Lesson 4

Hi guys, hope you still reading my blog :).....i know all you guys must be wondering,

what the hell is this blog?
why is it taking so long to start trade?
how we supposed to get money if we only learn just the basics?

yep, that's all right on my mind :) but still the most important on this FOREX is PATIENCE, PATIENCE, PATIENCE and DISCIPLINE. that's true the number 1 rule to survive is just PATIENCE and DISCIPLINE.

PATIENCE  : just open position when all the indicators is fulfiled (it may consist 1,2 or even 5 indicators to shoe the same color)
DISCIPLINE: always follow the rule of your system and what is have carved in your soul of trading

so what is the importance the basics......how do you want to operate FOREX if you don't know what button to push to start LOL.

ok let's start

1. Treat this Forex as an investment in the bank

just calculate it how much is the growth we will take in a YEAR if we put our money in the bank? 1%, 2% or  5%, i believe right now it's only 5%  max per YEAR. remember per YEAR. just imagine would be more enough if you get 60% per YEAR, i said yes....if you have $10000 capital (for me) because the greed of every one must be different (it related living cost in each country). for asia's developing country maybe it's enough to living $6000/12month=$500/month, but what about if we living in the ADVANCED country like JAPAN, ENGLAND or maybe USA , i believe it's must be not enough at all, so maybe we had to put more capital until $100,000 (it's very huge).but once again it's all depends how we accept it as INVESTMENT not as a GAMBLE.

why don't we just use $1000 capital and get $10000....then you must be GAMBLING on your money. Put away this thinking from your thought because it's just like a POISON on your blood. just 1% of the trader that can make it happen (not even PROFESIONAL/EXPERT trader is include this 1%), so who is can make it.....it's the GAMBLER not a TRADER.

2. Trading Mentality

it's also important, as you can know FOREX is NEVER always going UP or DOWN, but forex is like a ZIGZAG it's right sometimes the price is going up high but also must be have retracement. that's why never be to fear or greedy.

Greedy

 let's say you risk $10 (1 pip is $1) , buy at price 100  and in instant you have get floating profit $20 (it's like the price have reach 120 but you not close it)and you not CLOSE it or TAKE IT as you still thinking the price is will continued GOING up maybe until you get profit $50 (it can be or not because no one know the price :) ) but suddenly the price is DROP until 90 , so what happen next is you lose $10.
so how to lose this greedy....
it's easy just set every time you trading just RISK and REWARD 1:2 (lose and profit)  in case on the above we have reached it, we should take it :)....but never RISK and REWARD 2:1 lose $20 win $10. let me illustrate it imagine you have 10 times trading and on this trade ther is only 50:50 ration WIN and LOSE let's calculate it using risk $10 per trade using Risk and Reward 1:2

5 Wins * $20= $100
5 loses * $10=  -$50
                     ---------
still profit           $50

with Risk and Reward 2:1

5 wins * $10 =   $50
5 loses * $20=-$100
                    ---------
mines                -$50

i believed there are MANY system that win accuracy is up to 70%

Fear

how do we get out the fear it's easy

1. play with money that you already set up to lose.

Never put your borrowed money to play in forex , because every time you want to open position you will thinking "how if this lose", "how i'am gonna pay back", the BAD NEWS is no system in forex has 100% win, but 100% PROFIT is lot. the point is not on the system, but the man behind the trigger is determine the success or not. ( i wll explain it under this statement)

2. play with rules and patience

Just like real life what will we going if we never obey the rule (even the rule is still made by human not GOD), like example if there is traffic light show red? what should we DO...keep going or STOP....i guess i don't have to answer it...
just like in the forex the indicators can say something like that too (even still, made by human or our self) if we OBEY it i believe we will survive if even we are not DEAD but the money is gone.

3. play with money management

• I want to risk my money $1000 per trade , do you think it's big to you all....too bad it's still small to me :)
• i want to risk $1 per trade, what do you think guys, is this too small for you....but to me it's big enough to me :)

why i said $1000 is to small while $1 is to big the answer is.....

$1000 per trade From CAPITAL $100.000 so it's just 1% of my money RELAX even this trade is lose i still have a plenty of money :)))))

$1 per trade from CAPITAL $2.......OH MY GOD I hope this is the best SIGNAL i ever HAD, just keep Praying because i had to return the money that i borrowed from my FRIEND

so you can see the different right.

back to case above that i mentioned before...
if we had have a good money management even when we in FLOATING MINUS WE DON'T TREMBLE BUT with bad money management  EVEN WHEN FLOATING PROFIT WE STILL TREMBLE


conclusion for this 4th is....

1. Treat this Forex as an investment in the bank
2. Trading Mentality

Please don't angry at me cause i still not giving you the indicator or system :)

YOU MAY HAVE GOOD SYSTEM AS MANY AS POSSIBLE but without those 2 fundamental on your trading soul it's meaningless

even the best indicators has only 90% of accurate usually wth R:R 1:1 , if you use 50% of your money i believed you will fear and start to think your job is fruitless

example again
day 1. 5 trade: 4 wins and 1 lose $100
trade1 win $50
trade2 win $75
trade3 win $100
trade4 win $160
capital        $100
                  -----

                 $485

trade5 lose$250

-------------------

capital now $235 (+$ 135) it's good almost 150% 

day 2. 5 trade again 1 lose and 4 win

trade1 lose $125

equity now $235-$125=$110

on the next trade i belief you will lose your confident then feel fear and also will double your risk to cover your loses (to thinking again it's just back o the start again, even we have won $10 equal 10% of Capital whicj mean we have invest in bank for 2-3 month, why should we angry....but that is human nature we don't accept loss we just accept WON)  

Lesson 3

Lesson 3 is all about how to understand your MT4

1. Market Watch (Pair)
it's same as Product that you want to buy or sell.
Pair is a Country's currency
ex:USD (US), AUD (Australia), GBP (Great Britain), JPY (Japan), EUR (Euro), CHF (Swiss), CAD (Canada), ETC.

2. Time Frame
Time Frame is a place where the candle stick is made. If you choose
 M1   : Every 1 minute      candle is made
 M5   : Every 5 minute      candle is made
 M15 : Every 15 minute    candle is made
 H1    : Every 1 HOUR    candle is made
 H4    : Every 4 HOUR    candle is made
 D1    : Every 1 DAY       candle is made
 W1   : Every 1 WEEK    candle is made
 M1   : Every 1 MONTH candle is made

3. Window Chart

Window Chart is a place for selected pair you want to play. how it work, just klik left mouse on selected pair, then hold and drag it to the right.

4.  Terminal
on here there are a lot explanation here

Leverage: Is the bonus you receive from the broker to become able to trade large amounts with having a small amount of money in your account. When the leverage is 100:1, it means you can trade 100 times more than the money you have in your account.

Margin: Is the money that will be placed and engaged in the positions that you take. For example to buy $1000 with the leverage of 100:1, $10 from your account will be engaged in the position ($1000 / 100 = $10). You can not use this $10 to take any other positions, as long as the position is still open. If you close the position, the $10 margin will be released.

Balance: Is the total amount of the money you have in your account before taking any position. When you have an open position and its profit/loss goes up and down as the market moves, your account balance is still the same as it was before taking the position. If you close the position, the profit/loss of the position will be added/subtracted to your account balance and the new account balance will be displayed.

Equity: Equity is your account balance plus the floating profit/loss of your open positions. For example when you have an open position which is $500 in profit while your account balance is $5000, then your account equity is $5,500. If you close this position, the $500 profit will be added to your account balance and so your account balance will become $5,500. If it was a losing position with -$500 loss, then while it was opened, your account equity would be $4,500 and if you closed it, $500 would be deducted from your account balance and so your account balance would be $4,500. When you have no open position, your account equity will be the same as your account balance.

Free Margin: Free margin is the money that is not engaged in any trade and you can use it to take more positions. You remember what the margin was, right? Free margin is the difference of the equity and margin. At the above example, your position margin is $10. Lets say the equity is $1000. Therefore, your free margin will be $990 ($1000 – $10). If your open positions make money, the more they go to profit, the greater equity you will have, and so you will have more free margin.

Margin Level: Margin level is the ratio (%) of equity to margin. For example when the equity is $1000 and the margin is also $1000, margin level will be $1000 / $1000 = 1 or in fact 100%. if the equity was $2000, then the margin level would be 200%.

Margin Call Level: Is the level that if your margin level goes below it, you will not be able to take any new position. Margin call level is determined by the broker. When it is set to 100%, you will not be able to take any new position if your margin level reaches 100%. When you have losing positions, your margin level goes down and becomes close to the margin call level. When you have winning positions, your margin level goes up.

Stop Out Level: Is the level that if your margin level goes below it, the system starts closing your losing positions. It will close the biggest losing position first. If this helps that the margin level goes above the stop out level, no more position will be closed. Then if your other losing positions keep on losing and the margin level goes below the stop out level again, the system closes another losing position which is the biggest one.

5. Template

Template is a system that you have save, so you don't have to do it again step by step if you want to apply to another pair you want. how it work, 1st you got go add several indicator, then just save it on template BAR, after that every time you want to use it, just call it at template

6. Navigator

Navigator is consist of your current log in account, script, expert advisor, also indicator (same as on the insert TAB on the above). here is the place you want to add your EA/ROBOT

i guess that's enough for lesson 3

2nd step

Hi everybody, hope you guys still read my blog :) 

Ok let's start with 2nd step. After you success install MT4 then you need the system to "WAR" because if you don't have any single of system then you screw up.

there is 2 main system to start this "WAR" that is MANUAL AND AUTOMATIC. i will explain to you all this two system

1. MANUAL

Manual system has 2 main group too.

A. Use a technical system.

     Technical system is use various indicator to decide open position. 

B. Use fundamental analysis 

     Fundamental analysis is only look the news coming (usually from forex calendar or from bloomberg).
     No need to monitored the trading all the time

2. AUTOMATIC

Automatic trading nowadays has many many way, because many people always follow the technology implemented to forex.let me tell you just a few i know of this trading system

A Using EA (Expert Adviser)
This EA is not human this also called ROBOT. EA is a system that made by someone to open automatically based on the indicators. So this trading will follow certain indicator to open your position.

B. Using trade copier.
This method is copying from other people trading (usually we have to pay them for monthly or weekly or fixed pip ) a known web for this system is ZULUTRADE

C. Using Hedge Fund Manager
This method doesn't have to pay at early, you have pay usually at the end of month. It take about 60%-40% comission for profit (this is for good track record) but for just average guy usually about 75%-25%

Advantage use Manual and EA (not hedge fund or trade copier)

Emotions

Emotion has very big role on deciding Open position whatever it's greed, fear, or satisfaction.

that's true EA doen't have emotion.it will Open position once all the requirement is fulfilled, but sometimes even all the indicator say yes, still have false signal, just imagined how if that logic behind the EA is not good.beside the EA is still human made, but our brain is made by GOD. but still manual system is also depends on that human self to control their emotion.other wise it's better use EA. ( i will explain about this later)

Time

Manual must be monitoring every time (it depends on your time frame) but still we must watching it all the time), mean while the EA just need VPS to run 24hours/1 year.

Conclusion for this 2nd step is

1. Only use Manual system so you know how it's look a like

2. Choose manual system you prefered but don't ever use more 1 system in same account
IMPORTANT!!!!!!!!!!
ex: if you decide to use technical then you should have more than 1 account.
for fundamental usually just need 1 account

3. Know the basic very well by using DEMO account and also made profit at least 3 month consistent

4. After you understand a system and have profit on DEMO, then you should use real account (just use 20% source of your money. NEVER USE 100% ALL YOUR MONEY

5. If you can double your account in 1 year (i just assume the profit for 1 month is only 5%-10%), then you may add your money again

6. In this step it's up to you whenever you want to use EA or just continued with proven manual system that you achieved (the advantage use EA is we don't have to use emotion and time, all we need is just money that you think ready to throw up if the EA is BAD) i believed on this section you don't have to worry since you can have reliable income from the manual.


REMEMBER NEVER USE 100% ALL YOUR MONEY ON EA

The 1st Step

Hi my name is Gracias Lombardi. i would like to share my experienced in forex.

who is me.....yeah who is me, why i write this to you all, why i want to teach you all?
1st i just a trader with 2 years experience. did i success on forex along this 1,5 half year....NO, i BLEW it UP.am i now success in this last 6 month ....i said just average, because i only can make 10-15% profit a month. so why i want to teach you all.......it's because i want to us feel the same JOY on FOREX and NEVER GIVE UP..

but how we do it?

RELAX i will tell you, with no secret

1. DOWNLOAD your MT4 from your chosen BROKER (like pepperstone, insta forex, fxcm, etc)
after that instal it.

2. After you install it then open your MT4 and then open a demo account

Congratulation on your 1st step

IMPORTANT!!!!!!!!!
DON'T EVER USE REAL ACCOUNT BEFORE YOU MAKE PROFIT ON YOUR DEMO

I WILL REPEAT AGAIN

IMPORTANT!!!!!!!!!
DON'T EVER USE REAL ACCOUNT BEFORE YOU MAKE PROFIT ON YOUR DEMO