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Fake Out Forex – How To Learn To Trade The Forex Markets

Fake Out Forex – How To Learn To Trade The Forex Markets

How to spot Fake outs Forex

A Fakeout (Fake Breakout) is a form of manipulation to trap breakout traders.
If a breakout trader sees that there is a big breakout which breaks through a strong resistance or support, he thinks it will continue to break into the end of the world.
However, the price makes the reverse and then it comes back to the stop loss of the breakout trader.

Fake Out Forex

Fake Out Forex

Back in the days when I just started trading, I always reacted immediately to a breakout.
Then I lost continuously because the breakout turned out to be a fake out. But how do you react to a breakout? The key is to have patience and to wait for the signals. Often there will be a retest before a real break takes place. Do you already see that the price reacts to the Supply or Demand bias as the example below you can almost be sure that it is a fake out.

Forex Trading

How do you recognize Fake Out Forex

The Fake out must have some resistance / support wicks.
It will always FakeOut to the base supply and demand above the resistance wicks or under the support wicks.

forex trading training

Wait for the Signals to recognize a possible Fake Out

There are many more signals to which you can recognize a possible fake out. I can not go into this blog too deeply in this subject, but it is important that you learn to read the market.
You have to be able to feel the market and recognize changes in behavior, for example.
That is why it is always smart to start with 2 or 3 pairs that you can optimally analyze.
Get to know the pair and get to know their movements.

Fake Out Forex

Even I stupidly enough step into a fake out still sometimes .. But do you know why? Patience!!!!! trading requires a lot of patience.
Only then can you get the most mistakes out of your trading style and you will get more take profits than stop-losses!

Well come on and start learning to read the market just like a very good book.
Get to now it inside and out.

the forex scalper

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.

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How to use Trendlines in Forex Market

How to use Trendlines in Forex Market


Trendlines
trending market is one in which price is moving in one direction.
Ofcourse, price may go against the trend every now and then. But when you looking at the longer time frames it would show that those were just retracements.

You can often recognize trends at higher highs and higher lows at an uptrend and Lower Highs and Lower Lows in a downtrend.

Below I have a example of an uptrend.
This is the pair of EUR / USD and the time frame is the daily.

Trendlines

Trendlines

I always start by looking at the line chart.
This is because I can easily recognize such patterns in this way and also because I like it a bit better to draw my lines.

You can see the Highs and the higherlows on the image above.


Trendlines


Mostly, in an uptrend you will see a obvious pattern of HH and HL from the market’s swing points. And in a downtrend you will see a obvious pattern of LH and LL from the market’s swing points.
We can see an uptrend was in place in the chart above. As you can see from the clear pattern of higher highs and higher lows.

If a market is trending lower, I want to pay close attention to the recent swing highs. And in an uptrend we will focus on the recent swing lows. We do this because it not only shows us the overall trend. But it also shows us via the price action if the trend is still intact or not.


Trendlines

For instance, if you have a series of Higher Highs and Higher Lows as in an uptrend. When you see price break down past the previous swing low, it’s a strong indication that the uptrend might be ending. Conversely, in a downtrend we see Lower Highs and Lower Lows, and when price breaks above the previous lower high. It’s a strong indication that the downtrend might be ending.

Trendlines


Trendlines


Finding the market trend is tricky, especially for beginning traders, and most traders will find this to be a sticking point in their trading development. It’s OK to understand various entry triggers and setups, but if you’re trading against the dominant market bias, your probabilities of making money decrease dramatically. There is always a bias, and as beginner traders especially, you would be well served to stick with it.

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.

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Support and Resistance – The Forex Scalper

Support and Resistance – The Forex Scalper

Support and resistance levels are points in the market where the price has a high probability of reversing. Knowing where these levels form and the reason why they form. Can help you in predicting when the price is likely to reverse and start moving in the opposite direction.

Support and Resistance Levels

I always start drawing my support and resistance levels on the linechart.
Because I think that I have more overview where the levels are exactly.
Below you can see an example of a line chart and how I determine my support and resistance levels on this line chart.

Support and Resistance

Linechart Support And Resistance Levels

The Support and resistance levels get their name from what they’re expected to cause the market to do upon being reached. Support levels are supposed to support the market and stop it from moving lower. Whilst resistance levels are supposed to stop the market from moving higher. Thus causing it to resist higher prices. Because support and resistance levels cause the market to do different things. It means they always form either above or below the current market price.

  • Support levels always form BELOW the current market price. And are points where the market has a higher probability of reversing back to the upside.
  • Resistance Levels always form ABOVE the current market price and have a good chance of causing a reversal to the downside.

Now look at the example below.
Now that I have changed the Linechart in the candlestickchart you see it all a bit better.

Support and Resistance levels

We know for sure that these levels are actually support and resistance levels. Because they all caused multiple reversals to take place. And we know that they are specifically resistance levels due to the way they are all found above the current market price.

Support and Resistance Forex

Support and Resistance Levels

In combination with reading the candlesticks, understanding what a fake out is and how you can recognize it. If you understand what a retest is, and ofcourse good risk managment you can be successful with this strategy.
I have outlined the above chart for you.
Especially in the way I view the market and act on it.
Take advantage of it and keep practicing to read the market perfectly.
Just like you will do with a good book.

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

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Forex Quotes – Forex Trading Education

Forex Quotes – Forex Trading Education

In the beginning of my trading career, I went through many ups and downs. What really helped me with especially not giving up were the many motivating forex quotes.
It can give you just that little extra power or insight.
Here is a summary of my favorite forex quotes.
Enjoy it!

Forex Quotes

“You become fearful the moment you identify with fear. But once you begin seeing it as an impersonal changing phenomenon, you become free.” 
― Yvan Byeajee.

“Reaching any goal in trading requires specific domain knowledge and technical skills. But then, after that, it’s all mindset management. Yet most people ignore that —they automatically think they have that last part all figured out, and it’s a mistake.” 
― Yvan Byeajee

Forex quotes

“Trading the markets is a totally self-centered activity. Nobody’s life gets better because you trade. Except your broker’s life.” 
― Robert Rolih

“When you learn to let go of the need to be right, being wrong gradually lose its power to disturb you.” 
― Yvan Byeajee


Forex quotes

“Money is made by sitting, not trading.”

– Jesse Livermore


“That cotton trade was almost the deal breaker for me. It was at that point that I said, ‘Mr. Stupid, why risk everything on one trade? Why not make your life a pursuit of happiness rather than pain?’” 

– Paul Tudor Jones

Forex quotes


“When I get hurt in the market, I get the hell out. It doesn’t matter at all where the market is trading. I just get out, because I believe that once you’re hurt in the market, your decisions are going to be far less objective than they are when you’re doing well… If you stick around when the market is severely against you, sooner or later they are going to carry you out.” 

– Randy McKay


“The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading… I know this will sound like a cliché, but the single most important reason that people lose money in the financial markets is that they don’t cut their losses short.” 

– Victor Sperandeo


 The goal of a successful trader is to make the best trades. Money is secondary.” 

– Alexander Elder


 
Forex quotes


“I’m always thinking about losing money as opposed to making money. Don’t focus on making money, focus on protecting what you have” – Paul Tudor Jones.


“If you personalize losses, you can’t trade.” – Bruce Kovner


“It’s critical for the crocodile to understand its prey and to know where to look for it and remain calm and patient until it arrives. As traders, we have to know what our trading edge looks like and where to look for it and then control ourselves enough to not over-trade before it arrives. “- Nial Fuller


“I learned early that there is nothing new in Wall Street. There can’t be because speculation is as old as the hills. Whatever happens in the stock market today has happened before and will happen again. I’ve never forgotten that.” – Jesse Livermore

Forex quotes

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.

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How To Learn To Trade The Forex Markets

How to become a professional trader? The difference between a professional Forex trader and an amateur is like a boxing match between an Olympic champion and your neighbor. A professional trader is able to predict the future better due to good strategies that he or she has developed. The professional trader knows everything about risk management and how to keep himself under control and never get emotions the better of him.

You’ve got to be strong psychologically to make more and more winning trades. You’re not always going to make winning trades, sometimes you will make a bad one. The art of the game is to minimize your loses and maximize your winnings. Sounds simple right? Keep on reading and you will learn how to do this.

“A trader who has never lost, is not a trader yet.” Aristotle.

It’s very important to read and be able to analyze the graphs really well. In the end it is all about recognizing patterns that have occurred in the past and may well be happening in the future again. Remember the Forex market is always on the move.

How to become a professional trader?

Technical Analysis for Forex Trading


It’s like dating. You’ve got to get to know the other person really well to press the right buttons for him or her. In trading technical analysis of a certain pair is really important. Get to know the pair your trading to predict any movement in the future.
Ask yourself questions as: What is the price at the moment? What was the price? What happened when the price was at this certain level? The answers on these questions will give you a possible outcome in the future. And so a possible right moment to make your trade.

You don’t think this is the only strategy right? Since there are a lot more strategies at use at the Forex market. For example: Drawing trend lines, support and resistance lines, the candlesticks and the different indicators. Every trader uses its own way to analyze the market.

Fundamental Analysis for Trading in the Forex Market


Fundamental analysis is also called the old fashion way since it’s used by traders who mainly focus on the economic news.

The idea of trading of the economic news is that the currency will follow the economic news. It is certainly important since it can change the prices but more than often the Forex market reacts in a different way as expected. Take

the Brexit as an example. This had a bad influence on the value of the GBP. But that doesn’t have to be the case all the time. You will see that traders who trust on fundamental analysis get confused when it goes the other way.


Swing Trading/Trend Trading

Swing trading is, the word gives it away a bit, trading on a swing. Simply, traders are looking for a pair with a predictable big swing ahead.

Swing traders are the hit and run kind of people. They make a trade, get a few percentages profit and close their trade. Most often swing traders are cautious traders. Like a leopard, they wait for the right moment to attack and give it their all when that slightly weak dear is running by.

The swing traders work with the Stop-loss that protects you from big loses. More about Stop-loss later on.

How to become a Professional Trader?
Strategy for a trend trader is pretty plain and simple: Make sure you’re there when it happens and stay as long as you can until the trend reveres. Thought of a trend trader is that the price will keep moving in a certain direction otherwise it wouldn’t be a trend right? If the price, unexpectedly moves the other way it’s not a trend and the trend trader gets out of the hot kitchen before he burns his fingers.

These particular trading styles can be very successful if you have the right patience and know where to go for the kill. Mostly you will go for the kill at a retracement point. I will explain this later on.

-Up Trend: If the trend goes up the Euro is worth more.
-Down Trend: If the trend goes down the Euro will lose in value.
-Sideways Trend: Prices move in a narrow range.

Day Trading and Scalping

A common style of trading is Day trading. Day Traders are traders who strive to make money on a daily base on the Forex market and make as little as 5 to 10 trades a day.

Day traders who refuse to hold on to their position for one night work with a real tight Stop-loss and hold on to their good positions. For example the EUR/USD pair is the ADHD kid of the class who can’t sit still and is the pair that moves the most. An average of 80 PIPs (More about PIPs in a few moments) a day. So these movements need to be top focus for a day trader.

Scalping is a sort of day trading. Scalpers trade in a relatively short timeframe as five minutes. Every trade they make will be between 5-10 PIPs. Imagine going for a 10km walk. And every 10 meter you find yourself a dollar on the ground. You will finish your walk with a $1,000,- in hand. You see, a lot of small trades will end up being a big one. Scalping is for the thrill seekers under us. It requires constant focus.

How to become a professional trader?
Pick the strategy that fits you as a person. If you like to analyze and wait for the right moment don’t go scalping. Other way around. If you are that thrill seeker, don’t go bore yourself with analysis. Start Scalping!


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How do you become a Successful Trader?

Learn Forex Trading Online – How to Become A Successful Trader

Everyone wants to know how to become a successful trader.

Is there a strategy that makes you very successful? Sure, a good working strategy is very important to be a successful forex trader.
But only with a good strategy, you will unfortunately not be successful. There are a few important points to become a successful trader.
I will now briefly discuss these points with you.

Good Strategy Of Successful Trader

As I mentioned earlier, a good strategy is very important.
Keep testing these especially until you make much more profit than you  lose.
Get to know the forex pair well, observe this for a while very well so that you know exactly how it moves.
Keep practicing your strategy on a demo account or a simulator until it is good enough to go live!

Good Risk Management Techniques

When you don’t have your risk under control at every trade, you simply open the door for the friendly but emotional neighbors to come in and dominate in your house.
We promise it’s hard when you start trading at the Forex market.
Because it is an emotional market. It’s hard to stop trading emotionally once you’ve started or even admit you’re trading emotionally.
The game is about how much you lose or better said how you minimize your losses.
Not about your winnings. We all have that gambling friend that always talks about his big winnings.
He never tells you about the day he lost $1000 on one hand of Black Jack does he?
A good example that shows you how important it is to minimize your losses.
You don’t want to lose that $1000 you’ve won with 100 hands, on one hand, do you?
So set your losing limit before you trade.
This has to be an amount that your completely OK with losing.
If you lose it’s just another day at the office.

Become A Successful Trader you have the right Mindset

The truth is a majority of all traders keep losing. There is a simple explanation: They enter the Forex market with wrong expectations.
They think it’s a getting rich quick system.
Traders like that have the thought by investing a thousand ($1,000,-) they will make $1.000.000 in a week.
That’s just unrealistic. The Forex market is not a casino.

This unrealistic expectation can and will work against you and will brush your whole account away in a heartbeat.
Again, don’t let emotions get the better of you. Ask yourself the question: “what am I willing to lose?”
Always have the rule that you can explain why you make a certain decision.
Your thoughts have to be robotic and emotionless.

These are the 3 most important points, of course, there are many more to be successful and profitable.
If you have questions you can always contact me.
And if you joined the forex boot camp you will, of course, learn all ins and outs!

Learn More About Forex Trading

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.

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