After spending 6 months in Shanghai, China, I continued to be involved heavily in training the FX dealers/trainee, especially after the company setup an office equipped with a dealing room in the financial district. Of course, most of the Chinese students I had spent 6 months training were also selected and employed to be our FX dealers. However, I was eventually pulled out of Shanghai, China after the company decided to expand more aggressively in India. Although the plan in India did not really worked out, I continued to lead the trading session daily in Singapore and training of FX dealers when they were deployed to Singapore for a month stay.
All this training and leading had nurtured me to be more confidence in my trading, but the only thing I lacked of was consistency in my result (P&L). Hence I started to explore more on how to get consistent result, via trading plan, trading strategy as well as money/risk management.
Firstly, I came up with a trading plan for myself, since I am more comfortable with scalping, I decided on small but consistent win. Taking into consideration of brokerage commission, I need to take at least 8-10 profitable trades daily if I were to get out with a profit target of 1-1.5 pip per trade. Tried out the trade plan but still did not get any outstanding result. I also soon came to realise that the downfall of a trader was over trading. Hence I need to cut down the numbers of trades taken.
Next, I also have to manage my money/risk management, so that I do not lose too much or risk too much. With the most simplicity method, I came up with a daily stop loss limit of 15 pips, however I soon realised that at most times, I may need to risk more than 15 pips on a single trade. Still, I need to study more into this money/risk management.
Last but not least, the strategy that I should use for my trading. Since I had been practising price action trading for the longest time, I should evolve my strategy around price action trading. Which I had been doing so but without consistency, there seem to be a missing piece to the puzzle.
All this training and leading had nurtured me to be more confidence in my trading, but the only thing I lacked of was consistency in my result (P&L). Hence I started to explore more on how to get consistent result, via trading plan, trading strategy as well as money/risk management.
Firstly, I came up with a trading plan for myself, since I am more comfortable with scalping, I decided on small but consistent win. Taking into consideration of brokerage commission, I need to take at least 8-10 profitable trades daily if I were to get out with a profit target of 1-1.5 pip per trade. Tried out the trade plan but still did not get any outstanding result. I also soon came to realise that the downfall of a trader was over trading. Hence I need to cut down the numbers of trades taken.
Next, I also have to manage my money/risk management, so that I do not lose too much or risk too much. With the most simplicity method, I came up with a daily stop loss limit of 15 pips, however I soon realised that at most times, I may need to risk more than 15 pips on a single trade. Still, I need to study more into this money/risk management.
Last but not least, the strategy that I should use for my trading. Since I had been practising price action trading for the longest time, I should evolve my strategy around price action trading. Which I had been doing so but without consistency, there seem to be a missing piece to the puzzle.
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The beauty of things was that I am now based in Singapore and much training activities had toned down drastically. Hence I had a lot of time on hand to explore and trial. I also started participating in forex factory forum more actively. Most of the previous forum I used to participate in had either shutdown or had changed so much that not many were active. Forex factory continued to be the one with the highest participation rate.
In the past, when I trade there was no objective or target, and that cause me to just keep trading resulting in over trading which eventually burn you out and take your profit away. So I came up with a daily target and work towards achieving this daily target which leads to my final objective in trading.
Also through the participation in forum, I came upon a trading strategy involving Bollinger Band (BB) and Smoothed Moving Average (SMMA). This strategy is for scalping and target 8-10 pips per trade, which suit my plan and trading plan. This strategy basically provided me with the signal of an opportunity and through my analysis and resistance & support, I decide whether I want to take the trade.
In the past, when I trade there was no objective or target, and that cause me to just keep trading resulting in over trading which eventually burn you out and take your profit away. So I came up with a daily target and work towards achieving this daily target which leads to my final objective in trading.
Also through the participation in forum, I came upon a trading strategy involving Bollinger Band (BB) and Smoothed Moving Average (SMMA). This strategy is for scalping and target 8-10 pips per trade, which suit my plan and trading plan. This strategy basically provided me with the signal of an opportunity and through my analysis and resistance & support, I decide whether I want to take the trade.
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