Review of Strategic Tips on Milking the Major Currency Pairs in Live Forex Trading

[forexgreenland]

Hi Folks,

This is Stallion,veteran forex trader and mentor. I would be reviewing strategic tips on how the major currency pairs can be milked. Though I specialize in gbpusd, other pairs would also be taken into consideration during our analysis.

It has been theorized that your state of mind will dictate your trading methods. Experts in the field of trading psychology have pinpointed three main states of mind and how each has a direct effect on a trader's profitability.

These three mind states are "having", "doing" and "being". Psychologists have noted that those new to trading start with a "having" state of mind. As they gain more experience, they move on to a "doing" state of mind. The pinnacle of profitability occurs when a trader moves into the last and final "being" frame of mind.

The "Having" Mind Set

A novice trader may focus primarily on profits. In this "having" state of mind, they are out of sync with the markets. They are blinded by their obsession to obtain the all mighty dollar and what it can afford them. Trading is not viewed as a job that must be mastered, but as a vehicle to escape from a world of mediocrity.

Many traders are in the business to make money, as well as they should be. However, if they are blinded by greed, they tend to take uncalculated risks. Looking at the potential payoff without carefully calculating market trends and other factors is a recipe for disaster.

It is impossible to graduate to a high performance level when you concentrate on "having" instead of how the game is won. If you trade in a "having" frame of mind, you may become frustrated when profits are not immediately forthcoming. With frustration comes a lack of focus. Without the ability to focus, you cannot gain knowledge from your experience on the trading field.

Other negative consequences of this mindset are feelings of frustration and anger. Frustration stemming from a lack of expected profits and anger directed at oneself or the market in general. These adverse emotions will only cause further decline in profitability. Without witnessing gains from one's efforts, an individual may not give their best and may be tempted to "throw in the towel".

The "Doing" State of Mind

If an individual continues on to trade another day, they will eventually move from a "having" to a "doing" state of mind. Learning that there is more to trading than the amassing of money, a trader will turn their focus on learning new methods of trading and what does and doesn’t work.

This state of mind is still primarily centered on how to turn a profit. Although a "doing" mind state is essential to becoming a seasoned adept trader, the main focus is still short of the mark. It is crucial to know what works and what doesn't. However, a skilled trader will tell you there is more to the business then choosing one method and using it arbitrarily to make trades across the board.

Becoming a trader of means requires not only a winning attitude, but also a fine honing of trading skills. To develop these skills, you must make trades using various methods under a wide spectrum of market conditions. Only then can you develop the needed intuition to master the art of trading.

Pinnacle of Profitability: The "Being" State of Mind

A successful trader almost instinctively knows how to make a trade using the best method available for the current market trend and/or condition. This ability does not occur overnight. It is only accomplished through perseverance, knowledge of various trading methods and learning which one works given a particular market condition.

No trade is ever a "sure thing". However, a profitable synchronicity almost naturally occurs when you are faced with a potential trade, have a feel for the current market trends and conditions, and utilize the method best suited for a potential payoff. This "being" state of mind ultimately lends itself to long-term success in the high stakes of trading.

[forexgreenland]

Hi Folks,

We thank God for seeing us through another week and bringing us to a brand new week. More profits ahead,fellas.

Originally Posted by TheRumpledOne

hwwt8h.gif

I think I understand

My question is that your numbers always have a 1.5 : 1 risk/reward ratio but in your posts you talk about 2.5 : 1, can you

elaborate?

Hi, The RumpledOne,

It seems I've been misquoted in a way...from what can be remembered,I'm not sure we talk about 2.5 :1 ratio in my

posts, just a 1:1 and 2:1 risk reward ratio.Maybe you could check again and help bring that quote for us to see. But in

actual fact, I'm trying to write on Risk Management(including Risk to Reward Ratios) in my subsequent posts.
Stay tuned, mon ami.

Originally Posted by TheRumpledOne

zjjs55.gif

Now, I am not clear that I fully understand. :

Neither do I ,mon ami...Seems you are about to RUMPLE UP my brain cells, RUMPLED ONE...lol...

Anyways, from what I can see, you are using SUPPORT AND RESISTANCE (or is PIVOT POINTS?) on the 15min

GBPUSD chart. But at the point where you( or the robot) wrote ''1.8681..go Long) was quite erroneous because you

would have lost close to 81 pips if the trade was triggered at that region.
The long bearish red candle have broken below the 1.861 support and the greenish bullish candle next to it had a low below

the LOW of the previous bearish red candle. So there was no reason, technical analysiswise, to go long at that

region,RUMPLED ONE.

At the point where you (or the robot) wrote ''1.8607 SUPPORT'', the long red bearish candlebar has already broken it,

turning SUPPORT TO RESISTANCE at that point. And if you could observe, price did not in any way CLOSE above

''1.8607 SUP'' line to warrant a decision to buy or go long at that point. That point was then a RESISTANCE POINT

like a ceiling above. What would have being on our mind during price action was to SELL...GO SHORT. And you

would have made up to 81 pips from that bearish bias.

I sure hope you didnt take that long trade that was shown on that chart, RUMPLED ONE. If it were an Expert

Advisor(robot) that triggered it, it wouldnt have been funny,my friend, cos of the losses that might have been incurred.

I want to give thanks to Steve Nison for bringing the ''CANDLESTICK PATTERN'' to the Western Hemisphere from

the East (Japan). And I recommend the book for anyone serious in making money from trading.

Please feel free to ask any questions or make comments.

Thanks...
Stallion..

[forexgreenland]

[01:55:10] Stalion : hi everyone

[01:57:27] fxjedi : hi stal

[01:58:40] Stalion : In the meantime, we've already sold EURJPY early this morning, @ 162.38, waiting for it to get to a target of 97 pips @ 161.41. You can enter at current market price

[forexgreenland]

[01:55:10] Stalion : hi everyone

[01:57:27] fxjedi : hi stal

[01:58:40] Stalion : In the meantime, we've already sold EURJPY early this morning, @ 162.38, waiting for it to get to a

target of 97 pips @ 161.41. You can enter at current market price

[08:57:13] teressa : hello and thanks stallion

[08:57:22] teressa : it would be my first week

[08:57:27] Stalion : price is at 161.94 right now...

[09:17:21] bros1234 : Stallion how are u dong man

[09:17:59] bros1234 : i heard a rumor that u want to render ur broker bankrupt

[09:19:23] eugen3000 : hi Stalion

[09:19:51] Stalion : its not my fault,bros

[09:20:30] Stalion : blame it on the skills

[09:20:44] Stalion :

[09:21:26] bros1234 : i also heard they have conspired against u so i organised a 120 days fasting for u

[09:21:53] Stalion :

[09:21:57] bros1234 : do u mind

[09:22:26] Stalion : take it easy, man....dont overdo it oo

[09:22:57] Stalion : thanx for gesture....anytime..

[09:23:09] bros1234 :

[09:23:29] bros1234 : stal hows cable doing

[09:26:16] Stalion : no probs....

[09:26:17] bros1234 : i lke to have fun

[09:28:52] Stalion : dont know why Alpari is freezing all of a sudden....wats the current market price at ur end,guys?

[09:30:03] bros1234 : 16202 for ej

[09:30:12] maxcruiver : 162.02

[09:30:16] maxcruiver : EURJPY?

[09:30:53] Stalion : yea...

[09:31:53] Stalion : since posting out the wildly successful alerts of last week, av become more cautious and wary...

[09:32:07] bros1234 : LOW volume today

[09:32:29] bros1234 : Summer Bank Holiday in UK

[09:32:34] Stalion : av been getting this freezing of platform at alpari ever since i put in this EURJPY trade dis morn..so

[09:33:23] bros1234 : alpari is inUk

[09:33:27] Stalion : yep....but dat doesnt stop traders from trading....at least, the ones in the US are already up shoving

orders all over the place...

[09:34:03] bros1234 : during Holdays brokers normally have prce gaps

[09:34:38] bros1234 : location can matter n such times

[09:35:05] Stalion : dats why i neglected gbpusd this morning...it looked to slow,with the bank holidays and all...

[09:36:00] bros1234 : low volume generally this morn

[09:36:24] bros1234 : i think the newyork dogs wiill put some force later

[09:51:02] fxjedi : hi all,

[09:56:59] fxjedi : i've entered the eurjpy trade as soon as i got your post,stal,

[10:03:16] fxjedi : Labor Day typically marks the end of a late-summer lull on Wall Street. This year, investment bankers

are beginning to worry that they will return from the Hamptons to find they have even more time to spend with their

families.Senior bankers warn that

[10:03:33] fxjedi : after a tough first half, the outlook has deteriorated further. Does the grim forecast mean that the

long-rumored consolidation in investment banking will finally occur? Business Financial News, Business News Online & Personal Finance News at WSJ.com - WSJ.com MORE TIME FOR GOLF

AND QUALITY TIME WITH THE FAMILY THEN ..8-)

[10:04:29] fxjedi :

[10:07:01] Stalion : lol.....does that mean bankers n traders prefer working dan spending time with their families,jedi?

[10:09:00] gunawan09 : I am agree with you Stalion... Sometimes I just sitdown on front my Pc allday..

[10:09:12] fxjedi : its a newsreport i found,stallion,maybe its all about the benjamins?

[10:13:55] fxjedi : (GE) According to Ifo, the outlook for German exports has deteriorated to its worst level in over 15

yrs - German Press - Ifo's export climate indicator for German fell by 0.08 points to minus 1.24 points (lowest reading

since May 1993)

[10:14:50] fxjedi : GE) According to a report by Der Spiegel, it will take at leat 10 yrs for the German gov't and KfW to

restock risk funds by around €5B, following thier rescue effors for IKB Global outlook: The global economy remains

mired in a stagflationary situa

[10:16:47] fxjedi : On back of weakening trend in growth data, OIS market continues to look for ECB easing of 40 bps

next 12 months; house tips ECB to cut rates 75 bps during same period. Going forward, "we expect a trend of

deteriorating growth conditions, and this will mos

[10:17:06] fxjedi : most likely keep the euro in a broad downtrend."

[10:17:14] bros1234 : fxjedi..good for us as we will make more money shorting

[10:18:13] bros1234 : who cares as long as we pay our bills

[10:18:43] gunawan09 : Ha..ha.. Iam agree wit you Bros1234

[10:18:44] fxjedi : I dont understand, guys....seems the US credit crises and recession is affecting not only UK, but also

Old Europe, like Germany...even the Nigerian Stock Market is presently in tatters

[10:19:32] bros1234 : * USD rose against the Euro on speculations that the drop of the crude oil price support the US

growth. Additionally the German business confidence tomorrow is expected to drop to the lowest level since 2005.

[10:19:42] fxjedi : and the South African Stock Market with the Rand

[10:20:22] bros1234 : fxfxjedi...i am buying gold and sellin all currenices

[10:20:56] bros1234 : including the naiirs

[10:22:04] Stalion : at least the fundamentals are confirming our technical analysis

[10:23:00] russy : yes. fundamental rules, technical confirms

[10:23:33] bros1234 : the charts do no tell lies...iit says what has happened

[10:23:49] fxjedi : hey, russy....welcome

[10:24:56] bros1234 : guys no london no morniing trade...wiill see

[10:25:41] fxjedi : nope.....market information is already discounted in the charts,russy...as day/swing traders, technical

analysis rules,..fundamentals are more better for long term trading , and maybe stocks...

[10:28:51] russy : well, the technical only play out the fundamental......i never forget that

[10:29:47] Stalion : the old time worn argument of who rules....technicals or fundamentals...

[10:32:07] fxjedi : *(Bloomberg) -- The dollar rose for a second day against the euro on speculation a drop in oil prices

will support growth in the world's largest consumer of the fuel. NICE. IT IS ABOUT TIME TO INVEST THOSE

PETRO $ 8-)

[10:33:21] russy : eu has being in tight range..............

[10:36:26] bros1234 : guys 2day seems not a good day for trading

[10:40:12] russy : ye, the session looks drabby

[10:40:34] eugen3000 : Stal, both your trades usdchf and usdcad from friday hit also your 2nd target, amazing, great job!

[10:42:49] russy : stal, cable seems on the way to the north...........wat do you think

[10:46:38] bros1234 : Because the markets are largely sitting on key support and resistance levels right now it makes

technicals much more important and critical than some of the fundamentals we may normally be interested in. Market

sentiment at these levels can be extremely v

[10:49:56] Stalion : glad you noticed,eugen....hope you made some money from those trades?

[10:50:33] bros1234 : am out for now...will be back during newyork session

[10:51:33] eugen3000 : yes, thanks, Stal!

[11:08:57] bros1234 : ii like u fxjedi

[11:10:17] bros1234 : if not that u will lower rates i would have voted u take over from ben benanke

[11:10:56] fxjedi : nothing there,bros1234,its just news feed

[11:11:10] bros1234 : i know

[11:16:32] bros1234 : fxjedi i will giive u my sister...cmon man keep t coming...ts wat i enjoy

[16:53:37] Stalion : bye guys...eurjpy is now at 161.97....target is still 161.41...from what i sent in ur mail this morning..

[16:53:59] paulsimon : sent in email?

[16:54:06] paulsimon : stallion am not getting anything in my email

[16:54:25] tundope : wuts the sl

[18:01:21] Stalion : TARGET HIT!!!

[18:02:17] Stalion : target hit @ 161.41 as predicted on the EURJPY!!

[forexgreenland]

[08:51:15] Stalion : hi fellas

[08:51:22] paulsimon : hi stallion..

[08:51:31] Stalion : Buy EURJPY @ 161.45

[08:51:47] takbal : hi all

[08:52:18] paulsimon : stallion can we enter at market price..

[08:52:32] paulsimon : or 161.45 + spread

[08:52:49] Stalion : TARGET @ 161.87

[08:53:33] Stalion : 2nd target @ 162.00

[08:53:57] Stalion : 40 pips behind, as usual

[08:55:13] Stalion : Morning, caprica...

[08:56:34] caprica1 : hey Stal, I got in at 141.46. If I set my T/P to 162, san I set a T/S at 161.87? Which is about 41

pips I think.

[08:56:57] caprica1 : i got in at 161.46. Sorry typo.

[08:58:16] wilmart : Morning,stallion

[08:58:39] Stalion : no probs...if u got in at 141.46, then 141.06 should be ur sl

[08:58:51] Stalion : Hi there, Wilmart...

[08:58:56] Stalion : howz it going?

[08:59:29] Stalion : i mean, 161.06 as ur sl, at 40 pips away

[09:00:01] caprica1 : yeah I got the S/L at 141.06. Just wondering if I can set a trailing stop at the 1st target point?

[09:01:42] caprica1 : never mind. stopped out!



[09:01:47] takbal : eur IFO

[09:02:39] Stalion : dat bad?

[09:02:44] caprica1 : oh my lord. What happened there?

[09:03:07] paulsimon : look at eur/usd.. new low

[09:03:10] wilmart : really

[09:03:54] caprica1 : is it gonna bounce back up,ya think?

[09:03:59] takbal : 94.8 instead 97.1

[09:04:15] Stalion : hmmmmm....

[09:05:01] caprica1 : summat has got to have happened to make it drop like that so quick.

[09:05:07] caprica1 : any news?

[09:05:45] Stalion : report all red for the euro

[09:06:38] paulsimon : 100 pips..fall

[09:06:50] caprica1 : and it's still dropping. All the EUR charts had a big drop around the same time.

[09:07:24] bros1234 : news is not ur friiend

[09:07:26] orkinv : any news

[09:09:39] caprica1 : 2008.08.26 10:02:24 PRESS RELEASE: SEB: Nordic Outlook: On The Cusp Of A Global

Recession - Sharp Interest Rate Cuts In Europe

[09:10:12] wilmart : ok

[09:11:31] Stalion : Germany is in deep turd

[09:11:55] orkinv : wow

[09:12:21] caprica1 : lol. Turd! I've not heard that word used for years. lol

[09:13:41] Stalion : lol....euroyen might as well go down to 160.12..if care's not taken...

[09:14:10] paulsimon : 160.15 is dailyfx's recommended buy point

[09:15:34] Stalion : hmmmm, dats the support region

[09:18:05] wilmart : welcome masif

[09:19:58] Stalion : some traders might hold out their losses till it reaches 160.12 and wait for price to reverse back to

where they entered earlier....anything lower than 160.12 is a sure thing sign that your trade aint working and you should

get out...remember, guys

[09:20:53] Stalion : no 100% perfection in trading, like in life...news or any unforseen circumstances can turn ur plans

upside down..like euro's doing...lol

[09:22:17] paulsimon : u cant win them all.. its all good for equilibrium

[09:22:24] caprica1 : yeah me 4. Stopped out like a mutha!

[09:22:56] Stalion : its better....40 pip loss feels more soothing than 150 pip loss, right?

[09:23:14] paulsimon : yea.. most definitely..

[09:23:26] masif1 : agreed stalion

[09:23:30] wilmart : yeah...

[09:23:41] paulsimon : i just hope we can earn it back today..

[09:24:02] orkinv : yes ooo

[09:24:05] orkinv : agreed

[09:24:31] Stalion : but if you have a large account, you can ride it out and wait for price to go back....with calculated

risk, i mean

[09:24:37] orkinv : we will paul

[09:24:52] wilmart : sure

[09:26:45] Stalion : any bets that the UK BBA Mortgage Approvals would come out positive by 9.30a.m?

[09:29:06] wilmart : Uk BBA seems a no trade lol

[09:29:27] masif1 : lol

[09:30:12] Stalion : 1 minute to go.....if no trade, den euro decline might fizzle out before d 160.12 region....if a positive

report, we might likely see a turnaround..

[09:31:41] orkinv : ok stalion we are here

[09:31:56] caprica1 : the tension! lol

[09:32:05] masif1 : hi all

[09:32:50] masif1 : got in on the eurjpy at 160.63

[09:33:02] bros1234 : news messed up eu and dragged gu with it

[09:33:14] masif1 : s/l at 160.23

[09:33:15] Stalion : no trade.....the same data came out on the BBA Mortgage Approvals

[09:33:21] bros1234 : we go back to the charts now

[09:34:33] Stalion : govt interventions(central banks), news releases tends to disrupt the orderly flow of the charts once in

a while....anything can happen,guys...

[09:35:08] bros1234 : Expected the unexpected

[10:16:24] russy : stalion has ej bottom out

[10:25:16] Stalion : if its indeed bottomed out, we put a buy stop @ 160.72...1st target @ 161.20...2nd target @

161.58...40 pip stop loss away...

[10:28:53] russy : stalion . a buy stop @160.72? is that not far from market price . pls i m new to this

[10:29:40] paulsimon : yea, only at that level can u confirm an upward bias

[10:30:20] paulsimon : stallion ill handle this

[10:31:32] tahiti : Thanks PS. What sort of limits and stops are typically used?

[10:34:02] paulsimon : there is a buy stop signal

[10:36:08] Stalion : the buy stop is used wen u anticipate that the market price is going towards ur bias....our bias now is

bullish, since we feel the market has bottomed out...at 160.72, it would have to break 3 pyschological resistance barriers

at dat point...

[15:09:06] Stalion : mixed red report card for US in this New York Session

[15:09:35] Stalion : FUELING UP D GU AND GJ BULLISH MOMENTUM

[15:21:37] russy : euroyen is close to day's call

[15:22:09] eugen3000 : 160.72 + spread as always right stal?

[15:22:09] paulsimon : well its hit 160.75.. so now is a time as good as any to enter

[15:25:02] r2r : looks good Stalion

[15:25:24] paulsimon : did u enter r2r

[15:26:20] paulsimon : did anyone enter the trade or am i the only one like last time..

[15:26:35] r2r : i am in

[15:27:57] takbal : me too

[15:28:03] paulsimon : ok..

[15:28:31] r2r : be ready to ditch if it doesnt break 78 region#

[15:31:03] eugen3000 : i am also in at 74

[15:31:59] paulsimon : im in at 67

[15:33:20] paulsimon : ok, almost near

[15:34:25] takbal : looks promising

[15:34:52] paulsimon : it touched 79

[15:35:05] paulsimon : and there she goes

[15:35:13] takbal : its 83 at me

[15:37:58] wilmart : its really riding high

[15:51:28] Stalion : going higherrr.....

[15:52:15] Stalion : trying to break resistance at the eurjpy 160.97 zone

[15:53:11] Stalion : broken it......next step higher

[15:56:24] russy : stalion wat resistance are u talking about

[15:58:21] r2r : i cudnt bare to look, how is it?

[15:58:28] Stalion : it should break dat resistance....many traders are looking to take roll back their profits at the entry

point in the morning before the fakeout..at least, breakeven..so, dere shud be more buying by now



[16:16:06] tundope : we shld start celebratin now stal

[16:26:46] masif1 : well done Stalion

[16:28:48] Stalion : we are looking to break even on our 1st 40 pip loss in the morning...1st target shud give 48 pips..

[16:29:18] Stalion : 8 pips higher dan our 40 pip loss in d morning

[16:29:24] takbal : I think it is hit already

[16:29:49] wilmart : iT HIT THE FIRST TARGET

[16:31:08] r2r : congrats Stallion

[16:31:21] r2r : i think i am all pipped out for today

[16:31:30] r2r : see u 2moro, tired

[16:32:16] Stalion : yes...I forgot

[16:47:41] orkinv : i just checked and it hit the target