Folks,
Our only aim when we trade forex is to make money. To make money, we must WIN. The general guideline I have for myself is to have a win rate in excess of 80%. Always focus on this and you will do well. My current is 85%. As I had written in my previous posting, to have a higher win rate, you need to 1) focus on longer term, 2) use SL wisely and 3) just trade EURUSD, nothing else. Always remember we are here to make money, not f**k around.
HOW TO USE OF SL IS VERY IMPORTANT:
Lets understand what fake gurus are preaching? They are not teaching you anything about winning. They just remind you not to lose everything, to preserve your capital. Which means to say they have no idea how to win. They will say, trade only 2% at any one time and ALWAYS have SL so that you won't lose all your capital. By the look of it, this sounds like good advice. But this is exactly what will screw you up. Focus on SHORT TERM, numerous small trades and asking you to use SL. They will tell you to use SL but not how to REALLY 'USE IT' By far, SL is the main cause of 80% ++ of 'gamblers' losing money playing forex. Once you put in a SL for your short term trades, you are more likely to lose money. If you still do not understand WHY, refer back to Lesson 29.
Always remember, you need to change your mindset on achieving a 80%++ win rate. Winning is your focus, not so much about SL and preserving your capital. With what you have read in my previous postings, you should be able to get the idea how this can be done.
HOW TO ACHIEVE HIGH WIN RATE?
The key remains that we trade BASED ON FACTS. The facts are represented by:
a) the Fed Dot Plot
b) who is currently in control
c) where is the current POC
d) where is the "Test of Control' zone whereby control can change hand
All the above also helps us to make better judgement on our USAGE and PLACEMENT of SL.
By just trading using the Fed Dot Plot alone, you would have easily made 500++ pips. Your WIN rate goes up.
By just knowing who is in control, you would have SELL more than you BUY. Your WIN rate goes up.
By just knowing who is in control, you would NOT have use SL for your SELL orders. Your WIN rate goes up.
By just knowing where the POC is, you would be wise to wait to SELL when price is above it. Your WIN rate goes up.
By just knowing where the 'Test of Control' zone is, you know EXACTLY where control changes hand. Your WIN rate goes up.
By just knowing where the 'Test of Control' zone is, you know EXACTLY where to place your SL for your SELL orders. Your WIN rate goes up.
Now, do you finally understand how we should use SL in a wise manner?
Now, do you finally understand how to achieve a 80%++ win rate?
Now, do you finally understand what our focus should be?
Time is Money.
To make Money, you need Time.
To buy Time, you need Money.
Another overall consideration to having a high WIN rate is non other than having a reasonable amount of CAPITAL for your trades. Or keeping your multipliers to reasonable amount. This is because of our focus on longer term where price might fluctuate up to 200 - 300 pips. This requires a lot of TRADING EXPERIENCE - how much you would need and how much to trade at any one time. Maybe I will talk a bit about this later.
That is all for now.
Good luck with your trades.
P/S : As always, do not just believe what I say. Use your common sense.
Our only aim when we trade forex is to make money. To make money, we must WIN. The general guideline I have for myself is to have a win rate in excess of 80%. Always focus on this and you will do well. My current is 85%. As I had written in my previous posting, to have a higher win rate, you need to 1) focus on longer term, 2) use SL wisely and 3) just trade EURUSD, nothing else. Always remember we are here to make money, not f**k around.
HOW TO USE OF SL IS VERY IMPORTANT:
Lets understand what fake gurus are preaching? They are not teaching you anything about winning. They just remind you not to lose everything, to preserve your capital. Which means to say they have no idea how to win. They will say, trade only 2% at any one time and ALWAYS have SL so that you won't lose all your capital. By the look of it, this sounds like good advice. But this is exactly what will screw you up. Focus on SHORT TERM, numerous small trades and asking you to use SL. They will tell you to use SL but not how to REALLY 'USE IT' By far, SL is the main cause of 80% ++ of 'gamblers' losing money playing forex. Once you put in a SL for your short term trades, you are more likely to lose money. If you still do not understand WHY, refer back to Lesson 29.
Always remember, you need to change your mindset on achieving a 80%++ win rate. Winning is your focus, not so much about SL and preserving your capital. With what you have read in my previous postings, you should be able to get the idea how this can be done.
HOW TO ACHIEVE HIGH WIN RATE?
The key remains that we trade BASED ON FACTS. The facts are represented by:
a) the Fed Dot Plot
b) who is currently in control
c) where is the current POC
d) where is the "Test of Control' zone whereby control can change hand
All the above also helps us to make better judgement on our USAGE and PLACEMENT of SL.
By just trading using the Fed Dot Plot alone, you would have easily made 500++ pips. Your WIN rate goes up.
By just knowing who is in control, you would have SELL more than you BUY. Your WIN rate goes up.
By just knowing who is in control, you would NOT have use SL for your SELL orders. Your WIN rate goes up.
By just knowing where the POC is, you would be wise to wait to SELL when price is above it. Your WIN rate goes up.
By just knowing where the 'Test of Control' zone is, you know EXACTLY where control changes hand. Your WIN rate goes up.
By just knowing where the 'Test of Control' zone is, you know EXACTLY where to place your SL for your SELL orders. Your WIN rate goes up.
Now, do you finally understand how we should use SL in a wise manner?
Now, do you finally understand how to achieve a 80%++ win rate?
Now, do you finally understand what our focus should be?
Time is Money.
To make Money, you need Time.
To buy Time, you need Money.
Another overall consideration to having a high WIN rate is non other than having a reasonable amount of CAPITAL for your trades. Or keeping your multipliers to reasonable amount. This is because of our focus on longer term where price might fluctuate up to 200 - 300 pips. This requires a lot of TRADING EXPERIENCE - how much you would need and how much to trade at any one time. Maybe I will talk a bit about this later.
That is all for now.
Good luck with your trades.
P/S : As always, do not just believe what I say. Use your common sense.
Trade closed: target reached
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.