Entries Tagged 'Forex' ↓

The Magic Word For Successful Trading

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This morning I was asked by a friend of mine to tell him a little about my trading strategy so he could tell a money fund about it and see if they would be interested in throwing a bunch of money my way.  His response to my brief explanation of what I do was, “That just sounds like active trading.  Is anything new?”

His response really got me thinking about the hundreds of people I coached to trade the Forex market.  Many of them had the same thought he did.  They wanted to know what the magic word was that would instantly transform them into professional traders.  They wanted the fool proof strategy that they could follow to get rich.  This was very common with new traders and traders that have failed many times.  I would start with the basics and they would almost always say, “I know that. Teach me what you do.”

What they couldn’t understand is that I was teaching them what I do.  When somebody would tell me they know “all that” and want something new, I knew they didn’t understand “all that”.  If they fully understood the basics, they would not need me anymore.  Trading is mastering the basics.

Before I get too far, I should tell you the magic word I referred to in the title.  This word is vital to know and understand in order to trade successfully long term.  In fact, I would dare say that if you do not know this word, you will not trade profitably very long.

The magic word is discipline. Remember that word.  Strive to understand it and achieve it.  If you do not have discipline you cannot succeed.  Nine of ten times when a student I was coaching had a string of bad trades, we could always trace it back to the lack of discipline.  They broke their rules and paid for it.  Some of them lost several thousand dollars and still did not understand discipline.

Discipline in trading will help you be successful.  It is always the simple and easy things that lead you to prosperity.  For some reason we want to make it very hard and difficult. I think we, as adults, do this in order to serve our ego.  If it was easy, why weren’t we doing it already?  If it was hard then we have an excuse for failing or not attempting it at all.

Success in trading and success in life are dependant on your own self discipline.  Stick to your rules and stay focused.  Set goals and let them be the driving force that can propel you to prosperity and the abundant life you seek.

Now you know the secret to successful trading.  I bet you will keep searching for something else. You will never find it until you learn discipline.  Good luck and happy trading.

Forex Expert Advisor Update

Trading has been going well with the EA.  I did have to step in once to help it out of a little mess it had made, but it all worked out.  I am up 20% so far this month so things are looking good for January.  I am trading four accounts, two standard and two mini.  The accounts should all enter and exit at the same place, you would think, but they don’t.  They often enter a couple of pips apart from each other.  It is very odd since the feed from the broker should be the same on all the accounts.

I have started another website were I will be reviewing various expert advisors. I don’t have a review posted yet because I have been so busy with another website, but should have one by the end of next week.  I will review both commercial EAs and free EAs. The website is http://forextime.info.

This little EA of mine…

This expert advisor is doing quite well now that it is fixed.  I am now up about 25% on my account for the month.  My demo is up 59% this month.  I am trading the AUDUSD on the demo and not live.  I also have a few other parameters different.  The demo has a little more risk than my live account does.

Of course the true test of an expert advisor is over a period of 6 months to a year.  The market has cycles just like nature does.  There are trending times and consolidating times.  An EA needs to prove itself during those times in order to know if it will perform profitably over the long run.

I have been working on this EA for three months now and it has been profitable every month if the rules were met.  Time will tell if this is a program that can earn a living or not.

Forex Expert Advisor Fixed

After months of working on my Expert Advisor (EA) I finally sought professional help.  A guy out of Singapore took a look at it the next day had the code cleaned up and working right.  I have been working on the program for months, but since I am not a programmer I thought the code made sense.  

This is the equity graph on the USDJPY.

That EA worked great, but it would place trades when the rules weren’t met.  Those false trades were eating up literally all of my profits.  In fact yesterday alone it went long on the USDCAD, but should have been looking to go short.  That trade ate up all my profit and a little more for the month.  Fortunately I am back in the black again, but it is frustrating to see all that profit gone when it shouldn’t be.  I am now up 1% for the month where I was up about 16% only two days ago.

The lesson I learned from all of this is to outsource the areas of my life where I am not proficient.  There are some extremely intelligent people all over the world that can easily be found through the Internet.  I would have saved so much money if I would have sought help when I realized there was a problem that I could not solve in a reasonable amount of time.

Is Wizetrade a Scam?

During my tenure as a Wizetrade coach I had a few students express their concern about what they read on the Internet about the Wizetrade product they just purchased.  They read that Wizetrade was a scam and the software was useless.

That got me thinking.  For virtually every product out there, there seems to be somebody crying scam.  What is a scam?  Is it something that magically does what it says it will without you doing anything?  If you buy a physics book, do you expect to know everything there is to know without reading?  Is the book a scam if you don’t pass your test?  That may seem silly, but that is the rationale many people own.

Wizetrade is simply a piece of software that uses proprietary algorithms similar to moving averages.  The purpose of the software, in my opinion, is to help in identifying the trend.  If you wanted a MA to match a Wizetrade chart just use a SMA 1.  Set one to open and the other to close.  The open one should be red and the close should be green and you will have a crude example of the Wizetrade chart.  Of course there is more built into it than that.  The point is that if Wizetrade is a scam then so are all indicators.  

The company recently stopped charging thousands for the software and now charges for the feed.  Wizetrade also puts on WizetradeTV (WTV) which educates traders of FOREX, Stocks, Options, and Commodities both in the Wizetrade software and in the markets.  You could learn just about all you need to learn to trade using the software just by watching WizetradeTV.

For those that purchased the software Wizetrade initiated a loyalty offer which allows those that paid for the software some extra benefits like another program free.  There are many things the company is trying to do in order to help traders make money.

Wizetrade coaching is another program available to traders to further enhance their trading abilities.  The coaches, which I was one of, all trade live in the markets and have to trade profitably or they will not be allowed to coach.  With all the tools available to assist traders how can it be called a scam?

If Wizetrade was a scam, they would no longer be in business.  The software works only if you are willing to diligently learn to use it.  If you buy it and never make an effort to use it properly it cannot be called a scam if you are the one at fault.  Take responsibility for your actions as you expect businesses to take responsibility for theirs.  Should Wizetrade file a lawsuit against all customers that don’t learn to use the software correctly?

ADP Non-Farm vs Non-Farm Employment Change

The most anticipated economic announcement is Non-farm employment change which generally comes out the first Friday of every month.  Non-farm measures the number of jobs created or lost from the previous month which is a good indication to how the US economy is doing.  There are two Non-farm announcements so which one is more accurate?

Bureau of Labor Statistics

The Bureau of Labor Statistics (BLS) releases the official number for the change in jobs.  The numbers are obtained by surveying a number of businesses. About 60% of the businesses have greater than 20 employees so they do their best to get a sample of all types of businesses in many different industries.  As the name implies, they do not count farm jobs.

The problem with the numbers is they rely on businesses accurately doing the survey. Of the respondents, they estimate what the number would be over all so there is plenty of room for error.

The BLS non-farm has long been then announcement to watch, but in the last couple of years a new measurement for employment change has rivaled the original.

Automatic Data Processing

Automatic Data  Processing (ADP) has about 500,000 US business clients for which the do payroll.  They take about 399,000 of those clients and measure the difference in payroll month to month.  When the ADP non-farm first release they claimed it would give us an idea for what the official non-farm would be and it caused quite a stir in the financial markets, but the numbers where not close at all.

The ADP numbers for November 2008, released December 3, where -250k which means there was a loss of 250,000 jobs in the US.  The BLS non-farm number was -533k, meaning a loss of 533,000 jobs.  There are a lot of jobs between the two.

Which one is correct?  

There have been months were ADP was positive and BLS was negative.  The May 2008 numbers, released in June, had ADP at 40,000 new jobs created and BLS showed a loss of 49,000 jobs.  From what I can tell the more accurate release isn’t what is important.  What the market views as important is the truth.  For now the BLS non-farm remains the winner in the non-farm labor report battle, but that doesn’t mean it is the most accurate number.

For more Forex information check back on my website, JordanEnglish.com

Forex Trading Update

I entered the trading competition at ibfx.com.  The winners have typically done well over 100% in a month so I don’t know that I will come in first place, but we will see.  Since the competition started on Dec 1, I am up 12.5% on my account.  

All trades so far have been from my Expert Advisor (EA).  I do place my own manual trades, but I wait for a perfect storm type of trade so it may only be 3 to 5 a month.  If you are not familiar with Meta trader you may think an Expert Advisor is a professional trader that gives me advice on which trades to place.  That would make sense, but that is not what an EA is.  It is a program I made that automatically places trades day or night for me. 

 

EAs aren’t always good because they take out the human element of the decision process so it is important to monitor the trades.  I am not planning on giving away or selling my EA, but there are many out there.  A couple sites that I think would be great to investigate if you are interested in expert advisors would be:

Both of those sites are forums where traders from all over the world help each other test and develop expert advisors among other things. If you just want to start testing some EAs then I would suggest checking out Ron’s website. He has been diligent in posting EAs and indicators he has found for everyone to download. His site is ForexMT4. It doesn’t allow for comments so you don’t know which EAs work best.

Enjoy those resources and I hope they help you in your trading.  I will post more trading updates here at JordanEnglish.com so be sure to check back.

Wizetrade Forex Coach

I worked as a Wizetrade Forex Coach for just over two years. During that time I taught hundreds of people from all of the world with various backgrounds and experiences how to use the software formily known as 4x Made Easy. It was a lot of fun watching the progress people made as they worked to change their lives.

Of course there were some that weren’t so fun to work with. The software was not a get rich quick program and some thought otherwise. Those that put in the effort and followed the steps were able to trade profitable for the most part.

Unfortunately my employment as a Wizetrade coach was severed prematurely and I “moved on to other responsibilities” as my students were told. I am not allowed to seek out any of my former students, but for those that seek me out I am still willing to help them achieve prosperity using the Wizetrade products.