The “Secret” Trade

I am a big believer in “The Secret.” Have you seen the movie yet? If not I strongly suggest you watch it.  I watch it at least once a week to stay on track. The “Secret” is the Law of Attraction. Napoleon Hill wrote about it in Think and Grow Rich, another book that I try to read once a year during vacations.

I first saw something about “The Secret” on Oprah. I know, I know, but that day changed my life for sure. I was broke, had about $10 in the bank and had no clue where the next dollar was going to come from. I watched that movie and used the last bit of money I had to buy it. I watched it, took notes and applied the Law of Attraction that day. It was a Monday and I wanted to have $5k by Friday because I had to go to California Friday night. So every morning I applied the Law of Attraction, calling $5k to come to me and having total FAITH that I would get it. Thursday I got a call to do a job and Friday morning I picked up a check for $4800. It wasn't $5k, but it was close enough.

 

That day changed my life and belief in how I can attract what I want. I did that exercise of attracting money into my life a few more times and stepped up my requirements. For a few months I was attraction $20-30k a week and working less and less, the other aspect of what I wanted for myself: more money and less work.

 

Not quite sure what I was attracting to myself when Barry called and said I was going to learn how to trade currency with him, but years later what I wanted, what I attracted to myself was to work less and make more money. So now I am a trader, a successful trader, and I'm humble about it ;)

 

So now that we have that out of the way, it’s time to talk about “The Secret Trade.” When you get into a trade do you HOPE it will pay out? Hope is a belief in a positive outcome related to events and circumstances in one’s life. You can sit there and hope all day long, but there will be a feeling or thought that something will go wrong, the trade will fail. Negative thoughts creep in when you hope, and a negative thought is twice as powerful as a positive thought.

 

So what happens when you have faith in the trade? Wikipedia' says faith is a confident belief in a concept or thing. I like the bible definition better. Hebrews 11:1 says “ Faith is the assured expectation of things hoped for, the evident demonstration of realities though not yet beheld.” Did you notice how we need to have faith to go along with hope?

 

Are you seeing where I am going with this? I feel that you can “Attract” trades to you. Patience and faith are so important when it comes to trading. When I get in a trade, I try to put myself in an emotional state of what it will FEEL like when I get paid out. I try to have total faith in the trade and don’t even think about it failing. If you doubt your abilities as a trader, your account will very quickly reveal it. Confidence, trust and faith are the ONLY emotions I think a trader should have and focus on while they are sitting at the desk trading.

 

The Secret: “Attract positives pips, and you will get them”

Euodoo, Where have all the numbers gone?

Well, I need to apologize for not staying on top of the numbers. Or maybe the currencies need to apologize to me. As you may recall through previous webinar tinychat's that we have done in the past, I like to trade channel breakouts that are between 50-60 pips. We have been having massive surges and channels have not really been presenting themselves.

So what else can we do in the mean time? Well, I have been learning a lot trading with Tim Chandler in the mornings. I have been "seeing" how his trade could and would keep us out if getting into a breakout that could fail, or one that would really pay out. Price action is so very important, in my opinion, when it comes to trading. Indicators can lag, markets can move to fast for some, so when you can rely and learn how to trade and read the candles with JUST price action, your trading can and will only get better.

As traders we never stop learning and growing. We all have our systems that we use, but we can always learn something new that we can adjust and add to our systems. I now have added Tim's trading system to my own account and am doing very well at it. Everyday I learn something new, which I think is important. I really can't wait to start trading with some of the other traders that you all have come to know and love on Twitter. We will be releasing their rooms very soon, and I know you all are going to REALLY get excited when you learn who they are. So stand by because they trading fun has only just begun.

Pip T

Lesson in Price Action

I have been trading with Tim Chandler lately and have been getting schooled in Price Action. I wanted to let everyone know what I have been learning.

 

1. Correlating Currencies

When the currencies pairs are all following the rhythm of each other, it is very important to WAIT for the pairs to all hit their targets. I learned this lesson on a losing trade this week. I bought the Eurusd when the Eurjpy had not hit its reversal target/area yet. So my Eurusd dropped a little more stopping me out. Once the Eurjpy settled at a reversal point, the Eurusd followed suit and I was able to buy it again and get back to BE.

Patience is so key in trading. Let the trade come to you, there is no need to force anything. If the set up is not there, wait. There is nothing wring with not taking a trade, then to force a trade, lose then want to revenge trade to get the lose back. Not a good way to trade at all.

2.   Limits and Return Ratio’s

If you have a trade that has high success rate’s and pay 1:1 returns, I think it’s a safe bet that you will be successful. But what if you have a high success rate and can get more then 1:1?

The lesson in setting limits was a good one. I learned this on a one on one phone call with Tim. (One of the perks of trading with Tim.) If you cannot watch a trade, set a 20 pip limit. If you can manage the trade, don’t set a limit. Leave the entry open and see if you can get 30, 40 or more pips out of it. Nothing wring with closing a portion at 20+ pips and moving BE to take profits. You HAVE to take profits. Can’t let a trade that pays out turn into a loser.

3.   Risk

Risk only .5% on trade that may set up but are not the “Perfect” trade, and load up to 1-2% when it does. An example of this was on the guppy this week. About 20min after the webinar ended the guppy(GBPJPY) set up as a picture perfect confirming trade. It paid out over 60 pips. 20 pip stop:60 pip payout. 3:1 return. If you loaded up to say 2%, you would have yielded 6% payout.

This is a combination of not setting a limit and loading up. These trade present themselves and we see them almost everyday and almost every session. Bring the risk down when you don’t have the “warm and fuzzy” feeling, and load up when you do.

So those are three points that I have found beneficial to not only trading with Tim, but with my trading in general. Correlations, letting the runners run and controlling risk are all key components to trading.

The next blog I am going to focus on is taking full loses and half winners.

Hope you all have a good weekend. I know I have to get back to blogging and posting, I will step my game back up.

 

Pip T

EURJPY going long this week

So this is why I am looking at going long and trying to stay long on the EJ. As you can see from the 4hr chart, we broke the 4hr trend wall and we have new support created after a trend wall break (that is a confirmation of a trend change). We are also in and around an inner trend wall and one of my old lines around 125.09. If we can get above the 125 area then i think we may see this EJ take off. It can also turn around here and drop, so we have to be watchful off that too.

 

Looking at the Day chart, the last resistance that we saw was 126.90 area. If we breach this area then we have MA’s  to hit , which will either cause it to turn around or stall, then off to the top of the Day trend wall.

Now keep it mind that it will go in a wave pattern until it gets there. With that in mind I will go a lil heavier on breakouts topside, buy the stops and leave them until we get a trend change (or stopped out, lol).

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.