My Golden Strategy to Mastering the Markets
Mastering the Markets... The story of the Retail FX/CFDs Market by Anish LalI have seen thousands of Trader's come & go....
Most get greedy, thinking they can repeat amazing Demo performance in the Live arena's & end up blowing up their accounts faster than they can say "PROFIT"... Some get into the markets way too early - especially after fancy FX education sales talk urging their clients to start churning accounts on a 3 pip EURUSD spread... More often than not they lose money on their first few trades & completely stop trading... Very few.... Actually make Money.
So what is the Secret?
Once over-complicated, trading becomes extremely difficult to digest. For me & from what I have seen, the key is to stick to a simple strategy that is proven to work.
Stay disciplined, keep your emotions at bay & never trade with money that you can't afford to lose (again a blunder that I see way to often)...
Patience & consistency are very much key, as it takes many years for those who are profitable (not lucky) to perfect their strategies - willing to risk a stake to support their development. Also -keep your expectations low... Most traders looking to make a "passive income" think they can do a consistent 10-20% a month - which is very unrealistic...
So... Step 1. Find a strategy that works & Step 2. Stick too it!
Time to share my Golden Secret...
I am always keen to get personal with the guys making money from trading FX - & making money consistently. So I found a guy who made at least 14% per week and had been doing so for the past 60 weeks with a very simple strategy.
So I took the best bits from his strategy & formulated by own system (which is now running decently well on an automated basis)...
Going back to basics here.... but let's get straight to the point. Take a 3 day EMA and a 20 day EMA and but nice Bold colors on your chart. (I like to use yellow for the 3EMA and purple for the20EMA) & look at a 30 Minute TF.... Something like this :
My rules
As the 20EMA crosses above the 3EMA we have a short signal and as the 3EMA crosses above the 20EMA we have a long signal...
Somewhat simple... but you have to know which time frame to pick... I usually find that the 30M works ideally for Gold - especially when the market is trending well. However, it is important to avoid the choppy markets.
The key, therefore, is to study the "gradient" of the breakouts and have a fixed take profit amount in your mind before entering the trade.
Live Example
Let's take the breakout from this afternoon. A long at the cross-over of the 3>20 around $1195 would be up 70 cents profit right now...
So where do I take my profit now?
You have two options, you can either close when the 20 goes back above the 3 or you have a fixed 30 pip or 50 pip TP integrated within your strategy.
Remember - Avoid choppiness & essentially this trend following strategy works well once followed consistently on the correct time-frame.
Would greatly appreciate your feedback & I hope this works out well for you guys.
Anish Lal
Source:https://www.linkedin.com/pulse/how-trade-gold-todays-erratic-markets-anish-lal
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