. Target 30 pips or more in the first hour. Time: 1:30pm. Report: USD Core Retail Sales m/m. Previous: -0.2% Forecast: 0.1%. Recommendations: Buy GBPUSD if actual is -0.1% or more negative for 30 pips or more in the first hour. Sell GBPUSD if actual is 0.3% or higher for 30 pips or more. Please note: I may still sell GBPUSD if actual is 0.2% but on the pull back. Time: 11:45pm. Report: NZD CPI q/q. Previous: 1.2%. Forecast: 0.9%. Recommendations: Buy NZDUSD if actual is 1.2% or higher for 20 pips or more in the first 15 minutes. Sell NZDUSD if actual is 0.7% or lower for 20 pips or more in the first 15minutes. Tuesday April 15. Time: 9:30am. Report: GBP CPI y/y. Previous: 2.5%. Forecast: 2.6%. Recommendations: Buy GBPUSD if actual is 2.7% or higher for 30 pips or more. Sell GBPUSD if actual is 2.4% or lower for 30 pips. Pre- release price is also important here. You may choose to straddle this event. Time: 1:30pm. Report: USD PPI and Empire State Business Conditions Index. I recommend skipping this one except of course you know what to do. You may apply a hybrid approach to this. That is exactly what I will do on USDJPY. Time: 2:00pm. Report: TIC Net Long Term Transactions. Previous: 62.0B. Forecast: 62.0B. Recommendations: Buy USDJPY if actual is 67.0B or higher for 30 pips or more. Sell USDJPY if actual is 57.0B or lower for 30 pips. I will prefer straddling this report. Well, that will be all for Monday and Tuesday. Please, trade with discipline. See you at the TOP!

forex trading signal for tuesday 08-04-2008

ADEDEJI ABIODUN — Tue, 08 Apr 2008 14:35:21 +0000

Early today we watched the release of the Australian Trade Balance and
the Canadian Building Permits.
The AUD was not quite impressive against the USD with the outcome at -3.3B
which triggered our signal to sell AUDUSD. AUDUSD went down by over 25
pips in the first hour. I did not trade this one as I just couldn’t stay
awake to watch it.
CAD also suffered against the USD as the building permits actual was put
at -1.0% which triggered our signal for a buy on the USDCAD and EURCAD. I
traded the USDCAD and took some 22pips with the pair recording about
30pips before correcting at a resistance level. EURCAD went up for a buy
as well by about 62 pips. Hope you made something out of these.
Now, let us quickly have a look at the events to watch and probably trade
on Tuesday April 8.
Time: 1:15pm (Lagos time). Report: CAD Housing Starts.
Previous: 257K. Forecast: 225K.
Trade Recommendations: Buy USDCAD or EURCAD if actual is 200k or lower for
30pips or more in the first hour.
Sell USDCAD or EURCAD if actual is 250k or higher.

Time: 7:00pm. Report: USD FOMC meeting Minutes.
I think watching this event with straddle orders will do. Just open the
orders about 5 minutes before the event with 10pips stop loss order on any
of USDJPY, EURUSD or GBPUSD.

TRADING SIGNALS FOR MONDAY MARCH 31ST TO TUESDAY APRIL 1

ADEDEJI ABIODUN — Sun, 30 Mar 2008 21:22:32 +0000

Monday March 31.
Time: 1:30pm. Report: CAD GDP.
Previous: -0.7%. Forecast: 0.4%.
Recommendation: Please note that pre-lease price is important here. Buy
USDCAD if actual is 0.2% or lower for 30 pips or more in the first hour.
Sell USDCAD if actual is 0.5% or higher for 30 pips or more in the first
hour.
NB: if the outcome is 0.4% and pre-release price is on the up side, I
expect a sell on the USDCAD.
Time: 2:45pm. Report: Chicago PMI.
Previous: 44.5. Forecast: 46.5.
Recommendation: Buy GBPUSD if actual is 44.5 or lower for 3opips or more.
Sell GBPUSD if actual is 50.0 or higher for 30pips or more.

Tuesday April 1.
Time: 4:30am. Report: AUD Interest Rate Statement.
Previous: 7.25%. Forecast: 7.25%.
Recommendations: Buy AUDUSD if actual is 7.5% or higher for 40 pips or
more in the first hour.
Sell AUDUSD if actual is 7.25% or lower for 30 to 40 pips or more.
Straddling this report with 10 pips stop loss might be of help.

Time: 9:30am. Report: GBP Manufacturing PMI.
Previous: 51.3. Forecast: 51.1.
Recommendations: Buy GBPUSD or GBPJPY if actual is 51.5 or higher for 50
pips or more in the first hour.
Sell GBPUSD or GBPJPY if actual is 49.0 or lower for 50 pips or more in
the first hour.
However, watch pre-release price if the actual comes out at 50 or above
but less than forecast, it might it be more sentimental.

Time: 3:00pm. Report: ISM Manufacturing Index.
Previous: 48.3. Forecast: 47.9.
Recommendations: Buy GBPUSD if actual is 47.4 or lower for 30 pips or
more. Or sell USDJPY.
Sell GBPUSD or buy USDJPY if actual is 48.3 or higher for 30 pips.
That will be all for Monday and Tuesday.

TRADING STRATEGIES

ADEDEJI ABIODUN — Mon, 11 Feb 2008 21:33:20 +0000

TRADING STRATEGIES

Basically, it’s my rules for this strategy. For some of you (especially the regulars) this info is basically common sense to you. It goes without saying, you take it for granted…it’s second nature. However, for most traders, it’s something no one has really told them. The fact is, the lags are great, but they can’t be used ALL the time. It’s not that they’re bad indicators (they’re the BEST I’ve ever used), but no matter what kind of indicator you have, you just can’t trade during certain conditions.

Anyway, here are my “rules” or the “conditions” that I’m speaking of:

1) Don’t trade when the 60ema and 200ema are really narrow. Wait for it to break out first.

2) Don’t trade when the market is slow (like right now). Right now the only market that is open is Sydney, and it doesn’t really affect this currency. Ideally you want 2 markets to be open. The best time is when UK and Japan are open at the same time, or UK and US are open at the same time. You can trade at other times, but just make sure there is decent volatility / momentum.

3) Don’t trade 30 mins before or after news.

4) If there’s BIG news coming, it might not be good to trade for hours before because the market just stalls and goes nowhere (same problem as #2). This is because it’s waiting for the news announcement. In this case, don’t trade until after the news. Watch ForexFactory Home page for News in Red - High Votality.

5) Don’t trade if you’re up against a barrier. This includes the daily R1 R2 R3, daily S1 S2 S3, daily pivot, and weekly pivot. It’s also good to look at the 15min 60ema and 200ema to see if you’re close to them as well. I also recommend treating the “00’s” (239.00, 238.00, etc.) as barriers. I call them psychological barriers, and it’s really just common sense. Just think about when you have a $100 bill. You’re less likely to spend it. Once you finally decide to break the $100 bill, you’ll usually spend your smaller bills much more quickly. This is just human nature, and well, the forex market is driven by human beings.

Instead of just thinking of the barriers as times not to trade, use them to your advantage. Wait for a currency to either break through the barrier or bounce off it. If it does this, you should still wait for the lags to give you a signal.

So really, this doesn’t leave much to trade. Some days are better than others, but today for example, there hasn’t been a single good / safe time to trade since I woke up. Today was particularly bad in that regard. Like an idiot, I broke my rules and tried to trade anyway…and I lost.

If you just follow those basic rules and only trade when all of the rules are met, the lags work every single time. I’ve never had a losing trade when I followed my rules. If I had better discipline I could be doing 90%+ successful trades. Today, my discipline was very lacking and it cost me. Rules keep you from making bad decisions, but emotions keep you from following your rules. Trading with emotion is never good, but in reality, 99% of us will never be able to trade without emotion. As long as you can keep your emotions in check enough to follow your rules, you can be a successful trader.

Attached Thumbnails

Trading signal 11-14th february 2008

ADEDEJI ABIODUN — Sun, 10 Feb 2008 13:21:38 +0000

Trading Signals for Monday 11^th to Thursday 14^th February 2008.

Hello and welcome

Please, read carefully and trade by your rules.

Monday February 11 2008.

Time: 10:30 am Lagos time.

Report: GBP Trade Balance.

Forecast: -7.4B. Previous: -7.4B.

Trading Instructions

Buy GBPUSD or GBPJPY if actual is -6.9B or less negative for 30 pips in the first hour of the report.

Sell GBPUSD or GBPJPY if actual is -7.9B or more negative for 30 pips in the first hour of the report.

Please, trade this on the retracement with 15 pips Stop Loss Order.

Tuesday February 12 2008.

Time: 10:30 am.

Report: GBP CPI y/y.

Forecast: 2.3%. Previous: 2.1%.

Trading Instructions

Buy GBPUSD if actual is 2.4% or higher for 30 pips or more in the first hour of the report.

Sell GBPUSD if actual is 2.1% or lower for 30 pips in the first hour of the report.

NOTE: This indicator has already exceeded the inflation mark and should be traded carefully. I recommend trading it on the retracement. The prices are going to be moved more by sentiments rather than by the numbers.

Trade with a 15 pip Stop Loss Order.

Wednesday 13 February 2008.

Time: 2:30pm.

Report: USD Core retail Sales m/m.

Forecast: 0.2%. Previous: -0.4%.

Trading Instructions

Buy USDJPY if actual is 0.3% or higher for 30 pips or more in the first hour of the report.

Sell USDJPY if actual is 0.0% or a negative number for 30 pips or more in the first hour of the report.

Thursday 14 February 2008

Time: 2:30pm

Report: CAD Trade Balance.

Forecast: 3.5B. Previous: 3.7B.

Trading Instructions

Buy USDCAD if actual is 3.3B or lower for 30 pips or more in the first hour of the report.

Sell USDCAD if actual is 3.7B or higher for 30 pips or more in the first hour of the report.

Have a great trading experience.

See you at the TOP!