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Tag Archives: forex

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.

Free Group Forex Training Sessions Are Now Available.

Free group Forex training.

For a number of weeks i have been offering students free group Forex training sessions as a way of further developing their understanding of the Forex business. The feedback i am getting from students is very positive, so i have decided to make the group sessions a regular addition to my education program.

free group forex trainingThe group training sessions will be every week and will be held at times that are convenient for myself and the majority of students.

They are currently free of charge for anyone that has paid for either the 20 or the 40 hour Forex training course, and is a member of the live trading room.

There is no obligation to attend the group sessions, but they are there if you feel you need the extra tuition.

As with the one to one lessons, the group sessions will be during market hours, so you will be getting the benefit of live market training.

There is no substitute for live market training.

There is no substitute for HP Sauce, and in my opinion there is no substitute for live market training, but many Forex training providers will not teach in a live market, they prefer to make training videos or DVDs to educate students.

no substitute for live market trainingIt takes market knowledge and skill to train students in a live market, you have to know what you are doing, and to be honest with you most providers don’t.

Anyone can edit a video or a DVD to make the market do what you want it to do, but you have to have a greater understanding of the market to be able to teach it live.

My lessons are a professional Forex traders insight, into the forces that drive the Forex market. I will show you how you can exploit the opportunities that exist, to make money everyday from this business.

Many providers claim to be able to do this, but why are 95% of Forex traders losing money? Because they are being educated by people that do not know how to trade in a live market.

Anyone can trade on paper, but only the 5% can do it for real.

Changes to the live trading room.

changes to the live trading roomAs well as introducing the group training sessions, i have also changed the membership of the live trading room.

Anyone that has paid for the earn while you learn option, will now get free lifetime access to the live trading room.

The £195 per month subscription option is still available for people that do not wish to join the earn while you learn program.

I have decided to make these changes to my education program because i want to show my commitment to the success of all my students, new or existing. I am not interested in taking your money and pushing you out into the shark invested waters of the Forex market, i really want to help you achieve Forex trading success.

Many of my students tell me that what i offer is worth far more that what i charge for it, but now my Forex training course is even better value than it was before. So if you want to be trained by the best, and the most committed Forex training provider in the business, then please get in touch.

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

A Horse Called Forex. How Many times Have You Fallen Off?

Do you have a horse called Forex?

How many times have you fallen off and got back on again? In the early days i fell off quite a few times, and every time i did i said that’s it, I’ve had enough, i am never trading again. But after a few hours, or sometimes a few days, that horse would be looking at me and saying, come on, get back on, and let’s try again. Forex trading was in my blood.

I am sure many of you can relate to this situation. You really want to trade well, but you are struggling to find good entries, or your stops always seem to be getting hit, or you are doing silly things, like jumping in to try and catch a big move. You have a few good days and then wham, you’re off the horse again.

Forex Grand NationalTrading can be very much like the Grand National for many traders, staying on the horse on the flat is not too much of a problem, but come to beecher’s brook, or the chair, and you are falling off again.

I am going to let you into a little secret. Many traders make a common mistake when they are trading, and that is they focus on making money, rather than being a successful trader.

Making money is a by product of being a great trader. You have to be a great trader first, and the money will come later. If you focus on making money you are trading emotionally, and if you are doing that you will make more mistakes, and you will fall off the horse more often.

Another common problem for a lot of traders is they do not really know what they are doing wrong, this is primarily because of a lack of knowledge. But if you are confident that you do know what you are doing wrong, but you are still struggling, then type out a list of the things you are doing wrong and keep it on your desk, or put it up on the wall in your trading room, to keep you focused.

Knowledge is everything in Forex trading.

To be a successful trader you have to have many qualities. The most important quality you need in my opinion is knowledge. You cannot be a successful trader without that. If you do not know how the market works, and what makes prices move, you will always struggle. You can have the other qualities that you need, like patience, and discipline, but without knowledge you will never be a consistently profitable trader.

Forex KnowledgeAll the information that you need to be a successful Forex trader is contained within the chart, but to be a successful trader you need to know how to read that chart.

Many traders think they can read a chart, but the truth is they can’t. They think they know what’s going on, but then the market does something weird, and unexpected, and what looked like a great set up, is now turning into a losing trade.

If you can relate to this, then you do not fully understand what the chart is telling you to do.

In my experience, the market will do something weird or unexpected about once a month on average. The rest of the time it does exactly what i expect it to do. So if you are experiencing unexpected weird market moves more regularly than that, then you lack the market knowledge needed to be successful. And let me tell you this right now, its not your fault you lack the knowledge you need, and its nothing to be ashamed of. Your knowledge is not up to scratch because the majority of information available to you to learn from, is poor at best.

Professional Forex training.

To be a great brain surgeon you need professional training, to be a great doctor you need professional training, etc etc. So why do some Forex traders think they can teach themselves to be a great trader? You would not try to do it in any other profession, so why try to do it in Forex? If you try to teach yourself how to be a brain surgeon you could kill someone. No one is going to die if you try to teach yourself how to trade, but your bank balance is going to get killed that’s for sure.

Professional Forex TrainingTo be successful in any profession you need to have professional training. Why are 95% of Forex traders losing money? Because 95% of Forex traders are teaching themselves to trade, or paying a few 100 bucks for a pretty pathetic Forex training course that will not teach them anything of value.

Why are so many graduates looking for internships at investment banks, or hedge funds? Because they want to be trained by professional traders. If trading was easy they would pay a few 100 bucks for a Forex training course, and be on their way to their first million, but we all know that there is a little bit more to it than that.

So what conclusions can we draw from the experience of continually falling off the horse. Well the first conclusion is that you are doing something wrong. So if you do not find out what it is, and do something about it, you are going to continue to fall off. Doing the same thing over and over is going to produce the same result.

What do i need to become a winner?

Forex Winners

In my experience the main problem you are facing is a lack of understanding. So you have to acquire the knowledge you need to be successful.

You have to find a professional trader that is prepared to educate you to give you the knowledge you need to be successful. Its a lot easier to be patient and disciplined if you have sound trading knowledge backing you up.

So if you have fallen off that horse called Forex more times than you care to remember, and you still want to get back on, then Forex trading is in your blood, and only 2 things can happen. You can either go broke, or you can reach out for help.

Realistically there is only one route you can take if you want to stay on the horse long enough to win the race. You need to be trained and mentored by a professional Forex trader.

If you have managed to make it to the end of this article, you now have 3 options.

Option 1. You can get back on the horse, do the same stuff, and fall off again, until you run out of money.
Option 2. You can contact me and i will teach you how to stay on the horse, and become a winner.
Option 3. You can shoot the horse and quit. 🙂

Which one are you going to choose? Option 2 looks like the favorite, and a pretty safe bet to me.