Hello and welcome to another edition of the bulls vs the bears. This week I want to throw another suggestion you:Trading less will bring you more profits. Some of you are looking at me like”This guy has lost his marbles.” News Flash! All my marbles are intact. Listen, it makes absolutely no sense trading 40 times a month. You run the risk of slipping into an emotional roller coaster-not to mention blowing your account into smithereens. What am I trying to stay? Less is more. If you show your face too many times on the charts, you’ll get breadcrumbs in return.
However, if you show up every once in a while, you will surely reap in huge dividends. Of course your trading edge has to be in full effect on the market for you to reap those dividends So what’re we going to do? We are going to take a look at three trade setups you could use starting this month. If you’re not sure which trade setups to look up, try these suggestions. You should see major improvements in your trading fortunes.
So first up:
Pin Bar Sell Signal Now take a look at this juicy pin bar. sell signal along the trendline athe level of resistance. Now this took a few weeks for this sell signal to materialize. It takes patience to to trade like this. And you need patience to make money as a trader. The last thing you want to do is to jump in and out of trades as if your pants are on fire. When you do that you lose a lot of money.
And your emotions end up scattered all over the laptop screen.Even worse, you lose your beauty sleep. you dont want that. Do you? Just put in your sell bid below the the bearish pin bar as indicated by the red arrow. For more information on trading look up Pin Bar Strategy – How to Trade it
Bullish Tailed Reversal Bar Now as you can see this is a bullish tailed reversal bar, popularly known as the engulfed candle. As you can see this formation occurred following a brief pullback. And if you’ve noticed, the bulls have set up a nice looking trend. This should set you up for a hefty profit. To put in your trade entry just place it above the high end if the bullish candle as indicated by the red arrow. You don’t need to make an appearance on the market every day. So long as you concentrate on high probability setups such the one above, prosperity will be your portion forever.
In fact,you should be able to win more than half of your trades assuming you know what you’re doing. Jut make sure you don’t risk too much and stray from your trading plan. For more information on using candlestick patterns to identify potential market moves look up How To Read Candlestick Patterns to Identify Potential Market Moves
Inside Bar Breakout
Now here is the Inside bar breakout nicely illustrated here using the GBP/USD pair. The higher high is the the tall candle known as the mother candle and the lower high(right infront of the higher high) known as the baby candle. Luckily for you price breaks through resistance without any resistance.So this should make for a cool bumper harvest. Sometimes it makes sense to head for the exits with your cash ahead of the appearance of the resistance level. In other words it’s better safe than sorry.
But you don’t to do that too often if there is an opportunity to make more money off the trade. If you miss out on that opportunity it will mean you having to compensate by winning more trades just to make money. For more information on how to trade inside the inside bar pattern Look up Trading The Inside Bar
That’s a wrap for ”Trading Less Will Bring You More Profits.” I’m only going to say this. Start using just these three trades every month and your life will never be the same. Even more important, your trading results will improve, and your you will have developed a completely different trading mindset.You will no longer experience the urge to stress yourself out with 60 trades a month. Who does that? Give your screen a break. Go to the beach if you have to. 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.
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.