Is Forex Trading a Good Idea? – I Did This For 5 Years

I can’t be termed as a veteran trader on the FX Markets by any imagination but I did give it my best shot for over five years.

Is Forex Trading A Good IdeaAfter spending thousands on scammy products and getting involved with promises of making outrageous fortunes, I was fortunate to come across a seasoned FX Trader, Dan, who used to deal currencies for a bank over in Hong Kong.

I did ask him on our first meeting, Is Forex Trading a Good Idea? – His response was, it works for a few but most lose. Speculation regarding 95% of traders lose is unfortunately the reality.

According to Dan, the reason most traders fail is they concentrate on short term charts without looking at the overall trend. This can cost you dearly.

If the Daily trend conforms to the Weekly trend and you trade with the trend you are putting the probability in your favour. Bear in mind, as news comes out, the markets can change with unpredictable uncertainty with immediate effect.

The best plan is to let the banks and institutions trade the news and let the individual traders join the new trend on the pullbacks. Never try and fight the institutions, you will only find a black hole.


The two trade plans I learnt and traded with:

I learnt to trade two strategies with him:

  1. The Daily retracement strategy using the 20 Moving Average (m/a)
  2. The Weekly retracement plan using the 20 m/a

The Daily retracement strategy involves:

  • Make sure the weekly trend relates to the daily trend
  • Wait for the pullback to the daily 20 m/a
  • Flip over to the hourly chart and wait for the hourly 20 m/a to cross the hourly 80 m/a (the 4 hour 20 m/a) and enter the trade back with the trend.

The Weekly plan was similar but taken from the Weekly chart.

  • Wait for a pullback to the Weekly 20 m/a,
  • Go to the 4 hour chart, wait for the 4 hour 20 m/a to cross the 4 hour 50 m/a.
  • The weekly pivot has to be below the candles for an uptrend and above the candles for a down trend.
  • Wait for the retracement back towards the weekly pivot and enter the trade back with the weekly trend.

The Daily plan involved looking through charts every day whilst only checking once a week for the Weekly strategy.

The Daily strategy is explained here:


The Weekly retracement – Trade from the weekly 20 m/a

Before contemplating dealing live with this plan, follow Dan’s rules:

  • Set-up your charts with the indicators on a MT4 Platform
  • Learn the system thoroughly to fully understand the entry points
  • Never deviate from the plan. More plans = more losses
  • Never enter a trade without a stop-loss – Breaking news can hurt
  • Always double a demo account prior to dealing live
  • Find a Broker who allows you to start off with a low cost per pip
  • Never trade the news – Leave that to the big boys
  • Accept losses

I used GKFX as my Broker as they allowed you to trade at a low cost per pip.This is beneficial when dealing with Weekly charts.

Your stop loss on the 4 hour entry can quite easily be in excess of 100 pips. It needs to be below the last low or above the last high depending on the trend for safety.

This amounts up if you’re unfortunate to have a few losses in a row.

I never entered a trade on a particular currency if important news regarding that country was breaking that day. We used the Forex Factory calendar to check the red news alerts.


What currencies did I deal in?

All the majors against the dollar and Commodities

  • EUR/USD – GBP/USD – AUD/USD – NZD/USD
  • USD/CAD – USD/JPY – USD/CHF
  • GOLD – OIL

Weekly chart indicators:

  • Exponential 20 m/a
  • 50 m/a
  • 6 m/a (Daily 20 m/a approx)

4 hour indicators:

  • Exponential 20 m/a
  • 50 m/a
  • Weekly Pivot (without s1,s2,s3 or r1,r2,r3 showing)

The weekly pivot is a great indicator as it’s based on a 61.8% Fibonacci retracement level from the highs and lows of the previous week. All markets pullback on every time frame and this pivot provides a good level but bear in mind due to the unpredictability of the currency markets they don’t always pullback to it, sometimes they go through it.

As long as the weekly pivot is below or above the candles after the 4 hour 20/50 cross dependant on your trend I was happy. I’d just wait for a few Heikin-Ashi candles that pullback.


Here’s how it works:

I would first look at the Weekly chart to determine the trend.

Gold Weekly Chart:

Gold Weekly Chart

The yellow line is the 20 m/a. The blue line – the 50 m/a. The black line following the candles is a 6 m/a which equates to roughly a daily 20 m/a.

I like to see the candles come back through the yellow line without the black line crossing.

Where the arrow is, I am happy. We are only looking for long trades as the candles have retraced back to the Weekly 20 m/a and the black line hasn’t crossed.

I wait for a pullback to the 20 m/a and go to the 4 hour Chart and wait for the set-up.


Gold 4 Hour Chart

Gold 4 Hour Chart

The yellow line is the 4 hour 20 m/a, the blue line is the 50 m/a. The Weekly Pivot is purple.

I look for the yellow line to cross the blue line. The Weekly Pivot has to be below the candles. I wait for a few red Heikin-Ashi pullback candles and enter long.

The reason I used Heikin-Ashi candles are they are more of a trending candle. Charts look a lot smoother than normal candles.


How profitable was I? – An Honest Answer.

You’ve hit a vary rare page where honesty delivers to this answer.

I traded for over five years. I had a very professional approach to dealing currencies. I stuck religiously to my plan, enjoyed the winning days, accepted the losing ones.

In among working this plan I demo’d various popular strategies including, RSI, CCI, Stochastics, Daily and Monthly Pivots, Head and shoulders, Double tops and bottoms, moving off support and resistance levels using naked charts, etc, etc.

I never doubled a demo account using these strategies so there was no point trading live with them – Period!

I was profitable many times using this Weekly trending plan but overall, ended up with losses roughly equating to my wins. I had to admit after working the markets for so long, a sustained living didn’t materialise. I had to make a final decision and leave my Currency role.


What about you?

If you are thinking over having a go – Good Luck, tread very carefully!

I thoroughly enjoyed the experience. It’s by far the most stressful job online. A role littered with scams, unscrupulous people pumping out duff information, playing their own book and believe it or not, even the large companies are involved here.

Best advice – listen to no one! There is no Centralised Exchange, hence the door is left wide open for scammers to enter – there seems to be no Governance to kick them out.

Blog

I turned my attention to start earning an income from blogging. Looking back it’s the best decision I have made.

Notice my website name ‘Stress-Free Income Building‘ – It solely derives from my avenue in the currency markets.

All I do is create web posts. Each post I write has the potential to deliver income day in day out. I write a couple of posts a week – Multiply these over a year and I’m sure you can see the potential.

Daily, I accumulate my income without any stress or losses associated with my previous job. I’ve created a wonderful lifestyle of happy days – It sure beats looking at charts all day, I can assure you of that.

If you fancy building a stress-free income, forget currency trading – you won’t find it there. Have a look at Getting Started, maybe you fancy doing the same – It’s the #1 recommendation for creating a business online today.

Absolutely no previous experience is required for this role. You’re taught right from the basics through to success. That’s how I and over 600,000 other members got started. This company are experts in helping you turn your passion into an online business success.

Don’t try this alone, learn from the ones who know exactly how it’s done.

It’s completely free to start, stress-free, legit and great fun to do – something you won’t find in the FX markets.


SimonThanks for looking.

Good luck with whatever you do – be careful,

Simon.


 

2 Comments

  1. Thanks for sharing this sounds very intresting, I must say that this is the first time that I have heard about this. Sounds like a person getting invovled with this type of work can earn a nice income. Thanks again for sharing and have a good day.

    • Hi Norman,
      I tried my best for five years but ended up leaving Forex Trading as I couldn’t make a sustained living from it.

      The high riches stories by many is taken out of all concept. It’s by far the most stressful online job going.

      You can get whipped out of positions in a blink of an eye through breaking news.
      Trading on Daily and Weekly charts requires large stop losses. When these stops are taken out you can lose a lot of money but when the trade goes with you, you can earn a lot of money.
      Problem is there’s no definitive answer to your results – It’s pure speculation.

      I’m glad I’ve got a stress-free way of living now – happy days!

      Thanks again,
      Simon.

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