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This is the last in the series of notes on GMMA applications. Bubble trading is a speculative activity. It calls for good trading skills and excellent trading discipline. The objective is to ride the momentum driven bubble for as long as possible. Exits are fine tuned using a variety of volatility based indicators and techniques. The end of day chart is used to set the general scene for the exit, but the actual exit is usually managed using intraday trading tools. Many traders avoid speculative bubble trading because it is so demanding. However, there are times when we enter a trade which shows a steady trend, only to find that a bubble develops. This poses several dangers and some temptations.

First the dangers. Bubbles inevitably burst. When they collapse prices often fall from a great height. In some cases this fall is fast enough and hard enough to seriously weaken the underlying trend. Bubble collapses can wipe out not only bubble profits, but also profits accumulated over many weeks or months. Recognizing these bubbles is a useful skill to develop because we can limit the damage from a bubble collapse.

If we have not set out to trade a bubble, then we may be tempted to take profits from the temporary bubble as it develops. This is a sound strategy, and can be used to protect profits or take opportunity profits, while still intending to remain with the underlying trend.

Many investors simply ignore the bubble, letting it collapse back to the trend. This may mean ignoring exit signals generated by other indicators. The bubble trade in this situation can attack our trading discipline. Traders need to be clear on when it is appropriate to ignore volatility based stop loss indicators in this situation.
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Many traders aspire to be successful traders, but few succeed. An amateur trader looks at the Trading platform, makes a trade and loses, makes another trade and loses more. Traders lose because the game is hard and they trade with emotions, lacking a purpose and discipline. If any of these relates to you, I write the book for you, for I too was in this position once!

Many traders keep making impulsive trades; they do not have any trading plans or a system, and no money management rules. To put it simply, an amateur trader will cut short his profits, and let the losses run. Professional Traders accept the importance of psychology, yet the novice traders ignore it. You have to practice sound money management and you should watch your capital. In my opinion the markets only exist because losers bring money into the market, which is necessary for the Industry.

This book is unique in that it takes you the trader, to devise your own trading philosophy, build your own methodology,-; a trading system which is your own, and not fed to you by the currently “hot” guru-., It guides you to develop your own trading plan.
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Every Forex trader have own system for their open position, my first system is breakout system. why breakout? cause breakout price sometimes decide where price want to go, simple maybe but this system must support by other indicators like bolinger band, stoch and maybe we can add some moving average, and off course we have discipline to put stop loss. This e-book show how breakout system working.
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