From HectorTrader: The D-day Battle

This post was brought to you by Hector of 3SMA Forex System and first posted on his site on 25 Feb 2008.

Hello everyone,

The NZDUSD I entered last Friday is still developing positively in my direction. Right now it’s retesting the key level 0.8100 which is the historical high of July 2007. In my opinion, this battle will be won or lost right there: if the bulls manage to breach through I reckon this trade will net me some good profits; if not, I will be ready to exit out at the first signals of weakness.

For the time being it’s sitting at +75 pips in profit as you can see in the screenshot below. But like I said, the level to watch now is 0.8100… Go Kiwi go!


-HECTOR-

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(p.s. the kiwi has moved past the 0.8100 level and currently trades at 0.8188 as I type these lines.)

FYI, Hector likes to search for setups on multiple non-major crosses such as NZDJPY, GBPCAD, EURAUD and etc. Those currency pairs are quite 'exotic' to me as the spread costs on those pairs are often 4-to-7 pips wide. But, they are the perfect candidates for his 3SMA Forex System.


Q & A with Hector

Here is my recent Q & A with Hector.

me: Do you currently trade full time?

Hector: I trade full time from home around the London market schedule. Is full-time trading a reality or a myth you ask? It's indeed a reality. HOWEVER, the problem is in the expectations new traders have when it comes to trading. They think they can toss 10k to a broker and trade for a living within few months. First of all, it takes MUCH longer than that to develop a deep-enough understanding of the market. Secondly a larger account size is needed to be able to live exclusively off trading without going kamikaze at every trade.

me: Do you have any special indicators to help identify the chart patterns easily and to standardise the trade entry process?

Hector: I haven't looked for any indicator's help beyond my 3SMA trend filter indicator (and the Dashboard). For me it's just a time saver to scan through the charts every morning, that's all. Once I have spotted the trends, I proceed 100% manually from there. And finally, most new traders don't understand that psychology is the key to trading, and not any super indicator combo. Patience > MACD. Discipline > RSI. Limiting your losses > Bollinger Bands, etc. You know what I mean.

me: Well said, Hector.