FOREX and Puppy Dog Tales

Snake on The Windshield

2011-08-11T11:37:00.000-07:00

This week in the markets-
The snake is the little investor. Hanging on for dear life. Confused. Not knowing what to do...
As traders we need to think like the bankers-
if they want us to sell- we need to look for buying opportunities.
If they want us to buy, then we need to look for selling opportunities.
Retracements are the best opportunities.

Patience and FOREX

2009-01-30T13:46:00.000-08:00

This is Axel with his trainer, Nancy, when he was about six months old. And, YES, he still has that awesome white tip on his tail. So cute.
Looking at this picture- Axel just sitting and waiting for Nancy's next command got me thinking...

One of the hardest things to do as a trader is WAIT. Wait for the best set up to occur. Wait for the market to decide what it is going to do. Wait for the target to be hit. Wait for the stop to be hit. Wait, Wait, Wait.

Forcing the market (or trying to) is such a waste of time. And money. Took a trade yesterday, it looked like a good trade. Turned out not to be such a great trade (lost 22 pips)... Did I force the trade? Well, actually, I did a bit. Was it an A trade? Not really. Do I know better than to try this. Yes. Did it anyway? Yep.

Lesson of the Week- Try to at least have the intelligence and patience of a six month old puppy when you are trading.

Be patient. Do not chase trades. Let the market come to you.

Food Stamps and the New President

2009-01-20T12:29:00.000-08:00

What I think about when I see Barack Obama...
No matter what you think about the 44th President of the United States, about his ideas or policies, this is what I think about when I see him...

For almost 8 years I worked as a caseworker in a Welfare Office in Arizona.

I interviewed hundreds of single, working moms that needed help- food for their children was always a priority. The Food Stamp program was my favorite program- what could be better that giving the gift of food to families.

For the parent(s) it can be humiliating, humbling and embarrassing to be interviewed by a stranger who, by law, must gather information about their lives to see if they qualify. They must discuss and document all things personal in their lives- from who lives at their house to their financial situation- just to get some food for their kids. Whether they like it or not, they must comply to receive any help.

When I think of Barack, I think about his single, working mom who received Food Stamps for part of his life. I wonder about the caseworker that interviewed her. I hope his mom was not embarrassed or humiliated requesting help to feed her family (though she probably was). I think of his humble beginnings- the food on their table, paid for by the taxpayers, through the Food Stamp Program.

It amazes me to think that one of the kids I fed through the Food Stamp Program could grow up to be President. Only in America.

Today's FX Chart Journey

2009-01-15T15:18:00.000-08:00

Worked on one currency only Eur/Usd- 20 minute chart, only- profitable day... Note: Phase 1 should say Took Short

Trading Mind Training

2009-01-15T09:02:00.000-08:00

Not feeling very focused this am- need to spend 10 minutes on Trading Mind- see if this improves
ah, better... working on Session 1- Trading to Win Mind Set... how often do we actually take 10 minutes per day to stop and focus on the task at hand?

Hello, Father!

2009-01-14T03:56:00.000-08:00

I see you received my note about my blog (snail mail, of course)...I made this spot just for you: If you would like to leave a comment here, or any where else, please do. Cindy

It's only fair- gotta post my 1st losing trade of 2009

2009-01-08T06:24:00.001-08:00

Got up in the middle of the night to TRADE! Here we go... the house is quiet, everyone is asleep, coffee is on, no distractions- perfect.

Perfect to pick a loser. Went long. Loss of 18 pips. Look at that chart. Could I have picked a worse trade?

What have I learned from this-
Getting up in the middle of the night to trade is not so good for me.

Is it the market action at that time? No, it is all about me. This is the second time I have tried this middle of the night thing and all four of my trades were loser. Focusing at 2am is apparently hard for me.

The first question to myself is- why do I think I need to trade at this time of day. Answer- no distractions. So, what do I need to do to fix this distraction problem during the part of the day when I am awake enough to focus. Answer- Go to smaller time frames. I have been working with 30 minute charts but it can take some time for trades to set up and then I have to manage the trade. A lot can happen in 2-3 hours.

New Plan: Practice on getting faster with 10 to 15 minute bars. Then 5 minute bars. And get some sleep.

First winning trade of 2009 Plan

2009-01-06T07:29:00.000-08:00

First trade of my "in and out" goal for 2009. 25 pips in 30 minutes. Not too bad. Lots more to come, but had to document the FIRST!

The most important aspect is that I followed my trading plan as designed.

Homework

2009-01-03T07:12:00.000-08:00

Nothing is more powerful for your future than being a gatherer of good ideas and information. That's called doing your homework.
from The Treasury of Quotes by Jim Rohn.

As a student of FOREX in 2008- I loaded my mind with all ideas good and bad. I experimented with daily systems, robot systems, long range systems, feed systems, short term systems, systems based only on fundamentals and systems based only on technicals, systems based on both.

I wondered quite often- what am I doing? Pick a lane and GO.

Through this journey I have found out- all ideas and training are good. I now have the knowledge to PICK what works for me- it has not been a waste of time.

So, this is my plan for 2009- I will focus on short term, intra day trades(5 minute to 1 hour charts) . On my wall I have a list of how many net trades/pips per day I need to make to cover my ordinary expenses. My main focus will be on refining this. While waiting for intra day trades to set up and managing the trades that do set up I will study longer term trade set ups which will fund my larger goals.

I found my lane and am ready to GO!

Happy New Year !!!!

2008-12-31T14:57:00.000-08:00

May this coming year be the year that you tame not only the FOREX market but ALL things crazy in your life. The best to you and your family in 2009!

Axel's Mom

Snow and Forex?

2008-12-18T07:31:00.000-08:00

Yesterday and last night we had our biggest snow storm in 30 years. Okay, for those of you that live in cold climates- 4 to 5 inches is NOT a big deal. Well, for desert dwellers it is mighty unusual! The desert is beautiful, always, but with snow it is amazing. It snowed in Las Vegas yesterday, also. Snowmen on the Strip. Very Cool! My home is 100 miles south of Vegas in the high desert in a little town called Kingman.

So, what does forex have in common with snow?... it is cold- with no emotion. The markets have no emotion- just bars and charts. A snowflake- has no emotion. However, with both we might feel great emotions- in the markets (anticipation, fear, excitement) but the market itself has none. The same with a snowflake- we might feel great emotion with each snowflake (serenity, peace, excitement) but the snowflake itself has no emotion.

The major parallel between the two- make sure to drive carefully whether you are navigating the markets or driving to the store to get your puppy some Milk Bones.

Trades I will look back on some day and say DUH!

2008-12-11T06:24:00.000-08:00

This is a trade I got into on a recommondation- go short- got in and got stopped out. I had no conviction with it because I was taking someone elses word for it. I did not get back in because I thought they were wrong. And then it dropped, just as they said it would.
What did I learn from this? If you are going to take someones advise on a trade then you need to follow it through to the conclusion and not stop in the middle if it goes against you.

Why FOREX and Puppy Dog Tales?

2008-12-09T14:35:00.000-08:00

One fall afternoon I was looking at my puppy, Axel, thinking how cute he is. His big brown eyes just warm my soul. Then my husband came in from the backyard. I knew that look and hoped beyond hope that Axel would live to see another one year and two weeks. Of course, it really is NOT appropriate for a puppy to rip the ground wires for the electricity to our home (nearly) off the side of the house. Something about lighting strikes and the house not been protected.

So, why would I think that trading FOREX (trading in the Foreign Exchange Markets) has anything to do with puppies- it is technical, with charts of currencies, ask and bid spreads, more charts, pips, global markets and more charts? Certainly, NOT warm and fuzzy... at any time.

But, I got to thinkin'. The day I started my trading career I was very warm and fuzzy about the whole "trader" idea. Saw an ad on TV and my husband said- Gee, honey, you'd be great at FOREX. You are great at seeing trends at your job. You do it every day and make changes in your workplace for the betterment of all according to the trends you see. I thought, by golly, you are right! I guess that is what I will do with my life- watch trends and get rich. Simple.

Ordered my FIRST trading education program, got it in the mail, hugged it. I am off to riches!

After a few weeks of study I came to understand that making a living at FOREX is not fuzzy, is not warm, it not prone to cuddling. It is quite like a new puppy- warm, fresh, sweet. Until you are sleeping with him on your chest enjoying the warmth and friendship and he wakes up for no reason and bites you with his sharp, uncontrollable, pointy puppy teeth. This is like the realization of the study of FOREX- it is the most awesome study in the world... but, be careful of the sharp teeth.

Would I trade in my FOREX or my puppy because of the sharp teeth. NEVER! My puppy will grow up and I have calmed the sharpness of FOREX with knowledge.

That's all for now- Axel's in the backyard. Gotta go check on the ground wire.