Part 12 (The Essence-Conclusion)So you have been reading all these very nice theoretical things in this article, and it all sounds good, but you think you just want to learn how to make money in forex, you just want me to teach you a forex trading system that will allow you to consistently make a profit. Please have a little bit of patience. We are going to get there. I was trying to make a very important point first, and that point is to please forget whatever strategies you learned in other markets, and please forget about conventional technical analysis when it comes to forex, because these tools were simply never designed for this market. That doesn’t mean that they are bad tools, they are just bad tools for the forex market. A hammer is a very good tool, especially when it comes to nailing stuff, but a hammer is a bad tool for washing windows.
I could’ve just simply said that most of conventional technical analysis is no good for trading forex, and it would sound simply as an opinion, which you may have accepted or rejected, but I really hope that because I spent so much time explaining how the forex market works in general, that helped you understand where I was coming from, and it can help you make a better decision of what tools to use in your trading, and what tools not to use. Let’s continue, but for now, I suggest you reject every single technical analysis tool you ever learned about, reassess the logic of what happens in forex, and deeply reevaluate the formulas behind each technical indicator, in order to see whether there is a logical merit to them that applies to the forex market. And don't forget about your biggest enemy in any market, and that's the law of probability. You might have no idea what's going on and have no idea what you are doing. You might be using one of those green and red lights software, or a completely useless and illogical indicator, but because of law of probability, you will still be right once in a while, and it'll give you false hopes about whatever indicator or system you are using. Please don't ever forget about the good, old logic. If it's not logical, don't do it.
Part 13 (My Forex Trading System-Money Management)So okay, you are probably sitting in your chair, and you can’t wait for me to get to the point, and to finally spill the beans about my forex trading system. I just hope you are not expecting too much. You know, I am a very logical person, and I don’t have any magic formulas. The only magic formula I know of is to donate at least 10% of your income all the time. That’s truly magic. The more I can give away and donate, the more magical my life becomes, both financially, spiritually, and emotionally, and I think this is one of the few universal principles that will apply to anybody who uses it. So part#1 to my forex trading system is to donate at least 10% of whatever trading profits I make. At the end of every week, if I am profitable that week, I actually go and donate 10% of those profits to a charity. I like supporting a charity, called http://www.megfoundation.org/, I make deposits straight to their bank account. If I am not profitable, I don’t donate. I always keep a fixed trading balance in my account, that way I know whether I am profitable or not. For example, if I had $100,000 in one of my accounts, every week I would withdraw anything above that amount, and donate 10% of that. If my account was to drop below that, I would keep trading, without making donations, until it’s again above that amount. Even if I have a negative week, I still donate 10% of whatever money I make in other avenues, outside of trading. That’s how I manage my money. I have a base balance, and I withdraw any profits every week, if I wanted to increase my balance on that particular account to let’s say $200,000, I could do that by a deposit, but not trading profits, and then I would have new base balance.
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