Friday, December 7, 2007

This is the first official trading day for the $500 to 150K account....

Today is the beginning day of this forex trading challenge.

It also coincidently is the first Friday of the month, making this the day they release the Non-Farm employment numbers.  Usually a very volatile day for trading.

We have no trades that triggered today.  Recap below--

The pairs we will be trading are GBP/USD, EUD/USD, USD/JPY, USD/CHF, GBP/JPY.

The question I can imagine some asking is, "Won't it be difficult to follow all these markets simultaneously, take the trades and follow them to completion?" It would if one were daytrading; the current rage of forex traders for the last 4 years.  (And no doubt for many more.)

The answer is no, it won't be very difficult.

The trades we will be willing to take in the different markets rarely will executed at the same time. The time frame for our trades is based more on daily movements instead of shorter term concepts. Thereby having bigger potential.

In addition, our trades will have precise risk control, so if the trade goes bad quickly after entry, we'll be out quickly waiting for our next trade.

Professionals only trade the market when they have a very good reason to.

They never enter because of "having a feeling".

Professional trading revolves around having a PROVABLE informational edge. Not because they have "news" that others don't have, but because they know something about the market, a bias that is not understood or appreciated correctly by the vast majority of market traders.  

As incredible as it may seem:

You don't need much of an edge to be a winning trader.  

Just the awareness of what that edge is, how strong it is, and a willingness to go through the necessary motions of executing it with the right amount of your capital-- will put you in the top 5% of all traders.  This blog will work at proving that concept.

This forex trading challenge will be conducted trading two primary methods which have a proven* mathematical edge. It is possible that rarely, additional low risk/high potential trades may be taken due to unique market circumstances that occur occasionally.

The first method is a durable breakout method which has worked well over time on major trading pairs.  It is called the "One Night Stand".  It was discovered/promoted by a trading researcher named Joe Krutsinger.  The ruleset for the system can be found at  A more complete explanation and current trading stats can be obtained from subscribing to the Infiniteyield Forex Newsletter, free to all those reading this blog.

The second method is another very durable trading method called FirstStrike; my own method based on the time-honored concept of volatility breakouts.  I have been trading this method profitably for more than 20 years.  The complete ruleset for this method and the protocol its application is available to Infiniteyield Forex Newsletter subscribers.  It is based on a market's impulse from the beginning of a significant time frame having predictive power over succeeding timeframes.  Hence, a mathematically provable edge.

That's one of the main reasons for this challenge and blog. People will see both the good and bad of trading, a bit accelerated.  

The good thing is: People will be able to see how trading really works when you are trading with an edge. It takes a lot of determination and personal resolve to stick to a method and trading plan when you are experiencing large losses..., or large profits.

When money is on the line, humans tend to deviate from their "normal" behaviors significantly. Usually when can be most detrimental to their wealth. We'll cover those issues some other time.
12/07/07-Weekly Recap:
Current Account balance: $500.00
Trades this week:  0

Joel Rensink

PS:  If you want to be included in the FREE Infiniteyield Forex Newsletter, send an email designating the email address where you wish to receive it to:

I will never rent or give your name to anyone.  I will provide you with the trading methodologies used in this challenge along with trade recaps at the end of the week.  There will be serious losses at times, and other times with large profits.  

Forex trading is not for everyone.  
prov·en *
Having been demonstrated or verified without doubt:



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