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Posts Tagged ‘price action’

Forex Training Tutorial on Pin Bar Strategy

Forex trading courses differ in their quality and content and it is usually quite difficult to judge the value and relevancy of the course by its sale page. Generally speaking a quality trading course will be more than just a course for sale or an e-book. If the designers of the trading course are really interested in their students’ experience and in putting out a quality product they will have a well put together website and offer much more than just a static trading course.

You should look at what else you are getting, if anything at all, for your money. Does the forex educational course come with on-going support or regular updates? Be aware that most so called forex “educators” are nothing more than just failed traders who realized that they were better at selling “trading courses” than at the actual trading itself. You need to stop and ask yourself, “Who am I buying this product from?” What evidence is there that they trade with the same methods they teach or that they are a professional? It’s very easy as a beginner to the forex market to fall prey to the big claims of marketers and other people trying to sell you a trading course that is irrelevant or status-quo. There are many ways of trading the markets that will give you the edge that you need, this is not the difficult part. What is difficult is finding a professional trader that also is a quality mentor who will be honest with you about the methods they teach and won’t sugar coat anything.

Forex trading can be a very expensive business if you don’t operate in a disciplined manner. This includes being disciplined in finding the best trading course for you to learn from. Take your time and don’t just buy the first trading course that pops up in your Yahoo search. Some trading courses cost thousands of dollars and are basically useless while others are only a few hundred and are probably worth their weight in gold. It takes time to discriminate between the two however. Trust your gut and ask yourself how you feel about the person you are purchasing the trading course from. If you don’t even know who wrote your prospective forex trading course than you might as well move on to another one. Anyone who is going to write a trading course and then not put their face and name or even personal videos behind that course is very likely just trying to steal your money.

In summary, not all trading forex courses are created equal. The legit ones will be well written and will also come from a professional trader who also has a genuine interest in helping people succeed in the markets. A quality trading course will not just give you a strict system of rules to follow; it should allow you to develop your own unique trading rules that are inherently adaptable to constantly changing market conditions. Also, compare what you are getting for your money to other forex educational courses. Some trading courses offer on-going support, course updates, and an online member’s community that can add significant further value to what you are paying for. The road to consistent profits in the forex market is paved with a high-quality, genuine, and relevant forex trading training course

Forex Fakey Trade Setups

Currency markets are inherently contrarian. This means that they are regressive in nature and have a natural tendency to pull back to the mean price. This is a big reason why so many beginning traders lose all their trading money and give up. The fact is that a lot of the time when it feels safe to enter the market it is probably not. When a move in the market is greatly extended in one direction and looks like it will keep going this is usually the exact time it is about to fall back and correct itself. This extension usually the exact time most beginning traders tend to enter the market. It often takes many years of losing money before traders learn that they have to wait patiently for the market to contract before entering, and many traders give up before they finally realize this truth.

Most indicator based trading systems simply are not profitable in strongly trending markets. They will give you a sell signal long after a market has started regressing back down and the correction is almost over. Many times they give you a sell signal at the very time the correction is over and you should be looking to get long again, or vice versa. If you know how to tell based off pure price movement when a market is exhausted or when it is ready to break out then you have the keys to building a highly profitable and consistent forex trading method.

Price action analysis is the best technique for learning to profit from the forex market. There are usually tell-tale signs a market is ready to correct or the trend is ready to resume that are readily visable through the analysis of price action. All you really need to know are a few simple price patterns and basic chart support, resistance, and trend lines and you have enough information to put together a profitable trading method. Many people try to program indicators and even develop new ones because they mistakenly believe if they put more math and study into their trading technique they will be further ahead of other traders. This is just false. While you do need some sort of education in technical analysis and price action, it doesn’t need to be complicated or involve programing expert advisors and other useless non-sense.

Once you develop a keen eye for price action setups you will be able to tell if it’s unsafe to enter a trend or that the trend is ready to resume. It’s all there on the chart, you just need to be shown the way by someone who has walked in your shoes and made it down the path to trading success. Price action can be a great aid to developing your market discipline and shaping a relevant market perspective. If you are just starting out and this is one of the first trading articles you have read than I strongly urge you to check out an education in price action. Go to YouTube and look up “forex price action” or “forex price action strategies” and see if you like what you find; there are many good free sources of price action information on YouTube. Price action analysis has been the key to my success in the markets and I hope it will be the key to yours.

forex training

Benefitting from on-going support:

Too often in the world of forex trading beginners are sold an over-priced trading course or piece of software and then they are on their own. Usually they end up figuring out very quickly how easy it is to lose money in the markets. Success in trading is not something that comes over night. It takes years of diligence and discipline and is definitely a skill that lends itself to learning from traders who are more experienced. The benefits of having a community of forex traders all using the same method and supporting each other and sharing ideas are quite substantial to say the least. I am very proud of the member’s community at my website and the on-going support it provides to traders interested in learning price action analysis.

Trading can be a lonely endeavor and it is a great help to have other traders to talk to and share ideas and mistakes with. Often a beginning trader thinks he is the only one making a certain mistake or that the market knows his or her every move and is out to punish them. These thoughts are common to all beginning traders and one of the benefits of joining an online trading community is that you begin to realize this much sooner than if you make trading a solo venture.

My forex trading community is geared specifically towards price action analysis techniques, especially those I teach in my trading course. The trading course that I wrote includes lifetime access to the member’s community as well as regularly updated trading videos and other content. By focusing my website on the specific way that I use price action to profit in the market all of our member’s share a common goal. Many trading communities or forums get confusing and jumbled up with irrelevant threads and redundant topics that make it difficult to get a quality educational experience.

My online trading community provides regular market updates and price action analysis of varying forex currency pairs from me. I think that if you go and browse my website for a while you will see it is quite different from other trading education websites. I personally oversee all new educational material on my site and make sure that it specifically pertains to my trading course. This way all members can grow and prosper with me and we can all benefit from each other. The importance and advantages of on-going support in the forex trading world really cannot be stressed enough. If you have been trading by yourself for a while now with no success then I highly recommend you go check out what I have to offer. You will realize you are not alone in the trading world and that there are methods out there that are simple and profitable.

I pride myself in continually adding new educational materials to my trading course and to my website. Unlike many financial marketers who are just trying to sell you a product and then never communicate with you again, I offer my personal trading strategies and insights into the market on a regular basis. The ideas I provide to my members are the exact same ones that I used to navigate the markets myself. I take seriously the feedback that my members provide to me. There is truly a symbiotic relationship between teacher and pupil at www.learntotradethemarket.com and I sincerely hope you will decide to change your market perspective and join us in the community and see what it’s all about.

Price Action Forex Trading Strategies Tutorial

Learn to trade the forex market

Learning to trade the forex market can seem like a daunting task to any beginner. Fortunately there are many people out there who have made all the common mistakes and already traveled down the bumpy road of learning to trade. The best advice to give a total beginner to forex trading is to learn from a professional, someone with time-tested and relevant trading strategies; someone with a no nonsense market philosophy as well as a unique market perspective. Learning to trade forex does not have to be the frustrating, pull your hair out task that it so often turns into for people. You need to develop the proper market mindset and this can best be taught by someone who already possesses it. Just as the best way to learn any other job-related skill is from a mentor, learning to trade forex should be no different.

If you want to learn to trade with the least amount of trial and error possible, I suggest you learn from a professional trader who offers on-going support. Learning to trade can be a very expensive endeavor, so I suggest you do not try to go it alone. There is a lot of good information available on the internet for learning to trade forex. However, there is probably far more junk information as well as people trying to scam you out of your hard earned money.

Most people who want to learn to trade the forex market are mainly interested in the technical aspect of trading. That is, making trading decisions based on the information provided on a price chart. Where many people go wrong in technical trading is thinking that more is better, or that if they understand how more indicators work it will lead them to bigger profits. First of all, you need to understand that when it comes to technical analysis and your charts, more is not always better. Professional traders and hedge fund managers do not use lagging indicators because they understand that such tools are useless and even counter productive.

Most professional forex traders you will find make their decisions based on pure price action analysis with a certain amount of fundamental economic understanding. A price chart is at the very heart of any market and reflects all market participants’ beliefs about that market. There are so many trading courses for sale that make you believe you need to over-lay a bunch of indicators on your chart that it can be extremely frustrating for someone who teaches and trades just from pure price action like myself.

Learning to trade is difficult enough without all the unnecessary bells and whistles that many so called forex educators try to sell to you. When learning to trade you need someone you can trust and who is providing a valid and time-tested product. Don’t fall prey to charlatans trying to take your money and run. Look into price action analysis and I promise that once you find a genuine price action trainer you will never go back to your overly complicated indicator method. Learn to trade from price action and you unlock a world of difference in the way you think about trading.

How To Make Money In Forex Market

Forex training

A thorough education in trading the forex market is essential to your development and success as a trader. Forex trading is one of the most difficult professions to excel at; as any active trader will attest to. The most difficult part about forex training is finding an experienced forex mentor who is a professional trader and a great educator. The fact is that most professional forex traders are not out there telling you how they trade or trying to help people trade better. Generally they are too busy taking money out of the market and concentrating on their own discipline and self-control to have time to help aspiring traders. There are some forex trading educators out there who are genuine; however they tend to get lost in a sea of people trying to sell you a black-box system or that don’t really know if the method they teach is consistently profitable.

There are some definite characteristics of a great forex trading trainer you need to watch for in a prospective candidate you have in mind. First of all, if you want to find out whether or not the person is genuine than take a look at their website. Is it just an e-book trying to sell you something at the bottom with no concrete forex training information? If they are not offering anything at all for free on their website than they are likely just a sales person trying to take advantage of your trading aspirations. Most genuine forex educators will have numerous free trading articles, videos, etc on their forex training website. Now, that’s not to say there is anything wrong with selling a quality forex training course to interested traders, because there isn’t. A genuine forex trainer will have spent years of trial and error and frustration perfecting their trading method, so it only makes sense that they charge something to share it with the world.

A superior forex training website will not only have numerous free materials available, but it will also have the main forex educator well advertised. If you don’t even know what your prospective forex mentor looks like, than I would take that as a warning sign in and of it’s self. When you purchase a trading course or subscribe to a forex website essentially what you are doing is buying the person behind the training materials. This person should obviously be knowledgeable about forex trading and well spoken. It does not make very much sense to buy a course or subscribe to a service that does not give you any kind of clue as to who is behind the training material.

Forex training generally comes in two forms; someone trying to sell you a piece of software that consists of a few lagging indicators that give you buy and sell signals with no real market perspective or actual educational material included, or, someone trying to sell you an e-book at a ridiculous price with a bunch of common sense information about forex that you can find for free all over the internet. The third form of forex education is a bit more difficult to find. Specifically, I am talking about an on-going forex training website with various forms of educational material’s that are constantly up-dated and expanded.

So before you purchase any forex training course or subscription service you should ask yourself what am I really getting anything for my money? Does the person selling this product seem genuine and also, do I even know anything about them? Look for free forex trading material as well as a common sense and straight forward trading method. Finding a quality forex training website in the ocean of forex material floating around the internet is harder than you might think. So take the time to see what forex trading training method fits you best and ask yourself if you trust the person you are learning to trade forex from.

Trading Reversal Bars - Price Action Trading System

Consistency is the key to forex success:

When starting down the path to learn about forex trading, we often hear that we need to be consistent in our approach to the markets. What exactly does this mean and how do we achieve consistency in the forex market? Consistent trading profits are a result of consistent actions. There is no room for emotional reactions while trading the forex market; however, there is a need for flexibility. Consistency is the product of a mindset that consciously manages a person’s emotions while interacting with the market. So exactly how can a forex trader develop a consistent approach to the market while not eliminating flexibility from their trading plan?

The only true way you can ever develop consistency in the forex market is by first finding your edge. A market edge is a method of trading in the forex market that gives you a positive ratio of winners to losers over time. You need to have confidence in your edge because not every trade is a winner; you must be able to endure a series of losing trades in order to see your profitable edge play out over time. As you gain confidence in your trading method you can then start to develop some rules around it that give you a little more rigidity in your trading plan, this allows you to remain calm and follow your rules no matter what comes your way in the markets.

Once you have developed your own rule based system off your market edge you will be well on your way to consistency in the forex market. This takes time. Contrary to what some people think forex trading is not a get rich quick scheme; it can easily become a get poor quick scheme however. At best it is a get rich slowly scheme, and only through consistency will you be able to achieve your long-term goals in the market.

As discussed above, flexibility is an important part of any trading plan. While developing a rule based system is crucial to your long-term consistency, building in some flexibility to your trading plan is also important. The forex market is extremely volatile at times and no two moments in the market are ever exactly the same. This is why you need to be flexible in your approach to trading the forex market. I know it seems contradictory to be emphasizing the need for a rule based trading system to develop consistency and at the same time emphasizing flexibility. Consistency and flexibility are must have components of forex trading success however, part of the reason why so few ever achieve that success.

Our approach to the market needs to be consistent and flexible, thus we need a trading method that gives us a flexible yet consistent view of the market. Forex Price action analysis is the only method I have come across that is inherently flexible yet at the same time can offer you concrete strategies to develop a system around. Price action is simple and effective and will greatly help you in developing the flexible yet consistent approach that forex trading success requires.

Forex training - price action

The market mindset trap:

The Forex market can be a very dangerous place for those not operating from the proper mindset. Since trading is almost entirely psychological, how you think about the market is the most important factor in determining your long-term trading success. To succeed in the forex market an objective mindset is required. While many traders start out with an objective mindset towards the market, few can maintain this way of thinking.

The difficulty in maintaining an objective market mindset lies in the fact that you can do a large amount of damage to your trading account extremely quickly in the forex market. Traders have access to an enormous amount of leverage in the foreign exchange market and leverage is extremely dangerous to someone who is trading from the wrong market mindset. So how can a foreign exchange trader achieve and maintain an objective mindset in the ever changing and volatile arena of forex trading?

The correct market mindset stems from not trading money that you can’t afford to lose. You should not be using money to trade with that you could possibly need to live on or that anyone else in your family might need. This is the first step in operating from an objective point of view in the market. Not needing the money in your trading account allows you to develop virtually no emotional attachment to anyone trade you enter, this is very important if you want to consistently make profits in the foreign exchange currency market.

Only after we have confirmed that we are not using money we need for any day to day expenses should we move on to the next most important factor in achieving and maintaining the proper market mindset; a truly profitable and easily definable trading methodology. We need an edge in the market, a definable and profitable edge is important because we need it to base our trading plan off of. Money management is just as important, if not more, than your profitable edge. However, you first need to define your trading method before you can develop a money management plan.

Planning your money management scheme is the next step after you know what your definable trading edge in the forex market is. You need sit down and map out how much you are able to risk each time your edge appears in the market. Many traders cannot maintain an objective mindset while risking more than 2% on any one trade. This of course is only a general rule and mostly depends on the frequency of your trading, if you only trade once a month than you might be able to operate objectively by risking 5% per your once a month trade. However, if you are trading once a week or more than generally speaking 2% is the max you should have at risk per trade if you want to give yourself a realistic shot at not trading based on emotion.

I can recommend a very good trading method that will provide you with solid strategies for finding a truly consistent edge in the forex market. The best method I have found for trading the foreign currency market is price action analysis. After discovering and implementing specific price action setups into my trading I was able to easily map out my money management technique. This allowed me the ability to remain calm and confident during every trade; thus achieving an objective market mindset. There are many ways to profit in the market, which ever way you do it though one thing is for sure; you need to think objectively about all of your market related activities.

forex trading training strategy

Advantages of trading forex versus other markets:

§ The foreign exchange currency market is extremely liquid.

Daily average turnover is more than 3.2 trillion dollars the forex market has by far the most liquidity of any market in the world. This means there is practically no slippage; in other words, the price you see advertised is the price you get.

§ 24×6 hours of liquidity in a week.

The forex market is unique from other markets in that a trader can place a trade 24 hours a day 6 days a week. Where as stock and futures markets have certain trading times their respective exchanges are open, forex markets allow for trading at any time of day. This provides for more time to test strategies and larger samples of data to work off of, as well as the ability to trade during other countries’ active trading hours.

§ No actual physical market.

Since forex trading can be done from your own home there is no centralized trading market. The advantage this gives the retail forex trader is that there are no broker’s commissions or fees. Forex brokers, commonly called market makers, collect the difference between the bid and ask price on a currency trade, this is known as the spread. The effect on the trader is that their position will start off being between 1 and 10 pips negative, depending on the volatility of the currencies being traded. However, to the trader with a consistently profitable trading method, this small burden is hardly detectable.

§ It is impossible for your account to go negative in forex.

Forex market makers generally all offer trading platforms that instantly terminate a client’s open position if they have an open loss that exceeds the margin requirement. This means there is no risk of your account going negative at which point you might actually owe money to the exchange, which can happen in futures trading

§ Low margin requirements allow for leverage.

In forex trading a trader can get leverage up to 400:1 on a micro account. This means they can control 400 times the amount of money they are risking on a trade. Market players call this leverage and it provides the possibility for very large profits relative to account size, but also for very large losses.

§ Demo account trading is easily accessible.

Generally every single forex broker you will encounter offers a free demo account to learn how to trade from. If properly utilized a demo account can help teach you the mechanics of trade execution as well as give you time to develop and test your own personal trading method. A trading method that consistently makes money on a demo account, if traded the same way, should make money on a real account. The difference lies in the fact that real money trading is much more emotionally difficult on people. However, if you take the time to test your trading method on a demo account and really take it seriously, the transition to trading real money in the forex market can be relatively seamless.

Price Action Forex Trading Strategies Tutorial

What is Forex Currency Trading?

The foreign exchange currency market is the largest market in the world with a daily average volume exceeding 2.1 trillion. Trader in the forex market buy and sell curreny pairs with the hope the currency pair will move in their favor allowing them to profit. Economic and world events are the main catalysts that propel the forex market.

Forex Basics:

The foreign exchange currency market is not limited to a physical location like stock markets are. The forex market is much bigger than all the world’s stock markets combined. The internet and telephone are the main mediums of transmission for forex trading. Most forex trading transpires in the major cities of the United States, England, Australia, Japan, and Germany.

The forex market has names for each currency in a pair, the first currency is known as the base currency while the second is called the quote currency, counter currency, or terms currency. Exchange rates in forex are quoted per unit of base currency, for example, the exchange rate between the U.S. dollar and the euro will be indentified as EUR/USD, so the number will be the amount of U.S. dollars that can be exchanged for one euro.

The euro currently has first precedence as base currency, thus all currency pairs containing the euro should have it as the base currency. The hierarchy for base currency is as follows: Euro, Pound Sterling, Australian Dollar, New Zeeland Dollar, United States Dollar, Canadian Dollar, Swiss Franc, and Japanese Yen.

How Forex trading works:

In the foreign exchange currency market quotes include a bid and an ask price. The bid is the price to sell the base currency in exchange of the counter currency. The ask is the price to buy the base currency in exchange of the counter currency. In forex, we call the difference between the bid and ask price the spread. Forex brokers act as market-makers; they provide a place where market participants can buy and sell currencies. Rather than charging a commission on each trade like stock brokers do, forex brokers instead collect the spread on the currency pair being traded.

Movement of a currency pair is expressed in pips. One pip is the term for the smallest incremental change of any currency pair. For example, if you see the current price of GBP/USD (British pound/U.S. dollar) quoted as 1.6832(bid)/1.6837(ask), then the spread of this currency pair is 5 pips, because the difference between the two is .0005. So for the GBP/USD currency pair one pip; the smallest incremental change for that pair would be equal to .0001.

Forex trading can be quite volatile due to the multitude of big money players that trade this market. If properly utilized, volatility in the forex market can help you make profits fast, however if you risk too much for your account size volatility will take your money very fast. Make sure you understand the many intricacies of price action before jumping into the market head first.

Nial Fuller

Price action is the behavior of price of a specific currency, commodity, stock or other trading instrument over a specified period of time. The analysis of price action will show you the predictive capacity of price patterns that occur over and over in the market over time. There are specific price action setups that re-occur in the markets which we can build a rule-based system around.

Through price action analysis we can visually see exactly what is occuring in any given market at any point in time. The supply and demand situation of any given market is represented visually by the price action on it’s chart. Price action shows expectations and beliefs of all market participants; the bigger and better informed traders leave a much bigger trail, thus by educating our selves in price action analysis we can make a more educated guess as to what those traders “in the know” are doing in the market.

As retail forex traders, our goal is to jump aboard the price trail left by bigger players who have the power to move the market. Price action trading systems built around a handful of time tested and repetitive setups provide us with the best shot at riding market momentum to long-term consistent profits. Markets produce re-occuring price patterns as a function of their nature.

Most experienced traders will agree that trading is about 80 or 90 percent psychological and 10 to 20 percent method. Most traders start off by thinking it is the other way around and thus end up losing money and finding themselves losing what seems like a constant fight against the market. What price action analysis provides for you is a simple, straight forward, and most of all, effective method that allows you to focus your energy and time on the more important psychological side of trading. If we as technical traders are primarily basing all of our trading ideas off of charts then why would we confuse and frustrate ourselves with anything but what the chart is made of which is of course price action ?

Market mastery is a result of a trading method derived in consistency. Consistency is key to long-term success as a trader, this means all of our trading activities must be executed with consistency. An education in price action provides you with the ability to identify specific price patters that re-occur in the market. This affords you the power to acheive the consistency that so many traders want yet so little ever attain. Prominence in any profession is usually accompanied by great training and mentoring. To learn consistently profitable price action trading strategies you should learn from someone who trades with the exact same methods they teach. So get yourself forex training in specific price action patterns and I promise that you will be well on the path to trading consistently.