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Tag Archives: forex trading

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?

Volume Spread Analysis (VSA)

This article was kindly provided by Leonardo Barata of analyticalvsa.com who is an active VSA trader. VSA is a trading method that is favored by many traders. I do not trade VSA myself but you may find it interesting. If you like this article please share it. This article is for entertainment value only, and is not a recommendation to trade VSA.

What is volume spread analysis?

Volume Spread Analysis is a methodology originated in early 1900s, by Richard D. Wyckoff (1873-1934), a successful Wall Street trader and later known as the man who made a fortune in the 1929 market crash. Other very successful traders such as Richard Ney would use this methodology as well, only under a different name. This methodology, which is also called the Wyckoff method, was put in more modern terms by Tom Williams, a former syndicate trader based in London, in the 1960s. For the deep insights on the markets that it provides, and the fact that it can be applied to virtually any liquid market, VSA made a name for itself in trading communities.

Understanding VSA.

To understand what VSA is about, we must first understand who are the people who are making money in the markets, and how are they doing it. Like in any other business, there are specialists: some traders specialize in energy futures, others may specialize in the Japanese Yen pairs, others day-trading forex or stocks, and so on. And who are them? These are institutional traders, pit traders, syndicate traders and market-makers, which make a living speculating on the markets. If only we could know what those specialists are doing, then we could trade almost anything without having to do all the fundamental analysis and without looking at all the factors that influence the prices. Well, it turns out we can, and this was exactly Wyckoff’s breakthrough!

The role of volume.

The quantity that represents the activity in the market and is widely available (though not widely used impressively) is the volume. And one thing about the traders who consistently make money in the markets over the years, is that they’ve been able to accumulate a lot of it, and will make large trades to earn a significant amount of money for them. So the volume is the starting point of our analysis, and will show if there is a significant activity (or lack of) in the market, which will be very important to determine what the professionals (smart money) are doing.

Spread’s importance.

But Volume Spread Analysis as the name implies, not only uses volume but also the spread (bar’s high – low). The bar’s spread gives clues as to what type of activity is happening: for example, a low-spread up bar with high volume, indicates there was a lot of selling by the professionals and buying by the public: they prevented the price from going upper by dumping their positions in the market, which the public was happy to absorb. Another example: if there was an widespread down bar with high volume, and the next bars are up, it means there was actually buying on that down bar. Why would the prices go up if that was true selling? The smart money uses the public euphoria to dump or to open their positions, as not to turn the prices against themselves.

Charts examples:

accumulation

The end of the 2008 stocks bear market: Right before the bear market ended, there was accumulation (professional buying) evident in Dow Jones Industrial Average and other indexes. Signals of distribution were also evident before the bear market started in 2008.

The gold top: right before the bear market in gold, and after all the buying euphoria by the public, gold finally collapsed after signs of heavy distribution.

distribution

Learn more and get VSA indicators on our volume spread analysis website.

About the author: Leonardo Barata is a forex and stocks VSA trader and developer.

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. 🙂

Live Forex Chat For Prospective Students Is Now Available.

live Forex chatWho is that funny little man in the bottom right of your website? lol. Yeah he’s a bit cheesy i know, but what do you want for free. 🙂

The live chat is very kindly provided by Tawk, and hopefully it will give prospective students an easy initial point of contact.

If i am online, which is most of the time, the live chat facility will be available, and yes it will be me at the other end.

If i am in lessons or trading, i may not be able to deal with your request right away, but i will get back to you asap.

I am probably opening a can of worms with this live chat feature, and i will more than likely be bombarded with advertising sales people, introducing broker offers, and SEO companies guaranteeing to get my website to number one on Google.

So i am going to say right here right now. The live Forex chat facility is for prospective students only. If you are a broker, an SEO company, an advertising company etc etc, please do not use the live chat.

If you use the chat facility for anything other than to speak about my Forex training course, i will cut you off. With all due respect i am far too busy to be wasting my time chatting to sales people.

So if you are a Forex trader, new or experienced, that is struggling, and you would like to have a live chat with me about the prospect of becoming a student, then i would love to hear from you.

Please try to refrain from asking questions like, how much is your Forex training course? (you will find that information here) or what’s your opinion on Euro Dollar? or can you give me any good trades for free? I think you get the idea.

The chat is there for the benefit of traders that are serious about coming on board. So please bear that in mind before you use the live chat facility.

Thanks for your understanding and have a great day. 🙂