If you have been trading forex for a while, you will probably have heard about a possible Stop Hunt.
But what exactly does it mean and what is a Stop Hunt?
I will tell you more about it in this blog.
Many novice forex traders will sometimes lose their entire account because they simply do not know where to place their Stoploss.
Institutional traders are the ones who profit from individual trader losses as there is a predictability in the behaviour of retail traders, and how they trade the Forex market.
Institutional traders like banks, hedge funds, investment firms often abuse the predictability and behavior of the retail traders and push the
price levels through these barriers in an effort to hit the stops and close the trades of retail traders.
Stop hunting sounds very negative to many retail traders because they think their individual stop losses are targeted on purpose.
But in reality Institutional traders are only looking for clear areas of stop-loss orders that are gathered at visible technical levels.
In short. / What is a stop hunt in forex?
Institutional traders will buy at levels where most retail traders have their stop loss.
For an institutional investor who trades much larger volumes, it is more difficult to execute an order with 1 trade.
So occasionally in order to fill a large order, the institutional trader will have to make the liquidity himself.
And how do they do that, you may now ask yourself?
Well since retail traders often hide their stop-losses at predictable technical levels this becomes a super good source of liquidity for the big players to target.
Most common technical levels that retail traders use to hide their protective stop losses are:
Support and resistance
Previous swing high or swing low
Big round numbers
Above/below technical indicators
Above/below chart patterns
What is a stop hunt in forex?
There will be a lot of Stoplosses collected at these obvious levels, and institutional traders will bid the market at those particular technical levels, so they can get the needed liquidity to fill their big orders at the expense of the retail traders.
How do you find the stop loss orders with stop hunting?
We now know that with a stop hunt they prefer to catch as many fish as possible, so these are the people with a sell / buy order above or below the zone.
And the stop losses of the people already in a trade. But how do you recognize this? And how can you benefit from this? Well the most important thing is actually wait until this move has happened. There are a few signals that can show you that this is a possible stop hunt. It is very important here to keep your volume indicator with your trades. In the masterclass course, I will explain how to recognize the stop hunt exactly.
That is why it is very important to know where these levels are, even if you trade primarily with Supply and Demand. It is also important that you never place your stop loss with the rest of the “fish” so that you do not get caught in the “fish pool”. If you mainly trade Supply and Demand, these stop-hunt levels are especially interesting for finding good trades.
If you are a beginner trader and to become a good professional forex trader. Want to know more about How forex leverage works? The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which are already traded and tested by thousands of TFS members and performs daily trades.
To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demandjoin THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you ProfessionalForex Market Trader.
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I think this is a question that is asked a lot.
Is Forex Trading Profitable?
Around us, we hear many stories from successful people on the forex market, but also from people who have lost a lot on the forex market.
What exactly is this and why is one trader profitable and the other not?
Let me start with the fact that Forex trading is not a get rich quick system.
It takes months and maybe years of hard work, studying a lot, but also getting to know “yourself” very well.
In the beginning of your Forex career you will probably bump your head a lot and probably lose some money as well.
(Or maybe everything if you don’t have a good money / risk management.)
And this is often the point where many traders will fail and give up.
They will say that the Forex market is not profitable.
But what they don’t ask themselves is why it didn’t work?
And when they start to ask themselves that question, I often hear the same answer.
Mostly there are only 2 reasons why they keep losing.
I’m going to tell you this now.
1. Keeping yourself under control. / Is forex trading profitable?
Often the strategy is fine.
But the most common problem why traders keep failing because they can’t control themselves.
And what do I mean by this?
This has everything to do with the psychological aspect.
I think that as a trader or if you are just starting to trade you get to know yourself very well.
Not only in trading but also in your daily life.
You are confronted with yourself which can be very nice if you can also change this so that you become a better and stronger person.
Okay, now back to the core of the story.
What I often see when I look back at the lost trades with a losing trader, there are a number of things that immediately strike me.
Number 1 is perhaps revange trading.
Where the trading day first started well in control, you lose a trade. (Which is not a bad thing because everyone loses a trade once in a while!)
He then lets go of all control and takes all trades after that without a clear trading plan.
Or the lot sizes increased to make up for the lost money.
What eventually happens is the first 100 euro loss in the first place, eventually becomes thousands of euros loss at the end of the day.
Only by revange trading just because he wanted to make up for his loss.
Overtrading, too high lot sizes, letting go of the trading plan, no longer using your strategy properly.
Therefore, always review your trades at the end of the day.
What went well? and what went wrong?
You will eventually learn a lot from this.
2. Risk management. / Is forex trading profitable?
Okay now point two.
Did you know that a lot of traders also fail at not having or having poor risk management?
And how important do you think that is in trading?
Exactly very important!
Because without good risk management you can never become profitable in the forex market.
Imagine we have 2 traders.
Peter and Mike.
Peter has a win rate of 8/10 trades and Mike a win rate of 6/10 trades.
Who will be more profitable in the end?
Okay, we don’t know anything about their risk management yet.
Peter doesn’t really use risk management.
And Mike uses very good and tight risk management.
Who do you think is more profitable now?
Good job Mike of course!
Mike uses a risk of 1% over his entire account balance and aims for 2 to 3 percent which equates to a risk to reward of 1 to 2 to 1 to 3.
So even if Mike loses 2 out of 3 trades still makes overal 1 percent profit.
So the message of the story is where peter sometimes risks 20% to 30% of his account in just 1 trade.
Will Mike eventually last longer because he sees everything in percentage and uses his risk management wisely.
Do you now understand how important good risk management is?
Often even more important than a good strategy!
Only you can limit your own risk.
Conclusion.
Forex trading is definitely profitable if you do it the right way.
So you do not only need a good strategy, there is much more to it.
And no you really wouldn’t be able to earn a lot of money in a day or in a week on the Forex market.
It takes time and experience! But it is certainly not impossible!
I hope that with this blog I have been able to give you some more insight into whether you can be profitable with trading forex.
If you are a beginner trader and to become a good professional forex trader. Want to know more about How forex leverage works? The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which are already traded and tested by thousands of TFS members and performs daily trades.
To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demandjoin THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you ProfessionalForex Market Trader.
TheForexScalper recommends you join ICMARKET which is regulated and the most trusted broker. They provide very tight raw spread account with fast execution and having multiples deposit and withdrawal options.
In this blog I will talk about how you can trade Supply and demand.
Let’s start with structure.
Structure.
If you want to learn how to trade Supply and Demand, it is also important to know the structure of the market well.
We are talking about a number of market phases through which the price passes.
I’ll tell you a little more about this now.
The prize goes through these different phases:
Accumulation
Reaccumulation.
Uptrend.
Distrubition.
Redistrubition.
Downtrend.
How to trade Supply and Demand?
Accumulation: Accumulation is a sideways range in which institutional players buy carefully and skillfully, without moving the price.
Uptrend.
Distribution: After a while, the uptrend ends and then changes to a distribution stage in which the smart money players sell the remainder to the small retail traders.
Downtrend.
Reaccumulation.
Now that we understand the different market phases, I will also explain the rules of Supply and Demand.
Laws of Supply and Demand.
Law of Demand: The higher the price, the less the demand. (Buyers are reluctant to buy at a high price.) And the lower the price, the higher the demand. (Buyers are eager to buy at a low price.)
Law of Supply: The higher the price, the higher the supply. And the lower the price, the lower the supply.
Supply and Demand zones.
When trading Supply and Demand it is of course also very important to draw your zones correctly.
In my course I will tell you all about this. How do you find the perfect Supply and Demand zones.
But what are we actually looking for when we search for Supply and Demand zones?
What we want to find at the price zones where supply overwhelms demand and where demand overwhelms supply.
Supply zones: When the price enters the Supply zone, the price will likely fall. And you can earn with a Sell position. Demand zones: When the price moves into the Demand zone, the price is likely to rise. And can earn with a Buy position.
But of course it is not all as simple as described above.
We will look for a good Sell position when the price enters the Supply zone.
But please note that we also pay attention to all other aspects before we can take an entry.
We also have to keep in mind that a Supply zone can become a Demand zone.
Just look at the image below.
How to trade Supply and Demand?
Above we see an example of how Supply changes into Demand and that can also be done the other way around.
Demand changed to Supply.
I have already briefly explained how you can trade Supply and Demand.
Below I’ll give you some explanation in a video.
If you are a beginner trader and to become a good professional forex trader. Want to know more about How forex leverage works? The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which are already traded and tested by thousands of TFS members and performs daily trades.
To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demandjoin THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you ProfessionalForex Market Trader.
TheForexScalper recommends you join ICMARKET which is regulated and the most trusted broker. They provide very tight raw spread account with fast execution and having multiples deposit and withdrawal options.
You are probably interested in trading forex or you are looking for a good forex trading course but you are not sure what to do.
Because is a forex course worth it?
After all, we now live in a time when you can also find a lot of information for free on the internet.
I mean google and youtube are these times of information seeking our best friends.
So if you can easily find the discipline yourself to learn from all the free and good information you can find online then you should definitely do that.
But I also know from experience that because of all that information you sometimes no longer know where to start and how exactly you can find a good working strategy.
But now let’s talk about the forex courses and training, are they worth spending your money on?
If we take a look around we can find forex courses, training and mentors everywhere.
We all know that the financial markets can be complex.
They offer a wide array of arenas and instruments one can trade.
There are all kinds of methods and techniques for identifying good trades and making money management decisions.
And there are scores of products and services intended to teach you how to play the market and/or help you do so.
While there certainly are some of dubious character operating in this field, as in any business,
the vast majority of the people providing such offerings are honourable folks with the best of intentions.
Most forex courses teach you to trade in the right steps and in the right order.
So if you are looking for a good Forex trading course, take a good look at what they teach you.
It is important that in addition to offering a strategy to be learned, you also learn the tricks of good risk / money management.
And don’t forget that the psychological aspect also plays an important role.
What should you choose? Online forex trading course.
When choosing the right forex course you start by delving into the different strategies and techniques that exist.
If you have made a choice for yourself, you will of course look for the course or mentor that best suits your needs.
Then it is of course also important that you check whether there are reviews and experiences about the course or mentor so that you are not scammed.
We know, of course, that there are many good mentors and courses.
But unfortunately there are also a lot of scammers active in the world of learning to trade forex.
So watch out!
Conclusion
A good forex course or training is certainly worth it from my point of view.
Think of it as an investment in yourself.
It will all pay off later if you have completed the correct forex course.
You will immediately learn to trade in the right way and so you can reach your final goal faster.
But again immerse yourself in the experiences of others so that you do not lose money to a scammer!
When I had made my course I thought it was important to make all the separate elements into a whole.
Because I think I had the most trouble with that when I first started trading.
What worked for me and why am I making success in the forex market?
I have bundled all of this together in a book and a course.
With the intention to teach others to trade in the right way. We already have a lot of successful traders in the community.
That makes me proud!
If you are a beginner trader and to become a good professional forex trader. Want to know more about How forex leverage works? The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which are already traded and tested by thousands of TFS members and performs daily trades.
To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demandjoin THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you ProfessionalForex Market Trader.
TheForexScalper recommends you join ICMARKET which is regulated and the most trusted broker. They provide very tight raw spread account with fast execution and having multiples deposit and withdrawal options.
The Dow Jones index is the most famous stock index in the world.
The official name of the Dow Jones Index is the Dow Jones Industrial Average.
This index shows the price development of the 30 most important stocks on the New York Stock Exchange or Wall Street.
It was founded in 1896 by Charles Dow and Edward Jones.
Where it initially consisted of only 12 companies, it has now been expanded to 30 companies.
Companies included in this index are, for example, Apple, Nike and Microsoft.
Despite the fact that this index is under discussion from time to time, this index is used as a gauge of the economy.
Of course, the Dow Jones Industrial Average is not the only US stock market index.
Two other well-known indices are the S&P 500 and the Nasdaq.
The former stands out because it is a much broader index, while the Nasdaq focuses significantly (but not exclusively) on technology stocks.
However, it is still generally accepted that the Dow Jones Industrial Average is an important indicator of the price evolution on the US stock markets.
The Dow Jones is the oldest stock index in the United States.
The index is also known as the Dow Jones, the Dow 30 or simply the Dow.
The abbreviation DJIA is also used regularly.
Many Americans, and Europeans, take a look at the closing position before going to sleep.
The history of the Dow Jones
The history dates back to the 19th century.
It was published for the very first time in 1896.
And the index was then 40.94. This was a direct average of the prices of the then 12 stocks.
Then in mid-2018 with the departure of General Electric, all 12 companies were taken over, went bankrupt or simply fell into obscurity.
At the moment, therefore, none of the original participants are included in the index anymore.
Times change and so do the compositions of the stock market indices.
The composition
The Index Committee of S&P Dow Jones Indices determines the composition of the index.
The only criterion here is that the index must be as representative as possible a reflection of American business.
The committee members select 30 listed companies for this purpose.
A logical question is whether such an adjustment in the composition of the Dow Jones Industrial Average happens often.
In practice, this turns out to be better than expected.
The current composition of the Dow Jones
The following 30 companies are currently included in the Dow Jones Index.
3M Co. (NYSE: MMM) American Express Co. (NYSE: AXP) Amgen (NASDAQ: AMGN) Apple Inc. (NASDAQ: AAPL) Boeing Co. (NYSE: BA) Caterpillar (NYSE: CAT) Chevron (NYSE: CVX) Cisco Systems (NYSE: CSCO) Coca-Cola Co. (NYSE: KO) Dow Chemical (NYSE: DOW) Goldman Sachs Group Inc. (NYSE: GS) Home Depot Inc. (NYSE: HD) Honeywell International (NYSE: HON) Intel Corp. (NASDAQ: INTC) International Business Machines Corp. (NYSE: IBM) Johnson & Johnson (NYSE: JNJ) JPMorgan Chase (NYSE: JPM) McDonald’s Corp. (NYSE: MCD) Merck & Co. Inc. (NYSE: MRK) Microsoft Corp. (NASDAQ: MSFT) Nike Inc. (NYSE: NKE Procter & Gamble Co. (NYSE: PG) Salesforce.com (NYSE: CRM) The Travelers Companies, Inc. (NYSE: TRV) UnitedHealth Group Inc. (NYSE: UNH Verizon Communications Inc. (NYSE: VZ) Visa Inc. (NYSE: V) Walgreens Boots Alliance (NASDAQ: WBA) Wal-Mart Stores Inc. (NYSE: WMT) Walt Disney Co. (NYSE: DIS)
Investing
It is possible to invest in individual shares of the companies included in the Dow Jones, or in trackers (ETFs) of the Dow Jones.
If you buy shares in a company that is in the Dow Jones Index, you become, as it were, co-owner of the company and you get a say at the General Meeting of Shareholders.
As mentioned, you can also invest in ETFs (trackers) on the Dow Jones.
ETFs track the entire index, not individual companies.
Depending on the performance, ETFs yield a certain return.
Since its inception in 1896, the average return of the dow jones industrial average has been around 10% per year including dividend.
So considerably more than gold, a savings account or real estate.
If you are a beginner trader and to become a good professional forex trader. Want to know more about How forex leverage works? The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which are already traded and tested by thousands of TFS members and performs daily trades.
To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demandjoin THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you ProfessionalForex Market Trader.
TheForexScalper recommends you join ICMARKET which is regulated and the most trusted broker. They provide very tight raw spread account with fast execution and having multiples deposit and withdrawal options.
IC Markets True ECN trading environment allows you to trade online on institutional grade liquidity from the worlds leading investment banks and dark pool liquidity execution venues, allowing you to trade on spreads from 0.0 pips. You can now trade along side the worlds biggest banks and institutions with your order flowing straight into our true ECN environment.Trade in a true ECN environment with no dealing desk or price manipulation. IC Markets is the online forex broker of choice for high volume traders, scalpers and robots.
For USA & Canada clients i recommend FXChoice which is also a very good broker.
