| 1. |
Initially set a goal of 20 pips a day |
| 2. |
Use MACD: divergence; otherwise, it just confirms the trend. |
| 3. |
20-30 pip stop losses ?but on the other side of event that caused you to take action. |
| 4. |
Specialize in one currency pair. I love the Euro |
| 5. |
Keep a log. |
| 6. |
Sit on your hands unless you “SEE” something concrete to do. |
| 7. |
Don't scalp. Ride the trend! Currencies trend well. |
| 8. |
Calculate Pivots at midnight ET. |
| 9. |
Don’t buy too soon in a downtrend; don’t sell too soon in an uptrend; currencies trend well. |
| 10. |
Average trading range (ATR) usually fulfilled starting at 3 am ET . |
| 11. |
Forget trading retracements when you catch the main trend. |
| 12. |
Four things to watch out for ... to be discussed later. |
| 13. |
Single versus multiple lots. |
| 14. |
NO MAN’S LAND – except where you see ironclad signals like bar/candle/chart patterns, multiple bottom/top, MACD divergence, trendline break. |
| 15. |
You don’t need to draw pivot points. If you do, they don’t have to be exact. |
| 16. |
Green lights. |
| 17. |
Learn, paper trade, demo, live. |
| 18. |
Look at lower-level chart when price is at a pivot point and moving fast. |
| 19. |
Automated systems kick in at pivot points; therefore, lots of follow-through. |
| 20. |
Shades of gray. Trading is not a science. |
| 21. |
M1/M3 and M2/M4 – like early warning radar, but not cast in stone; S can become R, and R can become S. |
| 22. |
Buying below the central pivot point and selling above the central pivot point can be influenced by signals like bar/candle/chart patterns, multiple bottom/top, MACD divergence, trendline break. |
| 23. |
If bias is to be short, think short – not long; if bias is to be long, think long; go one way or the other, but not both. Try hedging. |
| 24. |
Use standard default settings for indicators. |
| 25. |
Do not trade holidays, Mondays, month-end, quarter-end, year-end. |
| 26. |
Repeat after me, “The trend is your friend.” If the trendline holds, buy the dips in an uptrend, and sell the rallies in a downtrend. Currencies trend WELL! In an uptrend, don’t look to go short; in a downtrend, don’t look to go long. |
| 27. |
No volume figures; but, a very liquid market. |
| 28. |
Take your signals off higher-level charts, unless you see something concrete at the lower level. Remember, the five minute chart is your ‘trim tab.’ It is not to be used for scalping! Use the 5 min to spot price reversal situations, where price is on a tear, and/or where price is moving quickly in and around a pivot point. You won’t know what hit you on the 15 min in such situations. |
| 29. |
Any one indicator like a hammer or spinning top may not be enough ammo to pull the trigger. Look around for more evidence of an impending shift in price direction. |
