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Category Archives: Forex Trading Articles

Do You Have An Unconscious Trading Bias?

Do you have a trading bias? Or are you a trader that is comfortable on both sides of the market?

opinion

What is a trading bias?

A trading bias can be an opinion about the market, or a certain currency pair, but it could also be an unconscious behavioural pattern that is affecting your profitability in the market.

Many traders do not realize they have an unconscious trading bias, but recognizing that you have one, and understanding how it can impact your trading performance, is something that you may need to do in order to make yourself a better trader.

Trader psychology does play an important role in trading, fear and greed are the most common problems that traders have to deal with on a daily basis, but if you have been trading for a while, as I have, there are some interesting characteristics that you may be applying to your trading behaviour, without actually realizing it.

When I first started trading.

I have been trading for almost 25 years. I first started trading equities in the early 90’s. When I started out on my trading career all those years ago, I did not have all the sophisticated charting software that we have today. I remember having to plot my charts on graph paper that I purchased from WH Smiths.

I first started out as a retail investor rather than a trader, plotting my charts by hand with end of the day prices taken from the Financial Times. My strategy was to buy and hold, buying value on dips, and following the long term trend. I had never heard of shorting, and with the limited resources available to me, I only really had the option to buy stock. So my brain was conditioned to only look for buying opportunities.

This early learned behaviour pattern has unconsciously been carried with me all my trading career. Even now when I am trading, I always feel more comfortable when buying rather than selling. These early trading experiences have shaped my trading psychology to this day, and there will be others in the same mindset.

Did you start your trading career buying equities?

If you started out in equities as I did, there is a good chance you will be more comfortable with long positions, rather than short positions, as I am. This bias does not stop me from taking short trades, but it just feels a little more normal when I am long.

start trading careerIf you keep a trading diary as most traders do, it would be a good idea to look back at the trades you have taken, and compare your long trades against your short trades. Are you taking more longs than shorts, or vice versa? Also look at the profitability of your longs verses your shorts.

An unconscious trading bias can also affect the length of time you stay in trades, so check that too. Are you mostly staying in long trades or short trades?

Knowledge is the biggest asset to trading profitability in my opinion, but it will help your trading if you can understand your trading behaviour, and recognize any trading bias that you may have, that could be affecting your profitability in the market.

If you enjoyed this article, and think it would benefit other traders, please like it on Facebook, tweet it on Twitter, or bookmark it using one of the social bookmarking buttons below.

Thanks for stopping by, and have a great day. 🙂

The Secret To Successful Forex Trading

What does the market do everyday?

If you think about it logically the market can do 3 things every day. It can go up, it can go down, it can go sideways, but it always does something. The market does not stay at the same price for 24 hours, its always moving, it never stays still, and if its moving, its moving for a reason, and if you understand why its moving, then there are opportunities to make money from those moves.

what does the market do every dayMost traders fail to understand why the market moves as it does.

They think price goes up because people are buying, they think price goes down because people are selling, and they think the market goes sideways because people are not buying or selling.

That can sometimes be the case, but its not always the case. Most traders react to what they see on the chart, if they see prices going up they buy. If they see prices going down they sell.

So why is it that 95% of traders lose money, if they are doing what the chart is telling them to do?

Why traders lose money in the market.

The reason most traders lose is because they buy when they should be selling, and they sell when they should be buying. The reason they lose is because they buy when prices go up, but because they don’t know why the price is going up, they don’t know how long to hold the trade for, when prices then reverse they get stopped out. The same applies if price is going down.

why do traders lose moneyHow much money would you be able to make if you knew why price was going up or down, and you knew how long you could hold your trade for to make maximum profit. Not because of buying or selling, but because of some other factor that’s making price move.

So you have had no success with buying or selling into a move, so you try to catch the bottom or the top of a move. Prices start going up, so you sell. Prices start going down so you buy. Prices keep going so you add to your losing trade, and prices still keep going. When you have been stopped out prices then reverse.

Why did you lose your money? For the same reason that you lost it before. Because you were buying when you should be have been selling, and you were selling when you should have been buying. Whether you are trend trading, or counter trend trading you need to know why prices are moving, and whether you should be buying or selling.

Its not just as simple as buyers or sellers. Prices move for many reasons, and you need to know that reason before you enter a trade, so you are on the right side of the move.

Understanding the Forex market.

understanding the forex marketI get a lot of calls from traders that think i have some sort of magic formula for trading the markets. A holy grail, or a guaranteed method for Forex trading success. Well guys i have to confess that i don’t have such a thing, as such a thing does not exist. No one knows with a 100% confidence what will happen next in the Forex market. But if you fully understand what is making prices move, and take high probability trades based on that understanding, then you can be a successful trader.

I am not the master of the market, or a Forex trading guru, and i cannot promise you untold riches by enrolling on my training and mentoring program, but what i can promise you is that i will teach you what you need to know in order for you to be successful, and if you devote the time required to learn what i teach, then you will be a consistently profitable trader.

Embrace new ideas and beliefs.

How i trade, and what i teach is very unlike what you may have come across before, and it can take some traders longer than others to fully embrace what i teach, and adapt their trading strategies accordingly. It can be a struggle for some traders to get in the mindset of how a professional Forex trader thinks, and how he trades.

the truth about ForexIf you have been trading for a number of years and losing money all that time, it can be hard to let go of your learned behavior, and look at the market in a different way. Some traders however, will see my stuff as a light bulb moment in their trading journey, and my teachings will literally transform their trading overnight.

So to any prospective students reading this, if you are considering coming on board with me, please have an open mind, and be prepared to embrace new ideas and thought processes about how the market works. What i have to say will turn your understanding of the market on its head, so be prepared for some shocking revelations.

Use your understanding to trade with confidence.

I trade Forex with confidence and an unrivaled understanding of the forces that drive the market. My entries and exits in the market are based on high probability reversal points.

trade with confidenceSome of my entries and exits are so precise, that it does sometimes seem like the market is dancing to my tune, which has prompted some of my students to ask me if i have a contact on the inside, someone feeding me information on where to enter and exit the market. 🙂

It does sometimes look that way, but i can assure you i do not have a contact on the inside, and there is no slight of hand involved.

Everything i trade and teach is based in what the chart is telling me to do. I am not going to go into detail about how i trade, and how i teach, but its all based on market knowledge. All the information you need to do what i do is contained within the chart.

Don’t waste time and effort with free education.

free forex educationThere are many Forex training companies, or individuals that will give away free information, or make videos of how you should trade the market. There are 1000’s of free videos on You Tube that you can spend years trawling through. I respect those people for taking the time to put together training videos to help people learn how to trade Forex. But the sad fact is they are a waste of your time and effort.

You have heard of the saying you don’t get something for nothing, well its true 99% of the time. You can spend a few years going through all this stuff on You Tube, and don’t get me wrong, its entertaining stuff, and you will learn a lot of the basics, but as far as making money goes, there will be very little in there that will help you in that regard.

The secret to successful Forex trading.

I am going to give you something now that will help you in your journey to becoming a profitable trader. This is a very important part of what i do, and in my opinion is the real secret to successful Forex trading.

the secret to forex trading successMost people think the Forex market is random, but its not. I have been in this business long enough to know that no matter how random it looks, its not random. The market is very structured. The same things happen, time and time again in the market, and when you understand the market as i do, you can easily pick up on these recurring events, and use them to make a profit from the market.

This is what i teach you in my training course. I teach you to recognise the recurring events in the market, and how to profit from them. And i am not talking about chart patterns, like head and shoulders. Although head and shoulders are a very good pattern, if you know how to trade them correctly.

I am not talking about buying and selling at trend lines, or support and resistance levels. I am not talking about Elliot Wave, or Harmonics, or Moving Averages, or MACD or Bollinger Bands or any other indicator that you can find to give you trade signals. What i am talking about here are the guaranteed moves in the market that happen every day.

Use what you know about the market to make money.

what-do-you-knowThis may seem like a strange statement, but try and think about what i have just said.

Use what you know about the market to make money. Think about what you know about the market, and what makes price move. What do you really know, with the highest probability? Work out what you are most confident about, and trade based on that.

If you are unsure about how price is going to move then don’t trade. You need to focus on probability to be successful. Be proactive in your trading not reactive. Analise the market for probability, and trade when the probability of a successful trade is most in your favor.

Thanks for visiting my site, and have a great day. 🙂

A Profitable Forex Trading Strategy.

Searching for success.

There are 100s of Forex trading strategies that are used by traders, but not all of them have the potential to be profitable. Traders spend a lot of time searching for a profitable trading strategy, but the majority of them never find a strategy that they have enough confidence in, to enable them to trade with big money.

search forex strategyMany traders think that the reason they are not making money consistently, is because of a lack of discipline. They believe that their losses are down to their own inability to follow a profitable trading strategy, when in fact the real reason they cannot make money is because their strategy is weak.

I agree that discipline plays a major part in the success of every trader, and it is something that is very hard to truly master, but you also have to have a proven trading strategy to work with, or you have no chance of success. When you trade with a great strategy, and you have mastered discipline then you will become a very successful trader.

Finding a profitable trading strategy.

searching through shitThe problem faced by many traders is finding a strategy that has the potential to make profit consistently in the Forex market. This was a major problem for me when i first started out, as i did not know what worked and what did not work.

Would i be wasting my time and effort trying to learn something that would never be able to make money consistently. I know that this is a problem that many traders face. You can waste years learning and back testing strategies, only to find out that they do not work, and its very frustrating.

I am fortunate that i am a quick learner, so it took me a lot less time to wade through all the crap and get to the really good strategies that can make you lots of money.

Are you a frustrated trader?

When you first start on your Forex journey you inevitably come across many Forex training websites that will claim to be able teach you how to trade. So many traders will invest a few 100 bucks in something and start to learn what is being offered.

frustrated traderAfter a number of months or even years of learning, the majority of traders are left frustrated because of their lack of profitability.

I know of many such websites and training providers that claim to be this that and the other, but in reality they do not understand the business at the level required to be able to offer training, and although they are not charging a fortune for their services, its the time that you lose that’s the real killer.

The lost years learning to trade.

It is very important that you find the right trading strategies to learn, as it takes years to be a truly great trader. Yes you can be profitable in a few months with the right training, but to be consistent week after week month after month will take a lot more time.

lost yearsTime is an extremely valuable commodity that some people do not fully respect. Yes you may have lost a few 100 bucks learning something that doesn’t work, but how long has it taken you to find out, and how many more strategies will you learn, that do not work either.

You can get back the money you have spent on these crap websites when you finally learn how to trade, but you will never get back the time that they have taken from you. I have been there, i have wasted my time on their shit too, and although the money is insignificant, the time that they have taken from you is very significant, and lost forever.

The strategies i teach.

forex trading strategiesI trade and teach many strategies, but everything i teach makes money. I do not teach strategies that are not profitable. I value time above everything else, we are not on this planet for very long and your time and mine is very precious, and i would never take time from anyone and teach them crap that does not work.

My Forex training course is not cheap, but its worth every penny i charge and more. The knowledge that i have about the Forex business has been built up over years and years of chart study, time that i will never get back, but its been time invested wisely by learning some really great stuff that i can now pass on to my students.

Knowledge + Time = Success.

formula 4 successThis simple formula is all you need to be a great Forex trader, but the most important part of the formula is knowledge.

Time on its own will not bring you success. Time will bring knowledge, and the more time you invest, the more knowledge you will have, and the closer to success you will be, but learning to trade this way is the wrong way in my opinion.

The quickest way to learn, is to find someone with the knowledge you need, and invest the time with them, and success will come much quicker. If you have ever learned anything in your life you will most likely have learned it from someone else. Learning to read, learning to drive, learning your job, so why would learning to trade Forex be any different?

How Do You Assemble Flat Pack Furniture?

What has flat pack furniture got to do with Forex trading?

man with flatpackForex trading is a big mystery to many people.

Traders search high and low to uncover the mystery of trading, but the truth is, trading is not as hard as it looks, if you know what you are doing.

Every job requires you to have certain skills to be successful, Forex trading is no different.

If you can learn to assemble flat pack furniture, then you can learn to be a great Forex trader.

The rules of the market.

To be successful a successful trader, you have to understand and follow the rules of the market. How many times have you opened a box of flat pack furniture and proceeded to put it together without reading the instructions first? How far do you get before you mess something up and have to go back and read the instructions?

Trading is the same, you can jump in at the deep end thinking “i know how to do this”, and then you quickly find out that you don’t, so you have to go back and read the instructions.

Getting the correct instructions.

instruction manualOk, so this time you are going to do it right. You open your new wardrobe and start to read the instructions. But whats this, the instructions you have in front of you, are how to put together a chest of draws, not a wardrobe. So what do you do?

Well some of the instructions can be applied to both the wardrobe, and the chest of draws. So you muddle through as best as you can, and cobble together the wardrobe by using the instructions for the chest of draws. You have a few bits left over but it looks ok. Lets hope it lasts longer than the other one did.

The hidden message.

If you did not see the hidden message in the last couple of paragraphs i will explain it. Whether you are assembling a wardrobe, a chest of draws, or trading Forex, you need the correct education to be successful. Whether you are aware of it or not, 95% of the Forex trading education you receive, either free or paid is wrong, and trading based on that education, will just leave you frustrated, out of pocket, and with a half finished wardrobe.

If you want to trade like a professional trader, you have to be educated by a professional trader.

For more information on my Forex training course click here.

Unfortunately, i will not be able to teach you how to put together flat pack furniture, but i will be able to teach you how to trade Forex. So you can then pay someone else to assemble your flat pack. Or do what i did, dump the flat pack and buy a nice bit of oak. Lovely. 🙂