29 Tips From Peter Bain

I’ve recently signed up for Peter Bain’s free mailinglist (get back to you later, and thanks to Dan, Life Holdings) and these tips are pretty much what I’m following, except a few details here and there changed:

This is Peter Bain for our last and
final segment. As promised, here are my
29 favorite forex trading tips.

For clarification on each point below, please refer
to my opening remarks on CD/DVD.

1. Initially set a goal of 20 pips a day

2. Use MACD: divergence; otherwise, it just
confirms the trend.

3. 20-30 pip stop losses – but on the other side
of event that caused you to take action.

4. Specialize in one currency pair.

5. Keep a log.

6. Sit on your hands unless you “SEE” something
concrete to do.

7. This is NOT about scalping.

8. OHLC at midnight ET.

9. Don’t buy too soon in a downtrend;
don’t sell too soon in an uptrend;
currencies trend well.

10. Average trading range (ATR) usually
fulfilled starting at 3 am ET.

11. Forget trading retracements when
you catch the main trend.

12. Four things to watch out for …
to be discussed later.

13. Single versus multiple lots.

14. NO MAN’S LAND – except where
you see ironclad signals like
bar/candle/chart patterns,
multiple bottom/top, MACD
divergence, trendline break.

15. You don’t need to draw
pivot points. If you do, they
don’t have to be exact.

16. Green lights. (Don’t wait
of all the lights to turn
green, it will seldom happens)

17. Learn, paper trade, demo, live.

18. Look at lower-level chart
when price is at a pivot point
and moving fast.

19. Automated systems kick in
at pivot points; therefore,
lots of follow-through.

20. Learn to react to shades of gray.
Trading is an art – not a science.

21. M1/M3 and M2/M4 – like
early warning radar, but not
cast in stone; S can become
R, and R can become S.

22. Buying below the central
pivot point and selling above
the central pivot point can
be influenced by signals
like bar/candle/chart
patterns, multiple bottom/top,
MACD divergence, trendline break.

23. If bias is to be short,
think short – not long; if bias
is to be long, think long; go
one way or the other, but not
both. Try hedging.

24. Use standard default settings
for indicators.

25. Do not trade holidays, Mondays,
month-end, quarter-end, year-end.

26. Repeat after me, “The trend is your
friend.” If the trendline holds, buy the
dips in an uptrend, and sell the
rallies in a downtrend. Currencies
trend WELL! In an uptrend, don’t look
to go short; in a downtrend, don’t
look to go long.

27. No volume figures; but, a very
liquid market.

28. Take your signals off higher-level
charts, unless you see something
concrete at the lower level. Remember,
the five minute chart is your ‘trim tab.’
It is not to be used for scalping!
Use the 5 min to spot price reversal
situations, where price is on a tear,
and/or where price is moving quickly
in and around a pivot point. You
won’t know what hit you on the 15 min
in such situations.

29. Any one indicator like a hammer
or spinning top may not be enough
ammo to pull the trigger. Look
around for more evidence of an
impending shift in price direction.