The psychological and mental aspects of managing proper risk management.
You can apply any strategy, a good system is important in addition to good money management. And understanding how to keep your account healthy. This all starts in the early stage of your entire trading journey substantiating your trading plan, in this you take your risk management with you. What are you willing to lose? And how can you stay in the game as long as possible even after a losing strike?
Imagine that you take a risk per trade of 0.25% and your aim for a 4 R trade. So that means that with a winning trade you have 1% return. The next trade is a winner again which makes 1% return and the next two are 2 losers. Which only means that you always have 1.5% profit and only 0.50% loss of the 2% profit you had. Just a quick bill to show you how powerful proper money management can be.
Example.
I have outlined a clearer picture for you below with as ”example” a large price range with the possibility to aim 4R or higher.
Risk management in trading
The asset is US30 this asset lends itself to such large price ranges. This trade was based on a supply zone a liquidity push in the poc lasting New York session. It’s about you to see and understand what is meant here the power behind the risk management so the risk will be 0.25 for 1% profit.
Of course you will be able to increase it slightly, for example to 0.50% or a 1% and maybe 2% maximum?
Risk management in trading
Do you have your risk management on point? Well done! If not, start doing this today it’s key as you can see.
Conclusion / Risk management in trading.
As you see now it is clear that that whole piece of psyche with the correct application of a risk management is critical. To keep your account healthy because nobody in this industry has or maintains a 100% hit rate. Every trader loses and it is part of our job. Our job is only to be and remain the risk manager and to keep our discipline level maximum to keep our company healthy ”the account”. There is no person on earth who runs a successful business and goes all in and or Putting 30 to 50% of your account on the line. This will mean losing your entire account with two or three losing trades, and therefore your company. I’m writing this piece because we probably have all this at the beginning of our journey been through or experienced this. There comes a point where you realize this has to change to last in the long run. This is just a small part of this retail industry who really understand this.
Do you want to become Success Supply and Demand Trader or want to know more about Risk management in trading?
If you are a beginner trader and want to become a good professional forex trader. The Forex Scalper teaches you the best trading strategy using supply and demand zones and Orderflow which are already traded and tested by thousands of TFS members and performs daily trades.
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Like any financial market, trading Forex also involves the BID and ASK spread. This is the difference in price at which the fore pair can be bought and sold. Let’s take a closer look at these 2 terms.
BID price: This term is used when you are selling a forex pair. It reflects how much of the quoted currency will be obtained if buying one unit of the base currency.
ASK price: This term is used when you buy a forex pair. It reflects the amount of quoted currency that has to be paid in order to buy one unit of the base currency.
Remember that the BID price is always less than the ASK price. And to explain all this in even simpler language is what the buyer is willing to pay for something and what the seller is willing to get to sell it.
The Spread / Bid and ask in forex trading.
In trading Forex you are seen as the price taker. And the broker is then the price maker or in other words the market maker. As we explained above.
For example: Suppose you have seen a very nice house and are seriously interested in buying it. The seller is asking 375,000 euros for the house. This means that the seller is willing to sell for the amount of 375,000 euros. Okay you are interested but actually you are not willing to pay this entire amount and make an offer of 370,000 euros. Together with you, even more people can make an offer that may also be higher. So the seller is free to wait for a better offer. Well the Forex broker is just like the seller of the house, so you can apply these same concepts in forex trading.
And in short, the spread is the difference between the BID and ASK price. I hope it’s a bit clear for you now. And that you understand the terms Bid and Ask well.
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If you are a beginner trader and to become a good professional forex trader. Want to know more about bid and ask in forex trading? 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 Professional Forex Market Trader.
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You probably ended up here because you were looking for a good Supply and Demand trading book. I will tell you all about it in this blog and at the end of this blog I have a little surprise for you. When we search the internet for information about trading Supply and Demand, we are flooded with information. Often you no longer know which information is the correct one. This is mainly because you see that the information you can find can be quite contradictory.
Good books.
There are some really good books on the market when it comes to trading Supply and Demand. I am especially a big fan of the information from Wyckoff and I have also learned a lot from it. So I have also learned a lot from some information on the internet and after years of practice. And trying I have finally developed a correct Supply and Demand strategy which gives me a very good win rate.
In the end, after I became successful in trading, I wrote a well-organized book myself and later an extensive Supply and Demand course.
I first wrote the book and I described a number of topics well and through a clear and useful step-by-step plan. Not only do you learn everything about Supply and Demand and how to trade it, but also various other topics are covered in my book. For example, how you can use Support and Resistance in combination with trading Supply and Demand. And that’s not all, of course, because how do you draw and find the right Supply and Demand zones? What should you pay attention to as the price approaches the Supply or Demand zone? When is a Supply of Demand zone less reliable and is the price likely to break through the zone? What is a “Fake Out” ? And how do you deal with it in trading? Where should your Stop loss be and what should you pay attention to in the event of a possible entry? And of course this is not all, we will also talk about the candles. And what some candles mean or patterns and how you recognize them.
Supply and Demand trading book.
I’m afraid I haven’t told everything in the book yet. In any case, you will learn the basics to an advanced level. There is also an online course available where you can also hand in homework assignments and get tips from me and so keep track of your own progress.
Well I have already told you a lot about what you can find in my Supply and Demand book and course.
I mentioned that I had a little surprise for you at the end. If you click here you can download my free ebook to get a little preview of what you will learn from me. If you decide to join our community or purchase our book. I wish you the best of luck with your trading career and I hope my free E-book is of use to you!
Do you want to become Success Supply and Demand Trader or want to know more about most volatile Forex pairs? If you are a beginner trader and to become a good professional Forex trader. Want to know more about Forex liquidity strategy? 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 Demand join THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you Professional Forex Market Trader. JOIN HERE TFS COMMUNITY====================== Results – Instagram
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In this blog we are going to talk about most volatile Forex pairs. If you are already a Forex trader or have ever traded in the Forex market you are probably already familiar with this concept. It is very important for a trader to know which pairs are the most volatile. As they may not provide a stable return on investment if their value fluctuates too much. Do you understand what I mean? For example, we know that the USD is quite a stable currency. I mean much more stable compared to certain other currencies.
Most volatile forex pairs
The Most Volatile Currency Pairs.
The exotic pairs are of course the most volatile. They are therefore often the currencies of the countries with the least diversified economy. Compared to the more stable, larger currency units which are relatively less volatile. But if we traded the USD with the SEK, for example, we see that this combination can show a lot of volatile. That is why it is very important to know which pairs you trade and to get to know these pairs as well how volatile they are. I’ll give some examples below. Let’s start with the least volatile pairs.
The least volatile pairs.
EUR/CHF
CAD/CHF
CHF/JPY
The pairs with the most movement.
USD/SEK
USD/BRL
USD/TRY
And In terms of cross rates, the most volatile pairs are:
GBP/JPY
GBP/CAD
GBP/AUD
The most liquid currency pairs.
EUR/USD
USD/JPY
GBP/USD
AUD/USD
USD/CAD
Most volatile forex pairs
Above is the chart of GBPJPY. GBP/JPY is an immensely volatile pair, especially when compared to other major world currencies from highly-developed economies. The most important thing to remember is that this volatility is driven largely by general economic and market sentiment, which is why it is crucial to stay informed when trading GBP/JPY.
Most volatile forex pairs.
And here we see the chart of XAU/USD. XAU/USD can also be very volatile. We can see this very clearly, especially at certain times of the day. Many traders have already burned their hands on this. That’s why I always say get to know the pair before trading. But you can also earn a lot of money by trading gold correctly.
Most volatile forex pairs And last, but certainly not least, we see the US30 chart above. The US30, also referred to as the Dow Jones Industrial Average or simply the Dow, is the oldest stock index in the world. US30 has especially good volatile periods that you can make good use of. Do you also see how beautifully US30 moves and what a beautiful Price Action it shows.
What does the volatility depend on?
The main reason for the volatility is liquidity. I mean the higher the liquidity, the lower the volatility, and vice versa. We know that liquidity is the amount of supply and demand in the market. And the larger the supply and demand, the harder it is to move the price. So if we look at this rule described above, we can conclude that most volatile Forex pairs are the exotic Forex pairs. Sidenote: Volatility often occurs during major economic data releases as well.
The conclusion is that the exotic pairs can yield a lot of profit, but this is often very risky and can therefore also give you a lot of loss. The range of exotic pairs movements is much broader than that of the major ones. However, such high volatility results from low liquidity, and trading the low liquidity currency pairs carries particular risks for a trader.
————————————————————————————————————————————————————————————–Do you want to become Success Supply and Demand Trader or want to know more about most volatile Forex pairs? If you are a beginner trader and to become a good professional Forex trader. Want to know more about Forex liquidity strategy? 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 Demand join THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you Professional Forex Market Trader. JOIN HERE TFS COMMUNITY====================== Results – Instagram
Most volatile forex pairs
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I think everyone has heard of Naked forex trading. But what exactly does this mean I hear you ask? Well, Naked forex actually means analyzing a forex pair without any indicators. So trading with a chart that is as clean as possible. Naked forex trading is basically the same as price action trading which is very popular among many traders worldwide. I am also a very big fan of this trading strategy which most of you have seen on my charts. In my Supply and Demand trading course I mainly teach you to trade in this way. Many people who come to me are used to trading with an arsenal of indicators and have become so confused that the trading is not going well at all. When I sometimes see the charts of these people, I can sometimes be shocked by this, I mean it is such a chaos on those charts that it just makes me restless. Whatever I always say, let’s start at the beginning, let’s go back to the basics.
Back to the basics.
One major benefit of trading naked is that it eliminates the need to analyse complicated technical patterns, which may delay trading decisions and lead to information overload. Instead you just have a simple and clean chart without too much distraction and you base your trades on that. But if you don’t use indicators, what do you base your trades on? Well, for example, I mainly trade the Supply and Demand strategy and base my trades on that. But you can also trade with, for example, Support and Resistance. Every candle that forms the market can tell us something and the pattern that the candles make can also tell us a lot. Naked forex traders combine live price action with other metrics, especially volume and order flow data. So trading with price action is at the base and I am mainly talking about trading with Supply and Demand. And in addition, I use, for example, the volume or the order flow tools as extra confirmation and it ensures that I can have an even higher win rate.
“The naked trader need to be on the lookout if higher prices are accompanied by fewer entrants. If this is the case, the naked trader should be quick to conclude that the party might be over. When prices rise and fewer buyers are interested, it’s a sign for early buyers to potentially look to become sellers.
The same holds true on the other side of the trade. A falling currency that suddenly sees heightened volume could be a sign of a rebound.”
What else is important to a Naked forex trader?
Another important point for a naked trader is that he or she must understand the different market phases. Naked forex trading is based on the current market and not the past. (Of course you do pay a bit of attention to the movements in the past.) So it is also very important that we know which direction the market is heading. That can of course also help us with what kind of entry we are actually looking for.
Ranging lows
Trending upwards
Ranging highs
Trending downwards
These phases often repeat themselves, so a good rule is to always trade with the trend. And especially if you are a novice trader, this way you ensure that you take the least risk.
It is also very important with naked trading that you have knowledge of the candlestick patterns. You definitely need this knowledge if you want to trade naked. So I will definitely recommend that you check that out before you start. These patterns and candles are also all explained in my Supply and Demand course.
My opinion.
I think after all the above you know what my opinion is about trading naked? I am a big proponent of it. Many opinions will of course be divided and it is of course just what suits you as a trader. But I personally will never want to do anything other than trading Price Action in combination with the volume Order Flow tools. One key benefit of this type of strategy is that it can help avoid the pesky analysis paralysis, which delays trading decisions because of information overload, resulting in delayed trading decisions, or the inability to decide altogether. But I do believe that using the volume or order flow tools is a very important extra link to successfully trade with price action. To sum things up, traders should know that naked trading is simply the act of trading without any indicators. Decisions are made by analyzing candlesticks or charts and this method is strongly based on technical analysis. While some traders prefer this simpler strategy, others may feel more confident trading with the help of indicators. All traders should understand how naked trading works before deciding whether this strategy might work for themselves. What do you think?
Do you want to become Success Supply and Demand Trader or want to know more about Naked forex trading?
If you are a beginner trader and to become a good professional forex trader. Want to know more about Naked forex trading? 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 Professional Forex 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.
One of the most biggest indices in the world is made up of the 30 largest owned companies listed on the New York Stock Exchange.
Companies, as Goldman Sachs, Disney, Microsoft, Walmart and many other well-known companies. Representing the 30 largest companies. It was founded by Wall Street Journal editor Charles Dow and was first calculated on May 26, 1896, making it one of the oldest stock indexes in the world.
More about Trading US30
US30 is very popular and especially with many traders all over the world. So Supply & Demand is then a concept that many trades apply, the price moves fast and forwards a characteristic of US30. And especially within the supply & demand levels.
So because there is so much volume in it and it moves so well and hard it is comparable to XAUUSD. Only gold has something like hard liquidity pushes the spikes. Ans us30 is often clearer against it, also read my blog How to trade XAUUSD?
The sessions where us30 moves best is of course around the New York open, this goes without saying as it relates to the New York stock exchange.
So of course it requires patience and a good understanding of the supply & demand.
And it is advisable to focus on one or two assets and master them completely.
So if you are a beginner trader and to become a good professional forex trader. Want to know more about how to use market profile in forex? 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 Demand. So join 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.
