In my last post, K.I.S.S – Keep It Simple Stupid, I have mentioned that it’s of utmost importance, to be disciplined in your trading. There are a few general rules, that every trader should know and should follow, like “cut your losses and let your profits run” and to always use a stop loss to save the traders capital.
I want to give you two great links, that I recently found and find very useful:
The 25-Point Mantra: Discipline for Day Trading by Douglas E. Zalesky.
Those 25 rules are what it’s really …

When developing a trading system, people often tend to make it more complicated than it needs to be. And to my regret, I haven’t been any better in former days.
How come that? After a couple of weeks, after I started trading, I began reading books and websites about technical analysis. There were plenty of chart patterns and indicators mentioned, and as indicators were easier for me to use, when it comes to identifying buy and sell signals, I tried many of them in backtests. One after another… RSI, MACD, Stochastics …

In my last article on forex news trading, I mentioned the importance of keeping an eye on economic news and events.
This time, I want to focus more on trading hours and days – when it’s good to trade and when you should better stay away from the market.
As a daytrader, I hold positions for only a few minutes or hours, and only on accasion for more than a day. But what I try to avoid most, is having a position open on the weekend.
Holding positions over the weekend
The reason is …

Forex pairs respond sensibly to economic news. So it’s a good recommendation to write down the upcoming events for each trading day – a very good source that I use to get the dates of the events for the next days is the Forex Factory Calendar.
If you hold positions for a longer period, then it’s not as important as when you are daytrading and hold positions only for a short time. In that case you must keep track of the events for this day and stop trading before and after …

What is pyramiding? Investopedia says:
“A method of increasing a position size by using unrealized profits from successful trades to increase margin.”
So what does this mean?
When you take a look at the examples on how to trade Point and Figure Charts you will see that I opened new positions along the way down or up the trend. I have made some profits with my former positions, which I have not yet realized – but I could in any second, if I would like to! So I treat this unrealized profits like …

Today has been a very illiquid day for the Forex market. Due to the bank holidays in the USA. Trading was no fun at all, the markets made no significant movements. The only movement it made today has been against my position and I didn’t get a second signal to cover my loss.
So the next time there will be a banking holiday, I will totally keep out of the markets! Lesson learned.