Forex Trading Success Secret? ( IT IS THIS!)

The Number 1 Secret To Forex Trading Success? ( IT IS THIS!)

What is the secret to forex trading success? Is it the trading strategy or is it risk management? Well, all of these are important… But what I think the real secret is this: doing the exact opposite of what most traders do.

secret to forex trading success

If you believe in this ratio that 95% of forex traders fail  and only 5 % achieve forex success, then you need to understand what factors or behaviors cause these 95% of traders to fail and what do you do?

Do the exact opposite of what these 95% of forex traders do.

Take the narrow, less traveled path, it leads to success.

Take the wide path, and it leads to destruction.

This is the key to success in forex trading.

 

What Do 95% Of Forex Traders Do Wrong?

This list below is not the full list but it shows some of the things 95% of forex traders do:

  • inadequate funding
  • lack of proper risk management
  • over trading
  • revenge trading
  • lack of emotional control.
  • no patience to wait for proper trading setups
  • no trading plan
  • get rich quick mentality
  • counting pips instead of focusing on account growth over a long time period.
  • cannot accept trading loses as part of the process

I’m sure you can add a few in your mind but you get the point…

Forex Trading Success Is Very Easy Yet Very Hard To Achieve

Sometimes I just don’t understand myself. I know what to do and yet I do the opposite thing.

What I’ve just explained is the biggest problems faced by thousands of forex traders worldwide. We all know what we need to do to be successful in forex trading because we have read books, we have trade money ourselves and we know from experience what we did wrong.

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And yet, when the next time comes around again to trade, we tend to repeat the same mistakes. Its like there are two different people inside one body…like a split personality case.

One is the logical personality that plans to do the right thing but the other one is just the opposite. One mind plans to do the right thing, the other mind does the opposite thing.

So forex trading is like a roller coaster ride for many. I’ve had my fair share of ups and downs.

 

Why?

Why is it that many act opposite to what they should be doing? When you tell you infant son not to play with fire, he will still want to play with it until he gets his finger burnt and then he’d never get close to that fire again.

But for forex traders, its kind of a different story. The infant knows fire is danger and avoids it. Many forex traders are much dumber than that infant and I’m the king of them all.

The big question is why do we continue doing the wrong thing? WE KNOW THE RIGHT THING TO DO…AND DON’T DO IT.

Why?

 

Its To Do With The Mindset

I’m not a psychologist but looking at myself and my failures, I can sort of point a finger at my mindset. My mindset changes when I’m making profits and when I’m losing money.

It is very hard to realize what is happening in my mind “at that moment” when critical trading decisions are made until after that event and I’m like: “Geez, did I just blow up a $3,000 account?”

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Far out!

What’s the solution to stopping all these then?

To be quite honest, I don’t know.  I’m still soul searching trying to get to the bottom of my split personality case and trying to find way on how to stop it.

There’s not medicine or doctor that has a cure for this sickness.

I think it has to come from within. You need to find it within you…to stop doing the wrong things in forex trading. Only then will forex trading success come chasing you.

Forex Signals Trade Entry Tips & Tricks

Here’s some tips and tricks about how to get the best forex signals trade entry. For those of you that subscribe to my free price action forex signals, thankyou. For those that have not yet, please do, I guarantee that you’ll learn a lot from those forex signals.

Read what I’m writing here twice if you have to…

And after reading it, go open up your mt4 charts and go over the forex charts I’m going to show you down below so you really get to see and understand  what I’m talking about in here.

Why is this important?

Well put it this way:

A good fisherman knows where the best places to catch good fish are in the ocean as well as the best methods to catch them. It is a skill he learnt.

For me, I spend more hours watching price action on mt4 charts that even makes my wife jealous and because of that, I’ve learnt to see the subtle clues in price action and can anticipate the big price moves that may come.

And that’s why to help many traders like you that may be struggling with price action trading, I created this free forex trading signals page where you can see each week the big setups that can make you 100’s of pips in profit if you decide to take them.

Disclaimer: I’m not a pro forex trader…I still have my day job to pay the bills as I’ve mentioned hereSo Take my advice and tips with a grain of salt, but here’s the thing: I’ve learnt a thing or two about forex trading (made a lot of money and lost a lot too and I ain’t giving up yet) and if that can help you become a better trader that would be awesome!

Does that mean all my forex signals are 100% accurate? Nope! Not at all.

READ  Forex Trading Signals Archive

The signals I send out weekly are based on trade setups I perceive as having really GREAT Risk:reward outcomes based on my analysis.

Ok, let me get started…

How Do You Know What Is The Best Time Timeframe To Enter A Trade?

Most of my forex signals are based on the daily trading setups and sometimes based on weekly and monthly.

If you’ve been reading my blog and articles for some time, I am a fan of multiple timeframe trading. And my two main reasons for doing that is for:

  • better trade entries
  • and better risk:reward ratio should the trade work out as anticipated.

Now, you will notice on my forex trading signals alerts that if there is a setup in the larger timeframe, I will make comments like these:”switch to a lower timeframe like the 1 hr or the 4hr and watch for reversal candlestick patterns to buy or sell.”

Now, I understand that for me, it is very easy to do that and I know what I’m looking for when I do that. But for you, it may be something you may be having difficulty with so here’s how to actually do it.

Here’s an example of a forex trading alert I sent on USDJPY many days prior before the setup actually happened:

And this was what I said:

 

  • A sell trendline trading setup is happening here…notice price heading up to the falling trendline?

  • use bearish reversal candlesticks as your signal to go short (sell).

 

forex trading signals USDJPY 180716

So Your Signal To Place A Short Trade (Sell Trade) Would Be A Bearish Reversal Candlestick.

And this is what happened, my analysis was accurate and price responded as anticipated:

READ  EURUSD Daily Chart: Bearish Harami On 61.8 Fib Level, Should I Sell?

price action analysis of forex trading signals

Technical Analysis Of The 1hr Timeframe Setup

Now, if you traded using mulitiple timeframe trading and  If you were just focused on  trading in the 1hr timeframe, this is what you would have seen:

how to trade forex signals using 1 hr timeframe

Notice on the chart above that it has 3 bearish reversal candlesticks  patterns, all of them were valid signals to go short (sell).

Lets analyse each one ofthem:

First signal was the bearish railway tracks pattern:

This sell signal was premature and price did not respond to it as it kept going up. Price can be obviously seen breaking the trendline and going up and this can cause many novice traders to think that the trendline trading setup is no longer valid anymore.

Hang on…its not over yet until its truly over.

You see, I think differently. Even if the trendline is slightly broken, I tend to watch the next few candlesticks for bearish signals or weakening price action momentum.

The second bearish inside bar or bearish harami pattern.

This was also a premature sell signal and if your stop loss was too close, you’d be stopped out.

The third sell signal was a bearish dark cloud pattern

This was the ideal sell signal in the 1hr timeframe and if you traded it, it would have been a really good trade for you.

The 4th Signal was A Bullish Signal( What???)

Is this a bullish trendline break retest to bounce back up? A buy signal? It seemed that way and price shot up a bit but did not go past the bearish dark cloud pattern.

Important: in a situation like this where you take a sell trade and after a while you see a very strong bullish signal like that bouncing up from a trendline, you need to move your stop loss to breakeven if its not too close or if you think you want to take some profits off the table then do so and leave the remainder trade running and maybe move your stop loss to  breakeven.

READ  Forex Trading Signals And Trade Setups – Archive

 

Technical Analysis Of The 4hr Timeframe Setup

If you traded using the 4 hr timeframe, your job would have been very easy. Have a look at the 4hr chart below:

forex signals trade entry and how to trade price action forex signals

 

Summary

Hope you learnt something from this. This is how I trade on most occasions.

Sometimes if the 1hr timeframe has too much noise and you don’t seen any reliable patterns, just get out of it and watch the 4hr timeframe.

Having said that, sometimes, the 1hr can present early trade opportunities and you’d be in profit before the the 4hr timeframe trader takes a trade.

The 4hr decreases a lot of “noise” that is found in the 1 hr timeframe and can give you a much broader and better picture of what is happening with price action.

Therefore learn to switch back and forth between these two timeframes looking for trade entry signals based on reversal candlesticks if a trade setup is forming in a larger timeframe like the daily as I’ve shown you here.

As usual, I always try to end my posts by asking you to share, tweet, link, mention it in other forex websites if you’ve benefited from my blog or from this article so other forex traders can also know about this site and benefit from it. Thanks for visiting.

 

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