My Millionaire Goal

Al Brooks

2010-03-13T15:27:00Z

If you’ve been following my posts, you’ll know that I’m quite a fan of price action lately… and I’m not alone… Al Brooks is one of the main person I’m learning from…

I did some Google-ing and found that he has quite a fan-base… found some articles and presentations by him… downloaded them from these two forums… take a look if you are interested in price action as well…

http://www.traderslaboratory.com/forums/f104/futures-i-trade-show-brooks-book-6008.html

http://www.brookspriceaction.com/

btw, I entered my first real forex trade yesterday… made a small profit…

First Real Trade

MACD Divergence
Fibo 61.8
Small reversal bar near the high of a breakout bar

I probably won’t be posting my future trades here… unless there’s something to mention about that trade…

Price Action 12 Mar

2010-03-12T15:26:53Z

EURJPY 12 Mar

Here’s my interpretation of price action for the chart above:

Bar A seems to suggest a bear reversal, which was supported by MACD divergence and resistance at the Fibo 50 level.
The next bar, Bar B broke below the low of Bar A. In fact, it broke below the low of the previous 5 bars, further lending support to the idea of a bearish reversal. It also suggests that the breakout at Bar A is a failed breakout.
Yet, by the close of Bar B, a totally different picture emerge. The bulls fought back and managed to close the bar near the high. This suggest that a failed failure (a failure of a failed breakout) might be happening. A failed failure is a very reliable signal and in this case, we expect many bears to be trapped.
The next bar had the same high as bar B.
Eventually, Bar C broke above the matching high of its previous 2 bars. 2 matching highs is actually equivalent to a double top on a lower time frame. Breaking above this double top makes Bar C the perfect signal to enter long.

It’s 3pm now…

2010-03-12T07:18:50Z

I survived till 3pm with less than 5 hours of sleep last night… I normally need at least 8 hours… Been reading the book “Reading Price Charts Bar by Bar” and taking notes faithfully… 10 more pages of notes to complete for Chapter One… nice achievement…

My back and shoulders are aching now… my head is splitting apart… my eyes are dry and eyelids heavy… I guess this is pretty much like cold turkey when trying to kick an addiction… sleep addiction in this case… I’ll probably take a short nap later… but I’ll persevere… I’m just worried my brain will refuse to sleep tonight from over-exhaustion…. Anyway, more articles to remind me that I can do it… If others have succeeded… I will too… Furthermore, my parents are early risers… so it should be in my genes….

http://www.badlanguage.net/how-i-trained-myself-to-get-up-earlier-in-the-morning

And I like this site, although the badge (displayed on the right) is a bit ugly:

http://www.joesgoals.com/

I want to wake up before Sunrise.. 6am?

2010-03-12T06:43:45Z

I’ve been suffering from insomnia quite regularly since Feb… and I really hate it…. Every night, I’ll go to sleep around 2am… but recently, I can fall asleep only around 4 to 5am… wasting 3 hours trying to coax my brain to shut up and let me sleep is so freaking tiring…. The good bad thing is, my job does not require me to wake up early, and more often than not, I have the “luxury” of waking up slightly before noon… it’s almost like I am a night shift worker… sleeping at 4am and waking at noon… While many may envy me for been lucky enough to wake up so late… I am very bothered by it….

I’ve never been an early riser… but I really envy people who are… people who can wake up at 6am, experience the calmness of dawn breaking (it’s been like ages since I’ve last seen dawn)…, jog, read the papers, shower and have breakfast before getting to work… I’ve never been able to do that… my previous job requires me to leave home at 6:30am… even though I was at the job for a full 5 years… leaving for work so early every morning was a constant struggle… and seriously, not a single morning went by without me cursing and swearing when I woke up…. and I normally woke up earliest at 6am, leaving me with 1/2 hour to finish whatever crap I needed to do… which normally meant I had to forgo my breakfast…

So I really wish I can wake up early every morning… I hate waking up at noon and getting angry at myself for wasting half the day… I hate waking up at noon and not being able to go for a jog/swim/cycle because of the scorching sun… In fact, I hate it that I go to bed so late every night… because I know it is bad for health… I heard any sleep after midnight does no good to our body because the body does its daily ‘maintenance’ (e.g. repair tissues, brain cells???) from 10pm to midnight… But I really can’t sleep at midnight… Damn, I can’t even sleep at 2am nowadays…

Ok, enough bitching…. I’m going to do something about it… and even though I slept at 5am yesterday night… I forced myself to wake up at 9:30am today… which explains why I am blogging at 11:47am now… I’ve found some articles that might help me….

http://www.stevepavlina.com/blog/2005/05/how-to-become-an-early-riser/

http://www.stevepavlina.com/blog/2005/05/how-to-become-an-early-riser-part-ii/

http://www.stevepavlina.com/blog/2006/04/how-to-get-up-right-away-when-your-alarm-goes-off/

I missed this (MACD Divergence 10 Mar)

2010-03-11T15:00:24Z

USDJPY 12 Mar

MACD Divergence
Bar A broke above Fibo 61.8 and a previous high
However, next bar is a small bear reversal bar.

Trade Results (10 Mar)

2010-03-10T15:36:13Z

Trade Results 10 Mar

Haven’t had a chance to trade with real money yet… So far, I’m only confident of trading MACD Divergence… Other price actions will need more practice before I dabble with real money…

Anyway, I made two paper trades today, one of them profitable, the other not…

Win: EURJPY (H1)

EURJPY 10 Mar

I entered this trade because of a failed breakout. At Bar A, the pair broke below the support of a trading range. However, the next bar is a relatively strong reversal bar (short tail at the top). I bought above the high of Bar B.

Lose: GBPUSD (M15)

GBPUSD (M15) 10 Mar

Bar A looks like a reversal bar. I thought bears would be trapped if they entered when Bar B broke below Bar A. Hence, I bought above the high of Bar A, resulting in a loss of 25 pips.

I guess no bears were trapped at B. Maybe the majority of them waited till the close of Bar B before they decide whether to sell. Hence, only a small number of over-enthusiastic bears were trapped at Bar B, resulting in a weak rally.

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)