A Forex Trading strategy in a phase of master

Wystąpił błąd podczas deserializacji treści komunikatu odpowiedzi dla operacji „Translate”. Podczas odczytywania danych XML został przekroczony maksymalny przydział długości zawartości ciągu (8192). Wartość tę można zwiększyć, zmieniając właściwość MaxStringContentLength obiektu XmlDictionaryReaderQuotas użytego podczas tworzenia modułu odczytującego XML. Wiersz 1, pozycja 8679.
Wystąpił błąd podczas deserializacji treści komunikatu odpowiedzi dla operacji „Translate”. Podczas odczytywania danych XML został przekroczony maksymalny przydział długości zawartości ciągu (8192). Wartość tę można zwiększyć, zmieniając właściwość MaxStringContentLength obiektu XmlDictionaryReaderQuotas użytego podczas tworzenia modułu odczytującego XML. Wiersz 1, pozycja 9086.

Forget everything you have learned up to this point in your trading career, because if you truly want to master a new forex trading strategy you really need to wipe the slate clean of all the confusing indicator and software based trading systems you have likely used thus far. One of the biggest problems that plague traders who are trying to adopt a new approach to the forex market is that they seem to bring a lot of preconceived notions and failed trading concepts with them. If you really want to excel at forex trading and adopt a fresh new trading strategy, you need to focus on one strategy or way of thinking and stop allowing previously failed trading methods to influence your current perspective on the market.

• Train your Brain

Learning to master one trading setup at a time will help you properly train your brain to become more disciplined and objective, two characteristics that you absolutely must possess if you wish to excel at forex trading. The process of truly mastering and “owning” one forex trading setup at a time might take months or even years to accomplish, but your chances of making money are increased dramatically by doing so. After you completely master one trading setup you will know almost instantly whether or not your setup is present, there will still be some discretion involved, but owning and mastering a setup means that you have fine-tuned your sense of discretion when it comes to deciding which trades to take and which ones to pass on. Many traders search long and hard for some “holy-grail” trading system that allows them to avoid having to develop their discretionary trading skills, unfortunately for them, professional trading inherently involves a fine-tuned sense of being able to discern between A, B, and C grade trade setups.

The discipline and objectivity that you will require as a result of learning to master one forex trading strategy at a time should spill over into other areas of your trading such as managing your risk and remaining calm and collected. When your thoughts are scattered on multiple trading strategies and (or) you have little confidence in the strategy you are currently using, you are obviously not going to make very wise trading decisions. Learning to master and “own” one forex trading strategy at a time will solve both of these problems because your focus will not be scattered amongst multiple strategies and you will naturally gain confidence in each setup as you master them one by one. Essentially, our goal in mastering one setup at a time is to reduce variables in our trading, many traders do they exact opposite when starting out by actually increasing variables through analyzing greater and greater amounts of technical and fundamental market data. Yet, the reason most traders lose money is not because they aren’t analyzing enough data, it’s because they over-trade, over-leverage, and analyze TOO MUCH data.

• Learn to Think like your Mentor

Obviously, if you are looking for a new trading strategy or mentor, what you were doing before was not working for you. Thus, it is paramount to your success as a trader that you adopt the same trading philosophies that your new mentor or trading strategy teaches, wash your mind of what you have learned thus far and completely immerse yourself in this new approach to the markets. In regards to what we teach here at learn to trade the market, this means learning to master one price action setup at a time, as this is how I initially found success in the forex market and so it is also what I recommend all my students do. As I have stated previously, after you master one price action setup you can move on to master another, until eventually your forex trading arsenal is fully loaded.

• Specialization is the Universal Key to Making Money

What do most people that make a lot of money in this world have in common? What do Tiger Woods and Bill Gates have common? Or how about George Soros and Venus Williams? At first you might say “nothing” besides the fact that they all make a lot of money. But what is the fundamental reason, behind all else, that these people and others like them make so much money while the rest of the world struggles to get themselves out of bed in the morning? One word; specialization.

People that make a lot of money focus in on one thing that they are passionate about, and they do it over and over and over until they achieve the result they are looking for. Simply put, you cannot really make a lot of money at anything in life if you master nothing. All of the people in the above example have literally “mastered” one thing, sure they had ups and downs along the way, but they did not let that bother them, instead they transmuted this negative energy into motivation and pressed on because they believed in what they were doing. Had they got involved and distracted with numerous other side-projects or interests they simply would not have achieved what they did. In forex trading we need to focus on one price action setup at a time and become a “specialist” in it, get to the point where you find yourself being someone that other traders look to for advice on the setup that you “own”. Become an authority on each price action setup before you move on to the next, there is no sense in doing anything half-ass in this world, and trading price action setups is no different.

• How to Master the Setup

Mastering one price action setup at a time is accomplished through literally making it the only setup you think about or look for when interacting with the market. You essentially live, breath, and sleep this one setup until you feel confident you know every angle and condition it can or should be traded in. Keep a trading journal to record under which market conditions the setup excelled in and which conditions it performed weaker in. Find all the information out on the setup you choose and learn everything you can about it. Once you do this you can begin implementing this knowledge on a demo account, only after you master this one setup on a demo account should you attempt to master it on a live trading account. If you find you are becoming consistently profitable with this one setup on a live trading account and you truly feel like you “own” it, then and only then should you think about adding a new setup to your trading toolbox.

• One Setup does not mean One Variable

In closing, a very important distinction to make here is that one price action setup does not only mean entering a trade when you see a well defined pin bar or other price action setup. By learning to master one “setup”, we mean you learn to master trading that particular setup in a particular market context. For example, you might learn to master the pin bar setup in a trending market and only enter or exit at confluent levels within the trend, this is an example of how a “setup” can mean the actual price action setup itself and the market conditions that it is traded in. So, in order to fully master one price action setup you must learn to master this setup in one particular market condition, perhaps you want to master the fakey setup in range-bound markets, or the inside bar in down-trending markets; the totality of the actual price pattern itself combined with the particular market condition you trade it in is what you must master in order to consider yourself a “master” of one forex trading strategy.

If you would like to find out more about my price action strategies as well as my “mastering one setup at a time” approach to the markets, checkout some of the other cool areas of my site as well as my forex trading course.

Visit the course page here: forex trading course –  Good trading as always – Nial Fuller

Here are some other parts of my site you might like to check out

What is Price Action? – Forex Price Action Video Tutorials – Forex Strategies Articles – Trader Development Articles

You may also be interested in the following 4 articles

Why Most Traders Fail at Forex Trading , Less is More in Forex , Keep it Simple Stupid Forex Trading Method, Trading Pin Bars from Key Levels

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Set & forget the price action Forex Trading Strategies

Posted on 23 September 2010

  A Forex Video tutorial on "Set And Forget price action Forex Trading Strategies" this video explains how to set and Forget Forex trading strategies so can place a trade, Walk Away From The Computer screens and still have a life and working conditions on The market or Will Be stopped out or make a profit.Enjoy!Remember to comment.

Please read this set and Forget Trading article here Enjoy!

Watch other Forex free video here, information about my Forex price action trading course

How to improve your Forex Trading success in 7 easy steps

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Posted on September 23rd, 2010

7 Simple Steps to Drastically Improve your Forex Trading

I have written about a lot of genuine forex trading topics in the last few years on this blog, but in this article, I wanted to do something different.  Today I wanted to go over some important points that I think traders should focus on, this article will be  a summary of the most important things you can do right now to improve your trading ability and mindset… I am sure you will enjoy this one ..

Every forex trader wants to improve their forex trading success. By following the 7 simple steps outlined in this article you will gain great insight into some concrete strategies you can begin implementing immediately to take your forex trading success to a new level. For all those traders who are struggling to make money in the markets each month and are looking for some no-nonsense ideas to get on the path towards profitable forex trading, this one’s for you!

• Treat your trading like a business…not a casino or hobby.

Stop and think for a few minutes about how you have been behaving in the forex market for the past month. Have you been viewing each trade as a business transaction with risk and reward associated with it? If not, you should be, there is risk associated with any business; a restaurant runs the risk of having slow customer turnout and thus poor sales, if a restaurant’s total costs are more than the total revenue it brings in, it will have a loss at the end of the month. Similarly, if the costs of your losses are greater than the revenue from your winners each month, you will lose money in the market at the end of the month.

The example above is meant to get you thinking in terms of business transactions. When you view each interaction with the forex market as a potential cost to your trading business, you will be more cautious of the trades you take and you will use more discretion. Forex trading is a business, unfortunately many; if not most forex traders treat their forex trading not as a business but as a trip to the casino. This would be analogous to the owner of a restaurant literally going to the casino each day and gambling away the revenue his restaurant brought in for the month instead of continuing to run his business as effectively and efficiently as possible. Starting right now you are to begin viewing your interactions with the forex market in terms of costs (losing trades) and revenue (winning trades). The aim of any business is to keep costs as low as possible and revenue as high as possible. In forex trading this is done by effectively managing the risk to reward on every trade you take.

• Use position sizing to manage your risk and reward effectively.

Positing sizing and risk to reward scenarios are how a forex trader effectively keeps track of and manages his or her forex trading business. Understanding how many lots to trade for every trade setup you take so that you can maintain your pre-determined risk amount is crucial to making your forex business grow consistently and without massive drawdowns. Many traders make the mistake of risking more than they should or want to on a trade simply because they forget or don’t understand how to adjust their position size to meet the necessary stop loss. Stop loss distance should always be determined first and then position size should be adjusted accordingly to maintain desired risk amount.

Forex traders must use position sizing to not only manage their risk but also their reward on each trade. When you know before entering a trade how much you will have at risk (your cost of doing business with the market), you can then define a logical and obtainable reward as a multiple of your risk (revenue). Typically a reward of at least 2 times your risk amount is what you want to aim for, a reward of 3 or 4 times risk is even more preferable. This way you can make sure that you are using position sizing and risk to reward to effectively make your forex business grow each month. The only other catch to be aware of here is that you must learn to not over trade and to pick only high probability trade setups. If you over trade and have many more losers than winners, even a risk to reward scenario of 1:4 will lose money over time, this is why it is critical to pick and choose your trades and wait for the most obvious ones. Check out this article for help on understanding risk reward & position sizing in forex trading.

• Over-trading; a real problem for most traders and how to stop it.

As we alluded to in the above paragraph, over-trading is a big problem for most traders and it is critical that you stop it if you have been guilty of it and to be aware so that you don’t start if you are currently not over-trading. Over-trading in the forex market is analogous to a business running up their costs unnecessarily; this would work to reduce their monthly revenue and thus their monthly profit. As forex traders we want to do everything we can to make as much profit each month as possible. When traders over-trade they invariably reduce the strike rate or accuracy of their trading strategy, this works to lower their monthly risk to reward and thus lower their profit or even cause them to incur losses. There are certainly times when the forex market provides more high-probability trade setups than other times. However, many traders end up forcing trades when no real setup is present, as a result of either over confidence after a string of winners or anger after a string of losses. We want to keep our winning percentage as high as possible each month and take full advantage of the power of risk to reward scenarios, this can only be done by using sharply honed chart reading skills in order to enter into only the best trade setups.

• Learn a handful of simplistic price action based strategies and master them.

This step is critical for learning how to not over trade. Learning to trade off simplistic price action based strategies, and truly mastering them, will give you the discretionary skill required to not fall victim to the over-trading bug that plagues so many forex traders. When you learn to master such price action based strategies you will also drastically improve your overall trading accuracy which will work to maximize the power of position sizing and risk to reward scenarios. It is important to demo trade for a few months before trying to trade with real money so that you obtain some discretionary skill taking only the best price action setups. Mastering these setups is something you will get better at overtime so it is critical that you have patience in the beginning while you learn the different between a high probability setup and one of lesser quality.

• Have a trading plan.

Having a pre-defined forex trading plan is a necessary component to treating your forex trading like an actual business and drastically improving your trading success. Any profitable business has a business model or plan that the business was built around and continues to function off of. The reason businesses have pre-defined plans is because they must know how to properly react to all possible situations that might arise in order to create and maintain consistency within the company. Similarly, in a forex trading business you must pre-define all aspects of your forex trading if you wish to develop consistency and profitability in your forex trading. It is possibly even more important in forex trading than in other businesses to pre-define all aspects of your interaction with the markets because this is the only way you can guarantee that you don’t fall victim to emotion based trading mistakes like over-trading and over-leveraging.

Here is a good article on developing a forex trading plan.

• Use printed affirmations to keep your mindset on track, put them on your office wall or computer monitor.

Daily affirmations can be a great way to keep your trading mindset in the realm of objective thinking so that you don’t fall prey to the many emotional pitfalls waiting for you as you trade the forex market. It is important that you print out or physically write down these affirmations so that you have a tangible reminder of what you need to do to stay on track. There is a difference between actually reading something and just thinking about it. Many traders think they don’t need to physically write out their trading plan or daily affirmations because they can just mentally rehearse them. However, this often leads to slacking and forgetting to follow your plan or affirmations due to the simple fact that there is no tangible evidence. Posting up daily affirmations and your trading plan somewhere obvious so that you almost force yourself to read it every day is a really good way to maintain conscious awareness of correct trading practices. Make it a trading habit to remind yourself every day before interacting with the market what you need to do to stay on the right track and you will very likely see a turn for the better in your forex trading.

Example: Use Post it Notes and stick them on the side of your computer monitor or office wall. Affirmations as they relate to successful forex trading might include things like:

“Remember to manage my risk on every trade”“Forex trading is a business not a trip to the casino, treat it as such”“Be Patient, you don’t have to trade today, the market will still be here tomorrow”“Don’t fight the trend”“Take profits when they are 2 times my risk or slightly greater, don’t hold out of greed”

- You can really make your affirmations say whatever you want. The idea is to write them down when you are thinking objectively and NOT trading, that way you will have an objective reminder to read before you trade so that you are consciously aware of what you need to do to not fall into a habit of emotional trading mistakes. The other big thing with affirmations is to make sure you actually read them after you write them.

• Trade what you see and believe in, don’t doubt yourself or become a “hindsight trader”; meaning do not enter a trade due to regret or for no logical reason.

Beginning forex traders very often make the mistake of trading off of an emotional feeling about the forex market rather than an objective observation on price movement. Before entering any trade it is important to stop and take a deep breath and really ask yourself why you are entering the trade. Is there an obvious and strong price action signal on the chart or are you just trading because you want to be in a trade? It is very easy to jump into the market on a whim for any number of reasons…you might feel regret because you let a good trade setup get away, or maybe you just had a losing trade and are feeling angry with yourself or with the market and as a result you decide to jump right back in on a less than quality trade setup. There are a number of emotional reasons like these that cause traders to trade for no real logical reason instead of trading based solely on the objective price action on the chart in front of you.

Remember to implement the above 7 steps every time you interact with the market, and above all, when it comes to your trading method, focus on always using a non-cluttered approach such as price action trading which will greatly increase not only your ability to trade successfully, but will help keep you in a clear mindset so that you can better follow the concepts in this article.

If you would like to learn more about simplistic price action trading strategies and other techniques for trading in a stress-free and effective manner as well as expanded discussion on the points in this article, check out my forex trading course.

If you enjoyed today’s article you might also enjoy these other areas of my website, please click the following links if you want to watch some great forex trading videos or read some interesting and diverse forex trading articles.

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Copyright 2010 – Nial Fuller -  Learn To Trade The Market