Harvest of reverse pips!

Today is a great harvest of reverse 205 pips from the genius. Don't worry this is not the last! :DLesson 1: Stick to the system's top down approach of looking at 4hr chart first then to 30min chart and 5min chart. If 30min chart is in a reverse trend of 4hr, enter with 30min chart.

Lesson 2: Do not anticipate the trend, let it happen first and give you the buy signal before you enter.

Lesson 3: Do not be competent, stick strictly to the system.

Lesson 4: When you missed the entry and the price had spiked, do not enter but wait for the next entry.

Total No. of Trades = 39
Accuracy = 30.7%
Win/Loss ($)= 28.69/52.75=0.54
Average Win ($)= 2.39
Average Loss ($) = 1.95
Max Win($)= 7.18
Max Loss($)= 6.92

Forex Trade 23/02/09

Here are my results for today using the system if I were to trade for real. 1 lot equals to $5 used margin. Total 25 trades, 15 wins 10 losses. Made 519 pips which totals $57.56 demo money for today. Will try out the system for a month or 2 and see if I'm consistent. This good result might not happen again.


Let us look at biggest mistake first EUR/USD 25 pips loss. At the 4hr chart the red circle shows a classic uptrend that went out of steam. I coloured the red box because it is there initially. Confirmed downtrend.
EUR/USD 30min chart also confirms downtrend.

Once we confirm that the 4hr and 30min chart is in downtrend, we enter using the 5min chart at the red arrow where it breaks and forms a LL. Stop loss is at the green line where the wave pivots. So when it forms another HL and LL(downtrend), I shifted my stop loss to the blue line which I should not because it is too narrow. The end result is obvious and I missed the wave downwards, it pays to be patient. I committed the same mistakes for the other losses too with a too narrow stop loss for HL to form in downtrend and LH to form in an uptrend. Only 1 or 2 trades were stopped out which shows that my opinon at that time is wrong.
Now let us look at the biggest gain, GBP/JPY 145pips win. After 4hr and 30min uptrend is confirmed, I look at the 5min chart for entry. The green line B indicates a buy signal when it breaks the HH. The wave at the HL(red line 1) is the stop limit. As it forms a HL and breaks another HH, I shift my stop loss to red line 2. At the price reverse between red line 3 &4, I noticed that the JPY pairs are reversing at the same time, that is when I took the profits. When the candle hits another HH again, I entered at higher B(green line). Placing stop limits at each HL and HH formed as shown in red line 4,5,6. Sold off at the top when I felt that the price action is not right and is toppish again.
Total No. of Trades = 25
Accuracy = 60%
Win/Loss ($)= 72.79/15.23=4.78
Average Win ($)= 4.85
Average Loss ($) = 1.52
Max Win($)= 15.27
Max Loss($)= 2.50

Forex Trade EUR/USD 20/02/09

Recently I've been learning how to trade forex. Here is my newbie experience using demo account with the 5min wave analysis from Brian8182. This is a play account, from today onwards I will trade as if I'm trading with real money, with money I can afford to lose and not punt money like the trades shown below.

The top are the most recent trades, let me start from the top for easy referencing.

1) EUR/USD 4hr chart: Look for trend Higher-Highs and Higher-Lows of candle. A very clear uptrend here breakout at 1.2758. I could have entered earlier at 1.2646 as it confirms the uptrend, missed that wave. As long as it is an uptrend and not ranging, we then proceed to look at 30min chart, don't have to look for breakout of the wave.

EUR/USD 30min chart: Confirms uptrend at 1.2758 breakout. Could have entered earlier when it breakout at 1.2653.

EUR/USD 5min chart: Enter trade on next HH of candle wave. Could have done better as mentioned earlier, look at the previous run up. Took profits too early at 1.2822, 30pips. Should let the profits run until there is a clear sign of wave reversal then take profits.


I still have not grasp the concept yet, as you can see my thoughts are not very clear. Still learning. I missed out on the earlier entry and entry at 1.2653 is the correct one. Cut loss should be at the previous wave valley at the base line of chart.

2009 Resolutions

New year and new beginning, I would like to be a little bit more serious and stop fooling around haha...

1) Achieve at least a B or B+ for all my modules. (Would be great to get all As, that would be my goal in mind, but I'm happy with a B.)

2) At least 3 hrs of quality reading a day. 2 hrs allocated to school work and 1 hr to finance books. (Definitely would want to spend more hrs reading. Warren Buffett reads at least 5-8 hrs a day. Not that I dont read, I'm a binge reader of everything online like politics, business news, world affairs etc. I hope to spend more time on books and less on other distractions.)

3) Finish reading Security Analysis. (Finally that 1 hr came to good use.)

4) Exercise at least 2 times a week. (I want abs!)

5) Sleep early and wake up early. (Sleep before 12am if there is school tmr. 1am if there is no school. Wake up at 9am. This rule wont apply if there are special occasions like partying. :P)

6) Plan out a daily timetable. (I'm a carefree lazy person, this is to help me organise and be discipline.)

7) Would like to meet more friends. (Half my life revolves around them haha...)

8) Investment goals. (Needless to say, read my previous postings for more info.)

9) Get a gf? (Everyone keeps telling me this. How do you actually "get" 1? Can buy with cash? Need lots of love right? Haha...*joking*.)

10) Last and most important, I wish everyone around me to be happy. (I am happy if you are, it means a lot to me. One of my reasons for living a happier life.)

Hope that I can meet all those targets. God bless and good health people! :D

Year End Portfolio 2008

2008 is a tough year for all investors. Experts have mentioned that this financial crisis is more severe than the great depression of 1927. I don't know how long the bear will last, but I'm sure the market will rise again. Nothing is new in market cycles, the boom and bust, top and bottom. History repeats itself because greed, fear, hope and ignorance will always be there in the emotions of the market.

It's a fruitful year for me and a great learning experience to ride this bear market. I've grown wiser and hopefully my capital allocation skills have improved. Made many investor friends this year. They are all very successful in their own ways and I wish them well and a prosperous new year in the years ahead. They have taught me a lot and have given me great insights in personal finance and how to enjoy life. I would like to thank them personally. (pappy, dream, san jie, uncle88, kk, superfriends I've met this year and online friends...etc etc the list can go on and on :P) You can chat with us at pappy's blog, it's getting crowded haha...

I'm happy with the past performance as I've met my target of beating the STI ETF benchmark by 10% for 2 consecutive years. However past performance is not a good indicator of future performance. I feel that I'm quite lucky and would like to be lucky again. Only time will tell, after 5 years if I've not met my target, would be better off investing in the STI ETF itself.

Cheers and Happy New Year to all readers! :D

Buffett's 3 Rules for Investing in a Crisis

1. "Cash combined with courage in a crisis is priceless"

2. "Don't invest in things you don't understand"

3. "Don't try to catch a falling knife until you have a handle on the risk"

http://www.cnbc.com/id/26963156

Warren Buffett on Life

My all time favourite video. After 2.40min is his topic on life.