It’s not The Quantity of the Trades… It’s The Quality

Hello and welcome to to another edition of the bulls versus the bears. Today I have another simple message for you. It’s not  the quantity of your trades..It’s the quality. There is absolutely no need to enter trades day in day out as if your pants are on fire. If you’re afraid of missing the next big market wave? Don’t bother! If you miss what you believe is a juicy trade pattern, you’re sure to see it the next day. Keep your fears at ease!

Don’t act as if forex trades are “reduced to clear situations”.  The forex market is not up for sale that you have to trade as if every trade could be your last. Do you know what this kind of strategy is called? It’s called overtrading. I can hear somebody asking:

What Constitutes Overtrading?

First off, you are always in a trade. You feel you absolutely must be in every trade or else you are going to lose your sanity. You are so obsessed with the forex markets and your trades that you go to sleep with your trades and dreaming about the next trade. Even worse, you are involved in multiple trades which is forex suicide. But you can get away with multiple trades  only if you apply solid risk management.

IF you want quality trades just trade at least 6 times a month. Or  pick one or two high probability sets that are  solid enough to keep you outside of the house for long periods of time. Just set and forget and smell the roses.

Let me show you how overtrading affects your trading process and your trading account

You Trade Too Much You Blunt Your Edge

Yes! When you trade too much your trading edge  becomes blunt. Instead of focusing on quality trades which give you an advantage over other trades you settle for bread crumbs. By bread crumbs I mean low quality trades that fall outside the criteria for your trading edge. And when you  do that, your chances of prosperity become slim.

If you want your forex trades to  be high quality you need to know the difference between market noise and high probability price events(trades). Now market noise is a fancy term for sideway markets while high probability price events are, well. high probability trades. It’s absolutely crucial that you know the difference between these two trade categories or else you may end up taking trades that are nothing but loud speaker thumping noise and not real price signals. Even worse they end up blunting your precious trading edge.

For more information  on market noise and high probability trades look up Forex Market Goes Sideways and How To Spot High  Probability Trades.

Brokers Get Rich At Your Expense

The more you trade the more forex brokers get rich at your expense.  Of course I can hear somebody asking “But how do these brokers get rich at my expense?” They get rich through the spreads and commissions that they charge you. So that every time you trade they make money from your trades. So if you want to gain an edge over your broker,  TRADE LESS!

Too Much of A Good Thing  Is Bad

I’m sure most of you know the phrase “Too Much Of a Good Thing Is Bad.” You like something so much that it become an addiction to you. The same thing scenario applies when you trade too much. You become  fixated with the trading process that you feel like you have to jump into the market at every  opportunity. IT’s like gambling. You get this huge adrenaline surge  to blow all your money all at once. And when that happens all your money is gone.

So How do you cure your trading addiction? By laying out a trading plan where you identify your trading edge which will guide how you enter your trades on the market. Failure to develop a trading plan could be highly detrimental to your trading health Your trading addiction becomes progressively worse and you  will end up blowing up your  trading account. Two things could happen in the process. Either you learn your lesson and go back to trading the right way or you become so dehydrated from your addiction that you end up quitting as a trader all together.

I guess the appropriate question is:

How Do I Cure OverTrading?

First:

Trade Less

You need to trade less. In other words you don’t need to trade 70 times a month.  The ideal number is 5-7 times a month. Anything beyond that is a crazy addiction. While you are at it, put some strict rules withing your trading plan. At the same time add some flexibility to your trading plan to complement the rigidity. By that I mean where you place your stop loss, How you enter your trade, How much you can afford to risk, e.t.c.

Look For Trade  Setups Which Align With Your Trading Plan

You need to look for trade setups that align with your trading plan.  You must identify setups that satisfy the criteria in your trading plan, visavis your trading edge.  And while you are it, apply what is  known as a T.L.S. filter. Basically you create a set of criteria to ascertain whether the trade is worth risking your money on.  The filter must satisfy two  at least two of these criteria:Trend, Level, and Signal. These criteria are what you call multiple factors of confluence.  For more information on multiple factors of influence look up Something Called Influence

You need to adopt the mentality of a hunter waiting patiently for his prey to appear. It doesn’t  mean you go after every trade your eagle eye  spots on the chart. You only save your cash for trades that you know will take you to the Promised Land. Just like a hunter who only so many bullets to waste, you have only so much cash to risk. So be frugal with your money or your trading account will blow up like dynamite.

Set and Forget 

I’m quite sure you have heard this phrase”Set and Forget.” It’s a simple but effective approach. All you have to do is set your trade, forget about it and get on with life while the trade rakes in the moolah for you. Instead of jumping into the next available trade let your original entry play out for as long as possible to allow your your profits to accumulate.

You need to understand that solid trades take a while to play out . And if you want to catch the big waves on the market you need to adopt the hunter mentality that I alluded to earlier. Stay patient with your cash cocked, and when the opportunity presents itself, you pull the trigger. This also means that you stay away from your screen. Take a chill pill while your entry racks in the cash for you. In so doing you improve your chances of making substantial trades. You certainly do not need to trade loads of times to rake in those profits.

And Finally

Stick To One Market Direction

Please stick to one market direction.  If it’s the bullish trend you enjoy trading with do that. If it’s the reverse trend, by all means  do that also. But whatever you do, STAY AWAY FROM CHOPPY WATERS. Because you will crash and burn. The market is moving  sideways in this scenario. All you have here is a whole lot of noise, and the price signals aren’t that clear either.

And when you do get burned in choppy waters, you are tempted to jump into another trade again(Trade addiction anybody?) That’s highly dangerous and inflammable in that your trading account could end up in flames. So your best option would be to stick to markets that are strongly trending and moving in one clear direction.

For more information on sideways markets and trends look up Forex Market Goes Sideways and Trade Trends with Price Action Analysis

 That’s a wrap for “It’s not The Quantity of the Trades… It’s The Quality”.  Less is more where forex trading is concerned. Unlike what people may thinkt here are not too may  trade setups to go around throughout a calendar year. So it does not make sense that you go kamikaze looking for trades like a chicken with his head cut off. So it only make sense to be less conspicuous on the market. The less you trade, the better your health will be.

Take a low frequency approach when trading. But that’s not to say that you don’t turn the other way on  the most obvious trade setups. Of course it takes considerable skill and education to identify the most obvious trade setups. I mean you don’t just accomplish these at the snap of your fingers. With the help of  price action techniques such as Set and Forget, you should be able to nail down obvious trading setups with ease.

Till next time take care.

Looking To Join The Forex Trade Gravy Train?  

If you’ve stumbled in here looking to join the forex trade gravy train, here is what you need to do . First,  look up  Why Forex Trade Is So Popular.  Next, you learn  the fundamentals of forex trading by reading  Forex Trading Basics – Top To Bottom Part I  and Forex Trading Basics – Top to Bottom Part II .

Next, you need to learn how to read candlestick patterns. They are the main feature of price action analysis. And you need to know what these patterns are telling you. To be able to do that, read the following on Fundamentals of Reading Candlestick Patterns, Single Candlestick Patterns,  Dual Candlestick Patterns, and Triple Candlestick Patterns . Also You Need To Know Ten Of These Candlestick Patterns .

And finally If you want to give your trading skills an edge by relying on pure price action trading/analysis,  instead of fancy forex robots and fancy indicators, get started with What is Price Action Trading? 

Looking to get a leg up on price action analysis,?you need to learn How to Identify Support and Resistance Levels. And if you want to learn how to interpret trading zones, read up on Identifying Dynamic Support and Resistance Levels. Finally you should know  How To Read Candlestick Patterns using Support and Resistance Levels.

However, if you only want to trade once a month and watch your entry rack up huge profits over a stretch  of several weeks, consult  How to Spot High Probability Trades. And if you  are  still not sure about  price action trading, find out   Why Price Action Trading Still Rocks . Dont let me stop you from reading the other posts as well. But the  suggested posts above are the most important posts to get  you started.

Wanna Subscribe to My Mailing List?

Then  subscribe to my mailing list and I’ll send my blog posts direct to your inbox. It wont cost you a penny.

Free Download

If you want to know everything there is to  know about price action trading,   Download for free The Ultimate Guide To Price Action Trading by Rayner Teo. This brilliant ebook will change your life. It sure did mine.

Opening Of Live  Forex Trading Account If you’re looking to open a live trading account sign up with EasyMarkets. But if you want to get a feel for the platform first  and practice your trading strategies before going live, open a free demo account with EasyMarkets If you want to more information about easyMarkets before opening a live/demo account read my review  My Personal Take on easyMarkets

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Put In Your Risk You Get Your Reward

Hello and welcome to another episode of the bulls vs the bears. Today I have a simple trading message:Put in your risk you get your reward. We are going to a close look at the concept of risk/reward in forex trading. Let’s get one thing straight.  Trade setups is all about possibilities. If you can visualize these possibilities  in terms of risk/reward you  should have no problem achieving consistency in your trades. Now how do we achieve consistency in  trading? Develop a sharp instinct for identifying clear and unadulterated trade setups. OF course  You need to be at the right place and at the right time to spot these setups.  It’s like  the watching the eclipse over and over again.  Risk to reward trade setups give you a significant opportunity to make consistent profits.  So if you are able to master the risk/reward process, you’re on your way to the promised land. So how do we master risk/reward? First:

Draw Risk/Reward Levels

You need to draw risk/reward levels or ratios. before deciding on how much you want to risk.   Basically all you are doing here is calculating how much money you are willing to risk to give the trading setup the opportunity to convert from probability to actuality. Please do not think of reward first before risk. OR you put a stop so tight that it could choke the life out of your trade. Do any of these , and you will burn a huge hole in your trading account.

Now why do I say calculate risk first before reward? Because you want to create a heightened sense of awareness of the risk involved in each trade setup. In so doing you don’t obsess  too much how huge a profit you are going to make with the setup. In so doing you are able to manage risk more effectively than merely entering a trade like a gambler. The best traders in the business are the best because they are great risk managers.

Now once you have identified the trade setup and labelled the risk level, you then label the reward levels as multiples of your risk. Now there are three levels you need to draw: 1* the risk, 2*the risk, and 3* the risk. Now let’s take a look at a few illustrations of drawing risk/reward levels breakout trap and reverse trade reward Right in front of you is a perfect illustration of risk levels drawn on a bearish breakout trap and reverse trade. As you can see the risk/reward levels are nicely  labeled from 1:1 through 1:3. The risk(labelled RISK) was entered as the bears broke out on the slope. However, the reward was achieved at the bullish reversal trend as price hit the 1:3 ratio. 

This is the classic case of price action and money management working hand in hand. Conventional wisdom says  a ratio of 1:3 is the optimal as far as getting a huge return on your investment. However, a note of caution: The higher the risk ratio, the harder it will be for you to get a return on your investment. That’s greed talking, not trading logic.

Let’s look at another illustration using the support/resistance route In this instance  we see the trade going long.  So naturally you let the trade run until you claim your profits at the resistance level. If you want to go short you claim your profits at the level of support. This technique only works during ranges or weak trends. You don’t need to go for absolute highs in this scenario.Why? Because the market may not reach those levels and then do the reverse. Besides the market is in range mode which makes absolute highs/lows a pipe dream. So what’s the moral of the story? Since the market is in range mode, you don’t need t0 gung-ho with your risk/reward. Just take a conservative stance and exit  with your loot a few pips earlier.

Use of Trailing Stops

Now should you want a a trade setup run forever, you will want to employ the use of the trailing stop. Now in case you’ve forgotten, the trailing stop is a market order that is placed below the market price. Somebody is probably asking”How Do we do this?” First set your risk ratio levels. But this time let the trade run without  a set exit target. Once the market moves in your direction, you use your pre-set reward levels to trail your stop loss. In so doing you stand a chance of locking in some serious profits and lessening your risk at the same time. The best way to use the trailing stop on risk/reward levels is when the trade is i or two times your risk.

You can also bring your trailing stop 50% closer to the entry level trade once the trade has hit the the 1R level. Reason being that you want to give the trade some air or room to breathe.  So that if you are up 1 to2, you trail your stop up to lock on 1 times your risk. IF the market moves at 1:3 you  you trail your stop to lock in 2 times your risk. This technique is quite reliable. Why? because you are locking inn on your profits while at the same time leaving open the possibility of the trade turning in your direction. Now let’s a look at an illustration of the trail stop  on a pin bar setup. download

This is a nice illustration of using a trailing stop to lock in your profits. The “R” represents the risk Entry level is at the engulfed level. You put your stop loss at the tip of the candlestick. Now as you can see the uptrend is running away and racking up profits at every turn. Why,?it’s because you have no set exit plan, paving the way for you to lock up more profits. For more information on trail stops look look up Forex Basics -Top To Bottom Part II.  I suggest you read up on Forex Basics Top To Bottom – Part I  so as to get the big picture

So How Do Achieve Consistency  In Risk Reward?

Very Simple! DON’T MEDDLE WITH YOUR TRADES! Stay out of them. You don’t want to enter a trade at a risk/reward ratio of 1:2. Later you enter a low probability trade and incurr a loss. When you do this you limit the power of risk/reward, not to mention your own potential to achieve as a forex trader.

Let me illustrate what I’m talking about. Let’s say you are losing 65% of your trades at a ratio of 1:2 and you risk $200 on each trade. This means you are losing  35 out of 100 trades. This means you’ve lost 65*200=$13,000.00 However, you  made 2 times the risk on your winning trades($200):65*400=$14,000). So after 100 trades you made a profit of $14,000 even though you lost 65 of them. See the power of risk/reward? So what’s the moral of the story? You can still make money from your trades even if you lose more trades than you win. Just stay out of the way and let the market do the heavy lifting for you

That’s a wrap for “Put In Your Risk You Get Your Reward.” It takes discipline combined with knowledge to master Risk/Reward concept. Plus, you can’t second guess yourself either.  With these two concepts you could be the Usain Bolt of forex trading.  Justallow the trades to play out and you’ll be laughing all the way to the bank with your profits- even if you lose more trades than you win. It’s a win win situation. Til next time  take care.

Looking To Join The Forex Trade Gravy Train?  

If you’ve stumbled in here looking to join the forex trade gravy train, here is what you need to do . First,  look up  Why Forex Trade Is So Popular.  Next, you learn  the fundamentals of forex trading by reading  Forex Trading Basics – Top To Bottom Part I  and Forex Trading Basics – Top to Bottom Part II .

Next, you need to learn how to read candlestick patterns. They are the main feature of price action analysis. And you need to know what these patterns are telling you. To be able to do that, read the following on Fundamentals of Reading Candlestick Patterns, Single Candlestick Patterns,  Dual Candlestick Patterns, and Triple Candlestick Patterns . Also You Need To Know Ten Of These Candlestick Patterns .

And finally If you want to give your trading skills an edge by relying on pure price action trading/analysis,  instead of fancy forex robots and fancy indicators, get started with What is Price Action Trading? 

Looking to get a leg up on price action analysis,?you need to learn How to Identify Support and Resistance Levels. And if you want to learn how to interpret trading zones, read up on Identifying Dynamic Support and Resistance Levels. Finally you should know  How To Read Candlestick Patterns using Support and Resistance Levels.

However, if you only want to trade once a month and watch your entry rack up huge profits over a stretch  of several weeks, consult  How to Spot High Probability Trades. And if you  are  still not sure about  price action trading, find out   Why Price Action Trading Still Rocks . Dont let me stop you from reading the other posts as well. But the  suggested posts above are the most important posts to get  you started.

Wanna Subscribe to My Mailing List?

Then  subscribe to my mailing list and I’ll send my blog posts direct to your inbox. It wont cost you a penny.

Free Download

If you want to know everything there is to  know about price action trading,   Download for free The Ultimate Guide To Price Action Trading by Rayner Teo. This brilliant ebook will change your life. It sure did mine.

Opening Of Live  Forex Trading Account If you’re looking to open a live trading account sign up with EasyMarkets. But if you want to get a feel for the platform first  and practice your trading strategies before going live, open a free demo account with EasyMarkets If you want to more information about easyMarkets before opening a live/demo account read my review  My Personal Take on easyMarkets

A Closer Look At Price Action Event Zones And Support & Resistance Levels

Hello and welcome to another edition of the bulls vs the bears.  Today we are taking  a closer look at price action event zones and support &resistance levels. Now price action zones/support and resistance levels are two crucial components of price action analysis that every forex trader must know like the back of his hand. I’m sure most of you are familiar support and resistance levels. They are one of the basic technical tools and are fairly easy to comprehend. In fact I’d be shocked if you have no idea of this tool.

However, price action event zones(or event areas) have been around for quite a while. It’s just that it’s only recent years that they have been introduced to forex traders. So we’ll define individually what these two tools are. And then we’ll identify the differences between these two tools. But first  off:

Price Action Event Area

A price action event area is critical horizontal area on a price chart where a price signal is born(formed)  or from which  a huge trend move(up or down) or a sideways range breakout is initiated. These event areas are considered “hotspots” on the price charts.  You should watch them like a hawk in case price retraces back to them in the not too distant future. Expect the major players in the market to consider their options if price pays these event zones another visit. Now let’s take a look at a price event area using, you guessed it, a pin bar signal

Event zone Ladies and gentlemen here is the price event area  through the eyes of the pin bar signal. The grey shaded areas represent the   both the support and resistance areas.  The small white arrows pointing downward  represent the price retracing after bouncing off the key areas. However, watch the first white arrow at the first key level. Here the bulls  break  out  thanks to the pin bar formation along the line of support.

Next,  watch the second white upwards pointing arrow at the line of resistance. the line of support converts into a line of resistance, the bulls break through this key level and head for the mountains on the back of another pin bar signal. And when such an event happens, Huge profits await. Understand one thing about price event areas. If you miss the first price signal,  don’t panic! Just wait for price to retrace in the same event area and then you jump in. If you want to learn more about price event areas look up Identifying Dynamic Support and Resistance Levels.

Next up is

Support and Resistance Levels

As you probably know by now,  support and resistance levels are static horizontal levels that are drawn across the the price chart minus the highs and lows. Check out my post on how to draw support and resistance levels on price action charts. Now let’s look at an illustration of support and resistance levels Image result for forex standard support and resistance levels This graphic illustrates drawing of support and resistance levels.  As you can see there are no obvious price signals nor spectacular breakout from a consolidation situation nor key levels. These are standard support and resistance levels drawn across highs and lows. However,  There are lots of examples whose lines are a lot more elaborate and longer in length  than this illustration. So don’t panic. Now Let’s look at support/resistance levels on a daily chart  time frame using the AUD/USD pair

Image result for forex standard support and resistance levels on daily chart time frame Here is another illustration of  support/resistance levels drawn in the daily chart time frame. Some of you may be wondering “Why do we see support/resistance drawings, but no event areas?” Well it’s true that support/resistance levels dominate the charts. Just remember event areas carry a higher premium than support/resistance levels. Why?Because the reflect a major price occurrence. Support/resistance levels, on the other hand are drawn across market areas that bear little significance. Not to say support/resistance levels don’t play an important  role. But it’s the way it is on the charts. Now to the most important exciting part of this post:

What Is The Difference Between Support/Resistance Levels and Price Event Zones

Hmmmm……..How Do I Put this as clearly as possible without sounding offensive? Every event zone is a support/resistance area, but not every support/resistance area is a price event area. Now some of are probably  asking:

How Do I Tell The Difference?

For an event zone look out for a price action signal leading to to a huge breakout from a consolidation area or key  level. Let’s take a look at such an illustration using the power of confluence. Image result for forex price action signal in event zone Here is the classic illustration of a price event area using the AUDUSD pair. We have several price action signals along the key levels as indicated by the black circled numbers and the the red arrows.  These price signals then touch off major breakouts at both support and resistance levels.  And yes, when such events occur, you have price action events in motion. For more information on multiple price singles look up Something Called Confluence Now let’s see why support/resistance levels are not price event zones using the CADJPY pair.

Image result for why support/resistance levels are not price event zones Here is why support/resistance levels cant be price event zones. If you look at the price charts you will see that unlike the price event areas there is no sustained consolidation before the breakout. Even worse there is no evidence of a  price signal triggering the breakouts in either of the key levels. So based on what we see on this graphic, there is no way support/resistance areas could be labelled as price event zones.

That’s a wrap for “A Closer Look At Price Action Event Zones And Support & Resistance Levels.” As you can see price action event zones and Support/resistant levels help you understand the  overall dynamics of the formation of a trade. This give and go between the price signal/entry and the market condidtions give rise to the high probability opportunities. Til next time  take care.

Looking To Join The Forex Trade Gravy Train?  

If you’ve stumbled in here looking to join the forex trade gravy train, here is what you need to do . First,  look up  Why Forex Trade Is So Popular.  Next, you learn  the fundamentals of forex trading by reading  Forex Trading Basics – Top To Bottom Part I  and Forex Trading Basics – Top to Bottom Part II .

Next, you need to learn how to read candlestick patterns. They are the main feature of price action analysis. And you need to know what these patterns are telling you. To be able to do that, read the following on Fundamentals of Reading Candlestick Patterns, Single Candlestick Patterns,  Dual Candlestick Patterns, and Triple Candlestick Patterns . Also You Need To Know Ten Of These Candlestick Patterns .

And finally If you want to give your trading skills an edge by relying on pure price action trading/analysis,  instead of fancy forex robots and fancy indicators, get started with What is Price Action Trading? 

Looking to get a leg up on price action analysis,?you need to learn How to Identify Support and Resistance Levels. And if you want to learn how to interpret trading zones, read up on Identifying Dynamic Support and Resistance Levels. Finally you should know  How To Read Candlestick Patterns using Support and Resistance Levels.

However, if you only want to trade once a month and watch your entry rack up huge profits over a stretch  of several weeks, consult  How to Spot High Probability Trades.  And if you  are  still not sure about  price action trading, find out   Why Price Action Trading Still Rocks . Dont let me stop you from reading the other posts as well. But the  suggested posts above are the most important posts to get  you started.

Wanna Subscribe to My Mailing List?

Then  subscribe to my mailing list and I’ll send my blog posts direct to your inbox. It wont cost you a penny.

Free Download

If you want to know everything there is to  know about price action trading,   Download for free The Ultimate Guide To Price Action Trading by Rayner Teo. This brilliant ebook will change your life. It sure did mine.

Opening Of Live  Forex Trading Account

If you’re looking to open a live trading account sign up with EasyMarkets.

But if you want to get a feel for the platform first  and practice your trading strategies before going live, open a free demo account with EasyMarkets

If you want to more information about easyMarkets before opening a live/demo account read my review  My Personal Take on easyMarkets

How Do I Hone My Craft As a Forex Trader?

Hello and welcome to another edition of the bulls vs the bears. Today  we are going to ask a simple question. “How Do I Hone My Craft As A Forex Trader?” Yea I know it’s a loaded question that could take all day to answer. Not to worry! We’re going not going to take all day answering this question. Do you know why so many people fail to prosper  as forex traders. Very simple. They just do not have the patience and discipline to succeed as forex traders.

Even worse, they don’t have the mental fortitude to prosper as a forex trader. They  keep on blowing their trading accounts to smithereens on a regular basis . Then they  come up with all kinds of excuses ranging from being born in the wrong family to the global  credit crunch of 2009. I wont surprised if they add metal handicaps as well. So if you want to be the best forex trader that you can be, here is what you need to do.

First:

Don’t Be In A Hurry To Get Out Of Trades

Yes,Don’t  Be in A Hurry To Get Out Of Trades. Even better make sure the traders are high probability trades. They should be the type of trades that can run for weeks and months and get you substantial profits. Just set and forget them and smell the roses while the market executes on your behalf. By the time you check  your balance you’ll find a nice healthy balance staring you in the face.

Make full use of the time frames in the forex markets. Don’t be anxious to hit the exit button too soon. Let the trades ride for as long as possible so as to give you a chance to ride the big waves and net some huge profits in the process. That’s how the top traders  become prosperous.

Be Smart Placing Your Stop Losses and Don’t Be Greedy

If you want to be the best forex trader you want to be, then be smart placing your stop losses and don’t get greedy. Being smart with your stop losses could be the difference between prosperity and poverty. Ever heard pf the line “Greed is Good” in the popular movie “Wall Street”? Well greed can also detonate your trading account if you decide to gamble with your money. I strongly suggest you use a wide stop as part of your trading strategy.  Why? Because the last thing you want is to place a tight stop and then your trading suffers a nuclear-sized hit in the process, throwing your whole strategy out of joint. Your best option is to place your wide stop outside of price ranges and beyond key levels. This way you save your trading position from taking a major hit.

Keep Your Price Action Charts Clean

The main feature of price action trading is clean price action charts.  With that in mind you need to keep your price action charts clean and devoid of all those indicators. Why? because you want a clear and accurate view of the forex market. Even more important, focus on end of day data. The best way  to do this is to zone in on higher time frame charts.

That’s where most of the action takes place and you will have your best chances of success trading this time period. If you’re thinking of scalping, you will be digging your own grave. Not only will these short term frames  cause you to lose all your money, but they will also you enough stress to last you a life time. And they will also lower your chances of regular long term trading success.

Develop Clear Trading Strategies

If you want to prosper as a forex trader then you need clearly defined trading strategies. It’s like going to war, if you have a plan to win the war you will lose terribly. You need a set of trading setups and then you wait patiently for your trading edge to line up  for your trading signal to form.

You most certainly need a trading plan consisting of   the most effective trade setups that you hope to find on the price charts. So for instance if you are a pin bar enthusiast, you’d be on the look out for the pin bar and its different variations among other price action signals. It’s an absolute must that you have a checklist of some sorts before doing your analysis and then putting in your trade.

Understand How Risk/Reward Works

Ask the most successful forex  traders and they will tell you this:”Understand How Risk/Reward Works.”  And they are absolutely right. Because you need to understand the calculations behind risk reward and how to make it work by placing your stops and profit targets at the right places. For risk/reward to work for you, do ABSOLUTELY NOTHING. Yes!ABSOLUTELY NOTHING!  Because hitting the exit button when trouble looms will cause you to leave potential profits on the table. So to help contain your emotions and fears just apply the set and forget strategy and head for the beach. By the time you get back from smelling the roses, you should see profits in your forex trading account.

Look Out For Factors of Confluence

One of the biggest indicators you should look out for on the charts are factors of confluence. Now in case some of you have forgotten factors of confluence are coming together or intersection of two or more key levels. The intersection of these levels  creates a hot point or point of confluence in the forex market. Part of looking for factors of confluence is knowing what constitutes confluence. Examples of factors  confluence you  should be looking out for are : uptrend/downtrend, Exponential Moving Averages(Look up Moving Averages 1 and II), and static support and resistance levels. You need to find as much evidence as possible on the charts to support your trade. For more information on factors of confluence look  up  Something Called Confluence.

Your Thoughts and Your Actions Must Be On The Same Page On The Forex Market

Make sure your thoughts and your actions are on the same page on the forex market. If these two things are not in sync, your chances of  prospering on the forex market are very minimal. There is something crucial you need to understand. You cannot afford to trade like a gambler nor should you allow previous bad trades to affect you too much. Just be cool calm and collected,  even if  those voices in your head try to force you to jump into the market.

You need to get your thoughts and actions on the same page such that you develop a sixth sense about the intentions of the forex market. Once you are able to get your thoughts and actions to work in tandem, your ability to navigate the forex markets will be less problematic.

Treat Forex Trading Like A Business

You need to treat forex trading like a business. If you think about it, forex trading is a business. Just like any other business it has costs/expenses(losses). It also involves the use of external equipment such as internet connectivity, computers, e.t.c. And  you make revenues(winning trades). You make profit when your revenues outstrip your losses. So now that you have that in mind, here is what you need to do. Try not to risk too much on your trades or else you will cause your trading account to hemorrhage.  Even more important you need to know what you are doing. You cannot be winging it like a Las Vegas gambler.

That’s a wrap for “How Do I Hone My Craft As a Forex Trader?” You need to work on yourself before you can perfect trading on the forex markets. When you accomplish this feat then you your trading will improve. Some of  you are probably like “How Do I Work On Myself?” First learn as much as you can about forex trading. Keep an open mind and do not make failure part of your vocabulary. And remember, there is no “Silver Bullet” strategy to trading success. Just work on yourself, stick to your trading plan, and keep your eye on the prize. Til next time  take care.

Looking To Join The Forex Trade Gravy Train?  

If you’ve stumbled in here looking to join the forex trade gravy train, here is what you need to do . First,  look up  Why Forex Trade Is So Popular.  Next, you learn  the fundamentals of forex trading by reading  Forex Trading Basics – Top To Bottom Part I  and Forex Trading Basics – Top to Bottom Part II .

Next, you need to learn how to read candlestick patterns. They are the main feature of price action analysis. And you need to know what these patterns are telling you. To be able to do that, read the following on Fundamentals of Reading Candlestick Patterns, Single Candlestick Patterns,  Dual Candlestick Patterns, and Triple Candlestick Patterns . Also You Need To Know Ten Of These Candlestick Patterns .

And finally If you want to give your trading skills an edge by relying on pure price action trading/analysis,  instead of fancy forex robots and fancy indicators, get started with What is Price Action Trading? 

Looking to get a leg up on price action analysis,?you need to learn How to Identify Support and Resistance Levels. And if you want to learn how to interpret trading zones, read up on Identifying Dynamic Support and Resistance Levels. Finally you should know  How To Read Candlestick Patterns using Support and Resistance Levels.

However, if you only want to trade once a month and watch your entry rack up huge profits over a stretch  of several weeks, consult  How to Spot High Probability Trades.  And if you  are  still not sure about  price action trading, find out   Why Price Action Trading Still Rocks . Dont let me stop you from reading the other posts as well. But the  suggested posts above are the most important posts to get  you started.

Wanna Subscribe to My Mailing List?

Then  subscribe to my mailing list and I’ll send my blog posts direct to your inbox. It wont cost you a penny.

Free Download

If you want to know everything there is to  know about price action trading,   Download for free The Ultimate Guide To Price Action Trading by Rayner Teo. This brilliant ebook will change your life. It sure did mine.

Opening Of Live  Forex Trading Account

If you’re looking to open a live trading account sign up with EasyMarkets.

But if you want to get a feel for the platform first  and practice your trading strategies before going live, open a free demo account with EasyMarkets If you’re still in doubt and want more information before opening a live/demo account read my personal review My Personal Take on easyMarkets

How To Draw Support and Resistance Levels On Price Action Charts

Hello and welcome to another edition of the bulls and the bears. A long while back we learnt How to Identify Support and Resistance Levels. What we failed to learn was how to draw support and resistance levels on the price action charts before trading on the forex market. This is something you should do at least the day before you trade on the forex market.You want to identify potential trading zones among these key levels before placing your trades Before we start today’s lesson let  me sound a cautionary note to you all . Drawing support and resistance levels is not magic. It’s not a situation where price automatically hits a support or resistance level and then breaks out. Sometimes the levels that you draw may turn out to be the wrong ones as you trade live. The actual levels may be above or below the levels that you drew. And  that could cost you dearly in your trading account. You may struggle with drawing these levels at the beginning but once you get the hang of it, drawing these levels will be second nature for you. So basically we are going to learn how to draw support and resistance levels properly before you trade. This is the surest way of avoiding tsunami -sized craters in your account.

First:

Look For the Next Significant Support and Resistance Levels

Your first task at hand is to look for the next significant support and resistance levels.  Let me sound another  cautionary note. Just because you are drawing support and resistance levels does not mean you draw all support and resistance levels that you set you eyes on. That  will cause you to pull your hair out. Even worse, you may miss out on some hot trades. Just draw a few lines  that clarify things as to what’s happening on the charts.

How Do We Do This?

Just draw one support level below the current price and one resistance level above the current price. Don’t worry too much about pinpoint accuracy. Just draw it at a place that makes sense to you. We’ll deal with accuracy later, Let’s look at an example using the EUR/USD pair S/R example 1 Ladies and gentlemen, here is an illustration of drawing a key support line and a key resistance line. Now the shaded price at the key support line represents the current price and the shaded price at the resistance level represents the current price at that level, Like I said don’t worry about accuracy. Just make sure it the logic behind your selection makes sense. I can hear you asking”Now How Do I Know It’s A Major Level?”

Check If There Is Enough Price Rotation Around That Level

Yes you need to examine whether there is enough price rotation around that key level. The best way to find out is to check how many times price has touched that level. You may have to tweak your key level slightly to accommodate as many  hit as possible from price both above and below the line. Now let’s take a look at the above graphic again S/R example 1 As you can see both lines are nicely drawn. Price  attacked these two lines several times and they rarely flinched. This means both lines are significant levels and they have serious backbone. Now price might hit your lines more than you are willing to accommodate. Occasionally price might break out just to take care of pending market orders.

However,  There is one breakout formation you need to keep an eye on. And the name is of this formation is simply called :

The Elbow

I can  hear someone  asking”Does it look like the human elbow?” Sorry! You got it wrong. Basically it’s a rotation point where a key level resists price’s onslaught such that price falls on its back. Now it will be ill-advised to trade elbows by themselves. But if  your drawn lines fall on these elbows, that’s your green light to put in your market order. Now let’s take a look at what the elbow looks like Elbow formations Here the elbows are shaded green. And they are located in two places. The first is in an uptrend and the second is in a range. And like I said, earlier they also act as support and resistance levels- assuming your lines falls on these levels. Let’s take a look at another elbow Elbow formations Here keep an eye on the full body and long skinny wicks  of the candlesticks. The lines seem to be  cutting through more wicks than full bodies. But I suggest you give more weight to the bodies than the wicks for purposes of peace of mind later on.  If you want to brush up on your candlesticks look up Fundamentals of Reading Candlestick Patterns. Next up is:

Examine Previous Price Action

You absolutely need to examine previous price action to see whether  those key levels make sense. Now when we say previous price action we are referring to historical price action in the past. Now I’m not saying scroll all the way back to price action of twenty years ago to do your analysis(That’ll take you the rest of your life). Just go back to price action  ranging from a week to a month previously. The price action data should be fresh enough for you decide whether the current key levels still  make sense. Let’s take another  look at the price action of the EUR/USD pair Historical data The data for from August to September seems pretty solid, Consequently it means the support and resistance lines pass the test. It also give you confidence to know that you’ve the right support/resistance lines at the right places. However, price  changes with time. Consequently your  historical data may be out of sync with your support and resistance levels. But with practice and a little practice you should be able to recognize the key levels like the back of your hand.

Use The Same Process To Find  the Next Set of Support and Resistance Levels

Now we’re going to use the same process  to find the next of support and resistance levels. They will definitely come in handy when you are looking for solid profit targets or stop loss levels. Now let’s look at the new levels in the EUR/USD  graphic. Second set of S/R levels This is what the next support/resistance levels look like. However, the next major levels are fairly close. There is not  room for maneuver. So you may have to sit tight and  wait for price to react on the outer lines rather than the inner lines before you put in your trade entry.

That’s a wrap for “How To Draw Support and Resistance Level On The Price Action Charts”. I assume everybody has gotten the hang of drawing support and resistance levels. The only way to perfect this is in live trading conditions. Practice till it becomes second nature to you . Then you can predict where price will hit at that level. Support and resistance levels can be  reliable places to enter trades and set awesome trade profits. So long as you draw the key levels properly, you’ll accrue huge profits beyond your wildest dreams However drawing key levels is not an exact science. What you need to look for is your trading edge. Support and resistance levels help you give you that edge. If you want to watch price action run at the speed of light look up  Identifying Dynamic Support and Resistance Levels. Til next  take care.

Looking To Join The Forex Trade Gravy Train?  

If you’ve stumbled in here looking to join the forex trade gravy train, here is what you need to do . First,  look up  Why Forex Trade Is So Popular.  Next, you learn  the fundamentals of forex trading by reading  Forex Trading Basics – Top To Bottom Part I  and Forex Trading Basics – Top to Bottom Part II .

Next, you need to learn how to read candlestick patterns. They are the main feature of price action analysis. And you need to know what these patterns are telling you. To be able to do that, read the following on Fundamentals of Reading Candlestick Patterns, Single Candlestick Patterns,  Dual Candlestick Patterns, and Triple Candlestick Patterns . Also You Need To Know Ten Of These Candlestick Patterns . And finally If you want to give your trading skills an edge by relying on pure price action trading/analysis,  instead of fancy forex robots and fancy indicators, get started with What is Price Action Trading? 

Looking to get a leg up on price action analysis,?you need to learn How to Identify Support and Resistance Levels. And if you want to learn how to interpret trading zones, read up on Identifying Dynamic Support and Resistance Levels. Finally you should know  How To Read Candlestick Patterns using Support and Resistance Levels.

However, if you only want to trade once a month and watch your entry rack up huge profits over a stretch  of several weeks, consult  How to Spot High Probability Trades.  And if you  are  still not sure about  price action trading, find out   Why Price Action Trading Still Rocks . Dont let me stop you from reading the other posts as well. But the  suggested posts above are the most important posts to get  you started.

Wanna Subscribe to My Mailing List?

Then  subscribe to my mailing list and I’ll send my blog posts direct to your inbox. It wont cost you a penny.

Free Download

If you want to know everything there is to  know about price action trading,   Download for free The Ultimate Guide To Price Action Trading by Rayner Teo. This brilliant ebook will change your life. It sure did mine.

Opening Of Live  Forex Trading Account

If you’re looking to open a live trading account sign up with EasyMarkets. But if you want to get a feel for the platform first  and practice your trading strategies before going live, open a free demo account with EasyMarkets If you want to more information about easyMarkets before opening a live/demo account read my review  My Personal Take on easyMarkets

Why Should I Learn Price Action Analysis At All?

Hello and welcome to another edition of the bulls vs the bears. So we started our price action trading journey by discovering What Price Action Trading Is. Then we Learnt How to Ace Price Action Trading. And finally we were told in no uncertain terms  Why Price Action Trading Still Rocks. After pouring my heart out about the virtues of  price action, guess what? I hear someone asking”Why Should I Learn Price Action Analysis At All?”

Well I have a simple response to your question: BECAUSE YOU HAVE TO! For the life of me I don’t understand why anybody would fall on a zillion indicators and a bunch  of websites to uncover the trading edge for that person. You make the whole price action process look like looking for needle in a haystack when  you fall back on those toys. Look, the trading edge is right in front you. You need to use price action analysis to fish out the trading edge. Now I may sound simplistic when I say Price action analysis is simple. It truly is. It’s just you and the raw data on your screen. Just uncover the trading edge and you will reap the benefits. Still  not convinced? Hopefully the following reasons will unfurl your doubts.

Price Action is Squeaky Clean Yes Price action is squeaky clean. It was not made to be cluttered with a bunch of indicators to make life complicated for you. Look, you have enough issues with a litany of confusing systems and approaches enough to make you pull your hair out.  All you have to do  remove all that chaos and deal strictly with the raw data in front of you. The trick here is making the process is simple instead of making it look like rocket science. Let’s  look at a few analysis scenarios to illustrate price action’s squeaky cleaniness. Starting with:

Uptrend/Downtrend Now here is what the uptrend and downtrend look like. Now if you know the make of an uptrend it starts with a higher Low(HL) and expands to a higher high(HH) as price increases. You don’t need an indicator to tell you to put in your take profit when a bullish situation forms. A similar situation develops as the bears take over during the  downward(bearish)trend. The  bearish trend starts with a lower low(LL) due to a huge surplus of sellers and then picks up to lower high(LH) as more buyers lose interest because sellers are dominating the trend. Again you don’t need an indicator to tell you to put in your sell bid.

You see how clean the price action looks in these two scenarios? Indicators would have crowded out the price action to the point of taking over all the real estate on the screen. Even worse, they’d definitely drive your urge to pull your hair out right through the roof.Who will want to put   himself through all that? Next piece of analysis is

Drawing Support and Resistance Levels Now as you well know support  and resistance levels are key points on the charts where price has previously reacted to an event. Support and resistance levels also act as points of confluence points with so many price signals happening at the same time. As you can see, price has broken through the support levels labelled (S). This means the profits will start rolling Whereas the resistance levels labelled (R) rejected price’s advances. Now how do we draw the support/resist levels? just look for the next support and resistance levels immediately below and above the current price. Next take a  look at previous price action and see of the levels makes sense or not. Repeat the process  for the next support and resistance levels. And if the process  makes sense you make your trade entry.

For more information on support and resistance levels look up Identify Support and Resistance levels with Price Action

Price Signals insidebar-breakout

Price signals are the currency of forex trading. they reflect the presence of a price action setup on the charts. As you can see the breakout of the bulls at the line of support is a classic example of a price signal. This tells you right away that a bullish pattern has been established so it’s time to put in a trade. However, not all price signals are positive. So the best thing to do is to wait for confirmation below the price of support before you put in your trade. Now that we’re done with the illustrations, let’s move on to the next reason for learning price action analysis which is:

Price Action Is The Lingua Franca of Forex Trading Believe it or not, price action is the lingua franca of forex trading. By that I mean price action is the language common to all forex trading. And through price action trading  you get a peek into the trading mindset of forex traders. These trading mindsets are then played out on the price charts through the various candlestick patterns. When one person thinks now is the best time to buy, another trader believes it’s a good time to sell.

So when more people believe it’s time to sell, the price goes up. If more  traders believe it’s time to sell, the price goes down. T he  phrase “One man’s meat is another man’s poison” becomes very prominent here. Basically data representing the mindset of the trades is staring at you in the face on the price chart. You do not need an indicator to interpret it for you. Let’s look at a classic illustration of price action on a pin bar set up at the level of resistances pin bar The shaded area represents the bearish pin bar. This came about a result of the bears(sellers) pushing the price lower at the expense of the bulls(buyers). The bulls initially go on the attack resulting in the long-tailed wick. But the bears eventually get the upper hand. And when  you see such a  scenario you don’t need an indicator to tell you that that’s a signal to sell. And speaking of price signals

Price Action Lets You Identify Obvious Trading Signals and Persistent Trading Patterns The neat thing about price action is that it allows you to identify clear trading signals and persistent candlestick patterns. By persistent candlestick patterns I mean trading patterns that are so prevalent over a specific time frame. These factors are so clear that with a solid trading plan, you should be able to identify  these two factors. Not to mention the fact that your trading edge will also help identify these two factors.

Let’s say you get an obvious pin bar signal at a key chart level within a clear trend. Lined up for on this level are the factors of confluence  – trend, level, confluence(Popularly known as T.L.S.). Assuming you have a risk management policy in place,  you should put your put your stop loss at the tip of the pin bar and surrounding key levels. Based on your stop loss placement you set your position size and  take profit targets. Now let’s take look at T.L.S. in action 03-Using-Pin-Bar-Price-Action-Trade-Forex-Confluence-1024x480 (1).png

This is  a classic example of T.L.S in action.(Trend Level Action) We see three buy signals along the line of support. You then place your stop loss partially at the tip of the bearish pin bar along the line of support.  And based on the stop loss you set your set take profit. As you may have noticed support all of a sudden turns into resistance. This is where the bulls run out of steam and the bears take over, creating a downtrend and  surge downhill. You then use the same strategy  you applied at the support level  -except this time you place your stop loss along the  resistance level.

If you want to know how to identify prevalent chart patterns, read up on Trading Chart Patterns I and II .

You see how straight forward price action analysis is? Once you get the hang of studying  price action charts, you’ll find that price patterns and price signals keep repeating themselves. Once you are able to identify these signals and are able to use your intuition,  these patterns will be calling you a lot often. It will feel like instant telepathy.- something indicators wont be able to give you. For more information on how to trade with indicators, look  How to Trade Price Action Without The Indicators I and II.

That’s a wrap for “Why Should I Learn Price Action Trading At All? ” You can study every indicator known to man and end up coming back to straight up price action trading. IT’s the only analysis that makes sense. The irritating part about these indicators they take up so much real estate  they end up  crowding out the price action. That’s enough to make you pull your hair out. Price action analysis is fairly straightforward and stress free. Why? because traders trading mentality is reflected in  the price movement on the charts.  You certainly don’t  indicators to do this analysis for you. Everything is right there in front of you on the charts. Til next  take care.

Looking To Join The Forex Trade Gravy Train?   If you’ve stumbled in here looking to join the forex trade gravy train, here is what you need to do . First,  look up  Why Forex Trade Is So Popular.

 Next, you learn  the fundamentals of forex trading by reading  Forex Trading Basics – Top To Bottom Part I  and Forex Trading Basics – Top to Bottom Part II . Next, you need to learn how to read candlestick patterns. They are the main feature of price action analysis. And you need to know what these patterns are telling you. To be able to do that, read the following on Fundamentals of Reading Candlestick Patterns, Single Candlestick Patterns,  Dual Candlestick Patterns, and Triple Candlestick Patterns .

Also You Need To Know Ten Of These Candlestick Patterns . And finally If you want to give your trading skills an edge by relying on pure price action trading/analysis,  instead of fancy forex robots and fancy indicators, get started with What is Price Action Trading? 

Looking to get a leg up on price action analysis,?you need to learn How to Identify Support and Resistance Levels. And if you want to learn how to interpret trading zones, read up on Identifying Dynamic Support and Resistance Levels. Finally you should know  How To Read Candlestick Patterns using Support and Resistance Levels.

However, if you only want to trade once a month and watch your entry rack up huge profits over a stretch  of several weeks, consult  How to Spot High Probability Trades.  And if you  are  still not sure about  price action trading, find out   Why Price Action Trading Still Rocks . Dont let me stop you from reading the other posts as well. But the  suggested posts above are the most important posts to get  you started.

Wanna Subscribe to My Mailing List?

Then  subscribe to my mailing list and I’ll send my blog posts direct to your inbox. It wont cost you a penny.

Free Download

If you want to know everything there is to  know about price action trading,   Download for free The Ultimate Guide To Price Action Trading by Rayner Teo. This brilliant ebook will change your life. It sure did mine.

Opening Of Live  Forex Trading Account If you’re looking to open a live trading account sign up with EasyMarkets. But if you want to get a feel for the platform first  and practice your trading strategies before going live, open a free demo account with EasyMarkets If you want to more information about easyMarkets before opening a live/demo account read my review  My Personal Take on easyMarkets

How To Look Into The Crystal Ball Of Your Next Forex Trade

Hello and welcome to another edition of the bulls vs the bears. This week we are going to look into how to look into the crystal ball of your next forex trade. No, we’re not learning how to be soothsayers overnight. We are going to learn how to anticipate the next trade before it happens.   To paraphrase a famous saying it’s preparation meeting opportunity. If you want to be a successful forex trader, you need to have a plan. You can’t go in  with the attitude of “wing it and let the chips fall where they may”

Based on your trading plan you anticipate on how the next trade is going to shape up . This is where preparation meeting opportunity comes in. With your trading plan in place you should have a fair idea of what the next trade is going to look like. So basically  we are going to learn how to anticipate trades and then make our entry.

First:

Understand What The Forex Market is Doing

You need to understand what the forex market is doing. How do we do this? By identifying in advance variables such as where the key levels are, where the hottest trends are, price signals et.c. It will be in your best interest to turn this habit into a regular routine every week. Some of you may be going “But this is boring.” Well, boring is good, especially if you plan on being prosperous as a forex trader. Once you’re able to ascertain what’s happening on the market, you should  be able to make your entry without fear or favor. 

You can now focus on anticipating trades at key levels and other value areas. One you recognize a price signal forming at one of these areas, you can make your move without thinking twice about it. By price  signal we are referring to a price action signal, or even a retrace to a key level. So don’t just react to the happenings on the market. You should know way in advance of the next trade formation based on your identification of the key levels. Now let’s see an illustration of  key areas that have already been mapped out. Image result for forex mapping out key levels and identifying trends Ladies and gentlemen, here is an illustration of  an old resistance level now turned into support. The old resistance is marked pink at the far left corner. Whereas the support area is labelled blue. Notice the three support areas labelled blue. It’s pretty obvious that there is an ongoing struggle between the bulls and the bears. Price seems to be holding up quite well. And when that happens, it can only mean one thing – The bulls are about to break out and head for the hills.

With that in mind you gently place your buy signal close to the tip of the bullish candle right on the support level and watch the bulls start their procession to the hills. For more information on key levels look up Identifying Support and  Resistance levels with Price Action Analysis

Keep Your Eyes On Dynamic Zones

You need to keep an eye   on dynamic zones in the markets. By dynamic zones we are referring to areas where  price action is happening at the speed of light. You see the whole idea behind anticipating trades is having a plan as to how you will react when so and so happens. This approach is more professional than trading like a Las Vegas gambler. with no rhyme nor reason behind your trades. You need to trade like a sharp shooter instead of  a suicide bomber.

Now how  does one keep in tune with the dynamic zones?Well performing  weekly and daily market analysis is one way of getting  in tune with the dynamic zones. In fact it’s the only way to stay in tune with the dynamic zones and learn to anticipate high probability trading scenarios. Your marksmanship as a trader will come in real handy in this scenario.

When you sit behind your laptop, there is no need for you to hunt for trades. By time you  turn the power button on, you should have a pretty good idea of which markets are hot right now and where to look for signals. And the best place to search for trading signals  are in areas of confluence and key levels. based on previous analysis you’ve already done.

Let’s take a look at a classic example of such a scenario. confluence

Here you have a nice looking example of the confluence scenario I just explained. Keep a close watch on the three price signals.  The first signal is at the level of support via the engulfed candles. The second signal is at the level of support. And the third signal is at the breakout point where a bullish trend forms.

The neat  thing is all three signals are unfolding at the same time. They’re coming together simultaneously. Where three such scenarios form, your crystal ball should tell you that it’s time to cash in. For more information on trading confluence areas, look up Something Called Confluence.

That’s a wrap for ”Trading Less Will Bring You More Profits.” Instead of reacting to what the forex market is doing, how about anticipating what the forex market will be doing? You can only accomplish this task by identifying the key levels, hash out a trading plan and anticipate the trades. In plain English, exercise self-control instead of allowing the forex market to control you.

I’m going to be real honest with you. The market will not always appear on the high probability /confluence areas that you highlight on your price charts. But when it does appear you need to be ready like a marksman. This where your trading edge comes in real handy. If it’s not present on the price charts DON’T BOTHER TRADING. If you have no idea what a trading edge is look up You Need To Sharpen Your Trading Edge. Til next time take care.

Looking To Join The Forex Trade Gravy Train?  

If you’ve stumbled in here looking to join the forex trade gravy train, here is what you need to do . First,  look up  Why Forex Trade Is So Popular.  Next, you learn  the fundamentals of forex trading by reading  Forex Trading Basics – Top To Bottom Part I  and Forex Trading Basics – Top to Bottom Part II .

Next, you need to learn how to read candlestick patterns. They are the main feature of price action analysis. And you need to know what these patterns are telling you. To be able to do that, read the following on Fundamentals of Reading Candlestick Patterns, Single Candlestick Patterns,  Dual Candlestick Patterns, and Triple Candlestick Patterns . Also You Need To Know Ten Of These Candlestick Patterns .

And finally If you want to give your trading skills an edge by relying on pure price action trading/analysis,  instead of fancy forex robots and fancy indicators, get started with What is Price Action Trading? 

Looking to get a leg up on price action analysis,?you need to learn How to Identify Support and Resistance Levels. And if you want to learn how to interpret trading zones, read up on Identifying Dynamic Support and Resistance Levels. Finally you should know  How To Read Candlestick Patterns using Support and Resistance Levels.

However, if you only want to trade once a month and watch your entry rack up huge profits over a stretch  of several weeks, consult  How to Spot High Probability Trades.  And if you  are  still not sure about  price action trading, find out   Why Price Action Trading Still Rocks . Dont let me stop you from reading the other posts as well. But the  suggested posts above are the most important posts to get  you started.

Wanna Subscribe to My Mailing List?

Then  subscribe to my mailing list and I’ll send my blog posts direct to your inbox. It wont cost you a penny.

Free Download

If you want to know everything there is to  know about price action trading,   Download for free The Ultimate Guide To Price Action Trading by Rayner Teo. This brilliant ebook will change your life. It sure did mine.

Opening Of Live  Forex Trading Account

If you’re looking to open a live trading account sign up with EasyMarkets. But if you want to get a feel for the platform first  and practice your trading strategies before going live, open a free demo account with EasyMarkets If you want to more information about easyMarkets before opening a live/demo account read my review  My Personal Take on easyMarkets