Gaining an Edge over the Forex game of Mind, Money, & Wealth
Tuesday, May 30, 2006
van Gecko 14:28 GMT May 30, 2006
imo anyone playing this Fx game of 'Mind, Money, & Wealth' & expect to be rewarded over time requires more then chart reading or prefect entry indicator skills..
That being said, the directional bias of a 21 period ma moving away from overbrought/sold/consolidation levels is a simple but very effective 'train/trend indicator'.. you Buy on a Rising 21ma, Sell on a Falling 21ma, Snooze if it is flat, & set your initial risk x bars above/below the ma..
The only drawback for this simplistic beauty is that you must work to overcome the common 'Too cheap/expensive' Fx Fear Syndrome, have good money management skills, plus a counter-human trading mind-set to sit & wait for the proper market bias..
The method is applicable for all time frames.. however, while some nimble types may think they could profit by riding the intraday waves with 'reduced risk', its a sure way to cut profits short when the market is moving multi-days/weeks away from some overbrought/sold/consolidation levels..
FxWorksInWackyWays..
HK REVDAX 02:53 GMT May 30, 2006
Subject: How to get onto the moving train?
I have been for a long time puzzled by my inability to get on with a moving train(trend) once it is underway as I constantly have the fear that it may reverse the moment when I get in. I do find the risk/reward ratio to be excellent at reversal points but am at a loss about to how to get into a moving trend.
Any suggestions? Which indicator(s) to use? TIA
Trading is not an exact science contrary to the popular belief of most new or inexperience traders.. In trading, we must allow for some margin of errors within our defined risk & trading time frame.. allowing for this margin of error under the constraint of trading in micro time frames with stops & profit targets all inside a small fluctuating market noise band in hope of achieving consistent profits over time is very difficult, if not impossible.. as whenever we are right, we are only small right within the confine of the small P/L band which limit our odds to playing for break even at best over time.. Trading longer time frames allows for a wider margin of error but at the expenses of increased risk.. however, the odds of being right & achieving consistent profits over time are enhanced when good market analytic & trade management strategies are applied under the proper market bias.. When we are right, we need to ensure that we are bigger right over an expanded profit band in-order to compensate for those times when we are wrong..
imo anyone playing this Fx game of 'Mind, Money, & Wealth' & expect to be rewarded over time requires more then chart reading or prefect entry indicator skills..
That being said, the directional bias of a 21 period ma moving away from overbrought/sold/consolidation levels is a simple but very effective 'train/trend indicator'.. you Buy on a Rising 21ma, Sell on a Falling 21ma, Snooze if it is flat, & set your initial risk x bars above/below the ma..
The only drawback for this simplistic beauty is that you must work to overcome the common 'Too cheap/expensive' Fx Fear Syndrome, have good money management skills, plus a counter-human trading mind-set to sit & wait for the proper market bias..
The method is applicable for all time frames.. however, while some nimble types may think they could profit by riding the intraday waves with 'reduced risk', its a sure way to cut profits short when the market is moving multi-days/weeks away from some overbrought/sold/consolidation levels..
FxWorksInWackyWays..
HK REVDAX 02:53 GMT May 30, 2006
Subject: How to get onto the moving train?
I have been for a long time puzzled by my inability to get on with a moving train(trend) once it is underway as I constantly have the fear that it may reverse the moment when I get in. I do find the risk/reward ratio to be excellent at reversal points but am at a loss about to how to get into a moving trend.
Any suggestions? Which indicator(s) to use? TIA
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Trading is not an exact science contrary to the popular belief of most new or inexperience traders.. In trading, we must allow for some margin of errors within our defined risk & trading time frame.. allowing for this margin of error under the constraint of trading in micro time frames with stops & profit targets all inside a small fluctuating market noise band in hope of achieving consistent profits over time is very difficult, if not impossible.. as whenever we are right, we are only small right within the confine of the small P/L band which limit our odds to playing for break even at best over time.. Trading longer time frames allows for a wider margin of error but at the expenses of increased risk.. however, the odds of being right & achieving consistent profits over time are enhanced when good market analytic & trade management strategies are applied under the proper market bias.. When we are right, we need to ensure that we are bigger right over an expanded profit band in-order to compensate for those times when we are wrong..
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