Forex Day Trading: The 5EMAs Forex Trading System Summary

I ’ve been trading the 5EMAs Forex Trading System over the past 7 weeks, testing it out in various market conditions and getting to understand the logic behind this system.

Does the 5EMAs Forex Trading System work?
In a word, yes.

You would still have to practice and put in the necessary screen time to effectively use the 5EMAs system, but the basic principles on which its based on are sound.

If you are trading, or thinking of trading the 5EMAs Forex Trading System, here are some pointers you might find really useful:

1. Focus On 1 - 2 Currencies At Most

By focusing on only 1 - 2 currencies, you are learning the “personality” of that currency. With 1 - 2 currencies as your trading vehicle, you also get the benefits of:

Reducing the chances of “over-trading”
You get the feel of how that particular currency reacts to news announcements
You get to see how the “story” of that currency unfolds over time.
When you first start trading your core currency, you’re essentially starting your journey in the middle of an already existing story. By following that currency, you start to get in tune with it, and understand the psychology and actions of the players in that particular market.

Over time, you will start to develop that feel for the currency and “know” how good a particular trade set-up is. So even though a trade might set-up according to the basic rules, because you have been following it for some time you know whether you should stand aside, or apply further analysis before taking the trade.

2. Have A Set Time To Interact With The Markets



You are going to interact with the forex markets on a regular basis. Exactly because it’s a 24 hour market, you will need to determine your trading hours and stick to them.

Have a consistent trading time set aside to day trade, and choose a currency that best reflects the highest activity with your chosen time zone. It doesn’t make sense to choose a currency that has the lowest activity during your trading hours.

It’ll be best if your trading hours coincide with the currencies “market open” hours. For example, if you are staying in London, you may want to focus on the EURUSD and/or GBPUSD. If you are in Asia, you might want to focus on the USDJPY instead.

Trading in a consistent time zone helps you not only to understand how the currency behaves during those hours, but it helps you build a life around your trading routine. You get to develop a trading habit, and you have time to prepare before your trading office “opens”, as well as conduct a review of your trading day after your trading office “closes”.

3. Take Time To Prepare Before Your Trading Day Starts

Once you have determined your trading hours, give yourself an hour to prepare yourself. Some things you can do in your trading preparation:

Review your trading strategy and objectives.
By reviewing what you want to accomplish in your trading, it helps to keep your mind focused on what you want to do for the day. It also helps to keep you aligned with your long term goals, and reduces the emotional impact on the days when things just don’t seem to go your way.

Review your trading plan.
What are the set-ups you are going to trade today? What are the criteria that determines a good trading set-up versus a gamble?

For example, reviewing the 5EMAs Trading System Rules and set-ups helps to refresh my conscious mind before the trading day begins, and it accelerates the learning curve as well.

Reviewing your trading plan before you start helps to refresh your trading rules and systems in your mind, so you know exactly what you are doing in the markets.

It would be best to do all this without your trading platform open, because the mind does tend to wander and get distracted by the moving prices. You would defeat the entire purpose of preparing before your trading office opens, if you get distracted before you get into your trading zone.

3. Wrap Up Your Trading Day

Wrap up your trading day by conducting a review of:

Your thoughts, emotions and actions taken
The things happening in your trading environment that might have affected your trading
The trades that you took (if you can capture graphs and charts with your notes, even better)
Observations you had about yourself, about the markets, etc
Lessons that you have learnt for the day
By keeping a trading journal, you are helping yourself improve as a trader. As events occur and build up over time, the human mind can sometimes adjust memories in the light of hindsight. Keeping a trading journal allows you to maintain accurate memories, emotions and thoughts as they happened in the past.

This way, you can really be honest with yourself with regards of how you have developed or improved as a trader.

Summary For Forex Day Trading With The 5EMAs System
I won’t be posting my results up on the site anymore. Mostly because I’ll be using my time and energy to continue developing my personal trading strategy and systems.

You’ll find that as you trade, you might find useful ideas and techniques that can be incorporated into your personal trading strategy and systems. For example, while I have my personal strategy and systems, I learnt a couple of new observations about the forex markets from the Advanced 5EMAs Forex Trading System manual that I’ll be adding to my arsenal of set-ups.

It’ll be highly unlikely that you’d trade a system out of the box for extended periods of time. Eventually, you will want to adapt and modify it as you build your understanding of additional insights and tools, until you are comfortable psychologically and emotionally with your own system.

You’ll probably realize that eventually, successful traders develop their own strategies and systems that suit them. But where do all these building blocks come from?

Other traders and their trading systems, of course.