Know your Identity

To know your identity is to identify your good characters. In trading this good characters must be supported by good habbits that you consistently discipline yourself.

Couple of weeks ago i was anouncing for my book however i still have 1 final chapter to make which is the How to identify yourself  as a trader. In my early stage of learning forex a question pops out to my mind. a question that will explain everything and make learning forex easier. and that question is Who I am????

As i have continually ask this my self there wher a lot of answers that i wrote but unfortunately most of them are negative - and kinda negative. Im not gonna list in details but what im going to show you is a guide to identify yourself as a trader.

Guide  (A)  to know your identity

1. List everything you knew about your good character
2. in every good character you wrote down write a detail explanation about what you did consistently to have that good character. 
3. List everything you knew about your bad character
4. in every bad character you wrote write a detail explanation about what you did consistently to have that bad character
5. Know your Calling in Life - this is kinda hard but it will be advantage if you knew your calling. In case you dont then find a deeper reason why you want to be a trader.  when i say deeper it has to be the last rope your holding when everything is falling down. cause believe me outside force and situation will make trading hard that most of the trader will give up.  
6. As a Filipino you have to know the strength of pinoy. So for this part Im going ta ask you to do some research about 

• History of Filipino (who they are before sapaniards came)
• Why Filipino is good in cover music video???
•  If you are to be with foregners in the room do you tell yourself that they have better idea or explanation than yourself? if yes explain in details then search deeper about the strength of pinoy. If No then explain the contributing factors of your answer. 
•  Find out about Filipino Leaders (Pauliticians) 

1. watch bonifacio movie
2. watch Rizal movie
3. watch Gen Luna movie
4. search deeper the good side of Ferdinand Marcos
5. Know the crownies of Ferdinand Marcos and their role today

The above Guide A will clearly tell your self who you are as a person and who you are in your community. if you miss this guide then there will be great chances for you to give up trading or to copy what others is doing which you believe it will bring profit to your trade.

The main purpose of Guide A is to boost your confidence and to tell  yourself that you are built for something great. It doesent mean on trading but something big and great.


Guide (B)

1. you are oblige to read books. any financial enhancement book is good. For a start I need you to write a book report on

     1. my maid invest in stock market - by Bo Sanchess
             Write something about compounding and its application to yourself

     2. Poor dad Rich Dad - by Robert Kiyosaki
              write something about mindset because that is your identity

     3. CashFlow Quadrant - by Robert Kiyosaki
              Write something about Quadrant  and cashflow plus the application

Reading books is one of you good characters because it bring knowledge.

2.  By know if you are trading in demo. You must have a journal note book. No journal no trading policy.

On your journal make sure you will have this content

• Time and date you created a trade plan - (analysis of the market)
• In trade Plan what currency and what time frame you took the trade. 
• The tools you used (5 basic tools)
• Modification of tools and reason for modifying it. 
• What are the contributing factor why you took the trade. 
• What are the contributing factor why you identify the direction of that pair
• Win or Loose write the details how many pips? did your take profit was hit. do you follow Money Management. 
• Win trades what are the factors that you can improve your trade. 
• Loose trade time and date currency pair, tools and reason for taking this trade. How can this be the ringer on your head not to do it again. 

3. Find a coach for them to check your perfomance.
4. Find a group community  that share their downfall and success in trading.
     

Guide B is more on characters that you need to adopt as your identity, this will protect you on inconsistence.

Best and Worst trades

One factor to determine what kind of trader you are is by having a journal on all your trades. this include of course the loose trade. a journal that explain why you took that trade. It is a must that you have enough data on currency pair and its time frame of trades, the tools you used and the indicators that encourage you to take the trade.

Swing Pattern trading + High Frequency trading

STEPS

1. Pattern is a must = bat, gartley, butterfly, head and shoulders and ABCD pattern
2. Fibonacci retracement must reach .618 but not above 100%
3. Identify the support and resistance above .618 is preferable  this will give you guide on the potential dropzone.

Note :
Head and shoulder = if head measurment is 30 pips from the .618 Fibonacci retracemetnt then consider advance trading.
Harmonic Pattern = if point A mesurement is 30 pips away from .618 Fibonacci retraement then consider advance trading.

4. if more than 30pips then must wait Price rejection tip and Price rejection re- test tip. It is important that this rejection tip will follow the rule of .618 retracement.  if by chance it will form another higher rejection tip then the retest tip must also be change.

5 Once you get the the rejection tip and re-test rejection tip then its time to use Moving average 20 and Moving average 50. entry point must be the crossover on 15min chart.

Note:
It is a good sign if re test price rejection tip will come first before the cross over on 15min chart
MACD is used to confirm entry point. the volume must be down to high or High to down. never trade crossover if macd is not in the right place.

Watch the video below to better understand my point.

Find your Profitable trade Plan

discovering what particular trade that you are most consistent in profiting will take time. this is because it is a must that you must first know who you are as a trader. This is also one of the reason only 90% succeed being a trader. Know your self will help you identify specific time frame, specific tools and even specific setup on trading.

When i started trading I was introduced by scalping which you can see on my dec 2016 trades. I have manage to profit on this. here is the link

https://youtu.be/o3CsWLdkbJs 

on that video I manage to double my account in 3 weeks and the same time I manage to loose it all at end of dec 2016. It was an experience that i can not forget.


The reason for it is scalping is not really what i want for a lot of reasons. that is why consistency wise, I failed,

Until on early march i have discovered pattern trading which eventually i created my own signiture trade plan that until now it is giving me profit. the good news is this pattern take place almost every week on different currency. example of this was the USDCAD last week.

https://youtu.be/9oWvO-_PQUc

Currently as of Today I spotted again this pattern which im going to create a video of it watch the video below

Divergent Head and shoulders pattern