Don’t Bother Trading Forex If You Don’t Have A Trading Plan And Not Willing To Think Long Term

Did you know that 90% of traders fail and only 10% are profitable?

If not then you’re in for a treat because I had no idea about this when I started.

I learned it the hard way, took me several accounts before I did my research and stumbled upon this shocking statistics of winners and losers.

Wonder why there’s such a big difference between the winners and the losers?

It’s all because of the wrong expectations of the people about forex trading

They thought it’s easy and doesn’t need a trading plan; they thought it’s a quick rich scheme and would give them fortune in just a short period of time.

The scenarios are always somewhat like this:

Beginner trader sees a random pin bar and traded it. The market immediately take out their tight stop loss. They got angry and emotional, want to take revenge on the market took another trade with double the leverage and still became a losing trade.

Or

Saw a random engulfing candle and took a trade. Luckily won the trade and become over confident. Here comes a pin bar formed, took that set up and opened a trade but now with double the leverage because he came from a winning trade and he is full of confidence that's why. The result a fail set up and a losing trade. Now become emotional and try to find a new set up to get back the losing trade. While being emotionally driven, one cannot think logically and the result would be a wipe out account balance.

Most of the people just simply don’t know what they are doing. They think they know what they are doing but I’m telling you they don’t.

Perhaps they know the basics of price action like the support and resistance; maybe they know how to recognize pin bars and engulfing candles; perhaps they know how to use technical indicators like moving average, RSI, MACD and etc. But still they wonder why they are still not profitable? What’s lacking?

They failed to realize the need to integrate all of the knowledge into a trading plan/strategy for them to have an edge in the market.

The successful 10% are successful because they follow strictly a trading plan and trading strategy which gives them the edge.

Be like them, model them; apply all the things that you have learn so far: basic price action, basic use of technical indicators, fundamental factors, money management, trading psychology and create a trading strategy base on it.

The trading plan and strategy will act as your edge in the market

If the criteria in your trading plan is met that’s the only time you take a trade, if it doesn’t then standby and just do nothing. Eliminate the fear of missing out a day without executing a trade.

Don’t pressure yourself on thinking that you should always have a trade open.

By not doing anything you are actually winning.

Forex trading for me is a game of defense and not offense

Stop wasting your precious energy by trying to join all of the markets movement.

To avoid over trading, one simple solution is to wait for your set up which is based on your trading plan to show up. 

That’s the surest way to beat the market.

Use this proven and tested strategy consistently and the result will be astonishing. You will see that your account balance will gradually increase.

It takes time. Great things take time. You need to be disciplined and stick with your edge at all times. That’s what professionals do. That’s why they are called professionals because they knew it’s the only way to become profitable consistently.

 Once you have your trading plan/strategy another challenge will emerge

Do you have what it takes to strictly follow this trading plan?

There are times that the markets are quiet. No trade set ups formed in a week. Can you handle these times and still stick to your strategy?

There are times that your strategy will have setbacks and you will have consecutive losing trades. Can you handle these setbacks and not resort to finding another strategy?

There are times that you will feel your gains are quite too small which will make you think of doubling your leverage. Will you be able to maintain your money management plan?

Forex trading is not a quick rich scheme. It takes time to become profitable.

Successful traders are turtle traders. They have a steady but surely approach in the market.

We should model their mentality; We should learn how they see the big picture by taking it slow and steady.

To give you an idea, here’s how most of the professionals think when they say long term.

Let us say that they have a 10k USD capital. What they do is they create a trading plan/strategy which aims for a certain amount of percentage gain each year. And by sticking to this plan they can predict how much they could possibly earn in a decade.

Let us assume that they have created a trading strategy that will give them 50% gain of the capital in a year which means roughly gives 4% to 5% returns every month. This is how it goes to them.

• 1st year = 15,000 USD
• 2nd year = 22,500 USD
• 3rd year = 33,750 USD
• 4th year = 50,625 USD
• 5th year = 75,937 USD
• 6th year = 113,906 USD
• 7th year = 170,859 USD
• 8th year = 256,289 USD
• 9th year = 384,433 USD
• 10th year = 576,650 USD

Almost 600k USD in 10 years with only 10k USD starting capital. That’s how it works to them. By following strictly a trading strategy and thinking long term one can become profitable.

We are only assuming here that we have a 10k capital with a 50% gain every year. 

What if you have a 50k capital how much could you possibly earn?

That’s why I could say that trading is a game of the wealthy to make them more wealthy. Your capital matters if you want to make big gains. 

The amount of success we are going to make is directly proportional to the amount of risk we are going to take. Be realistic on your expectations if you have a small capital.

But anyway the point here is that we should all be thinking like the professionals.

And acknowledge that majority did not succeed because they fail to recognize these two important aspects in trading which is creating a trading plan/strategy and thinking long term.

The big question now is do you have a trading plan/strategy for your long term goals?

 If not then just forget about trading because you will just loss money if you will force yourself into it. 

See you till next time my friends!

The Only Japanese Candle Stick Formations That I Watch Out For In the Market

I know you will agree with me when I say that we are living in the age of information or should I say the Internet Era. Where information is very accessible anywhere you go with just a click of a button.

In this age whatever we want to learn we can learn; but because there’s so much information out there, so much option to choose from we tend to hop from one subject to another without even learning thoroughly yet the first subject that we have chosen. What I wanted to imply here is that we become jacks of all trades and we all know this comes with this figure of speech.

“Jack of all trades, master of none.”

I want to talk about this and apply it to forex trading and mainly focus on the candle stick formations.

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So why do we need to master and focus on certain Japanese candle stick formations?

The answer to that is because candle stick formations serves as an indicator of the psychology of all the participating traders. It’s our clue of whether the BULLS or the BEARS won at that particular time frame.

Perhaps all of the traders, including me will only decide to take on a trade when a certain formation of candle stick patterns formed. This is called the trade set up candle or for me candles, which I will be sharing later on.  I hope you will put this in your mind, to trade only when your trade set up candle/s formed and don’t trade when it doesn’t. One big benefit you can get from following this is that you will somewhat avoid over trading which is one of the biggest mistake a beginner forex trader would do.

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  What are my trade set up candles and the logic behind it?

This candle set ups that I'm gonna show you is the skeletal system of my forex trading strategy. Without this specific formation no trades will happen for me. I wait and wait and wait patiently until this formation shows up. I’m like a soldier with two guns here, I have a machine gun and a sniper rifle but I choose to use the sniper rifle and target those big bosses which equals to the big moves in the market. I hope you get my point here. So here we go!

Fist trade set up candles: Formation of at least two engulfing candles

To those who don't know yet, lets define first what is an engulfing candle.

An engulfing candle is a candle that ENGULFS or EATS wholly the body of its preceding candle. I want this to be very clear because a lot of people get confused with this formation, an engulfing candle is the candle that engulfs the body of its "PRECEDING CANDLE" as you will see in the image below.

I’m in an aggressive mood here when I say that at least two engulfing candles. Because usually I wait for a third engulfing to form before I hop in. Sometimes only two engulfing candles form but if the structure of the price action is pretty convincing I will sometimes trade that set up.

Just click the image to zoom in...

 As you noticed in this example, EURGBP 4 hour time frame. Ive highlighted 7 engulfing candle formations here which to me signifies that the momentum here is bullish.

Why these? Why I wait for these candle formations to show up? Whats the significance of this?

Click to enlarge the image and you will see that based on this candle stick formations you will understand who dominates the market. Every bullish engulfing candles indicates that the buyers dominated or overpowered the sellers every time the price tries to go down. If these engulfing candles keep on showing up in the chart what does it indicates? What does it resonates? What does it tries to say to you? Its very obvious already, eventually the price would go up!

Another good thing about this kind of set up is that it gives you a lot of time and chances to ride it before it decides to go up. 

In this case I could have had decided to join the trade after the 3rd engulfing occurred. Then a 4th engulfing shows up, another opportunity to those who are late and a 5th shows up another one for the late commers. Mind you this is in the 4 hour time frame. So each candle here is equivalent to 4 hours, if you are just trading part time there's no reason you could not join this trade.

Traders with the same strategy could chose to ride this trade with the pullback which is the 6th and 7th engulfing, for me its still a valid signal or set up.

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Lets take a look at another forex pair as an example.

 

Click the image to zoom in..

This is in the AUDUSD pair. The best time to join this trade would be the formation of either the number 4 or number 5 engulfing candles. 

In this case here, the 4th engulfing candle is a 3 candle combination in which when you add up the last two candles it would end up engulfing the first one. I hope you grasp what I'm trying to say here, its just basic actually.

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Second trade set up candles: Combination of engulfing candles and pin bar

We already defined what is an engulfing candle, now we need to define what is a pin bar candle since we need to understand it for this set up.

A pin bar is a candle which has a short body and long wick or tail. Its very easy to recognize because it looked like a pin.

Pin bar formation means price rejection in the market, sometimes it indicates reversals of momentum. It has the same logic behind engulfing candles it just that pin bars are quiet more obvious to notice, especially the long tailed once.

Lets take this example below:

 

Click the image to zoom in..

This set up formed in the USD/CAD forex pair in the 4 hour time frame. Actually, I was able to bank 1:4 risk to reward ratio with this set up and I made a live recording here in my YouTube Channel. Click here if you want to see the live trade and don't forget to subscribe :)

If the engulfing candle formation is already a powerful set up, how much more when you combined it with the pin bar?

Is it a 100% percent guaranteed that this set up will work? Of course not, but you can have my word that the win rate of this set up is more than 70%.

After the 4th signal formed which is the engulfing candle, I waited for a pull back before I took my entry. As you can see it formed yet again another engulfing candle which is labeled 5, before the price moved bearish and never looked back. This is what I love about having this FOREX STRATEGY IN THE 4 HOUR TIME FRAME, it gives you so much time to see this opportunity for an entry before it manifests.

I'll show you again another example of this candle stick formation set up in the 4 hour time frame.

Click the image to zoom in..

Formed in the USDJPY 4 hour time frame. This time its just 3 signals, but still leads to the same result; price movement reacted to the combination signal and became bearish. Here its all bearish engulfing candles with number 2 being an engulfing at the same time looks like a pin bar because of the rejection tail. There are so many set ups like this in the market and its very easy to recognize also. In this kind of set up I set my risk to reward ratio to 1:3, depends really on the price structure. Safest place for the stop loss would be above the engulfing candles.

That's it! These are the only Japanese candle stick formation that I always looked for in the market. I only trade this kind of set up. If they don't show up then I wait. Out of the 27 forex pairs that I monitor I could say that at least once a week a set up like this comes out.


 In trading the currency market you need to create rules of engagement, and not just blindly taking trades without logic behind. That is the main thought of this article. If you are really serious of becoming a successful forex trader you must learn how to think like the 10% and be disciplined always on taking trades. Be like a sniper and take only trades with high probability of winning.

If you think my set up looks good, looks profitable then feel free to use it :)

If you have some questions in your mind comment below and I will try to answer them ASAP.

See you soon my friends!

"It does not matter how slowly you go as long as you don't stop" - Confucius

Big Mistakes That I've Made in The Beginning Days of Undertaking Foreign Exchange Trading

I’ve made countless mistakes way back in my early days of doing foreign exchange trading. Nobody taught me how to trade currency and I had no clue about any forex trading platform to use. That’s why I did my own research, I watch a lot videos, read a couple of books and blogs about it. After trial and error and all those mistakes that I’ve made I came to realize that experience is the best teacher. I want to share with you some of the lesson I’ve learned in this post. I will try to explain all of the major mistakes that I have encountered when I started my forex trading journey.

Very optimistic to go live trade after seeing positive gains in a demo account with only less than a week of practice.

 This is my first mistake when I started trading. As a beginner, I jumped in directly to trading using real money and guess what happened to my first trade? I won! Not that I knew what risk and reward ratio is but I closed that trade that time with a positive gain. Apparently that’s what they call the BEGINNERS LUCK! After that trade, my luck just seems to run out in every trade I took and my first account is finished in less than a week.

What I’d like to point out here is that I was very excited about forex trading that I could only think of the reward, positive side of it and I was very naïve, blinded to the consequences when I didn’t get it right. The hardest part of it when I think about it now is that I could have avoided those losses if only I am more familiar about the trading platform that I used. Such as the movement of the spread during a news event, during end of day, during weekends, volatility and proper usage of leverage.

My suggestion to all aspiring forex trader would be to get to know first your trading platform. Observe what happens to the market and the spreads during news events, during end of day and end of the week. If only I had put more time trading in my demo account perhaps I would noticed those things and avoided those mistakes. So guys don’t take for granted trading using a demo account. At least try playing with it for a month or two.

I live in Asia, that’s why I traded during the Asian session which should be a big NO NO

What I mean here is taking a trade during a time when the open market is the Asian markets like (Australia), Japan, Singapore and China. Don’t get me wrong here. I know there are a lot of profitable forex traders out here who trades during the Asian session. But in my experience I had a very slim chance of winning during these sessions.

Most of the fake moves in the market usually happen during the Asean market. Like for example, a certain pair went up during the said session but suddenly went down when the Western markets opened. This is what they called the “FAKEY” move of the market. The market fakes the traders, prices seems to go to one direction and suddenly changes to the opposite.

So how do you avoid this? Well just don’t trade during these hours and for me since I traded the 4 hour time frame it’s the best time to plan my set ups and wait for pullbacks to enter trades.

Discovering ForexFactory and trading the news every now and then

I know! I just know that you will eventually discover this website and you will learn that news events will affect the price movement of the forex pairs. You will know that during this scheduled time, especially the RED FLAG NEWS, prices are gonna be wild.

As I was still learning forex as a beginner, this is what I often do. I looked at the scheduled news and put on an order on it by just randomly guessing which way the market goes. I hoped for positive news when I traded long and I hoped for negative news when I go short. What I did here was very stupid; I entered a trade without any reason behind it. And as expected the result will almost always be a disaster! Deposit time again.

So how do we avoid this mistake? If you have open trades prior to the news events is no problem. Just don’t put orders during the scheduled event. Don’t be greedy; eliminate the thinking that you will miss that possible big move which should be a big profit for you. Always think about capital preservation.

 

Not following a standard risk to reward ratio when executing a trade

I never knew that I should plan on the amount that I would bet during those time when I traded the currency pairs. It was only when I started reading and watching youtube videos of successful forex trader that I understood it all. You know you just don’t bet randomly, there are systems to this. Most advice would be to risk only 1 % to 3% of your capital.

Let’s say you have a 100k USD capital. And you had a 1:3 risk to reward ratio strategy. That means you only need to bet 1k-3k USD or 1%-3% USD of your account every trade and expect to win 3%-9% gain if ever you are right. The reason for this is that you can easily calculate your gains and losses in the market. Also, it give you control over the amount of money that you are comfortable losing in each trade without making you stress and emotional.

I believe having a good risk to reward ratio plan is essential for capital preservation. As what I have said before, being on the defensive for capital preservation should always be the priority of a beginner forex trader.

Unclear forex trading strategy which leads to over trading and over leveraging

Beginners in forex trading most of the time have no preplanned trading strategy upon entering the game of currency trading. Perhaps they have the idea of support and resistance, bullish pin bars and bearish pin bars but that knowledge is not enough.

You can’t just jump on a trade every time the price is in a support or a resistance zone. You can’t just take on a trade just because a bullish or a bearish pin bar formed in the 4 hour time frame or any time frame in that manner. Another thing also is the consistency of the amount of risk and reward ratio in every trade should be look upon. Every beginners need to have a well-defined trading system and rules in every trade that they would take. A systematic approach should be involved in it.

Find a trading system that fits your personality and lifestyle. When you are doing it part time perhaps you can try trading the 4 hour chart. If you really don’t have the time to look at the chart every 4 hours then you can trade the daily chart which I think is the best time frame for starters.

Leveraging for me is a very good thing because I started with small amount of capital. But usually this is the main cause why most of the traders burned their capitals to the ground. The emotional and the psychological aspect of trading plays the biggest obstacle that we all need to overcome. One example of this is when I loss a trade and I jumped right back in the market, this time using twice the amount of leverage in the hope that I can earn back my losing trade which eventually resulted to another loss. But this time the loss was huge, twice the amount of the loss that I was trying to recover. Imagine what would you feel after this happened to you. It’s really disappointing but I don’t know why you just can’t stop trading, it’s like you got addicted to the market even though you are losing. This is gonna be another topic about trading psychology which I plan to write soon.

You cannot control the market, you can only control yourself so don’t try taking your revenge in the market after a frustrating loss. Because at this moment you become driven by your emotion so much and cannot think logically anymore.

Fear of missing out the opportunities or what most traders called “FOMO”

The best example I could give to FOMO is when you saw a set up and you say to yourself this is the best set up in the world, It’s the best opportunity I have ever seen, I need to take it. I need to take it! But the price already moved a little bit further from the set up because you just noticed it and yet you still chase the price and took the trade with a very tight stop loss and eventually the price pulled back and stopped you before it burst out going to your desired direction.

Happened to me all the time, which is not good. Later on I came to realize that there is always opportunity in the market and the market is not going anywhere. If I saw a good set up but the price already moved what I do is I wait for pullbacks before I enter or if there’s no pullbacks then I let it be and move on to find another opportunity. There are plenty trade set ups occur in the market every week, there’s no need to chase one single trade.

Jumping from one strategy to another

If you type forex trading strategies in YouTube a lot of videos will pop out. You choose carefully strategy that fits your lifestyle and stick to it. Bear in mind also that all trading strategy has drawdowns so don’t expect to have 100% win rate.

The reason why I made this mistake jumping from one strategy to another strategy is because I felt like the one that I am using is not giving me gains anymore because of my losing streak. I didn’t realize that those are only setbacks and is normal.

To make this clear let’s take this example:

Let’s say you have a strategy that has 70% win rate. So that means in every 100 trade you take you will have a RANDOM DISTRIBUTION of 70 winning trades and 30 losing trades. Since these are RANDOM there is a possibility that you will have a series of winning trades and A SERIES OF LOSSING TRADES AS WELL. That’s why don’t be discourage and think that the strategy that you are using has lost its touch and is not working anymore and I need to look for another strategy that works.

My advice here is to stick to a strategy for at least 3 months. And when this strategy is not giving you gains then that’s the time that you’ll have to find another one.

I want to end this post with an inspiring quote in the hopes that you will not give up no matter what happens. Don’t be afraid to make mistakes because that’s where we grow.

Bye for now and I’ll see you again my friend!

“Every artist was first an amateur” - Ralph Waldo Emerson

My Top 5 Reasons Why FOREX Trading Will Give You Freedom and Liberty in Life

In my entire 27 years of existence I’ve been looking for the best job that could fit with my personality and I finally found it. 

 In this post I want to talk about my top 5 reasons why FOREX TRADING is so liberating and rewarding.

You are the CEO/Owner of your own business

 The good thing about becoming a PROFITABLE FOREX TRADER is that you don’t have to follow anyone’s orders. You decide whatever you want cause you can do whatever you want. You don’t need to interact with other people to earn a living. You only need a decent laptop and a reliable internet connection and you’re good to go. In trading the FOREX MARKET I am treating it as if I have a business. The capital is my investment and I am the boss/manager/employee.  At the moment, I am still working in the corporate world that’s because this is my stepping stone for me to raise money for my desired capital.

It’s also the advice given by those who are already successful in this field. And that is to not quit your main job yet as long as you are already profitable and confident to do so. In my part, I have blown several accounts already and it gives me experience and understanding more about becoming a successful forex trader.

Because of that, a tip that I could give to aspiring new traders would be to always, always be in a defensive approach in trading. What I mean by that is to always preserve your capital and don’t do over trade. Because sometimes this very obvious trade appears right in your face in the market but the problem is that you cant take the trade cause you have blown your account and will missed the opportunity. Literally happens to me! If I could go back to my early trading days I would definitely tell myself to go slow in my trades and be on the defensive always.

You have all the time in the world to do whatever you want.

The FOREX MARKET is open 24 hours Mondays to Fridays. Only closes during declared holidays and weekends. When you already have your trades running you can do other things. 

Actually, this is the reason why I created this YouTube Channel about my forex trading strategy and why I created this blog. I have my vacation now and I got bored trading, that’s when I had this idea why not I make a blog and a youtube channel about forex. I totally understand why there are a lot of successful forex traders out there that choose to share also their own opinions online. Perhaps they’ve got no other things to do because you will literally have all the time in the world if you go full time. So your spare time should be filled with whatever you want.

 Also, in forex trading you get to decide whatever time frame you want to trade in. Like in the 1 hr, 4 hr or daily time frame, totally up to you. In my case I only trade the 4 hr time frame; this gives me a lot of spare time in between.  And once my trade is up and running, I close my platform and the charts to avoid being emotional and just checked it again every 4 hours or so.

No matter where you live, color of skin, or whatever you maybe as long as you are eligible to open an account, forex trading has equal opportunities to all.

Personally, I was born in a place regarded as a third world country. I’ve always hear a lot of peoples says that they were born in the wrong side of the world. Where in the opportunity is scarce and survival of the fittest exists. Luckily, trading the financial market is open to all people. This gives us the right to participate in this kind of endeavor which I think is really really liberating and fulfilling.  Another thing is that you don’t need any diploma, educational background or high IQ. Actually, you don’t need to be smart trading the financial market. What I believe the qualities that are needed to become successful in this field is discipline and self-control. If you happened to be a college dropout or an ex-convict still the financial market will not judge you, instead will gladly accept you with open arms and open legs.

Forex trading is the only career that I know that gives you unlimited free trial to practice.

Creating a demo account gives you a chance to do the virtual trading. Buying and selling in the market using virtual money gives you the opportunity to see and understand how the market works. If you are not yet profitable in you virtual trading, what gives you the idea that you’ll gonna be profitable once you go live and used real money to trade?

Trading using demo accounts can help you back test the strategy that you are going to use. It will give one ideas on what work and doesn’t work in the market. It’s like being a pilot flying a plane using simulations and not feel afraid of crashing the plane because it’s not the real thing. 

They say practice makes perfect, but nobody’s perfect. So why practice? Well in trading the financial market, all I can say is that traders who practiced trade first using demo account have bigger chance of becoming successful than those who directly traded with real money. I assure you, you will blow an account or two before you can be a successful one.

Very Rewarding if mastered and the sky is the limit $$$

Let’s not be hypocrites here. A lot of people say that money is the root of all evil; well I would say to them that the love of money is the root of all evil. A lot of people say that money can’t buy happiness; well I would say to them that money affects the lives of those people who make us happy.  Money makes the world go round. I believe it’s not wrong to dream of richness and being wealthy. When our creator created us, He gave us free will that’s why He would not deprive us with the abundant life that we wanted.  

I believe  forex trading or trading any other financial market is rewarding because once you have your strategy that you’ve been back testing for so many times and so far gave you positive outcome in a year of testing. All that’s left now is to just strictly follow that strategy and keep on using repeatedly. You just need to be disciplined about it and only trade when your desired set up shows up. Time will eventually come when trading to you will be just like driving a car. First time driving would be very difficult; you need to have this awareness on all sides of the car. But along the way, all would become automatic thanks to your subconscious mind. 

Forex trading is the biggest casino in the world. In my opinion it’s the game of the wealthy people to become wealthier. Imagine if you have a large amount of capital, you only need to earn 10 pips or so to profit such huge amount of money from it.

All of these are just my opinion, whether you agree or not is all up to you. 

After all, we are all prisoners of our own truths.

Best of luck to you my friend! See you again sooner or later.

Bullish Pin Bar and Bullish Engulfing Candle Combination Strategy : Live Trade Explanation

Way back 2 to 3 years ago when I started FOREX TRADING, I was jumping from one strategy to another. I realized that was a very big mistake which eventually blown several of my accounts. Now I have finally found a strategy which fits to my personality. This FOREX TRADING STRATEGY is mainly based on technical analysis. The set up for this strategy usually occurs in the 4 hour time frame that's why most of the time I trade it there. It is composed of a combination of engulfing candle followed by a pin bar that are formed on a known SUPPORT OR RESISTANCE ZONE. 

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Lets take a look at this FOREX Trade I had below:

 

 

You can click on the picture to zoom it.

As you can see, this set up happened in a broken resistance area that at that time acted as a support already. The support area here is plotted in a red horizontal line. As the price bounces back from the support it formed a bullish pin bar. Again as it tries to go down twice to that support area it was rejected and formed a bullish engulfing candle.

That for me is the signal and indication that the price would probably go up already.

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Planning For The Risk To Reward Ratio of the Trade

 

If this image appears small to your screen just click it to zoom in.

So whats next? Now that we have found the set up we need to plan now the risk to reward ratio of our trade. In here I choose to risk 1 to win 3. That's my risk to reward ratio in this trade. I based it where? Well if you look at the chart, you can see that in that area where my profit target is located is where the previous price tried to consolidate. In my own opinion and understanding the price now would try to retest that area of resistance if not break it.

So the final set up for the trade looks like this with the 1:3 risk to reward ratio.

 

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Trade Manifestation Time: Approximately 16 Hours of Waiting and Profit Target Was Hit!

 

 And just like that! 

Gained 3 percent of my capital account in this trade. It was particularly a no sweat trade. All I did was wait for the set up to be formed and when it does I just acted on it and walked away from the market.

You can watch this NZDCAD live trade here in my YouTube Channel: 

https://bit.ly/2RJNDLh

Sharing With You One Of My Profitable Forex Trading Strategy: 4 Hour Time Frame

Since this is my first ever post here in my blog, I want to share to all of you readers one of my favorite FOREX TRADING SET UP and is at the top of my FOREX STRATEGY THAT GIVES ME HIGH RETURNS, most of the time this occurs in the 4 hour time frame. 

In this particular trade i'm gonna show you, the price in this FOREX PAIR is making an UP TREND MOVE, creating a series of higher highs and higher lows. Actually, this trade is simultaneous with the  GBPAUD forex long trade in my latest  previous video which you can watch here: Clear Set Up For The Head&Shoulder Pattern

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The bullish signal here is very strong and here are the 3 confirmation that made me took the trade:

• First candles which I highlighted in the screen shot is a candle that breaks the resistance and followed by a bullish pin bar.

• Second is the bullish engulfing candle that broke again the resistance as the price tried to go lower.

• Thirdly and the final reason why I decide to take the trade was this very clear bullish pin bar formed as it tries to go lower back to the broken resistance that now acted as support.

 

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Planning stage for the entry point, stop loss and profit target through reading the FOREX PAIR PRICE CHART

• Entry point - After finally seeing that final signal to trade which is that bullish pin bar, I waited for a little bit of pullback before I took my entry. For the sole reason of maximizing my RISK TO REWARD RATIO.

• Stop Loss- My only basis for deciding where should I put my stop loss is that it should be lower or below the previous signal candles which is the bullish engulfing and the pin bar.

• Profit Target - Now, my profit target was also based on the price chart. All the reason here is based on TECHNICAL ANALYSIS and READING THE PRICE ACTION of the market pair.  I look to the left and looked for obvious areas where the price previously consolidated, previous support that been broken which may act as resistance. As you can see in the screenshot below I found one and its there I set my profit target.

  

 

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As what I've always heard from famous people "Patience Is A Virtue". The best time to walk away from the chart is now. Trust me!

Since our trade was already set, all we've got to do now is to wait and just let the market do its thing. Since the start of my trading career, I could say that this is the hardest part. I believe the FOREX TRADER'S PSYCHOLOGY AND DISCIPLINE plays a very big role if you want to become a PROFITABLE FOREX TRADER. 

I had a lot of frustration and stressful time because of watching how the market move after setting my trade. I made plenty of mistakes and wrong decisions which I regret because I keep on controlling the market and not trusting my FOREX TRADING PLAN. I wasted my capital and blown several accounts because of this UNWANTED EMOTION that I always felt when I watch how my trade is doing. 

I know you probably heard this a lot of time from other successful famous traders, not because its the only thing they could suggest but because I believe its the best way to ELIMINATE YOUR DOUBTS AND FULLY TRUST YOUR TRADING PLAN. So walk away and stop interfering with the market's movement because you can't control it, you can only control yourself. Just set the trade and forget it!

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In conclusion: After forming 5 candles, 20 hours of waiting...

  

 

 20 hours later, the profit target was filled. I gained almost 4% of my capital in this trading account that I used. I could have let the position run but based on experience, once my profit target was set I rarely interfere with it. Also, there is no need to feel FOMO ( Fear Of Missing Out ) because there's plenty of trade set up and opportunity in the FOREX MARKET like this which occurs at least twice a week. The only thing we have to do is to look for it. 

If you want to see the LIVE VIDEO when I took this long trade just CLICK HERE!

If you are still reading up until this point it only means to me that you are really keen on learning on HOW TO BECOME A PROFITABLE FOREX TRADER. If you interested, here in my YouTube channel I post my WINNING TRADES with the details on what strategy I used.

Best Of Luck To You My Friend! And I'll See You In My Next Post..

YouTube Channel : https://bit.ly/2GwaRQE