Forex Assassin

Review from the book:

STRATEGY BACKGROUND

This strategy was founded on the most important information the market gives us…Price. The previous price dictates where future prices will go. Keeping tabs on this price action helps us be patient in waiting for the correct entry and keeps us from over trading. Other strategies trade by the adage “ya got to be in it to win it”…to us this sounds more like Las Vegas; worse actually, because with every trade you pay a commission and we want to avoid racking up needless commissions. So we have developed a way that limits unneeded market exposure while still giving us a sufficient amount of trades to make profits. This also gives us a way to take advantage of the Forex market, while avoiding the jiggles and noise often found trading currencies. We concentrated on developing a strategy that would suit the hardcore trader who is sitting in front of his screens day in - day out, as well as the part time trader who might not have all day to watch the markets but still wants to participate. “The art of speculation is knowing when to speculate.” When swing trading the Forex we are looking to measure the range of the market and play the break
out of this range. We look to have one trade a week per currency pair to avoid the trading “chop” that is so often present in the Forex market.

Mastering The Paper Trade (Rules for ANY New Strategy)

It is often said that paper trading is no use because it cannot mimic the feel of having real money on the line. We agree with this, nothing is as real as a live account. However there are still valid reasons to paper trade. If you are looking to trade a strategy that you are unfamiliar with then it only makes sense to paper trade it to understand the different nuances. It will also help in taking some of the emotion out of trading, as you will use the time paper trading to become comfortable with the strategy. Probably the most important and often overlooked aspect of paper trading is using it to put together your trading plan. This is the chance to trade the strategy and adjust it to meet you own personal needs. How many manuals have you bought where the authors have told you what the plan is without
knowing your personal situation…doesn’t make sense does it? We want you to formulate your own plan using this strategy. A couple of basic rules when you are paper trading; Plan on paper trading for 4-6 weeks. Trade the same size you would if you were trading with real money. Record all trades made (And no cheating!!!). Use this time to develop a trading plan to suit your personal situation.

Trading: It’s Your Business

A common mistake we see with new and old traders alike is that they don’t treat their trading as though
it were a business. This is a critical mistake and can cost you money if it is left unattended.
Every day you will have a list of trades, paper or real. These trades and their details need to be recorded
in a journal for future reference. (You should have downloaded two of them when you were taken to
the download page after purchase…If not contact us and we will email it to you) If you’d like to add
anything to it please feel free as this is your own personal trade journal. This journal will be the “proud
father when you follow your rules and profit” and it will also be the “tattle tale little sister” when you
don’t follow your trading plan.

Sample Trading Plan

Mission Statement
To become a net positive trader – 1k - 2k a month no later than the end of the 3rd quarter of this year.
I will not be scared money.
I will follow my plan.
I will succeed.

To accomplish this I will need to add the following:
- Fund an account with XYZ broker
- Purchase a UPS backup battery
- Cordless mouse and printer

Entries
- Only take trades that fall under #1 and #2
- Set my buy and sell stops early Monday morning for the pairs I plan to trade.
- Double check entry calculations
- Start with one contract

Exits
- Look for 50+ pips
- If X pips in the money and comes back to entry get out flat.
- Trades usually go in my favor right away…if I have to wait too long…get out.
- First trade is a 100pip trade…stop for the week

Stops
- No more than 30 pip loss per trade
- Max loss of $300 gross per trade

Record Keeping
- All trades are recorded and kept in a binder
- All trades are recorded in a spreadsheet to tabulate results and show sharp ratio, win/loss % etc.
- Checklist of all things I need during the day

Morning Preparation
- Visit thestreet.com to see what econ numbers are being announce that day
- Visit Yahoo.com finance to see if there is any news from overseas, big earnings etc…overall any BIG market news

Add Contracts
- Needs to be done slowly and carefully
- When have 5-8 net winning trades in a row. And then only increase 1 contract at a time

…and many more will be discuss in this forex trading systems. Click Here! for more information.

---

Did you enjoy this post? Why not leave a comment below and continue the conversation, or subscribe to my feed and get articles like this delivered automatically each day to your feed reader. If you don't have a feed reader, you can always have these articles delivered to your email inbox every day. Click here to sign up.

Forex Trading System - Copyright 2009 | ElegantBlue is a custom theme by Nathan Rice