The top 5 wrong thoughts about forex.

The top 5 wrong thoughts about forex.

The top 5 wrong thoughts about forex.

I have been in Forex for quite a long time now, and I have noticed a lot of things, especially what starting Forex Traders think.
Here are a few things that I have noticed that is completely wrong.
And when you are doomed to fail in the forex business.

1. With forex trading you can get very rich very quickly.

Okay I really hear this very often. People come to me and ask if they can be financially independent within a month.
They think that they can immediately earn a lot of money with the right strategy and that everything is only very beautiful.
But let me help you out of that dream, if it was all that easy, why isn’t the whole world successful in trading forex?
Why didn’t anyone think of it before when it really is such an easy way to make money?
The truth is that you will probably lose a lot of money before you start earning money with forex.
Forex is hard work and with just a good strategy you are not there yet.
You need good risk management, the right mindset and, not unimportantly, a PLAN!
So if you are a person who believes in “professional Forex trader within 7 days”
or maybe “From $ 100 to 1,000,000 in just 1 month trading Forex” I have to disappoint you that is not realistic.

Forex

Forex

2. It’s oke to move or not using a stop loss at all.

What’s wrong with you? No really what’s wrong with you?
Why won’t you use a stoploss or why would you move your stoploss if your trade turns out to go the other way?
I assume you want to use a good risk / reward?
Then I tell you now if you do not use that stoploss or keep moving, you will never make it at all in the forex industry.
Rule number 1 in forex is then I think you should keep your losses as small as possible!
You are you going to move your stop loss and then?
So it can still hit your stoploss with a high probability and you will lose even more money?
Please stop doing that and stick to your plan!

3. Binary options is the best way to get rich in the forex!

No no no. Do you want to gamble? then go to the casino!
Binary options is just guessing which way the price goes.
Seriously, but no meaningful analysis can be made.
If you are lucky you earn money, but if you are not lucky you can just lose all your capital.
I am therefore annoyed by all those fake ads in binary options.
Binary options is not trading but simply gambling.
My advice is to read about  it carefully before you get involved with something like that, please!
And don’t start with Binary options if you really want to make forex your job.

4. You can easily do your analysis on an M5 time frame.

Sure you can do an analysis on an M1 or M5 timeframe.
But I don’t really know anyone who is really successful with that, at least not over a longer period.
Really seriously you make an analysis the best on the higher time frames these are strong.
Use the H4 and the H1 or even the daily you can use.
Believe me if you let go of these thoughts you will get very far. Never forget the higher time frame is the key for a good analysis!

5. The more indicators you use, the stronger your analysis!

Oh yes really? Sometimes I see charts, well, maybe I should call it paintings with dozens of indicators.
I really wonder if they can still see what they are doing.
I mean can you work well in a messy office?
Or are you more easily distracted from your work? I certainly do!
So cut it! Keep your charts clean and simple.
Make sure you keep an overview of what exactly you are doing.
See trading as reading a good book, a book that is fully scratched is no longer readable right?

Forex

Forex

Want to know more about trading in forex / trader mindset or do you want to join the forex group?
The forex group is mainly English!
Please contact me so that I can explain you much more about what we have to offer.
And all your questions can be verbs.

Looking for good Forex education? Look at www.theforexscalpers.com
The best Broker? Look at  IC MARKETS.

Support/Resistance Demand/Supply – The difference.

Support/Resistance Demand/Supply – The difference.

I often get the question what the difference is between Support and Resistance and Supply and Demand.
Or people who ask me but Support and Resistance and Supply and Demand are the same right?
I will explain the biggest differences in this blog a bit to you.

Support and resistance levels and Supply and Demand levels are 2 different trading concepts that are very similar.
They both indicate points where the price can reverse.
And you can find them both everywhere on the charts.
I think the big difference between the two is that Support and resistance often works on historical levels
and Supply and Demand especially on fresh levels.

Where Support and Resistance is particularly strong in multiple touches of the Support and resistance line.
So the more often the price has responded to that line, the stronger the level.
Usually the Support and resistance is also drawn by means of the highest or the lowest point  in the market.

Support and Resistance

 

At Supply and Demand this is very different again.
At Supply and Demand you mainly look for fresh new zones.
And you can often only use it up to three times.

In Supply and demand we have different patterns on which we make our base.
-RBR (Rally Base Rally)
-RBD (Rally Base Drop)
-DBD (Drop Base Drop)
-DBR (Drop Base Rally)

Supply and demand zones are therefore not only based on the highest or lowest point of the market.

Supply and Demand

I hope you now understand the biggest difference between these two terms.
In my new course in the member zone I will of course go into more detail about this,
and after the course you know exactly how you can trade the best Support / Resistance and Supply / Demand levels.

 

Want to know more about trading in forex or do you want to join the forex group?
Please contact me so that I can explain you much more about what we have to offer.

Looking for good Forex education? Look at www.theforexscalpers.com
The best Broker? Look at 
IC MARKETS.

 

Which time frame is best for trading forex?

Which time frame is best for trading forex?

We know many time frames to trade forex.
From the monthly to the 1 minute.
Swing traders often trade a higher time frame and scalpers a lower time frame.
Yet it is very important to start from the higher time frames, even as a scalper.

The higher time frames show a much clearer direction and the support / resistance levels or the supply demand levels are much stronger.
I always draw first from the daily time frame, then the H4 and then the H1.
I often enter on the M30 time frame or the M15 time frame.

best time frame to trade Forex

best time frame to trade Forex

Levels lower than the 1 hourly time frame are tended to give false information.
Lots of waves are known as distractors or “noise”.
This could lead to confusion and bad decisions.

Look at the Support & Resistance like stairs. Moving up the stairs for the bulls and downstairs for the bears.
Market is in an upwards trend when bulls are peaking higher (higher highs) and have higher lows (when their lows are higher as normal).
While the bears make Lower lows and Lower highs.

When searching for extra levels or you can’t find any levels at all, you need to go back in time.
When your opinion of a certain pair is Bullish,
you’ll need to wait till the pair closes the last Resistance level.
You surely place your stop loss order just beneath the latest low or Support level.

When your judgement of the pair is Bearish, obviously you need to wait till the pair closes the latest Resistance level.
Place your stop loss order just above the latest high or just above the Resistance level.

 

Want to know more about trading in forex / trader mindset or do you want to join the forex group?
The forex group is mainly English!
Please contact me so that I can explain you much more about what we have to offer.
And all your questions can be verbs.

Looking for good Forex education? Look at www.theforexscalpers.com
The best Broker? Look at  IC MARKETS.

Forex Trading Fundamentals

Forex trading fundamentals

What are Forex Trading Fundamentals?

 

What exactly are Forex Trading Fundamentals?

Important financial or economic news is thrown at us every day.
Fundamental announcements are a very important factor when trading at the Forex market.
Basically when trading at any market. Fundamentals could cause a movement in the market in a shorter timeframe. Take the Brexit for example.

We focus on one economy versus the other economy.
For example Europe against the USA or Great Britain Against Japan etc.

Let’s take a look at the most important indicators that will have a great impact on the market or certain pairs.
An increased interest rate of a certain country will result in a growth of the value of the currency of that country since investments will rise due to a higher interest rate.

A lower interest rate will result in a weaker currency since there will be fewer investments due to the lower rate of return.
This production data is a strong indicator for the industrialized countries.

It is Bullish if the numbers are higher than expected and Bearish if the numbers are lower than expected.

Employment Data

Higher employment numbers will be Bullish for a currency. And lower employment will naturally Bearish.
Higher inflation and higher consumer confidence is a positive economic signal and therefore has a Bullish impact on the currency.
And weaker inflation and lower consumer confidence is a Bearish signal for a currency.

GDP (Gross domestic product) is more of a lagging indicator, but obviously a higher GDP encourages Bullish price. And the lower the GDP, the more Bearish.
This is also how a good Forex trader starts the day. First, you look at the economic news and how it can have any effect on the pairs you want to trade.

 

forex trading fundamentals

forex trading fundamentals

Tips:

  • Keep an economic calendar on hand that lists the indicators and when they are due to be released. Also, keep an eye on the future; often markets will move in anticipation of a certain indicator or report due to be released at a later time.
  • Be informed about the economic indicators that are capturing most of the market’s attention at any given time. Such indicators are catalysts for the largest price and volume movements. For example, when the U.S. dollar is weak, inflation is often one of the most-watched indicators.
  • Know the market expectations for the data, and then pay attention to whether the expectations are met. That is far more important than the data itself. Occasionally, there is a drastic difference between the expectations and actual results. If so, be aware of the possible justifications for this difference.
  • Don’t react too quickly to the news. Often numbers are released and then revised, and things can change quickly. Pay attention to these revisions, as they may be a useful tool for seeing the trends and reacting more accurately to future reports.
The Hanging Man Forex

The Hanging Man Forex

The Hanging Man Forex – The Forex Scalper:


The Hanging Man Forex is a Bearish candlestick pattern at the end of an uptrend.

Mostly appears whenever there is a significant sell-off close to the markets high. However, buyers are capable to lift the pairs price up again so it closes nearby the opening level. Mostly a sell-off as seen as loss of territory for the Bulls. It shows weakness.

The Hanging Man Forex


As I said before, the Hanging man Forex is Bearish when occurs after an important uptrend. I hear you thinking. This patterns can easily occur after a downtrend as well right? The anser is yes indeed. However, when that happens it’s called a Hammer. Recognized by small red bodies (small margin between open and close prices) and long lower shadows (the lowest is significantly lower as the open high and close).

The Hanging man has no or almost no upper shadow and a lower shadow at least twice as long as the body of the candle. The lower half of the candles shadow will give is the pressure of selling. A terrific Price Action trade setup is when the formation is set at a Resistance level.

Step 1 is marking the Hanging man candlestick formation with your rectangle tool. Be sure that you are at your highest level of accuracy here. Draw from the top shadow to the lower shadow and stretch the rectangle a little to the right (so you give the price a little space to play).

In the example below we see a weekly Hanging man.

the Hanging man candlestick

Once emphasized the Hanging man candlestick you move on to the daily time frame. In this example the Hanging man was spotted at the weekly chart. As shown below at the daily chart, we have zoomed in to have a better view at the price action.

trading in forex

We’ve just waited for the momentum to change, the Resistance stood ground and the trend has reversed.

Want to know more about trading in forex or do you want to join the forex group?

Please contact me so that I can explain you much more about what we have to offer.

Looking for good Forex education? Look at www.theforexscalpers.com
The best Broker? Look at 
IC MARKETS.

https://theforexscalpers.com/2017/11/27/trader-mindset-theforexscalpers-com/
 
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