I’m Ready to Come Back

No, not to trading, that has never stopped.  I am ready to come back to sharing my point of view on the markets. Enough with the delay, let’s get to it.

This image below is a correlation of different time frames for the EurUsd Daily chart.  The White background/Blue lines are the daily movements from 1990 – 2000.  The Black background/Green lines are the daily movement from the end of 2008 – present day (7/172014)

I think you can tell why I am digging this chart.  The similarities are astonishing.

Leave me your comments and let me know what you think and how you think you could use this information.


Sweet, what’s mine say? DUDE, what’s mine say? SAAAWWWWHHEEEETTTT, what’s mine say?

Why are people so upset? Is the Patient Protection and Affordable Care Act unconstitutional? Did you even know that was it’s official name or were you just calling it Obamacare? Have you even read up on it and understand what it is actually enacting or have you just listened to the talking heads and heard their agendas?

I wish so badly that we could live without big government. But I don’t think we are generous/caring enough for that to be possible.  I am torn between wanting to support this because it will, overall, help people in need and not supporting it because it is another example of an over-reaching government.

If you break it apart, at the core is one question. Should one not have access to healthcare because they can’t afford it?

I don’t want to be the one that denies that person, do you?  I don’t think this is the best option, but if it helps those that need help, I can’t really whole-heartedly disagree with it.

If this is repealed with the next presidency, is the status quo still sufficient or will something else be more efficient?

I will say this. If we put as much energy into helping the people we see everyday as we do into raging on the internets, we would be so much better off.  If we bring our whole world of worry from the USA to a 5 mile radius of our home and concentrate efforts there, maybe one day the government will say, “Well shoot Mr Donkey/Elephant, looks like they figured it out after all.”

I have given up trying to change the things I can not control. The effort is better spent on others.

But then again, I am not supposed to have an opinion because I don’t vote.

Why I Used to Scalp, What it Taught Me, and Why I Don’t Anymore.

I think a majority of traders, specifically Foreign Exchange traders, start off with some sort of strategy that looks like scalping.

For those that don’t know, see the definition below from Investopedia.com –

A trading strategy that attempts to make many profits on small price changes. Traders who implement this strategy will place anywhere from 10 to a couple hundred trades in a single day in the belief that small moves in stock price are easier to catch than large ones.

Read more

Several reasons for this are because 1. it’s fun, 2. you get the most action, 3. it satisfies your initial desire to be in front of a chart 24/7, and 4. you think it will make you $$.

How this differs from actually trading 1. I hate scalping, it’s miserable, 2. too much action is usually not a good sign or trading strategy, 3. I don’t want to be in front of a chart more than 15 mins/every 2 or 3 hours, and 4. the realization that you can make money 1000 different ways in the markets.

I will say that scalping gave me the desire to learn how to trade.  It also let me make 1000 mistakes and not damage my account too much, so long as I kept my trades size small (which I didn’t always and it resulted in me blowing up a few or 5 accounts.) But even looking back, I wouldn’t trade (no pun intended) blowing up those accounts. I learned so much, perhaps more, from loosing money, I actually recommend it to new traders. If I have someone who asks me to show them how I trade, I have a few questions I ask and then a challenge.

Question 1. “Are you trading live or demo?” (I think trading demo is a waste of time unless you are still learning what a pip is.)
Question 2. “How much have you lost/gained?” (This is to give me a gauge of their pain/pleasure tolerance)
Question 3. “How  long have you been trading?” (This question is last because I don’t think that time is too relevant, but shows dedication)

Challenge. “Take $500, using no more than .050 lots ($0.50/pip)/trade, and trade to lose every penny of it.  Really TRY to lose $500.  I will show you how I trade once you lose all of it intentionally, and if you can’t lose it intentionally, then you don’t need me.”

“WHAT?”, you may say.  The reason/answer to that question is another blog post.  Enjoy for now! Happy Trading.

Blog is re-opened

Hello my faithful readers.  Today I decided to re-open my blog.  the first half of 2012 has been a very busy one to say the least, but as things clear up, I felt the need to share my journey once again.

In the last year, my wife and I moved states, bought a house, remolded said house, both started new jobs, both sold our cars and both of us bought cars, we had a little baby girl named Elizabeth, and last but not least, Elizabeth’s namesake, my mother, passed away after her 3.5 year battle with stage 4 colon cancer.  

Through all of these changes there are 2 constants 1. my faithfulness in God and 2. trading.  

I look forward to reconnecting with all of you.  


Closing the Blog

Hello all of my readers,

I am going to be making this blog private.  The reasons are many and uninteresting, but it is the right path to take.  If you would like to have access to the blog once I take it private, please send me an email requesting to view.  Thanks for your understanding. Happy trading!

Before you place a single trade.

Read this entire book.

Ok, it’s not really a book, more like a booklet considering it’s mostly pictures and a 12 point font, but great information none-the-less.

I can’t stress enough the idea of trading in small sizes with a lot of reserve capital so you can take advantage of a more attractive price even if you are already in a trade.  Also, take your time when planning and executing a trade, if you “miss” the opportunity, don’t rush the next one, just be ready earlier. Patience will turn into $$’s faster than rushing.

I am constantly surprised by how many traders can gain/lose 30% of their account in 5 pips or less. Such large swings have to stressful or euphoric and will make it nearly impossible to remove emotion from the decision-making.  When I gain or lose 1% on a trade, sure, I am happy or disappointed, but it won’t affect my decision to open or close the next trade.

I have a post in the works that talks about probability and the uselessness of a 3:1 risk/reward ratio, I think it’s brilliant, but then again I also have a degree in Commercial Art and not Statistics and Probability.

Enjoy your weekend everyone! Oh and follow me on Twitter.