MOST THINGS SUCCESSFUL TRADERS DO AND THE SECRET BEHIND FOREX A single formula for success for trading in the financial markets. Think of the markets as being like the ocean and the trader as a surfer. Surfing requires talent, balance, patience, proper equipment, and mindfulness of your surroundings. Would you go into water that had dangerous rip tides or was shark-infested? Hopefully not.
The attitude to trading in the Forex markets is no different. By blending good analysis with effective implementation, your success rate will improve dramatically, and, like many skill sets, good trading comes from a combination of talent and hard work. Here are the four strategies to serve you well in all markets, but in this article, we will focus on the Forex markets.
Approaching Forex Trading
Before you trade, recognize the value of proper preparation. It's important to align your personal goals and temperament with relatable instruments and markets. For example, if you understand retail markets, then it makes sense to trade retail stocks rather than oil futures, about which you may know nothing. It also helps to begin by assessing the following three components:
Given its low commissions and fees, the Forex market is very accessible to individual investors. However, before you trade, make sure you have a solid understanding of what the Forex market is and the smart ways to navigate it. Learn the basics and see real-time examples of the approaches and strategies detailed in my youtube video
Time Frame
The time frame indicates the type of trading that is appropriate for your temperament. Trading off a fifteen-minute chart suggests that you are more comfortable taking a position without exposure to overnight risk. On the other hand, choosing weekly charts indicates comfort with overnight risk and a willingness to see some days go contrary to your position.
In addition, decide if you have the time and willingness to sit in front of a screen all day or if you prefer to do your research over the weekend and then make a trading decision for the week ahead based on your analysis. Remember that the opportunity to make substantial money in the Forex markets requires time. Short-term scalping, by definition, means small profits or losses. In this case, you will have to trade more frequently.
Methodology
Once you choose a time frame, find a consistent methodology. For example, some traders like to buy support and sell resistance. Others prefer buying or selling breakouts. Some like to trade using indicators, such as MACD (moving average convergence divergence) and crossovers.
Once you choose a system or methodology, test it to see if it works on a consistent basis and provides an edge. If your system is reliable more than 60% of the time, you should consider that an edge, even if it's a small one. Test a few strategies, and when you find one that delivers a consistently positive outcome, stay with it and test it with a variety of instruments and various time frames.
Market (Instrument)
You will find that certain instruments trade much more orderly than others. Erratic trading instruments make it difficult to produce a winning system. Therefore, it is necessary to test your system on multiple instruments to determine that your system's "personality" matches the instrument being traded. For example, if you were trading the EUR/USD currency pair in the Forex market, you may find that Fibonacci support and resistance levels are more reliable.
Your Forex Trading Attitude
Behaviour is an integral part of the trading process, and thus your attitude and mindset should reflect the following four attributes:
Patience
Once you know what to expect from your system, have the patience to wait for the price to reach the levels that your system indicates for either the point of entry or exit. If your system indicates an entry at a certain level but the market never reaches it, then move on to the next opportunity. There will always be another trade.
Discipline
Discipline is the ability to be patient—to sit on your hands until your system triggers an action point. Sometimes, the price action won't reach your anticipated price point. At this time, you must have the discipline to believe in your system and not second-guess it. Discipline is also the ability to pull the trigger when your system indicates to do so. This is especially true for stop losses.
Objectivity
Objectivity or "emotional detachment" also depends on the reliability of your system or methodology. If you have a system that provides entry and exit levels that you find reliable, you don't need to become emotional or allow yourself to be influenced by the opinion of pundits. Your system should be reliable enough so that you can be confident in acting on its signals.
Realistic Expectations
Even though the market can sometimes make a much bigger move than you anticipate, being realistic means that you cannot expect to invest $100 in your trading account and make $1,000 each trade. Although there is no such thing as a "safe" trading time frame, a short-term mindset may involve smaller risks if the trader exercises discipline in picking trades. This is also known as the trade-off between risk and reward.
Motivating Forex Trading Factors
Instruments trade differently depending on the major players and their intent. For example, hedge funds vary in strategy and are motivated differently than mutual funds. Large banks that are trading in the spot currency markets usually have a different objective than currency traders buying or selling futures contracts. If you can determine what motivates the large players, you can often align that knowledge to your advantage.
Alignment
Pick a few currencies, stocks, or commodities, and chart them all in a variety of time frames. Then apply your particular methodology to all of them and see which time frame and instrument align with your system. This is how you discover alignment within your system. Repeat this exercise regularly to adapt to changing market conditions.
Implementing a Forex Trading Strategy
There is no such thing as only profitable trades, just as no system is a 100% sure thing. Even a profitable system, say with a 65% profit-to-loss ratio, still, has 35% losing trades. Therefore, the art of profitability is in the management and execution of the trade.
Risk Control
In the end, successful trading is all about risk control. Try to get your trade in the correct direction right out of the gate. Evaluate your trading system, make adjustments, and try again. Often, it is on the second or third attempt that your trade will move in the right direction. This practice requires patience and discipline to achieve success.
The Bottom Line
Trading is nuanced and requires as much art as science to execute successfully, which means that there is only a profit-making trade or a loss-making trade. Warren Buffet said that there are two rules in trading: Rule 1: Never lose money. Rule 2: Remember Rule 1.1 Stick a note on your computer that will remind you to take small losses often and quickly rather than wait for the big losses.
Forexacademy
xauusd outside bar movementwe see that xauusd has good potential to make a purchase but it is still not safe for that because it has to break the confirmation line so that the price can go to the supply area so that it will get a profit but if it can't cross the confirmation line it will potentially damage the demand area and continue the decline return
will gbpjpy go down drastically?will gbpjpy go down drastically?
as we know that gbpjpy has gone up significantly and many traders have started hunting to find short positions, I see an interesting opportunity even though I don't look to the left further on this but there has been a support break and the formation of a supply area on the h4 timeframe provides an opportunity for a decline significant, and if there is a coch formation on a larger timeframe such as the daily then you can hold the current short position because it has the potential to experience a further decline
XAUUSD - KOG REPORT!KOG Report:
17/04/22
In last weeks KOG Report we said we were not convinced by the bullish move from the previous week and would be expecting the market to go a little higher to target the levels of 1970 and above that 1975 where we would be looking to protect and take most of the profits on any longs and then waiting to short the market into the lower support levels initially. We suggested that we would like the market to open, target the 1950 level and then drop into 1940 where we would be looking for support where we would go long for our targets. As we suggested the market played out exactly as planned, not only down into support but then up into the 1970 and 1975 regions. We ended the week in Camelot with 19 targets hit across 22 trade ideas. Another phenomenal week for us and our members here at KOG.
So, what can we expect for the week ahead?
Again, we’re going to keep it quite simple this week as the plans from last week haven’t really changed. We can see another push to the upside into the 1985 and 1995 levels and potentially just a little higher around 2003-8 where again we will be looking for the market to correct at some point during the course of the week. We have a lower level of 1920 and 1895 which we’re targeting as long as the price stays below the 2000 level. Breaking 2000 to the upside on the Daily and closing above it will negate our plan temporarily.
Immediate supports stands first at the 1960 level and below that just above 1950, this is where there is likely to be a reaction in price to the downside. On the flip side, immediate resistance stands 1980-85 which is also where we are likely to see a reaction in price. We have a pattern test around the 1995 level with a lot of imbalance above, so its likely we will see bullish movement but as we’ve said, we would like the pull back first into the lower support regions.
So, we will as always look at this with 2 scenarios in mind:
Scenario 1:
The price begins by declining into the lower support region of 1960 initially, this is where we feel there could be an opportunity to target the long trade into the above resistance levels with the complete target being at 1985. This is where we will be looking to protect any long trades and taking a majority of profits of the table. We would like to see this target the higher levels where we will be looking for signs of a reversal to take the short trade back down into 1940, 1920 and below that 1895. IF we do achieve those lower levels we will be looking to go long again to go higher!
Scenario 2:
Price pushes to the upside and targets the 1985-95 levels, if we face resistance here we will be looking to short the market back down into the first key resistance level of 1960, below that 1940 and a break of that the level we’ll look for 1920. At this point we will take it step by step looking for signs of a reversal to again go long and target the higher targets.
In summary:
So, our key levels are 1960 and 1985 as immediate targets to the up and downside. Price needs to stay below the 2000 level on close for us to continue targeting the 1895 level. A break and close above 2000 with confirmation of the movement and we will start looking to target the higher levels with the ultimate target being 2090 for us.
We’re not expecting much during the start of the week so its possible we will just see the market range and prepare for a breakout in either direction. We will of course share our daily levels and plans as we progress throughout the week.
We will try to share the daily and monthly levels and structures at some point during the course of the week so you can see what we’re looking at and what we have been observing in Camelot.
Hope this helps in preparation for the week ahead, we will update you as we go along as we usually do. Please do support us by hitting the like button, leaving a comment and giving us a follow. We’ve been doing this for a long time now providing traders with in-depth free analysis on Gold so your likes are very much appreciated.
As always, trade safe.
Forex Analysis on GBP/USDThis is an uptrend movement of price action on the GU but there must be a retracement as all other forex pairs. But we do not just trade retracement anyhow. We will wait for it to retrace then we enter the original area of interest. Which is the H4 bullish ICT orderblock. Study the chart guys, don't just rely on signals. They won't help you, especially in the long run.
NZD USD SELL OPPORTUNITYSELL: 0.68300
TP1: 0.67500
TP2: 0.66600
TP3: 0.65600
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CAD JPY SELL SETUP SELL: 80.950
TP1: 79.700
TP2: 77.640
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EURNZD BUY OPPORTUNITY BUY LIMIT : 1.73110
TP1 1.75500
TP2 1.79200
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NZDUSD SELL LIMIT 1:3 RR RatioNZDUSD SELL LIMIT 0.67714
TP1: 0.66610
TP2: 0.65600
#forex #forextrader #trading #forextrading #money #forexsignals #trader #forexlifestyle #investment #entrepreneur #investing #binaryoptions #fx #invest #forexmarket #forexlife #stock #success #investor #daytrader #stockmarket #forexsignal #bhfyp #trade #wallstreet #daytrading #financialfreedom #forexprofit #finance #motivation #millionaire #wealth #forexeducation #gold #forextrade #makemoney #profit #luxury #NZDUSD #forexanalysis #technicalanalysis #forexmentor #cash #pips #makemoneyonline #broker #lifestyle #forexsignals #forexprofit #forexmoney #forexsignalservice #money #trader #tradingforex #forextraining #investing #forexgroup
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USDJPY 1:4 RR BUY OPPORTUNITYBUY ENTRY :104.400
TP1:105.300
TP2:106.300
TP2:107.100
#forex #forextrader #trading #forextrading #money #forexsignals #trader #forexlifestyle #investment #entrepreneur #investing #binaryoptions #fx #invest #forexmarket #forexlife #stock #success #investor #daytrader #stockmarket #forexsignal #bhfyp #trade #wallstreet #daytrading #financialfreedom #forexprofit #finance #motivation #millionaire #wealth #forexeducation #gold #forextrade #makemoney #profit #luxury #USDJPY #forexanalysis #technicalanalysis #forexmentor #cash #pips #makemoneyonline #broker #lifestyle #forexsignals #forexprofit #forexmoney #forexsignalservice #money #trader #tradingforex #forextraining #investing #forexgroup
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CHFJPY SELL POSITION#forex #forextrader #trading #forextrading #money #forexsignals #trader #forexlifestyle #investment #entrepreneur #investing #binaryoptions #fx #invest #forexmarket #forexlife #stock #success #investor #daytrader #stockmarket #forexsignal #bhfyp #trade #wallstreet #daytrading #financialfreedom #forexprofit #finance #motivation #millionaire #wealth #forexeducation #gold #forextrade #makemoney #profit #luxury #CHFJPY #forexanalysis #technicalanalysis #forexmentor #cash #pips #makemoneyonline #broker #lifestyle #forexsignals #forexprofit #forexmoney #forexsignalservice #money #trader #tradingforex #forextraining #investing #forexgroup
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USDCHF BUY OPPORTUNITYBUY LIMIT ENTRY : 0.91500
TP1: 0.92100
TP2: 0.92800
TP2: 0.93500
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EURNZD SHORT POSITION#forex #forextrader #trading #forextrading #money #forexsignals #trader #forexlifestyle #investment #entrepreneur #investing #binaryoptions #fx #invest #forexmarket #forexlife #stock #success #investor #daytrader #stockmarket #forexsignal #bhfyp #trade #wallstreet #daytrading #financialfreedom #forexprofit #finance #motivation #millionaire #wealth #forexeducation #gold #forextrade #makemoney #profit #luxury #EURNZD #short #forexanalysis #technicalanalysis #forexmentor #cash #pips #makemoneyonline #broker #lifestyle #forexsignals #forexprofit #forexmoney #forexsignalservice #money #trader #tradingforex #forextraining #investing #forexgroup