Another interesting phenomenon in the market. The manifestation of greed and fear in the market.

This is GBP/USD at 10 am (M'sia time). Currently, the speculators controls the market because hedgers are still sleeping. Speculators are controlled by greed and fear most of the time unlike hedgers who trade in the market for fundamental reason (import/export etc).

Notice the triangular shape (the last pic). Traders are entering long and short positions with tighter target profit/stops each time, trying to outdo each other. Greed and fear.

When you see this, stay away from the market. You'll lose money .

I made some pips entering at blue line and exit at green line though.

This post has been edited by luqmanz: Mar 7 2007, 10:46 AM


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Hopefully EUR/USD will rally when the market opens. 2 hours to go before market open.

Good for you .. let's see some action this evening.

Yup, my position is now positive and it took longer than I anticipated. I hope it will rally higher today. Looking for a chance to add into that position.

Ahah stress galore.

USD/JPY jumped 20 pips today just 30 seconds before I put a long order with the target profit that got hit.

And then I put another long order 45 mins later. I chickened out 30 seconds before it jumped another 20 pips and hit my target profit as well..

There goes my profits.

The moral : master your psychology.

No need to declare or do anything. Don't have to worry about tax. Income generated overseas are non-taxable.

Yes, and that form only takes 2 mins to complete. Opening a trading account is like opening email except you have to scan your passport and send to them.

Yaa I'm still shorting it ...

EUR/USD rallied 40 pips early this morning lol ...
USD/JPY is crashing lol ....

Yaa who would be trading outside market hours that much lol ... I just happened to be watching the chart when it suddenly jumped.

EUR/USD has been bullish since 2005/2006 i think. It just resumed it's original direction.

Btw anyone here went to the Asia Trader and Investor Conference this evening ? It's been a great day for me because I learn a lot of things. What they teaches you may look subtle but actually it helped me answer a lot of question.

Tomorow is the last day of that conference.

Sure. They discussed trading strategies for forex, stocks and option. Also got talks about real estate but I didnt go to any.

One of the best speaker was the broker from CIMB. He has 28 years of experience trading futures,stocks and other derivatives. One of his advice to is to beware of "Academic fundamentalist" and "academic technician". I think he believes these people tends to give wrong information about trading. You wanna learn trading, learn from real traders. That broker I think is gathering RM100 mil for his own hedge fund.

He also shared with us his techniques that he has been using for 28 years. If that techniques has survived that long, probably it will last forever. To me, that's a very-very valuable information. I just included that technique in my trading system and I'm currently backtesting it manually.

Another good speaker is a lecturer from MMU who is also a seasoned forex trader. He demoed how an automatic trading system can turn 10,000 to 400,000 in 7 years. Completely automatic. He plans to start his own hedge funds in 3 years. The only tools he used is simple moving average. Unbelievable.

It's true that simple system works best.

Here you go. Pretty simple and boring but it works and that's what matters. You can use this almost on anything, stocks etc whatever.
If you used this on M'sian stock you should have profited handsomely from the recent bull-run.
His advices :
Always use stop loss.
Don't try to pick top and bottom. It never works. Just be happy with what you gained.


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I don't have that. Btw you don't need EA for that unless you have trouble checking the charts once a week for 5 mins.



Backtesting is testing the system using previous data step by step.
You can make a program that does the trading for you 24 hours without supervision. It buy and sells on your behalf. That's auto-trading.

Marketiva can do that too ... if you find a platform that can't plot moving average, throw it away .

This post has been edited by luqmanz: Mar 20 2007, 02:24 PM

Moving average got many types. You need to use EMA.
There are WMA, SMA, etc etc .... use EMA.
Exponential moving avg.

I think such EA will be hard to program because it depends on the visual to make the call. Not pure "is value X > than value Y" kind of thing.
Perhaps that's why many people throw away their MA system after it fails the EA test.

This post has been edited by luqmanz: Mar 21 2007, 11:37 AM

Yaa .. the famous sideway market that generate a lot of bad signals.

hehe I don't have take profit, just use trailing stop loss.

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Added on March 22, 2007, 10:09 amI hope your SL protected you. I entered long the yesterday's morning. Gonna sit in this for quite sometime.

This post has been edited by luqmanz: Mar 22 2007, 10:09 AM

I move my trailing stops manually.