NOTE :
this post is intended for novice or intermediate traders, professional traders can skip it or read it to refresh what they already know.
For the benefit of other traders,
I am starting an educational series where i will be covering lots of topics related to trading which everyone should abide by.
It will be in simple language and easy explanation so...
Taking profits early was a hard lesson I had to learn. I occasionally still do it. See chart
For me, the key to LONG-TERM success in this business is not your win/loss rate, but the magnitude of your wins vs your losses.
My biggest mistakes have all come from taking profits early, not from taking small losses.
I just posted an updated analysis on USDJPY where I talked about learning from getting stopped out. Now I know it may seem like I NEVER lose but in reality, I lose many trades! But I ALWAYS make much more than I lose because of PROPER stop placement and PROPER money management! If you incorporate and utilize these 2 things PROPERLY and stick to it, it will go a...
Hi fellows, Many people was requesting entry and stop placement on trend continuation patterns so i decided to post this stuff so that they can understand how we place trade based on trend continuation patterns Using following trading strategies
These trading strategies have a one condition and that is there must be an impulse before placing trade on trend...
Top 5 Risk Management Rules:
1. Only Trade with Risk Capital
-Risk Capital is the amount of money you are willing to lose and do not include your living capital into your trading account!
2. 2% Risk Management
-The 2% Rule prohibits you from risking more than 2% of your account equity on each trade you are entering.
3. 6% Risk Management
-The 6% Rule prohibits...
Hi traders,
I recently checked my long trade at EUR/GBP and got an interesting idea. I wanted to share with you not only about the mechanics & reason behind my trade but also about the currency correlation between USD, EUR & GBP that can some-how works in my favor. (Assuming we see some "Weakness" in USD when Market reacted to the Fed statements).
The Trade :...
Way too many traders trade with very little capital and they do this because their brokers allow them to by offering them insane amounts of leverage. We really don't understand it because you would think that these brokers would want their clients to succeed in order to continue placing trades which yields the broker revenue from commissions and spreads. It is...
Tonight we did a live stream on YouTube offering an in-depth explanation of correlation trading. You can watch the stream back in its entirety here www.youtube.com
Below will be a written explanation of correlation trading utilizing the AUDJPY vs. NZDJPY as the example:
Correlation trading is an amazing way to add diversification to your trading portfolio and in...
In my last post here, I posted an analysis on this pair in which i suggested that it is possible that this pair is about to turnaround and take off to the upside for a large wave (c) move. Here is that post:
The purpose of this post is not to provide any possible trade call although a good trade based off this tutorial is possible. The reason I am making this...
Hello, money management is very important after entering a trade. Lately im using this money management system called "risk reduction target".
This is because i saw many times a trade is going in my favor (lets say 50 pips, not bad) and after that if my analysis was wrong price suddenly goes against me and touches my SL. I felt dissapointed not only because i...
Hi All, I wanted to share this with you to help explain Stop Hunting Strategy.
Many of you may still wonder if it is actually true and speculate and some may even get confused on this strategy. The Big Forex Players have a lot of money invested in their orders to gain as much as they can, they will use the even numbers and have a zone where they know that there...
If a 75% decline will scare you out of a stock then I strongly suggest you never invest in stocks.
Stocks are a voting machine in the short term that only measures what someone is willing to buy or sell the stock at in the short run. In the long run (pun intended) the growth of sales and earnings (and hopefully a dividend) is what makes you money.
So, if you...
Hi All, I recently have been asked to publish this diagram for executing a 2 target order.
I have labeled the diagram with order sequence in a perfect world scenario. Steps below relate to numbers on chart
I am not telling you this is how everyone does it and this is only based on the questions I have been asked, every strategy has its own order entries stops...
Many people who trade in the financial markets, especially those who engage in foreign exchange trading, do not pay attention to a very important aspect in trading that can cause great losses or reduce large profits.
What I am talking about is slippage, which is the gap between the forex price we ask and the price we get in the execution of an FX trade.
There...
Hi all, I wanted to share this chart with you - I am hoping it works when I publish it and the arrows stay inline with the text - something very interesting we all know about currencies moving in tandem with each other to some degree different economic events causing them to stop moving together but eventually they will again.
As a forex trader, if you check...
Hi FX Risk Takers,
This is the conclusion of the AUDJPY Hourly Breakout Trading Plan .
Recap:
Price broke below 90.30 and was trading at 90.10s , I posted that the Plan can be executed.
We recall the following:
Stop Loss
Initially we can place the Stop Loss above 90.50.
If price manages to trade towards 90.00 after entry, we can consider shifting...
