(Forex)Reaching the next level

I am happy to say that this month I have manage to exceed what I am earning previously before I quit which is no.4 in my Steps towards financial freedom(Listed Below)

All this I did in less than half a year since I quitted my last job, 4 months after I found my strategy and executed it.

Praise and thanks to Lord Jesus for his blessings. :)

My Steps to financial freedom (From Trading forex)
1. Losing Money while learning (Paying School Fees)
Learning Duration : August 2008 - March 2009

2. Reaching Breakeven in Trading
Completed Month: April 2009 - May 2009

3. Consistant Profit in Trading
Completed Month: May 2009

4. Earnings Exceeding my own salary before I quit. (Reached this stage)
Completed Month: August 2009

5. Earnings Exceeding my high flyer friends salary
Projected Month: October/November(Likely) 2009

6.(Tentative Step) Withdrawing $ more than my salary
Projected Month: December 2009

7.(Tentative Step) Withdrawing $ more than my high flyer friends salary
Projected Month: February 2010


Hope this is an inspiration for you all to start working towards what you want in life. Cheers

(Forex)20 Points Trader Should Never Forget

Came across this pdf from ForexFactory, I think it's a nice read also

http://www.4shared.com/file/123477381/b9ad0bcb/20PointsTradersShouldNeverForget.html

I like the points:

6. Don't trade to be rich

7. Trade to win

I think if you trade to win, you are consistantly refining your method to make the trade work but if you trade to be rich, you are just focusing on the $ gain

In short, focus on what generates the money, rather than the money itself and the money will come naturally.

(Forex)Automated Trading Championship 2008!

The First Place was taken by Kiril Kartuniv from Bulgaria. His Expert Advisor executed only 27 trades, but for 3 months managed to increase the deposit till 170 thousand dollars


27 Trades, 3 months! Initial deposit 10k!

Take a look here

http://championship.mql4.com/2008/users/Liliput/

and the top 3 winners

http://championship.mql4.com/2008/news/532

(Forex)Questions I will ask someone investing for me in forex

If you read the previous blog post you will probably be able to relate something here :)

1. Do you have a system you use for trading?
2. What edge(Advantage) does your system provide for you in trading?
3. Do you practise money management?
4. How much % of your account are you risking everytime you open a trade?
5. What is your Risk:Reward Ratio?
6. On average What is your Win:Lose Ratio?
7. On average How many pips do you earn when you win and pips you lose when you lose?
8. Any thing that you would like to mention that you use to reduce risk in your trading?

If you are already trading you can question yourself with the above questions and see the answers.

The more 'I don't know or Not Sure' answers means the more 'Gambling Style' the trading is.

*Will add more questions as I thought of them.

(Forex)An equation I thought of

I believe how much you earn in trading I believe could be summed in this equation


% of Profit Trades * Amt Earned/Profit Trade
_________________________________________ = Earnings

% of Losing Trade * Amt Loss/Lose Trade


What's the big picture?

As you know, as the Divisor gets smaller, your earnings get more, in maths term, anything divided by zero = infinity, therefore if you have almost no chance of any loss in trade(Not possible), your earnings is unlimited. So the main Point is to reduce potential loss by considering
potential '% of Trade Losing * Amount Loss/Lose Trade' the way you trade

Many probably focus
MORE on 'Amount Earned/Profit Trade',
LESSER on '% of Profiting Trade' and
NEVER thought of potential '% of Losing Trade * Amount Loss/Lose Trade'

So in short, no point looking at the profits possible when a few loss can wipe you out totally. Focusing on reducing losses actually increases your earnings, that's a fact.

(Forex)The 5 Steps to becoming a successful trader

I came across this pdf and I think it's a good read.

If you are trading already, you can see which step are you at now.

If not, you can take a look at the phases that you are likely to go through the next time you start trading.

http://www.4shared.com/file/122793059/102f13c1/5_Steps_To_Becoming_A_Successful_Trader.html