My Trading Style

This writing is what I promised to some “buddies” who want to know how I’m doing my trades.

Before you read this, please keep in mind that I am only HUMAN, though my username contains “god” but I assure you I’m just as human as you :)

So, as long as I’m making mistakes too, I really don’t want to show off or trump up anything. All I wanna do is just sharing my own experience in trading gold simply because I can be what I am now because once in my life, there was somebody who shared his own experience to me too.

Now we begin,

I begun my margin trading years ago and to be honest, I was not a successful trader with all those call margins and thousands dollars of losses. I have traded various market and commodities, from TRB (Tokyo Red Bean) to HSI (Hangseng), from Cable to JPY. Nothing worked for me. Until someday, seeing me in front of the chart, my brother in law told me why I didn’t trade gold since its price had been rising up and became the most profitable instrument for his friend.

So, I decided to give it a try. At last, from January 2011 until now, I’ve been trading gold only since it is profitable for me too.

My style in trading gold is very simple. I don’t use complicated technicals anymore, just a simple way to define support / resistance and a very strict discipline to open positions in the market.

Steps to trade my style:

1.      Define the support/resistance (S/R) level from 5M, 30M, and 1H at most. Almost not necessary to use daily chart or longer time frames as I am an intraday trader / scalper.

2.      The entry or open position (I prefer BUY, but it depends on main trend) is whenever price almost touches the support level. The key is patience to wait the moment and not to be greedy, just put only a little at a time and always prepare for averaging.

3.      The exit point is just before it touches the next resistance level.

4.      In case of the price moves to the other side, buy more positions before it touches lower support level for averaging my BEP.

5.      Sometimes I use volume analysis and RSI (14) weighted to confirm the entry point.

6.      I always put Stop Loss when having SELL positions but almost never use it when holding BUYs. But I have to remind that it really depends on the strength of your margin.

Important things to remember:

1.      Before making an entry, first make sure that the price has already slowed down and stuck in 5M chart. If the movement of the price is still strong downside (in bullish situation and vice versa), do not enter even though it touches support level. Usually when price movement is still strong, it will break that support. Remember, this is my self-defined support, not conventional one.

2.      I can open 5 – 10 positions every day. Begin usually with a small lot and averaging with same or bigger lot. The distance between each open position depends, mostly each $5 to $15 or every support area I already defined.

3.      The STRENGTH of my margin is CRUCIAL. In this case, I do a strict risk management by keeping my margin being able to hold the price up to about $150 down with all my open positions. (Remember, this is only for BUYING positions, for SELL position I always use Stop Loss). I always count my margin each time I open a position. So when it reaches my margin strength limit, I will stop averaging and hold positions. I think $150 for endurance is quite enough these days.

4.      Never chase the price if it’s already too late to enter the market. Better waiting rather than losing. When it begins correction, then I’ll take the position.

5.      Always watch fundamental / strong impact news, since this news has strong influence in gold trading when it comes out. But please be wise. News and Opinion looks the same but it totally has different effects. Ignore opinions but pay attention to news. One of the minus points about Forex Factory is that it posts many opinions that sometimes very bias.

6.      The keys of the success are the patience to wait discounted entry point, strict risk management, and disciplines, and of course, self-experiences.

I have opened an account that I link to trade explorer at FF. This is a small account with just $1.200 initial capital. I made this account exclusively for FF Trade Explorer to prove that my trading style will work out and that trading with limited capital can be profitable too.

I set Stop/Targets and Pending Orders so it can be seen for my buddies’ lists. In that way you can always check my positions. But once more I have to remind you, please be wise, since I’m ONLY HUMAN with all the mistakes and misperceptions. Please don’t follow it blindly, use your own analysis because you and I still have many differences in amount of lot opened, strength of the margin, characteristic, trading speed, risk taking manners, and many other factors.

I don’t make that explorer opened to influence any person take same position as I do. I open my explorer just to share my trading experiences lively.

I let my trade explorer open with hope that my sharing can be useful to somebody exactly just as to me in the beginning of my trading.

Anyone may follow my positions, but the risks are on your side. I’ve warned you…

Cheers and happy trading.

Gold-god (2012-10)