Golden Rules of Trading Forex

[preetksgill]

Some Golden Rules:

• Use a lot size as small as possible. It works wonders.
• Never follow forum posts or trade signals they wreck havoc.
• Previous day high or low unless broken means consolidation.
• Same way plot previous week and month levels, they work wonders.
• Never marry someone, forex is like one night stand or get out as soon as possible.
• Scalpers make more money than position traders, because they change girls/positions fast.
• Plan your positions well before you trade and no matter what you do, try to keep the daily chart trend in mind.
• Marriage is not good for health in forex.
• Always keep a stop loss, its always better to die another day.
• will add more later.

 

[preetksgill]

• Moving averages help in guiding about trend direction
• Use the right kind of MA's not 100 or 200, use smaller.
• Avoid predictive trading, let the market decide the trend.
• Avoid Mondays till London and Fridays after London.

 

[Raghavacc]

• Moving averages help in guiding about trend direction
• Use the right kind of MA's not 100 or 200, use smaller.
• Avoid predictive trading, let the market decide the trend.
• Avoid Mondays till London and Fridays after London.

Preetji,

Seems to be another golden thread in the coming from the master. :clapping:

Hope Laluji is not around..........................

 

[preetksgill]

• For those who use Elliot wave theory, I found it safest to trade wave 2 to 3, because here even if there is a retrace 3 to 4 the market will still give another exit chance 4 to 5

 

[preetksgill]

• Lot size

(Margin Used / Account Equity) * 100 gives percentage of margin used to trade.

percentage * leverage gives YOUR money value used to trade

if percentage comes more than 1, then its gambling.

if percentage comes below 0.05 then it means @ 1:100 leverage u r using 5% of your own money which is good

Any broker giving a leverage more than 1:100 is inviting you to join the casino, its not forex its gambling.

Trade wisely

 

[Tavnaz]

• For those who use Elliot wave theory, I found it safest to trade wave 2 to 3, because here even if there is a retrace 3 to 4 the market will still give another exit chance 4 to 5

So you are saying,we buy counter-trend in wave 2 when it is still mature.
Considering this let me ask Preet ji,until Wave 1 ends i think no one can predict where it has ended.
IMHO
So to be sure,it has ended we must wait or wave 2 close at 61.8 fib ret.
And should only play Wave 3 and Wave 4 dip till 38.2 fib ret.
Because it is wave 1 on the basis of which me make forecasts of wave 3 and 5,so we must be sure it has ended.
Consider my case here:
Say market is new bull baby it has so damn positive momentum,you see a pin bar at the top and you think hey it has ended now we gotta correct to wave 2 end but maybe it is just a stall so you get steam rolled with momentum drive still running,so i would say don't predict wave 2 start.
Wanna play Wave 2 wait for retrace till 38.2 atleast and then see momentum for a ride.

Anyways great works here sir.
Regards
Taz

 

[preetksgill]

So you are saying,we buy counter-trend in wave 2 when it is still mature.
Considering this let me ask Preet ji,until Wave 1 ends i think no one can predict where it has ended.
IMHO
So to be sure,it has ended we must wait or wave 2 close at 61.8 fib ret.
And should only play Wave 3 and Wave 4 dip till 38.2 fib ret.
Because it is wave 1 on the basis of which me make forecasts of wave 3 and 5,so we must be sure it has ended.
Consider my case here:
Say market is new bull baby it has so damn positive momentum,you see a pin bar at the top and you think hey it has ended now we gotta correct to wave 2 end but maybe it is just a stall so you get steam rolled with momentum drive still running,so i would say don't predict wave 2 start.
Wanna play Wave 2 wait for retrace till 38.2 atleast and then see momentum for a ride.

Anyways great works here sir.
Regards
Taz

I use Advanced Get to get the wave count on a 1 minute chart, this is real time data feed.

http://img839.imageshack.us/img839/6886/getb.gif

Then confirm the move on my own chart pattern

http://img259.imageshack.us/img259/2959/get.gif

And allow the trade manager ea to trail the stop so never need to put targets here.

Depending on the strength of the river, I manage to collect anywhere from 0 to 200 pips on the move.