My Daily Reminder 2008

Jadikan Trading Sebagai Career...

One of the hardest job in any career in the world is to make big money in short period of time. So i need to remember that trading forex is not one of the easiest way to make big money in short period of time - despite what many new traders believe.

I think discipline & focus are main recipe for success in any career..

I believe diversification is only good for portfolio purpose; but diversification is not good for career... You need to obsessed and focus on your career then you will become an expert in your career. As you know that the highest paid professionals are normally specialist... In trading, if we focus on a certain currency pair, then focus on a certain system or methodology for trading that pair and lastly to focus on certain time frame for watching that pair... That means you want to become a specialist on trading currency career. Why? If i become an obsessed with one area to focus means that i set aside time every day; Can you imagine, what will happen to you after you open 1000 trade only GJ on same system by looking only at certain time frames...i'm sure by now will be an expert in that system, on that currency, in that one time frame... and if i become an expert; then i'm going to trade profitably.

Untuk berjaya dalam trading forex, we need to focus to control our mind, focus to control our money & focus to follow strictly our methodology..

My Daily Routine...

1. Start with reading my daily mantra in here..

So..its good to start you day trading with this mantra because this mantra will train you mind and you will act as professional trader.

Create Routine Habits With Routine Analysis...

1. Daily Routine Analysis..

• Look for current dollar, yen and pound market sentiment...Bullish.. Bearish or Confused
  
• Look for current stage of primary trend... 1hr tf and above...
  
• Look for current strength of primary trend.. 1hr tf and above
  
• Look for current SR status.... 1hr tf and above...
  
• Decide your entry based on.... trend riding... fading breakouts... breakouts or low volatility breakouts
  

2. Organize Chart..

• Make sure you use the same tools everyday to assess the stage of primary trend.. the strength of primary trend... the support and resistance area or entry point....
• If you want to add new tools.. please test it for at least one month on paper and record your observation especially in relation to price action...
  

3. Organize Thought..

• Only trade in direction of primary trend...Bila trend riding... obviously im enter in direction of primary trend... so macam mana nak enter fading breakouts based in direction of primary trend?
• Retracement Vs Reversal...

4. Filter Fundamental

• Sebagai forex trader yang tiada finance background.. i want to make thing simple especially when i make fundamental analysis...
• My major cencern ialah hanya pada halatuju interest rate; jika halatuju rate is down - then the currency akan weak.. jika halatuju rate is up - maka currency is strong.
• Biasanya fakta tidak membantu sangat untuk move market sebab ramai guna falsafah.. buy rumours and sell fact.. so basically yang penting market expectation.. Jika market expect rate akan cut.. currency akan weak at least sampai mereka see the fact (announcement).. if the expect further cut after announcement.. then currency akan jadi lebih kuat..
• So yang penting ialah halatuju interest rate...
• Next yang penting dalam fundamental ialah.. CBs atau Fed sebagai policy maker yang akan adjust interest rate.. So any word from them will reflex the next move atau direction of interest rate...
• Decision untuk rate cut.. hold atau hike bergantung pada CBs atau Fed current economy concern iaitu samada Economy Growth or Inflation..
• So economy samada growing.. flat atau slowing...
• Dan Inflation samada rising.. flat atau declining...
• Its important to follow Feds atau CBs - major concern samada growth atau inflation sebab sebarang perubahan fundamental data akan mengubah market expectation regarding interest rate..
• Jika condition economy growing very well and inflation under control - what the fed will do... the answer.. do nothing atau rate cut to slow economy a bit.
• Jika economy condition menunjukkan economy not growing and inflation is rising - what fed will do.. the answer.. nobody knows... masa nie kita kena dengar apa uncle ben punya plan.. jika dia plan nak focus pada economy.. maka sebarang data yang menunjukkan economy tak meningkat akan menambahkan chance untuk rate cut terutama jika data inflasi masing diparas yang boleh diterima..
• This is basic concept dalam fundamental..
• Bila kita rujuk kepada fundamental data... Economy growth yang berkaitan dengan Fed atau CBs biasanya samada Housing sector atau Finance sebab mereka nie boleh bagi direct impact... Data yang berkaitan inflasi biasanya datang dari employment data..

Semua analysis diatas mesti dibuat selepas tokyo open & complete at least one hour before frankfurt open...

Reminder..
1. To focus on same method..
2. To focus on same percentage of position size
3. To focus on same currency...

I Plan My Trade... Then I Trade According To My Plan...

I Plan My Trade...Means..

Read FA & Assess the market sentiment

• I look for market sentiments on Dollar, Pound & Yen - Bullish, Bearish or Confused...

I assess the trend...

1. I look at type/stage of primary trend...
• Anticipate the beginning of primary trend..
• Established primary trend - classical higher high and higher low in bull market
  
• Mature primary trend - reversal chart pattern such as double top
• Anticipate end of primary trend
  
2. I look at strength of primary trend.
• Look at momentum
• Look at TrendLine Slope
  
3. Where am i...
• Impulse wave or corrective wave
  
• Look at sequence of peaks and valleys
  
4. Then i asked myself.. the percentage for the possibility trend..
   
• to continue..
  
• to retrace
  
• to reverse...

Then I Trade According To The Plan....Means..

I wait for set up to appear... so what set up?

Four type of entry...

1. Trend Riding...
2. Fade Breakouts
3. Breakout Trading
4. Low Voaltility Breakouts

Basically... I Plan My Trade means... I Analyze The Market.... Then I Trade According To Plan means.... I wait for set up to appear...