My Trading Method (Session 10)

Basic Knowledge

The are a lot of basics in forex. It is good that you know them, for without so, you can be quite lost in the terminology that I mentioned.

I first refer to http://www.babypips.com/. This site, in my opinion has been one of the easy site learning about all the basic you need to know on forex.

I will go through the key ones, especially those that I will be using in explaining my Trading method
a) Pips - what is it?
b) Candle stick - what is the physical intepretation?
c) Moving averages - simple, weighted, expoential and concept of support and resistance
d) CCI - concept of leading and lagging indicator, concept of trend and momentum
e) Bolinger band - concept of squeeze and breakout
f) Fibonacci Retracement - concept of support and resistance
g) Elliot Wave - concept of trend and momentum

The best way to follow my method is hands on.
First create a game account. If you have no broker in mind, use http://www.oanda.com/. The bewares of using oanda is clearly stated, and there are risks involved. I will go through the next sessions on broker selection.

The method that I am employing is based on trends and support and resistance.
I trade mainly GBP/JPY and GBP/USD because of the big swings and big daily movement.
Placing your trade is perfered during Asian market trading time, because in general of low voltality of the pairs I mentioned.

Second fill the account with a sum of money. It will be best that this is about the actual capital that you can affort.

Third fill the chart with the following:
a) Daily chart - candle sticks
b) 1 hour chart - candle sticks

For each chart fill them with
a) WMA5
b) EMA21
c) EMA55
d) EMA100
e) EMA200

Also for GBP/JPY use CCI(21) and BB(21, 0.8) and BB(21, 1.5)
For GBP/USD use CCI(14) and BB(10,0.3) and BB(10,0.8)

Your day chart should look like this

Fourth, get yoursel familiar with the buttons

a) How to do a market buy/sell, place a limit order to buy/sell

b) How to change your leverage

c) How to change you trade amount

d) How to read the spread

e) How to set Take Profit and Stop Loss

f) How to add additional currencies

g) How to change chart time scale

h) How to change technical graphs color

i) How to zoom in and out of the same chart

j) How to set up sub accounts

k) How to add and remove and transfer funds

I will choose to stop here while you setup.

Do also read up on the differences in Market Order, Limit Order, Take Profit, Stop Loss