TIPS FOR FINDING GOOD TRADES ON A SMALLER TIME FRAME

People find many ways to be successful in the market, some use price action, some use trend lines, some use moving averages and other indicator, some use the news and some use support/resistance, etc. Whichever method You use to bring You success, supreme discipline will make it even more successful. REMEMBER: Your biggest opponent to market success stares back at You from Your own mirror.

Since you never know what the market is going to do, always be prepared to cut a trade that has moved against You. If You are telling yourself, it will come back that is a trade You should have cut.

With a good signal, You are only likely to get 2-6 trades per 24 hour day that yield 30 pips or more on the EUR/USD.

Since the market doesn't trend most of the time, it is a good idea to master other forms of trading.

Let's talk about ways to increase your odds of getting some of those trade set-ups.

Know Your candlestick reversal patterns.

Understand support and resistance.

Understand trend lines, moving averages or any other indicator that you are using.

The more things You have confirming Your analysis the more likely You are to have entered a successful trade.

Example:
A hammer at a point of previous support that closes above a major moving average, at a Fibonacci retracement, with a MACD cross and an oversold Stochastic. That is a pretty extreme example, but more confirmations You have to Your advantage the better.

Always be sure that your flagship candle closes prior to entering the market, because like the hammer in the paragraph candles can drastically change form in the last minutes or seconds of a candle's closing.

Considering that You have so few really great trades in a day, You need to put as many odds in Your favor as possible.

Try to trade the more active liquid markets

If You are in a range bound market be sure to identify resistance and support. Only counter-trend off of resistance or support with proper candlestick confirmation.

Trade in harmony with an established trend.

Swing trade swing highs and swing lows in a swinging market.

Wait for a candlestick candle to close confirming a signal.

Have 2 or more things confirming Your analysis.

Take good candlestick reversals within a trend and against the trend. In an established trend You will have corrections and retracements, getting a strong reversal signal in harmony with the established trend usually makes for a good entry.

No trend goes on forever, at some point trends take hard dips and reversals. Candlestick reversals make valuable entry signals in these situations. The more confirmation to that signal the better.
If the next candle engulfs Your entry candle, GET OUT!

Often times reversals at the beginning of a trend is a trap. The more established Your trend; the more likely it is to reverse with proper reversal confirmation.

Trend lines and moving averages are good temperature gauges, they help identify a trend that has already started or they can show market strength or weakness. A price break and close above usually indicates strength and a break and close below shows market weakness, but these can also be market shake outs.

KNOW THAT UNLESS YOU ARE A GREAT SCALPER, YOU DO NOT NEED TO BE IN THE MARKET ALL DAY. AFTER A GOOD RUN, YOUR TRADE IS LIKELY TO RUN OUT OF GAS. Use this time to rest and wait for the next trade. YOU USUALLY DON'T GET GREAT TRADES BACK TO BACK. THERE IS USUALLY A WAITING PERIOD IN BETWEEN GOODTRADES. LIKE A BUS SCHEDULE INCLUDES WAITING PERIODS BETWEEN BUSES, SO DOES THE MARKET BEEN PROFITABLE TRADES. THERE IS A WAITING PERIOD, SO WAIT; OTHERWISE THE MARKET WILL TAKE BACK THE PROFIT IT GAVE YOU!!!!

THE VERY BEST SET-UP CAN FAIL. THE MOST IMPORTANT TOOL IN A SUCCESSFUL TRADERS TOOL BOX IS THE CUT SCISSORS TO CUT A BAD TRADE QUICKLY!!!!!!

THE DIFFERENCE BETWEEN A SUCCESSFUL TRADER AND THE UNSUCCESSFUL TRADER IS DISCIPLINE!


If You get tricked, CUT THAT TRADE SHORT AND TRY AGAIN LATER!

DISCIPLINE WILL DO FOR YOUR FAMILY WHAT DESIRE WON'T!!!

YOU CAN DO THIS (^_^)!

THINK PERCENTAGES AND MONEY MANAGEMENT

This was the Email Response I got from the $236 video challenge and I loved it so much that I had to share it!

People don't realize that it's not how much you have in your account that determines success. Whether you win or lose, its all based on percentages. Its still the same percentage of the account gained or lost on an account with $100 as it is with $10,000 or even $1,000,000. 5% gained is $5 on the $100, $500 on the $10,000 and $50,000 on the $1,000,000. The actual returns, money wise is different.. but the percentage gained is the same. People who say success isn't possible with a small account, don't know their percentages well.

You can successfully grow a very small account with proper knowledge and discipline. In fact, its smarter to start with a small live account until you can trade with discipline and confidence; that way you don't lose as much initially. A small live account is training grounds to build a larger account.

What's the point in adding funds to your account if you can't build the little you have in your account already?? If you're losing and not gaining consistently.. putting more funds into your account is just going to ensure that you lose more! It is the consistency of applying a good strategy, not the account balance that gives a trader the advantage.Hopefully traders understand the value of thinking 'percentages', instead of account balances.

If you think in percentages, you also understand the value of money management so much better.

For example, if a trader loses 50% of their account, it requires a 100% gain (double!) to get to break even. Whereas, a 25% loss requires only a 30% gain (a mere 5% over the loss) to break even.

A good trading system combined with strict disciple, and good money management will lead to success for any trader, no matter what their account size!
HAPPY TRADING!!!

Thanks Steve!!!
LOVED IT!!!!!!!!!!!!!!!!(^_^)!

A FOREX TRADERS LIFE

THE DISCIPLINED FOREX TRADER

THE UNDISCIPLINED FOREX TRADE

ANY QUESTIONS????????

FOREX IS RANDOM

Have You ever had the perfect trade set-up, the perfect time and the perfect indicator reading and the market still went against You? What most traders don't understand is that forex is a random game of chance where You are constantly seeking an edge. The edge when your set-up fails is to CUT!

The same trade set-up that bought You the fancy car and the great house the last time may move sharply against You this time. Pros cut bad trades all of the time, because they understand that this is a game of chance. In order for my trade to work out just right, I have to have some bigger players agree with my analysis or loads of other people to see the opportunity that I see and jump aboard with their hard earned cash. If the majority of the money doesn't agree, the market will move against me; that is why it is so important to protect your profits when your set-up fails because it will.

The advantage of the pro is the discipline it takes to be consistently profitable. I might see a set-up and think I have reached the bottom and buy, but the bank with $700,000,000,000 may think, the market can drop another 70 pips. Who do you think the market is going to respond to??????????

In a situation like the one above, most traders will try to re-analysis the set-up, go to higher, lower time frames, and find reasons why they are right, while the market continues to move against them. Before the day's end they have a margin call or they are so far down they don't dare cut; then that sickening uneasy feeling creeps in. That feeling that says, 'I can't afford to lose this money, I have to pay my mortgage'. The wise trader says 'Oh hell, this ship in sinking fast, I'd better jump and swim ashore and wait for the next ship" At the end of the day the bank that started out with $700,000,000,000 ends the day with $700,067,893,972, because so many traders refused to except the fact that THERE ARE NO ABSOLUTES IN TRADING! The people in the bank end the week with fat paychecks, take nice trips, and live the lives most only dream about. They live these lavish lifestyles because so many traders 'who have to be right all of the time' are constantly contributing into their wealth pool. It is true that the rich keep getting richer, and it is especially true in forex. QUIT CONTRIBUTING TO THEIR FAT, FANCY LIFESTYLES AND START CONTRIBUTING TO YOUR OWN!!!!!

Imagine if You will that at the top You have big banks and mega traders who have the power to influence the market in ways that You and I can't imagine doing. Now imagine that these same people have vacuum cleaners in the average traders pockets. They lead traders like sheep to the slaughter with what seem to be good trade set-ups, then they turn the vacuum on and that's it. The traders who didn't cut the bad trades are now broke and miserable, while the banks and mega traders are fat, rich and happy.

Trading is not a right and wrong game, it is a shopping game. You have to spend money to find the best deals. If the deal fails, stop your money flow into it and look to buy a better deal. No man in his right mind would continue to send someone $100.00 every month to get the grass cut, when the grass man never shows up, yet traders pay good money for positions that are not serving them.
QUIT PAYING TO BE WRONG AND BROKE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Your positions should be making You fat, rich and happy!

All You can really do in forex is look for the odds that give You an advantage and grab'em. If You grab and find that Your hand is full of air instead of paper, You'd better cut that trade and follow the money trail. The discipline to follow good trading rules will give You the advantage in forex!

YOU CAN DO THIS (^_^)!!!!!

ALGORITHMIC TRADING (GUEST BLOG)

What is algorithmic trading?

Trading with an algorithm is where traders take their trading strategy and put it into code, allowing a computer to execute that code 24 hours a day while the market is open. By default, trading manually is restricted to waking hours (often aided by the use of Red Bull, in my case), and is limited to the number of charts and currencies the trader can watch.

Naturally, the amount a single person can watch, monitor and trade is quite finite. But by utilizing an algorithm traders can have computers do in microseconds what would take humans hours to manually, thereby opening up a new supply of trading opportunities (not all of them being good opportunities, mind you).

Meta4 trading platform allows traders to create their own automated forex trading programs in what is called an “Expert Advisor.” The use of the software is free for all traders - demo and live.

The rise of the algorithm

According to my research, in 2004 a whopping 98% of trading in the foreign exchange market (or forex for short) was manual trading; but by 2010 only 55% of trading volume came from a human. The forex market is a fast moving market that is open 24 hours a day, and I think this huge influx in algorithmic trading is traders trying to capitalize on these factors.

Some exchanges here in the States have tried to embrace algorithmic trading, but have met resistance. My research concluded that forex has been more friendly to algorithms simply because the market has no central exchange to regulate where a trade comes from.

The Pros and Cons

One of the benefits of algorithmic trading in any market is the increase of liquidity. Algorithmic trading typically places more trades than a human naturally would, which opens up more liquidity for everyone: human and machine alike. But with this comes a change in volatility. An increase in volume naturally leads to increased volatility. But some suggest algorithmic trading might actually lower market volatility as algorithms aim for optimal execution at minimum cost.

What’s on the horizon?

One very important lesson from my college years is this: the more we learn, the more we learn we don’t know. My research into algorithmic trading has answered some questions, but seems to have opened up even more. For instance, what is the future of algorithmic trading, and how will it impact my trading? I’m currently researching this topic, and plan on releasing another infographic soon with my findings. Stay tuned: more good stuff is on the way!

For more information on Algorithmic trading, Here is a programming link: http://www.ibfx.com/Education/Programming, or You may contact Adam at <adam.evans@interbankfx.com>

FOREX AND DISCIPLINE

Besides skill, there is really only one thing that separated the pro from the amateur in forex and that is DISCIPLINE!

The DISCIPLINE to do what You need to do when it needs to be done. In order to succeed in forex, You need a game plan. A set of rules that You must adhere to in order to enjoy any real measure of success. Forex is a master game that isn't hard; it is just tricky and not playing with discipline is a very costly venture. The #1 No-No in forex is holding on to bad trades. It is the thing that will break You faster than anything else.

Let me simplify this for You:

Superior DISCIPLINE = Superior Success and eventually a lavish lifestyle

Great DISCIPLINE = Great Success and eventually a very lucrative lifestyle.

Good DISCIPLINE = Measured Success and a nice/decent living.

Fair DISCIPLINE = Too much frustration and lots of struggling.

No DISCIPLINE = BROKE, busted, frustrated and disgusted

When I first started sharing strategies, I was asked was I afraid that the market might start to change because of my sharing. I know that any master trader can freely share any strategy/secret and the market doesn't have to worry, because most traders don't have the DISCIPLINE make the strategies work for them.

Everyday Traders are lead into traps by Master Tricksters and it happens to the best of Pros too, but the difference is that the Master Pro will spring the trap when Her/His rules say cut, while the amateur will hold on until the market cuts the trade for them. Never let the market cut Your trade, because it will always be at a point much worst than the point that You thought You couldn't afford the loss.

DISCIPLINE is the ultimate advantage for the Pro Trader. It is the secret forex weapon that the Amateur fails to use. Traders are always looking for the holy grail of trading, well the closest thing to the holy grail in trading that I know is discipline. The discipline to enter when Your rules show that You have the advantage and the discipline to exit when Your rules show that You don't have the advantage that You thought that You did.

A trader who follows a good set of rules with discipline will enjoy success and happiness, the trader who makes exception to good rules will be frustrated, full of self pity and BROKE.

REMEMBER THE CHOICE IS ALWAYS YOURS, YOU NEVER HAVE TO STAY IN A BAD TRADE. YOU ALWAYS HAVE THE POWER TO CUT!

YOU CAN BE SUCCESSFUL HERE, BUT ONLY IF YOU CHOSE TO BE!

YOU CAN DO THIS (^_^)!

THE 3 C's TO SUCCESSFUL TRADING

Confidence

Consistency

Cut

Develop a system that You have confidence in and trade it boldly! Have confidence to ride winning trades until your rules say exit.

Be consistent with Your trading rules even when it hurts. Discipline in the market is what makes a long term successful trader.

Cut bad trades quickly! Always have a cutting point when You know that You no longer have the advantage. All long term successful traders use a Stop losses! Traders who refuse to cut bad trades go broke

It is better to ride the price train than to be hit by it **

YOU CAN DO THIS (^_^)!