My Millionaire Goal

Wikibooks

2010-03-09T16:24:53Z

I just “discovered” a new online treasure… wikibooks… I’ve looked at some wikibooks before a few years back, but most of them were incomplete at that time… (I think wikibook was still a very new concept then)

Recently, I’m contemplating doing a research programme in Computer Science, so I need to do the GRE in Computer Science… I realize that there’s very few good books available to help me prepare for the test… Luckily, through some forums, I found out about some very good Computer Science books on Wikibooks… and the best part is, these books can be downloaded as a pdf file for me to read offline… the rendering is fantastic too… Simply too good to be true….

Here’s the link to the main page if you are interested:

http://en.wikibooks.org/wiki/Main_Page

Scroll down to “Bookshelves” to search for the topics you are interested in.
There’s a link on the left menu (Create a book) that allows you to export multiple pages into a single pdf book.

Preparing to Trade with Real Money

2010-03-09T16:22:30Z

The forex market had been range trading pretty much the whole of yesterday (Mon)… Today, I finally see some movement… However, unfortunately till now, I’ve not spotted any MACD Divergence that I am confident of trading…

I intend to start trading with real money as soon as I spot a good chance… but the irony is, when I was paper-trading, MACD divergence were spotted almost everyday… now that I am ready to try with real money… I can’t find a single trade… Not that I am stricter with my selection now… There just isn’t anything suitable to trade… Well, actually, there are some potential trades based my reading of price action… but I am still a novice in that regard, so I am not confident enough to trade them without confirmation from MACD…

I’ll be patient… cause the ability to overcome fear and greed is the ONLY way to win in trading…. Here’s an article written by a fellow forex trader that I think makes a lot of sense… and it kind of answers a question that I kept harping on in some of my older posts… “What is my edge in Forex trading?”…

Update: Student of Price Action

2010-03-08T10:51:04Z

Here’s the update on my previous post:

EURUSD 8 Mar

Conclusion:

EURUSD continued to move up when market re-opened today… Once again showing the reliability of MACD Divergence and price action.

Student of Price Action

2010-03-06T14:49:25Z

I’m a student of the art of price action reading… and a hardworking one at that… So, I’m going to post some charts now and then to record down my questions and thought processes… for future reference….

Looking at the chart below, I probably won’t trade this… because I really don’t know how the price will proceed from here… Still a newbie at reading price action… I see contradicting signals… as listed below… very interested in how this pair will perform when market re-opens on Monday…

EURUSD, where next?

BULLISH

MACD Divergence at point A
A breach of support (Fibo 61.8) that failed at point A
Price action supports a reversal (close is relatively strong, midway from the low)

BEARISH

A breakout of the 1.3567 to 1.3606 trading range (indicated by the two red lines) at point B. However, this breakout seems to lack conviction because the candle reversed and closed at 1.3606.
Further hesitation is evident at point C.

P/S: I have a slightly bullish bias for this chart. This is because a doji (by itself) is not a good signal, unless it is confirmed by other price action)

Lego Mindstorms Cable

2010-03-04T17:41:20Z

Mindstorms Connector Cable

As I mentioned in a previous post, my lego mindstorms wires have disintegrated (I mean the rubber insulation)… and some wires are broken… So, that means I am not able to connect all four motors to my RCX at the same time…. As these parts are no longer sold by Lego (superseded by the Mindstorms NXT), I thought my robot building ambition is going to die an early death.. luckily, I found a way to save my broken wire… A bit troublesome for me, but I guess I’ll give it a try eventually (or get my dad to help)…

In addition, I also managed to find the parts on ebay… First time I love ebay soooo much…

I just ordered 4 new wires…. Hope they’ll arrive soon and be in perfect working condition… then I can start building my ‘Optimus Prime’ soon… hahaha….

MACD Divergence (4th Mar)

2010-03-04T16:53:01Z

USDJPY (4th Mar)

MACD Divergence
61.8 Fibo level
Price Action (Updown bars, bullish engulfing)

My Rule of Three

All trades must be supported by at least 3 reasons.

Another MACD Divergence (3 Mar)

2010-03-04T04:21:39Z

AUDUSD (H1) 3 Mar

MACD Divergence
Breakout of a previous high (not shown on chart above)
Breakout seems to lack conviction, as indicated by price action. The breakout bar has a long upper tail, and the other two bars are doji that represent hesitation.

Like I mentioned in my previous post, I’m focusing on reading the book by Al Brooks… So far, price action has proven to be a reliable way to trade… My success rate is much higher with price action than with systems based on indicators…. especially when I use price action together with MACD divergence… Only problem is, the trades do not occur as frequently as I would like it to… So, I got to learn more about price action to identify more trading opportunities….

Reading Price Charts Bar By Bar (by AL Brooks)

2010-03-03T16:00:53Z

I finally got the two books I ordered from Amazon…

Reading Price Charts Bar by Bar (by AL Brooks), and
Trade What You See (by Larry Pesavento and Leslie Jouflas)

Received them yesterday morning… The postman came when I was still sleeping… Luckily he knocked loud and long enough to wake me up… Managed to catch him before he went off…

Anyway, I’ve started reading the first book… It is really a difficult book to read… there’s loads of information in it… The author is obviously an experienced trader who’s passionate about sharing his knowledge… However, because there’s so much information presented on each page, it makes it hard to digest and retain the information… it would be better if the author added more headings, sub-headings, bullet points and charts…

Initially, I gave myself two days to complete the first chapter… Now I’ve decided to give myself a month to complete and MASTER the chapter… It’s easy to finish reading the chapter, but to fully absorb what’s taught will require much more effort… I’ve decided to read and re-read multiple times and make my own notes to fully master the book… This is a good book… and the author definitely deserves such effort from his readers….

As good as it gets

2010-03-02T15:12:50Z

Pinocchio Bar + MACD Divergence + Key Support Level + Fibo 61.8

The trade setup above is one of the best I’ve posted so far….

MACD Divergence
Key Support Level
Fibo 61.8
Pinocchio Bar (a.k.a. reversal bar or hammer)

This trade also demonstrates one concept… Look at the candle that is circled in orange… This candle’s low is lower than the previous two lows on the chart… Traders who trade breakouts might sell when price falls below the previous lows… In that case, they will be wrong and will be forced to buy to cover… This adds strength to the resulting rally, which probably explains why the next candle is such a strong bullish candle… The reversal bar is thus called a Pinocchio Bar (coined by Martin Pring) because it is lying to the bears that price is going to trend downwards… Bears who fall for the trick will then be trapped…

Most successful traders know that failed breakouts are always great signals… as it is in this case….

Update: MACD Divergence (26th Feb)

2010-03-01T15:20:34Z

Recall my post last Fri regarding the MACD divergence spotted on GBPUSD? (You can find the post here)

That divergence turns out to be a false signal… GBPUSD continues its downtrend today… As stated in the previous post, that trade should not have been taken because of the following two reasons

The forex market was going to close for the weekends in a few hours
The divergence did not coincide with any Fibo levels

GBPUSD on Monday 1st Mar 2010