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Monday, October 20, 2008

between breakout trader and trend follower.


Still remember when i was newbie in currency trading many senior told me follow the trend, when my trading was floating with -ve pips i will refer to the senior and most of them will anger with me because im not follow the trend, along 2 year i try to understand what is this actually,what is trend. Yeah i know trend is Major movement in once movement but what is the meaning inside the trend.

FInally i realize trend is an important thing did you really need to understand. Trend is like a river,and a river has a stream just imagine how come if you swimming with fight the stream. :D. The answer is yes you can swim but u need to push a lot of energy, same like market once you fight you need to have a lot of capital and tough psychology.

After a long period i try to follow the trend what i get is sometime the profit may with us but sometimes its doesnt. Why these thing happen? im seeking a new guru and ask why. He said what price you buy. 2.0120 is said. Oh that is a correction area. Huh correction.. whats that?. He said just if you understood what is trend you should know what is correction. Day after day week after week, month after month i find what is correction and at last i identify what is correction.

Along 1 year and half i meet a new trading system named chaos, many people told me that system among the best trading system in the world. Wow sound sweet and interact me to learn about it. I buy a chaos book from amazon.com and started with 1st chapter. That book really make you woke up from sleep, bill william describe 1001 problem inside the mind of trader. Arr bla bla bla but what makes me wonder with that system is fractal. Fractal is breakout,breakout is breakaway price.

I try to use it for 1 month and its proven to give a a little or big profit. Thanks to Allah because he meet me with fractal. Started from that im addicted to gambling with fractal.. i buy or sell with a big lot, i dont care about money management, i dont cara about filtering the signal. Because im really addicted. but sky didnt always bright, im loose loose and loose because i couldnt take care the dicipline.

I began a research how to use the fractal wisely, and now ive the answer. Fractal is like you choosing a fish at the market. which one good and which one bad, same like fractal.. which one is the good price and which price you cant open the trade.

Each trader for who are those can generate their own signal they will always keep learning how to increase the probability of analysis and signal. Some trader prefer to follow the trend and some trader prefer to counter the trend espcially who are using THOMAS DEMARK system. But if you ask me, i prefer breakout and im proud if some trader ask what what kind of trader are you? and i said with confidence im a breakout trader :).

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