My Methodology

Alright, time to get down to business...
Before we go any further I think it's important that I layout the basics of my method. I'm not however, trying to preach a "holy grail" system, I'm only laying out my system to help you better understand my thoughts going forward and learn, if possible, from example.
First and foremost my system is based around price action swing trading, from now on I'll refer to price action as PA. PA also known as tape reading, is based analyzing how, where and price moves. This includes studying candle sticks, support and resistance and rarely any other indicators. Ok so let me give an example:

Above is a 15 minute chart of the Australian dollar against the US dollar.

The two grey lines represent support and resistance lines, there is also pivot points and the ADX indicator. 

As a PA trader ill first notice the support line (bottom grey line). It can be seen that this acts as support because price has visited and reversed from this area twice. Same with the resistance line price has visited and reversed twice. Also we can see that the ADX<25 so we can therefore conclude that the AUD/USD is stuck in a range. Now candle stick analysis also sheds light on the strength of these levels as the long wicks at the resistance line and long tails at the support line shows that the market is rejecting these levels. 

Ok, so analysis done how would I trade this? Buy at the support on a reversal signal and confirmation candle with a stop 20-50pips away with a limit at the resistance line. It's as simple as that. 

Now that you know how I analyze, I'll layout my basic fundamental rules and speak to them in future posts.

First: The trend is your friend. Find where is price going in the long term and never trade against it.

Second: Trade within your means: Never over trade or risk more than your account can handle.

Third: Never get into a trade you don't understand.

Finally: Market Sentiment>Technical and Fundamental Analysis.

Bad Start

I may have started this sister blog incorrectly and for the wrong reason. Honestly the purpose of these blogs is to profit but when profits get in the way of the quality of the product, its just not good business. So from here on out I'll be approaching this family of blogs and the newsletter with a sense of obligation to my viewers because without viewers there is no business. 

So how will the "new and improved" Traders Handbook Operate?

1.  I will not offer day trading videos. This is due to the fact that IB is a killer and I won't have enough time and honestly, day trading isn't my specialty.  I'm a price action swing trader and changing that just to earn a dollar is just a road to failure of this blog as well as my trading stake. 

2. I "promise" at least one post a week, most likely on a Thursday. This post may range from a trading video/account update to a "preach" about some aspect about trading.

3. I will simulate trading/saving using excel to track trades from a demo fxcm account. this will include; profits and losses, capital additions and saving side accounts. 

So hopefully you'll enjoy what i have to say as well as learn something and don't feel afraid to comment, subscribe or email me, because the more sharing and discussion, the better it is for all.