Hello, you must be an order flow trader or you came to this blog because you are curious about trading with the order flow tools. I myself have been working on this for some time now as most of you know. I have also written a very strong course on this subject in which you learn everything from A to Z about trading with the Orderflow software. Also feel free to take a look at “The Whale Order”. Also I explain exactly which platforms there are and which I recommend to use. There is also very good software available to use on MT4 and MT5. Well, let’s go further with which order flow tools are a real must to have. And what you should especially look at when looking for the right software or platform.
DOM / Order flow analysis software
DOM, which stands for “Depth of Market,” provides information about the current buy and sell orders for a specific stock or futures contract. It shows the volume of orders at different price levels. A higher volume indicates better liquidity and a more active market. When the market has greater depth, it tends to be more reliable for making predictions. In highly liquid markets, a single trade has minimal impact on the overall order flow, unless there is an exceptionally large volume involved. On the other hand, when trading assets with low liquidity, even a small increase in orders can lead to greater volatility.
It is equally important to know the difference between the 2 types of orders on the market, namely the limit orders and the market orders.
Difference between the 2 types of orders on the market.
Market Order: A market order is an instruction given by a trader to buy or sell a financial instrument. At the current best available price in the market. When you place a market order, it will be executed quickly. But the exact price at which it gets filled may vary. Market orders prioritize speed of execution over price certainty.
Limit Order: A limit order is an order type where the trader specifies a particular price at which they are willing to buy or sell an asset. If the market price reaches or surpasses the specified limit price, the order will be executed. For a buy limit order, the limit price is the maximum amount the trader is willing to pay. Conversely, for a sell limit order, the limit price is the minimum amount the trader wants to receive. Limit orders provide more control over the execution price. But may not be immediately filled if the market price doesn’t reach the specified limit.
The Link between Order Types and the DOM: The DOM (Depth of Market) is influenced by the types of orders placed by traders. If the DOM is dominated by limit orders set far away from the current market price. Those orders may not get triggered and can provide a misleading picture of the order flow. It’s important to note that limit orders closer to the market price are generally more reliable indicators of order flow. Especially for highly liquid assets.
I therefore definitely recommend using the DOM as a tool in addition to your trading. So that you have a better picture of the major players on the market.
The Footprint
The footprint chart is a popular and useful tool for analyzing order flow. It provides valuable insights by showing only the executed orders, giving a clear picture of market activity.
When you look at a footprint chart, you will see bars that are made up of multiple candlesticks. Each candlestick within a bar is divided into rows, and each row has two columns.
The first column represents buying activity, showing how many contracts or shares were bought at a specific price level. The second column represents selling activity, indicating the number of contracts or shares sold at that price level. By examining these columns, you can determine the intensity of buying and selling at different prices.
The footprint chart helps you understand the dynamics between buyers and sellers, allowing you to see where significant activity and trading volume are occurring.
By using the footprint chart as part of your order flow analysis, you can gain a better understanding of market sentiment and the balance between buying and selling pressure. It can enhance your trading strategy and provide insights that may not be as clear when using traditional candlestick charts alone.
Delta / Order flow analysis software
Delta is a crucial concept in order flow trading that provides valuable insights into the imbalance between buying and selling pressure in the market. It is a measure of the net difference between the volume of executed buy orders and sell orders at a given price level.
Overall, incorporating delta analysis into order flow trading allows traders to gain a deeper understanding of market dynamics, identify potential reversals or breakouts, uncover hidden patterns, and improve risk management. It complements other order flow tools and strategies, empowering traders to make more informed decisions based on the imbalance between buying and selling pressure in the market.
Okay of course there are many more order flow tools that you can use in your trading. I also discuss all of these in my latest book + course The Whale Order. I also discuss the very best software and platforms there!
So are you seriously interested in learning order flow trading? I will definitely recommend you take a look there.
The Forex scalpers
Are you looking to take your trading skills to the next level? Or want to know more about Order flow analysis software? Look no further! Our comprehensive trading courses and dynamic community provide the resources and support you need to succeed in the financial markets. Our experienced instructors will guide you through the fundamentals of trading and help you develop a personalized strategy that suits your goals and risk tolerance.
By joining our community, you’ll have access to a network of like-minded traders who are dedicated to helping you achieve your goals. Our members-only slack provide the perfect platform to exchange ideas, discuss market trends, and collaborate on trades.
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.
Okay, listen up! Imagine you’re diving into trading without a clear plan. It’s like riding a bike without training wheels—risky business! Surprisingly, many traders don’t realize how important it is to have a well-defined strategy. Some have a written plan, but even experienced traders who make money consistently will tell you that having a plan doesn’t guarantee success.
Here’s the deal: A trading plan is like a roadblock. It keeps you on the right path and prevents you from losing all your hard-earned cash. See, a lot of people think they’re amazing traders when they’re not. This false sense of superiority can be dangerous, especially in funded trader programs. If your plan is unprepared or based on flawed techniques, you won’t achieve success. But here’s the silver lining: you’ll have a detailed report of your failures. Use it to learn from your mistakes and make improvements.
Now, here’s a tip: Write down your trading journey! Documenting your progress helps you avoid repeating costly errors and enhances your strategic thinking. So, if you want to succeed in trading, a winning plan is your secret weapon. Every trader should have their own plan that matches their personal goals and style. Don’t bother using someone else’s plan because it won’t reflect your unique trading characteristics.
Remember, a solid trading plan is your ticket to success. So, get planning and conquer the trading world with confidence!
How to build a solid trading plan?
If you want to build a solid trading plan and avoid disasters, there are a few ideas you should consider. Treat your trading like a real business and give it the respect it deserves if you want to succeed.
Now, let’s talk about the conventional wisdom that suggests reading trading books, buying a charting program, opening a brokerage account, and starting to trade. Sounds good, right? Well, hold on a sec! I’m here to tell you that this might not be the exact plan that guarantees success.
So, here are some tips for you:
Think outside the box: Be creative and open-minded in your approach to trading.
Consider market fluctuations: Keep an eye on the market and be prepared for changes in direction or temporary pauses.
Study the market: Take the time to understand the market and its patterns to make informed decisions.
Act based on these principles: Put your knowledge into action and make trades accordingly.
Remember, a winning trading plan requires some out-of-the-box thinking, consideration of market fluctuations, studying the market, and taking action based on your insights. By incorporating these ideas, you’ll be on your way to a safer and more successful trading journey.
The best trading plan.
Trading plan template
Are you ready to build the perfect trading plan? Great! Let’s break it down into easy-to-understand steps:
Before you start:
Before you start trading, gather information about the market.
Stay updated on global markets to gauge their trends.
Pay attention to index futures like Nasdaq and SP 500 before the market opens.
Note important earning or economic data releases and decide if you want to trade before or after those reports.
Capability Analysist:
Assess your own trading skills and experience.
Be confident in your understanding of the market.
Make decisions without hesitation, but remember that even professionals find it challenging to predict the market accurately.
Risk Level:
Determine a risk level you’re comfortable with based on your risk tolerance and trading style.
Have the discipline to step back from the market if things aren’t going well.
Don’t be stubborn and accept when it’s time to take a break.
Mental Conditioning:
Take care of your mental well-being by getting enough sleep.
If you’re mentally exhausted or distracted, it’s better to skip trading for the day.
Establish positive rituals to put yourself in the right headspace for trading.
Create a distraction-free environment for focused trading.
Preparations:
Clearly label important levels like supply and demand.
Define exit signals and set alerts for entry opportunities.
6-10
Set Goals:
Set realistic risk/reward ratios and profit targets.
Make your goals clear and measurable.
Regularly reassess and adjust your goals to stay prepared.
Keeping Records:
Maintain well-organized records of all your trades, including both wins and losses.
Record important details such as targets, entry and exit points, time, supply and demand levels, daily opening range, and market open/close.
Review your trading records to analyze your system’s performance, average time per trade, drawdowns, and other factors.
Exit Rules:
Pay attention to when you should exit the market.
Don’t let emotions cloud your judgment.
Remember that losses are part of the game, and professionals focus on managing their losses effectively.
Entry Rules:
Don’t overlook the importance of entry rules.
Define conditions for entering the market based on your trading style.
Emulate the rational approach of computers and base your decisions on market conditions.
Keep a trading journal to record your conclusions and refer back to them.
By following these steps, you’ll be well on your way to building a strong trading plan and increasing your chances of success.
Free trading plan.
Okay now back to what you came for.
I have already given you a lot of tips to write a super tight and working trading plan yourself. But I also understand that this is not always easy from your own hand, so that is why I have a trading plan especially for you that you can adjust to your own wishes.
Are you looking to take your trading skills to the next level? Or want to know more about Trading plan template? Look no further! Our comprehensive trading courses and dynamic community provide the resources and support you need to succeed in the financial markets. Our experienced instructors will guide you through the fundamentals of trading and help you develop a personalized strategy that suits your goals and risk tolerance.
By joining our community, you’ll have access to a network of like-minded traders who are dedicated to helping you achieve your goals. Our members-only slack provide the perfect platform to exchange ideas, discuss market trends, and collaborate on trades.
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.
When it comes to understanding financial markets, there are various ways to analyze them. Some popular methods include momentum analysis, which looks at mathematical indicators applied to prices to understand current market forces, and fundamental bias analysis, which relies on economic data releases. There are also other methods like standard deviation-based analysis and key levels analysis, which involve looking at levels such as daily pivots, Fibonacci levels, and daily highs and lows.
However, none of these commonly used analysis types fully answer the question of why prices behave the way they do at specific levels.
When prices approach a key level, different scenarios can unfold. Price may reverse, briefly retrace and then break the level, break the level decisively, or even give a false breakout known as a fake-out.
Order Flow Analysis offers a unique perspective by providing a reliable definition of key levels and also sheds light on the strength of resistance at those levels.
But before we proceed, let’s understand the concept behind price changes. Prices move because there is an imbalance between the number of buyers demanding the asset and the number of sellers supplying it. This fundamental principle applies to all markets, whether it’s stocks, futures, options, commodities, bonds, or forex currencies.
Why institutional orderflow?
Order flow refers to the number of orders that are waiting to be executed at a particular price level.
Imagine a situation where the price of an asset is rising strongly. However, we know that this upward movement will eventually come to a stop. The reason behind the rally is that there are more traders who want to buy the asset than there are traders who want to sell it. This creates an imbalance in the market, with more buyers than sellers. As a result, the price moves upwards. Eventually, the buying momentum slows down, and the price reaches a level where there are more sellers than buyers. This new imbalance, with more sellers than buyers, causes the price to start moving downwards.
This simple scenario occurs in both macro and micro levels in the market. It’s the basic principle that drives price to either move within a range or reverse its direction.
When you analyze a chart showing the price movement, you can interpret the forces that are acting upon different price levels.
It may seem straightforward when looking at charts after the events have unfolded. However, imagine if you could forecast upcoming price levels with a reasonable degree of accuracy. What if you could know in advance where the opposing order flow would be waiting at a specific time and price?
Having this certainty would enable you to determine the ideal entry and exit points for your trades with precision.
Order flow analysis is a unique concept in trading that can help you predict, with a good level of confidence, where order imbalances will occur at future price levels. This knowledge allows you to enter the market with greater precision and confidence.
Video
The Forex scalpers / institutional orderflow
Are you looking to take your trading skills to the next level? Or want to know more about institutional orderflow? Look no further! Our comprehensive trading courses and dynamic community provide the resources and support you need to succeed in the financial markets. Our experienced instructors will guide you through the fundamentals of trading and help you develop a personalized strategy that suits your goals and risk tolerance.
By joining our community, you’ll have access to a network of like-minded traders who are dedicated to helping you achieve your goals. Our members-only slack provide the perfect platform to exchange ideas, discuss market trends, and collaborate on trades.
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.
If you’re a forex trader, you’re probably already aware that taxes can be a bit of a headache. After all, you’re dealing with a global market that never sleeps, and trying to keep track of all your trades and profits can be overwhelming. But fear not! With a little bit of humor and a lot of patience, you can navigate the world of forex taxes like a pro.
First of all, let’s talk about thebasics. Forex trading is considered to be a form of investment, which means that any profits you make are subject to capital gains tax. The good news is that the tax rates for capital gains are generally lower than those for regular income, so you’ll pay less in taxes on your forex profits than you would on your salary.
But how do you actually calculate your forex profits for tax purposes? This is where things can get a little tricky. For starters, you’ll need to keep track of all your trades and figure out your gains and losses. This means keeping detailed records of every trade you make, including the currency pair, the date of the trade, the price you bought in at, the price you sold at, and any fees or commissions you paid.
Calculate Forex profits
If you’re starting to feel overwhelmed already, don’t worry – you’re not alone. Many forex traders find the record-keeping aspect of taxes to be the most tedious part of the process. But hey, at least you can take comfort in the fact that you’re not the only one dealing with this. After all, there’s a reason why tax software exists!
Once you’ve got all your trade data organized, you’ll need to figure out your gains and losses. This can be a bit of a puzzle, especially if you’ve made a lot of trades over the course of a year. But hey, at least you’re getting some mental exercise, right? Think of it like a puzzle game – except instead of matching colored blocks, you’re matching currency pairs and prices.
One thing to keep in mind when calculating your forex profits is that you can’t just convert everything to your local currency and call it a day. You’ll need to use the exchange rate at the time of each trade to determine your gains and losses. This can be a bit of a pain, but it’s important to be as accurate as possible – after all, you don’t want to get on the wrong side of the tax man.
Finally
Finally, once you’ve figured out your gains and losses, you’ll need to report them on your tax return. This is where things can get a bit nerve-wracking, especially if you’re not used to dealing with taxes. But fear not – there are plenty of resources out there to help you navigate the process. And who knows – maybe you’ll even find a way to inject a little humor into your tax return. After all, who says taxes have to be boring?
In conclusion, forex taxes can be a bit of a headache, but with a little bit of patience and a lot of humor, you can get through it. Remember to keep detailed records, use the right exchange rates, and report your gains and losses accurately. And if all else fails, just think of it as a puzzle game – a really, really tedious puzzle game. Good luck, and happy trading!
The Forex scalpers / Forex Taxes.
Are you looking to take your trading skills to the next level? Or want to know more about what type of trader am i? Look no further! Our comprehensive trading courses and dynamic community provide the resources and support you need to succeed in the financial markets. Our experienced instructors will guide you through the fundamentals of trading and help you develop a personalized strategy that suits your goals and risk tolerance.
By joining our community, you’ll have access to a network of like-minded traders who are dedicated to helping you achieve your goals. Our members-only slack provide the perfect platform to exchange ideas, discuss market trends, and collaborate on trades.
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.
Today we’re going to talk about one of the most dreaded words in the world of trading: drawdown. But fear not, my friends, for I am here to sprinkle some humor and lighten the mood around this topic.
First of all, what is drawdown? In simple terms, it refers to the amount of money you lose from your trading account’s peak value. Think of it like a rollercoaster – your account balance goes up and down like a thrill ride, but draw down is the lowest point you reach before you start climbing back up again.
Now, if you’re a seasoned trader, you’re probably well-acquainted with drawdown and have learned to cope with it. But for those new to the game, drawdown can feel like a punch to the gut (or worse, the wallet). It’s like ordering a pizza with all your favorite toppings, only to find out they’ve forgotten the cheese. And It’s like planning a day at the beach and getting rained out. It’s like getting a flat tire on your way to a job interview. You get the idea – it’s not fun.
Drawdown is not the end of the world. It’s just a natural part of the trading journey. Think of it as a humbling experience that keeps you grounded and reminds you that even the best traders experience losses from time to time.
In fact, some traders even embrace drawdown as a learning opportunity. It’s like failing a test in school – it stings at first, but it forces you to analyze your mistakes and make improvements for the future. Plus, it gives you a great story to tell at trading conferences (you know, when those become a thing again).
So how do you deal with drawdown in a lighthearted way? Well, you could always make a game out of it. For example, every time your account hits a new drawdown low, take a shot of espresso. Or do a silly dance. Or recite a line from your favorite movie. Whatever helps you cope with the emotional rollercoaster that is forex trading.
Why every trader needs a plan to manage risk:
Drawdown forex.
If you’re a trader, you need a plan to manage risk. And if you’re not a planner, well, good luck with that. It’s like going on a road trip without a map. Sure, you might end up in some cool places, but you might also get lost, run out of gas, or end up in a ditch.
Trading without a risk management plan is like playing a game of “red light, green light” with your trading account. You might make a few gains and feel like you’re winning, but then the market turns against you and you’re stuck with a big red light and a lot of losses.
A risk management plan is like a seatbelt for your trading account. You might feel invincible without it, but as soon as you hit a bump in the road, you’ll wish you had it on. And just like a seatbelt, a risk management plan can save you from serious damage.
Managing risk is like walking a tightrope. You need to balance the potential gains with the potential losses, and one wrong step can send you tumbling to the ground. But with a risk management plan, you have a safety net to catch you and keep you from falling too far.
So, if you want to be a successful trader, don’t be like that guy who shows up to a potluck with nothing but a bag of chips.
Plan ahead, manage your risks, and you’ll be sure to have a tasty portfolio that’s sure to impress.
Conclusion
In conclusion, drawdown may be a serious topic in the world of forex, but that doesn’t mean we can’t have a little fun with it. Embrace the ups and downs of trading, keep a positive attitude, and remember that even the most successful traders have experienced drawdown at some point. And if all else fails, just order a pizza with extra cheese – that always makes everything better.
Happy trading!
The Forex scalpers / Drawdown forex.
Are you looking to take your trading skills to the next level? Or want to know more about what type of trader am i? Look no further! Our comprehensive trading courses and dynamic community provide the resources and support you need to succeed in the financial markets. Our experienced instructors will guide you through the fundamentals of trading and help you develop a personalized strategy that suits your goals and risk tolerance.
By joining our community, you’ll have access to a network of like-minded traders who are dedicated to helping you achieve your goals. Our members-only slack provide the perfect platform to exchange ideas, discuss market trends, and collaborate on trades.
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.
What motivates you to trade? a) Making money b) Beating the market c) The thrill of the game
What is your preferred trading style? a) Long-term investing b) Day trading c) Swing trading
How much time do you dedicate to researching your trades? a) A lot, I want to be well-informed before making a decision b) Some, but I rely on my instincts too c) Not much, I prefer to follow the crowd
How do you handle losses? a) I get upset but I try to learn from my mistakes b) I move on quickly, losses are part of the game c) I panic and second-guess my every move
Do you use technical analysis in your trading? a) Yes, I rely heavily on it b) Somewhat, but I also consider market news and trends c) No, I prefer to trust my gut instincts
How do you feel about taking risks? a) I’m comfortable taking calculated risks b) I love taking risks, it’s part of the excitement c) I try to avoid risks as much as possible
What is your approach to diversification? a) I diversify my portfolio across various asset classes and industries b) I focus on a few key assets that I feel confident in c) I don’t really think about diversification, I just follow the latest trends
How do you react to market volatility? a) I stay calm and stick to my strategy b) I try to take advantage of the volatility and make quick trades c) I get nervous and tend to make impulsive decisions
What type of trader am i?
Now, add up your answers for each question and see which letter you chose the most:
Mostly A’s: You are a cautious and strategic trader who takes a long-term approach to investing. You are diligent in your research and prefer to mitigate risk through diversification.
Mostly B’s: You are a risk-taker who enjoys the thrill of the game. You are comfortable with market volatility and quick decision-making, but you also rely on your instincts and experience.
Mostly C’s: You are a follower of the crowd and tend to make impulsive decisions. You don’t put much emphasis on research or analysis, and you may need to reevaluate your approach to trading if you want to be successful in the long run.
Congratulations on completing the quiz, and remember, there’s no one “right” way to trade – it’s all about finding a strategy that works for you and your goals.
Happy trading!
The Forex scalpers / What type of trader am i?
Are you looking to take your trading skills to the next level? Or want to know more about what type of trader am i? Look no further! Our comprehensive trading courses and dynamic community provide the resources and support you need to succeed in the financial markets. Our experienced instructors will guide you through the fundamentals of trading and help you develop a personalized strategy that suits your goals and risk tolerance.
By joining our community, you’ll have access to a network of like-minded traders who are dedicated to helping you achieve your goals. Our members-only slack provide the perfect platform to exchange ideas, discuss market trends, and collaborate on trades.
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.
