Dear Sleepless in VA,
I like to think of it as the "bridge", or "command center", of my pirate ship.
The way I have been using that screen is simply as a quick way to see "what is going on (through RAT COLORED GLASSES)" across multiple timeframes for multiple currencies.
But in terms of actual trading
, since I am very much a noob (to forex
, I have been writing computer programs since 1981) I follow TRO's sage advice in that I stick to trading ONE
currency pair. (for the time being, anyway
I went with EURUSD simply because it usually has the narrowest Bid/Ask "spread" at any given time of day. I have a micro account with FXCM, and a demo MT4 account with them as well. I use MT4 for the "analysis" and then FXCM's Trade Station to actually execute - so I am dealing with the emotions of gaining and/or losing REAL money. Sure, not a lot, but it still generates the same emotional responses exactly the way a demo account doesn't
When they say trading is largely "psychological", it is emotions they are talking about - so while I am learning "to see
", as TRO & MO say here, I am also learning to control how I "feel
", especially when I have angered the Pip Gods and They Doth Taketh Them Away - and that is another golden piece-o-eight from the FX Jedi Masters
here that is easy to "poo poo" and ignore by arrogant FX Padawans (like me
), but it really
is serious and important. As TRO put it; he "protects me from me" by strictly adhering to his system and not succumbing to his emotions.
So, in particular...
I wait for one of two things - either a YELLOW-flagged "EURUSD" in one of the RAT TRADER indi's along the top, OR for a "pointing finger" flag to pop on the EURUSD line of the RAT CO-HC-CL monitor in the middle (a knock from what Master TRO would call an "OPPORTUNITY").
THEN I go look at the corresponding currency chart/tab that I already have set up, basically, with my own slightly tweaked version of TRO's "Got Cheese?" template.
There, I look to see what the price is actually doing and follow the RAT rules regarding the alignment of the bar colors and price action to decide whether or not to pull the trigger.
To "pull the trigger", I have a couple of simple BUY and SELL scripts bound to the ctrl-B and ctrl-S keys that place orders with default 10-pip SL and TP.
Then, I pull another chicken from the box here and say a little prayer to TRO as I chop off it's little head and let it's body run around the room. Or maybe I'm the one who runs around the room like that.
One bit of advice that TRO has given on here that has REALLY helped me is his "2% per day THEN STOP
" rule. Following that rule alone has helped me a lot - but damn it is hard to follow after a couple of "wins".