Tag Archives: forex
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.
Most 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.
How 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.
I 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.
If 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.
Some 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.
There 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.
Most 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.
This 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.
Many 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.
The 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.
After 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.
Time 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.
I 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.
This 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:
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.
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.
The 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.
It 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.
As 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. 🙂