HOW I TRADE
1.BEFORE THE NEWS REPORT IS RELEASED
I carry out the analysis of the market to obtain a certain percentage score (%) needed to assess the trade. A. Comprehensive Market Sentiment ( CMS ). B. Data Impact Assessment ( DIA ) and C. Purposeful Market Direction ( PMD ). Read “ HOW THE % RATING I USE IS DERIVED.
I use 1-minute candle stick chart where the RED ( Bear ) and the GREEN (Bull ) represent the Short ( Sell ) and Long ( Buy ) movements respectively. Buy this chart, you will know exactly when one minute is due, since each move or change is one minute. It is always advisable to use a 1-minute chart when you are trading the news. Do not listen to those who use 5-minute, 1- hour, 1-day or even 1-week charts, they are technical analysts and their strategies do not go with ours at all, theirs and ours are two parallel lines that do not meet at any point.
2. THE DATA TO BE TRADED.
First of all, I look at the data for consideration to ascertain the strength of the data. Is it STRONG, NORMAL, or WEAK? What kind of momentum do I expect if all the factors of a good trade are met? What is the average duration of the trade if there is harmony among all the features of a normal trade?
3.THE TRADE PLAN.
I now prepare my trade plan to include the actions I will take if my expectations are met or not. The currency pairs for focus are also included and the reasons why such currency pairs are in focus will be noted down. What kind of trade, Short or Long term or Trade Through- that may last the entire trading session? Read : YOU MUST HAVE A TRADE PLAN.
4.WHEN THE NEWS REPORT IS RELEASED.
As soon as I get the report, through the News Wire I subscribe to first, I equally confirm from the calendar of events, since the News Wire Service is basically an AUDIO SQUAWCK, although the test also follows later. I then quickly analyze the report and decide what to do with it. Whether it is a tradable report or not. All these must be done within 60 seconds of the release of the news report.
5.TRADING THE REPORT NOW.
The analysis I have from item number 4 above will determine the next action that I take. If it is a tradable report, I then quickly place an order. I use a 30-pip-
Stop Loss
to enter the market, since it is always a
market order
. I later adjust the
Stop Loss
to 10 pips after there is stability in price movement. If I enter the market initially with a 10-pip
Stop Loss
, there is the tendency that the trade can be
stopped out
during the initial price action and
volatility
before the market will turn around in my favour. Further
retracement or pull back can stop me out before the price action goes in
my direction.
Then I set the Break Even (BE) function to 10 pips, so that as soon as the trade gains 10 pips, the Stop Loss
level will automatically move to Break Even (BE) to guarantee a
NO LOSS TRADE in case there is price reversal unexpectedly. In forex
trading, you must always take precautionary measures to protect your
trading account as quickly as possible. This is the HALL MARK of
professionalism.
I do use the Trialing Steps feature at times in a highly volatile trading environment. I use between 10 and 20 pips trailing steps, depending on the momentum of the trade. If the trade gains 30 pips by way of a spike
, the trailing steps of 10 pips will lock in 20 pips of profit when there is a sudden price retracement.
After all these settings, I now quickly post the LIVE TRADE in my Blog and 3 other forums in CASHBACKFOREX and FOREX PEACE ARMY. When there is a sudden spike
movement in the trade, I close it for profit as that is a sign
of price reversal in 80 % of the time. I never aim for a certain number
of pips in any trade, since it is not my farm, it is what I see I
harvest. I only look out for profit taking signs that are quite helpful,
unless there is a STRONG or DYNAMIC MOMENTUM where you can expect such a
trade to gross in above 100 pips.
There is no way a NORMAL or WEAK MOMENTUM can perform such a miracle.
If I erroneously close a trade for 40 pips and it goes ahead to produce 75 pips I do not regret at all.
If it is not a tradable report by the STANDARD I lay down, I post A NO TRADE.
Click this link to visit my Blog: http://comprehensivenewstrading.blogspot.com/
1.BEFORE THE NEWS REPORT IS RELEASED
I carry out the analysis of the market to obtain a certain percentage score (%) needed to assess the trade. A. Comprehensive Market Sentiment ( CMS ). B. Data Impact Assessment ( DIA ) and C. Purposeful Market Direction ( PMD ). Read “ HOW THE % RATING I USE IS DERIVED.
I use 1-minute candle stick chart where the RED ( Bear ) and the GREEN (Bull ) represent the Short ( Sell ) and Long ( Buy ) movements respectively. Buy this chart, you will know exactly when one minute is due, since each move or change is one minute. It is always advisable to use a 1-minute chart when you are trading the news. Do not listen to those who use 5-minute, 1- hour, 1-day or even 1-week charts, they are technical analysts and their strategies do not go with ours at all, theirs and ours are two parallel lines that do not meet at any point.
2. THE DATA TO BE TRADED.
First of all, I look at the data for consideration to ascertain the strength of the data. Is it STRONG, NORMAL, or WEAK? What kind of momentum do I expect if all the factors of a good trade are met? What is the average duration of the trade if there is harmony among all the features of a normal trade?
3.THE TRADE PLAN.
I now prepare my trade plan to include the actions I will take if my expectations are met or not. The currency pairs for focus are also included and the reasons why such currency pairs are in focus will be noted down. What kind of trade, Short or Long term or Trade Through- that may last the entire trading session? Read : YOU MUST HAVE A TRADE PLAN.
4.WHEN THE NEWS REPORT IS RELEASED.
As soon as I get the report, through the News Wire I subscribe to first, I equally confirm from the calendar of events, since the News Wire Service is basically an AUDIO SQUAWCK, although the test also follows later. I then quickly analyze the report and decide what to do with it. Whether it is a tradable report or not. All these must be done within 60 seconds of the release of the news report.
5.TRADING THE REPORT NOW.
The analysis I have from item number 4 above will determine the next action that I take. If it is a tradable report, I then quickly place an order. I use a 30-pip-
Stop Loss
to enter the market, since it is always a
market order
. I later adjust the
Stop Loss
to 10 pips after there is stability in price movement. If I enter the market initially with a 10-pip
Stop Loss
, there is the tendency that the trade can be
stopped out
during the initial price action and
volatility
before the market will turn around in my favour. Further
retracement or pull back can stop me out before the price action goes in
my direction.Then I set the Break Even (BE) function to 10 pips, so that as soon as the trade gains 10 pips, the
Stop Loss
level will automatically move to Break Even (BE) to guarantee a
NO LOSS TRADE in case there is price reversal unexpectedly. In forex
trading, you must always take precautionary measures to protect your
trading account as quickly as possible. This is the HALL MARK of
professionalism.I do use the Trialing Steps feature at times in a highly volatile trading environment. I use between 10 and 20 pips trailing steps, depending on the momentum of the trade. If the trade gains 30 pips by way of a
spike
, the trailing steps of 10 pips will lock in 20 pips of profit when there is a sudden price retracement.After all these settings, I now quickly post the LIVE TRADE in my Blog and 3 other forums in CASHBACKFOREX and FOREX PEACE ARMY. When there is a sudden
spike
movement in the trade, I close it for profit as that is a sign
of price reversal in 80 % of the time. I never aim for a certain number
of pips in any trade, since it is not my farm, it is what I see I
harvest. I only look out for profit taking signs that are quite helpful,
unless there is a STRONG or DYNAMIC MOMENTUM where you can expect such a
trade to gross in above 100 pips.There is no way a NORMAL or WEAK MOMENTUM can perform such a miracle.
If I erroneously close a trade for 40 pips and it goes ahead to produce 75 pips I do not regret at all.
If it is not a tradable report by the STANDARD I lay down, I post A NO TRADE.
Click this link to visit my Blog: http://comprehensivenewstrading.blogspot.com/
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