A Proper Trend Trading

“Think how calm you could be, knowing that your risk is always the same.” – Van. K. Tharp

Hello:

You don’t need complicated strategies to make money on the markets. What you eventually need are logically simple, stupid but effective trading systems. The more complicated you make your trading, the harder you make life for yourself and the more stress you undergo. I’ve tested hundreds of trading systems personally and I’ve chosen very few of them that can survive the market conditions. My aim is to make money (and help my clientele make money as well), no matter the direction of the markets. When you accept the fact that the markets aren’t predictable and you develop simple strategies to catch many pips no matter what, you’ve already made it.

Here are my trading results last week:

AUDUSD

Order: Sell

Status: Open

Profit/Loss: -98 pips

EURCAD

Order: Buy

Status: Open

Profit/Loss: 733 pips

AUDJPY

Order: Sell

Status: Open

Profit/Loss: 12 pips

NZDUSD

Order: Sell

Status: Open

Profit/Loss: 55 pips

There are no trades on EURNZD and EURAUD at the moment. The above instruments are what I mention in my weekly trading analyses based on what I do on a real-time account.

GBPJPY Strategy

Order: Sell

Status: Closed

Profit/Loss: 135 pips

Order: Buy

Status: Closed

Profit/Loss: -95 pips

The simple logic behind the GBPJPY strategy will soon be explained in details in a future article. It doesn’t matter the type of trading techniques you’re using as long as you make profits with it. As long as your average losses is less than your average profits, you should be very much OK. Unless otherwise requested, I deeply want my clients to count their pips on weekly basis (not on monthly basis); and that’s the reason behind the GBPJPY strategy and the ones below.

Other Strategies

EURSUD

Order: Buy

Status: Closed

Profit/Loss: 120 pips

Order: Sell

Status: Closed

Profit/Loss: -40 pips

Order: Sell

Status: Closed

Profit/Loss: -40 pips

USDCHF

Order: Sell

Status: Closed

Profit/Loss: 120 pips

EURNZD

Order: Buy

Status: Closed

Profit/Loss: 150 pips

Order: Sell

Status: Closed

Profit/Loss: -60 pips

The strategies that use EURUSD, USDCHF and EURNZD take a total of 15 working minutes per week, with total net profits of 250 pips (this is the real financial freedom!). In the next few weeks, I’m going to add the signals from these extremely simple, but effective strategies to the signals sent to my clients. The purpose is to make decent overall weekly profits. Likewise, the logic behind these would soon be discussed so that you can see why these trading ideas will constantly outperform the market no matter the market directions.

A Proper Trend Trading

I’d like to tell you about one strategy that can also withstand the markets. It’s to do with a proper trend trading. You see, trading would be much easier if you could know the right timing (entry). Many times you could’ve seen that your trading decisions were right – only that the markets would’ve hit your stops before going in your forecasted direction. If only you could enter the markets at the right time! After you’re able to identify the direction of the markets the challenge now remains getting in at the right time. This is the purpose of the strategy I’m going to give you free.

The strategy information

Timeframes: Daily and hourly charts

Instruments: Any pairs and crosses

Indicators: RSI and EMA (parameters will be sent to you on personal request)

Buy rule: Buy when the price is above the EMA on both the daily and the hourly charts of an instrument, and the RSI is oversold on the hourly chart (The RSI is only on the hourly chart while the same value of the EMA is on both charts).

Sell rule: Sell when the price is below the EMA on both the daily and the hourly charts, and the RSI is within the overbought region on the hourly chart.

Stop loss: 100 pips from the entry price

Recommended position size: 0.01 lots for each $1000

Risk per trade: 1%

Risk management and exit technique: Move you stop to breakeven after you’ve gained 100 pips, and after your profit increases to 200 pips then you can lock 50% of the profits. The more you gain, the more the amount of your 50%. Just remain in the trend until there’s a reversal. But if you like, you can exit as soon as you’ve gained 3 times your initial risk.

NB: Please you may want to open a nice demo account with a reputable broker in order to practice with this strategy for at least, 2 months, until you’re confident in it. You need patience in waiting for the right signals. This is no Holy Grail, but the survival logic is to gain more during winning steaks than you lose during losing streaks. This system won’t work for you if you don’t follow its rules. This is a swing cum position trading system, and therefore, results are evaluated after months, not after weeks.

I’d like to conclude with the quote below:

“Human beings are impulsively driven by greed and the desire to dominate. They will take the easiest way to get and keep what they want. This often has negative and unintended consequences that are frequently destructive. Humans are not naturally prone to accountability or self-discipline, which is why we need laws, rules, boundaries, and limits in society. Trading requires self-imposed limits and these limits must be created through personal accountability. You must know what you require in the way of protocols, strategies and rules in order to create effective self-limits and self-control.” – Dr. Woody Johnson

Your questions and opinions are highly welcome.

Thank you.

With best regards,

Azeez Mustapha

Forex Signals Strategist, Funds Manager &Coach

Senior Analyst

FX Instructor, LLC

Email: amustapha@fxinstructor.com

Yahoo! Messenger ID: saazalmu

Get my Forex trading signals at: http://www.fxinstructor.com/en/analytics/ituglobal

Nice trading tips are available at: www.ituglobalforex.com

And my past articles are also available at: www.ituglobalforex.blogspot.com

NB: There is risk of loss in trading, but it is possible to be a successful trader.