The benefits of brain concussion

Well, my forecast for the yen proved accurate. 455 pips - an excellent start after a long break in the work. What does it mean? Sometimes helpful cause me concussion of the brain :)

GBP/JPY - The excellent level for buy

No more headache, broken teeth got healthy, time to get back to work. I personally enjoy working with GBP/USD and GBP/JPY. Because of the great volatility, i.e. adrenaline.

Today it is obviously not the best day for USD on the market, and the situation is much worse with JPY. CPI in Japan has been declining for 8 months in a row now, BOJ Target Rate will definitely stay on the same place. Speaking about Australians and New Zealanders they are not going to have fun with the high inflation according to the latest records. That’s the reason why I expect the revitalization of the carry trade and the declining of the JPY exchange rate. At the moment there are good levels for buying GBP/JPY. It indicates the Bullish divergence on the day chart. I think that in the next two-three months we will reach the historical maximum.


The situation is more difficult with USD. Futures show the great possibility of FED rate declining to 4.5%. It is negatives for USD. However it happened for USD to grow up in such situation. Anyway USD might raise on the short period. So, watch and think over.

The Best Documentaries

My Stress Killer

This is my Stress Killer. His name is Pound. Excellent saves from psychological tension and help me in the work :)

Video recorded last year in Haiti, which shows two ships extraterrestrials making local recognition (22 sec video)

Demo or Real account?

When after trying the demo-account you will start working with the real money listen to yourself. You will realize how differently you act now. That is why you want to learn operating a little but real money. Learn by practice, not by a theory. Learn to ride a bicycle on the real bicycle not on the exercise one in the gym.

Let’s see what is happening when you are using a demo-account:

1. No matter how much you want to analyze fundamental and technical conditions of market it is never going to happen. Your subconscious will not let you. It is sure that even if you make a mistake you won’t loose anything.



2. No matter how much you try to be serious about entering and leaving the market it is not going to happen. You run no risk and you know it.



3. On the demo-account you won’t learn to follow the money management. And why should you if the profit is enormous and enormous looses cause no anxiety.

As a result – working on the demo account teaches you nothing.

Money found on the street will most likely be spent on the stupid useless things. It changes if this money is earned. In my mind studying trading on the demo-account it is the same as studying karate by books but not in the martial arts class. Thus going outside (or on market) will result in bruises and money looses.

Speaking about my first experience. I started on the demo account. When I first went on the market with the real money I made $7 in the first deal. I was all kinds of sweaty, blood pressure got high, heart was pounding loudly. And I had only $500 on my account! I assume that you might be stronger, nevertheless – learn things by practice.

Psychology for success

Let’s start with the psychology. It’s strange but a lot of textbooks relate to technical analysis of market. To my mind this aspect takes not more than 5 per cent of success. The psychology (i.e. your mental composure) is much more important.

Thus I worked out 3 major points which help you to stay concentrated:

1. FOREX is a business, not a game. Majority of people (including me myself 5 years ago) mistakenly think of FOREX as of a casino. I suggest you forget that word while working on FOREX. It will help you patiently concentrate on important things. Go ahead and try to win quick money gambling and you understand what I mean. It is just not working that way.



2. Make up you own rules and follow them. It is your system, your strategy. It should include signals for opening and closing positions, money management, your work schedule and break schedule. Do not overwork, give yourself rest. What about psychology? It is comparatively easy to create bunch of rules but the thing is to have yourself follow them accurately.



3. Be thankful for every small success, even if it is only $1. But don’t get overexcited if the income is considerable, euphoria may cause the overestimation which lead to the lost of composure. Don’t panic if you failed, except it as an experience. Besides if you were following the money management rules when this happened it is alright. After each deal analyze both technicality and your emotional state.

By following these 3 steps and having lots of practice you will most likely get steadiness on Forex.

One more thing – you want to start with the small amount of money on the real account. Use demo-account only for acquiring knowledge of platform. This approach will train you emotionally. Using demo-account you can make good money, that makes you feel self-confident. But when you start working on the real basis it all disappears. It is caused by the lack of training. I will speak of this in one of the next posts.

Luke Hadley extreme wrestling documentary (7 min video)

Prologue or broken teeth

A couple of days ago I went outside to smoke. Two bastards beat me up, took my money (2 dollars - all I had on me), caused me concussion and broke teeth. What does it mean? It is time to quit smoking. Plus I would’ve given them 4 dollars if they’d let me go. Snap :)
Anyway, head’s in hell, so I took days off and started blogging.

I am gonna speak about 3 things – Forex, Forex and once again .. FOREX! I have always wanted to make money simply by spending time on my computer. I guess that’s my fucking laziness. Press one button, another one and voila – whole out of money in the pocket. So, when I found out about Forex I realized this is my cup of tea. After awhile as I lost first amount of money it turned out that laziness is not going to work here. To be successful you got to learn. It took me 5 years to make progress. Now I want to share my knowledge and experience. It might be helpful for somebody who chooses to take the same path.

It is not the guide for dummies but my personal feelings and understanding of the market. I warn you not to trust me completely and blindly because that wouldn’t be a good decision.

Basically all you can do is whether agree or not. Use your brain and it will be your first step to the top. I won’t hand you out a perfect system either. I don’t have one. I mean I do but it is all in my head indescribable. Moreover I believe that somebody else's theory can not be suitable for the next guy. So I am not a guru.

But if you need something to start with see this link.