Looking at AUDJPY

So I am looking at the AUDJPY with levels between 80.00 and 79.69. It broke out below 79.69 earlier today and to took a quick 25 pips on it. Then it went back into the channel. I am going to set Euodoo on these channel lines with the expectation of it break up above 80.00. I think it will break topside because a few indicators that I use say that we are not done moving up. In fact if you look at the day chart you will see that we have a few moving avg that it may need to get to before we see the AUDJPY continues its downward trend.

80.00 has been a strong area, mainly because we have the 100 MA right there that could be holding this down also. Either way, lets see if we can make a good trade out of these area’s before the weekend.

Journaling is for the birds!

OOOO no it ain’t!!! I got a chance to realize how important journaling is while I trained for my first triathlon last year. I took all the steps needed. I got me a coach that taught me the proper way to swim, bike and run. There is a science behind all three and doing them efficiently, and I needed a professional to show me the RIGHT way to do them, so I got one. Wasn’t cheap either, was paying about $400 a month. We met once a month to train together for an hour, I had unlimited email access to her and she scheduled all my training. She was able to look at my JOURNAL that I had to keep online and could see if I worked out at all, where I needed improvement, where I was excelling, etc.

Journaling does a few things. I think the most important thing is that it keeps you honest and on track. You can see exactly where your weaknesses are. In trading, we cannot afford to be weak. We LITERALLY cannot afford it. Every failed trade is a lesson. What did you learn from the mini seminar you just bought in that failed trade? You better have learned something, if not the situation can happen to you again and again and again, and each time you could be sitting scratching your head wondering “What happened?”

The other day I posted the lesson I learned about closing the Eurjpy to soon. I lost money unnecessarily. I wrote about it in blog, in my journal and I even talked about it to my Mentor. (Yes even I have a Mentor/Coach) What did I learn, “Don’t break my own stinking rule!” I know I will remember that lesson because it 1.) Cost me money and 2.) I put it in my journal. I will grow from it, I will TRY not to make that mistake again and I hope someone else has learned from it too.

So what do we have in store for you guys? Coaches, Mentors, Journals and a lot more. Trading is just like a triathlon. Its just you out there on the course, but you have the knowledge of your Coach, your Mentor and your personal Journal in your head the whole time giving you the right information to be an efficient and effective trader (or triathlete).

Yes, I finished the race with a better time then I expected, but I know there was no way I could have done it with out the right help. We all will benefit from this community because “The Right Help” will be at your finger tips. It will be up to you to use them.

PipTee

EURJPY, Going Short

So here we are looking at the Week chart of the EURJPY. If you have been able to join us on the webinar's, you will know how I like consolidation channels. WEll, the EURJPY has been on a channel for about a year. When ever I trade a breakout of a channel, I look for a candle open outside of the consolidated area, and we got that this week. As you see to when it opend outside of this channel, it surged all the way up and tapped what used to be our support. (Remember: Support becomes Resistance)

So it surged up there, tapped it and dropped. Euodoo was able to get us in on the retracement and if you where able to hold on you would have two entries, one at 126.42 and another at 125.92. As I am typing this the EURJPY is droppin and is at 124.69.

Entry #1: up 173 pips

Entry #2: up 123 pips

Totaling: 296 pips

HOW AWESOME IS THAT????

Now that we know we have broken a 1 year channel, I will be looking for more short entries then long and will probably set the Euodoo to get me in short positions adding to the entries that we have now. So stay tuned to @Euodoo for levels as they present themselves.

FYI, My long term target is in the 112 area for the EURJPY.

Heart Rate Monitors for Traders

So I am talking with a student I am mentoring, and he goes and talks to a shrink about trading. Why you ask? Because trading is about 80%+ emotion he figures why not talk to a psychologist about the emotions of trading. So here is what she had to say and why I think is was very interesting.

This psychologist's husband just so happens to be a trader, so she had in my opinion a good deal of knowledge and background with the subject. So here we go.

She said to wear a heart rate monitor while trading, and whenever you heart rate got above 100 bpm, DO NOT ENTER A TRADE. Why? The switch in our brain from I guess you would say Knowledge and Emotion flips at 100 bpm. At 100 you go from thinking clearly to pure emotion. I don't know about you but when I get all emotional in trading, FAILURES start to happen.

INTERESTING HUH?

So I am going to try this out. I generally have taken all emotion out of trading now that I use Euodoo. Once that thing is set Im committed win or lose, and I know how to get the loss back without revenge trading.

She also pointed out that the gut feeling that you get sometimes is real and you SHOULD listen to it. No not the grumbling in your stomach you get because you have been staring at charts for 24 hrs and forgot to eat, shower and shave (yes Im guilty of that too). But when you just have this very strong, can't put your finger on it, can't formulate a sentence to explain it GUT FEELING.

You cannot explain it because she said that part of your brain that the gut feeling comes from is not tied into speech. That is why its hard to explain where and why you are having that feeling. Now I know I have had gut feelings, call out a trade, not get in it and it pay 100's of pips. I have started listening to my gut when it lines up with my rules for certain trades, and have started to see higher returns from it.

I personally cant wait to have a session with this lady now, she has me intrigued. Everything she said made sense to me. You can take it or leave it. I got my heart rate monitor on.

Pip Tee

Euodoo Trades

So Euodoo got us in on the sells for the EURJPY and also gave us opportunities to cost average, which some traders took. I know I did and by the time the original entry started to pay about 40 pips I was up around 90 pips. That was close to 1:1 returns so I closed out the majority of both entries and moved my stop -10 on the original entry and BE on the cost. Needless to say I was stopped out of both but with profits.

The GBPJPY on the other hand wasn't so nice to us. We took about a 100 pip loss, which basically took our profits from the EURJPY trade. My rule when I get stopped out of this trade is to flip it, double my lots and head the other direction. So that is what I did. Euodoo will get you in on the flip, but it will not increase your lots. I am looking to have that added to the next version on Euodoo and we will probably have it by next week.

Let's take a second and talk about doubling lots. My risk on every Euodoo trade is around 1-1.5% of my account. That way of the trade fails I am looking to add 2-3% on the flip. I never risk more then 3% on any given trade. So you are probably asking yourself "What if the flip fails?" Well I have only had that happen to me on the USDJPY, which id one reason why I do not trade this trade on that pair. If memory serves the 3rd flip would have paid out, but I don't like wishy washy trading so I just stay away. Rarely, in my studies, has it failed twice in a row, that is why I am comfortable flipping it. Time will tell.

Back to the GBPJPY. I saw about 40 pips on the flip, closed half and moved BE, as Im typing this it just stopped me out. But that is fine. Ended the trades positive only a few pips because the EURJPY and GBPJPY washed each other out. ( But keep and eye on the GBPJPY, it will most likely get into the 146 area today and you might be paid about 100 pips or so.)

Euodoo also got us in going long on the AUDJPY yesterday with an entry at 80.73. It is against us right now, but I am not to worried. As I looked at the day, I noticed it came and tapped two trendwall lines that intersect each other. That is a Treasure Map trade that I learned from @tradercj. (I would follow him if he lets you.)

What is a Treasure Map trade you ask? Stay tuned, I'll teach you. Just keep and eye out on AUDJPY, let's see if we get a bounce up. (Watch it fail because I said something=)

Ok, so that is the recap. We washed out of two trades with a lil profit, and we are sitting negative about 40 pips in AUDJPY. Waiting for next set up now, so DELETE Euodoo from your charts. This is what I do so I can start fresh when new numbers come out.

I probably could recap what Euodoo did on Monday. Think we took about 100 pips on GBPJPY, so we are up for the week. I know @tradercisco is up 50% in his Euodoo account. He was trading it better then I was.

Keep following @Euodoo because we are going to be holding a webinar very soon on what Euodoo is, how to trade it successfully and a bunch of other useful tips. Let us know if you need Euodoo also.

Thanks all.

Pip Tee

Euodoo EA is ready!

For awhile now I have been posting some of my trades and the success we have been having trading it. If you ask Tradercisco he will tell you how much I value my sleep, so because of that I needed an EA that would get me in my trade if I was away or....asleep.

So I aligned myself with an excellent trader/software engineer. I talked to him about how I do what I do and how I need an EA to execute positions for me and BAM!! Euodoo was born.

For the last couple of months I have been trading it on a micro starting with $250. (I used micro instead of demo because you still need to feel the pain of loosing real money, even if it is $5) I started this trade with this account on Nov 16th 2009. As of right now today the account is at $855, just over 300% gain) and I'm currently short AUDJPY with an entry at 84.04 and up 106 pips. Euodoo is also looking to possibly add another short position. (FYI I did move it over to my standard account, but still run it on my micro because... why not? I like money.)

What is Euodoo? I am sure you are wondering. Well here are a few definitions:

1. To grant a prosperous and expeditious journey, to lead by a direct and easy way
2. To grant a successful issue, to cause to prosper
3. To prosper, be successful

That is exactly what we have been seeing with Euodoo. I say WE because this trade came from TraderCisco. He taught it to me, I tweaked it and we both trade it successfully. We feel this trade is "Euodoo", a way to have a prosperous and successful journey in FX trading.

Now after much deliberation TraderCisco and I have decided to share this. We are offering it as a monthly subscription. We will be doing even more pod casts, blogging and market commentary for our subscribers.

So if you are interested in trading Euodoo, let me know. It is ready to roll. This prosperous journey is not mine alone. Join me.

We also have a version that works on demo accounts only for those that want to test it before becoming a subscriber.

All The Best

PipTee

The "I Don't Care Entry"

This is one of my trading rules that I have for taken profits on certain trades. Its the "I don't care entry" because after about 20 pips, I no longer care about the entry. So here is my math:

If I have a 50 pip stop, once my entry is 20+ pip positive I will close out 80% of my entry and leave the remaining 20% with a don't care mind frame. I can do this because the 80% has paid for the 20%'s stop. HUH??

Trading a standard it will look like this:

50 Pip Stop

@ 20 pips close 80% (or $8)

20 pip

$8

$160 Banked

50 pip stop remains

$2 left in trade

$100 Risked

So I banked $160 and have $2 running in the trade. If the market never comes back, I'm a happy camper. If it comes back and stops me out, I still would have made $60 or what usually winds up being a lil over 1%.

Does that make sense? I'm sure there is some great math formula but I try to keep it simple.

The Rule:

"Once the market pays you 40-50% of you stop, close 80% of your entry. Leave the remaining 20% and do not move your stop until new resistance/support has been created"

I don't use trailing stops because in my opinion its about support and resistance. And since I base my stops at those levels, a trailing stop would have me kicked out of the market before the real move can happen.

That's one of my TP rules. I'm working on the FIB entry blog and should have that done by tomorrow.

A very wise (and old) trader once said "Nothing wrong with taken profits."

I'd like to add "Nothing wrong with leaving a lil to see what happens"

Pip T