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Treating Forex like a Business?

March 21, 2018 at 12:56 pm

We won’t talk about any strategy or economic subject this time. Instead, we want to focus on something that is more like a psychological skill professional and successful traders manage to develop over time. It is in their mindset to have this approach and we’ll talk about it in a few seconds. What we are going to discuss won’t make you a millionaire in the next few months (sorry, if you were hoping that), but it will definitely help you be more prosperous and be more abundant.

How ordinary traders approach forex trading

If you have been trading for at least a few months, you are now able to spot some patterns in your behavior, which repeat themselves over and over again. The main thing that characterizes beginners is their rush to get rich quickly.

forex trading

Source: pixabay.com

There is no reason to hide the fact that all the traders join this activity because they want to be wealthier than they are now. But in order to overcome a current condition, things are more complicated than most of you think.

The first step towards that should be to have a different approach towards forex trading. You, as most of the traders, lost money sometimes and you’ve seen with your own eyes how tough it is to make money trading.

What you need to do is treat forex trading like any ordinary business. People see it as some kind of Holy Grail of infinite mine of wealth which they could have access to. In fact, trading is just like any other business. It is a competition between individuals and companies. It is a place with few winners and a lot of losers. It might be harsh for some of you to admit this, but folks, this is the truth.

Even though you will face losses, you have to learn how to deal with them and manage to succeed in this tough environment. By choosing the path of forex trading, you will become a more evolved person than you are now. That is the most important, probably more important than money – becoming a better person as you progress throughout life.

Jesse Livermore and Forex Trading

March 14, 2018 at 12:56 pm

For those of you that heard about Jesse Livermore, you will find a little weird the analogy with forex trading. However, his methodology was focused on the technical aspects of price and that is why you may find some useful information which could be applied to trading.

If you really want to learn more about him, we recommend the book “How to trade in stocks”. It is very short to read, but it really contains a lot of interesting and valuable points.

Jesse Livermore

Source:https://kingworldnews.com

Briefings about Jesse Livermore

He is regarded by many as one of the greatest speculators of all times. He made and lost fortunes at the beginning of the twentieth century. During the great crash of 1929, he made around 100 million US dollars, by shorting the US stock market.

What stands out from his approach to trading was the focus on technical aspects of price. He kept journals with price changes, as you will see from the book we’ve mentioned above.

At that particular time, the fundamental analysis was trending, since the technology was not as it is today and it was pretty tough to monitor charts.

If you decide to read his book, you will find a lot of interesting things about crowd psychology and market sentiment. No get-rich-quick scheme can be found there, but instead, a thorough analysis of markets and how they behave from a technical point of view.

What can forex traders learn from Jesse Livermore?

First, its desire to accomplish everything that he wanted. He came from a really small town, started trading with 5 dollars and managed to be successful in a field where most fail.

Second, it is his unique mindset and approach that helped him generate the wealth he had. Although he had a terrible personal life, from a professional point of view we cannot judge him.

Make sure to study his life and work and you will find a lot of inspiring things about trading, especially if you are one of those that need to start with huge disadvantages. Hope you enjoyed the material and stay tuned for the next ones.

Parabolic Structures and Forex Trading

March 7, 2018 at 12:56 pm

Today we’ll talk about a pattern that occurs many times in the forex market, on most of the pairs and on any time frame. We will describe the parabolic price structure and how you could use it for trading. However, we must begin by saying there are many forms of patterns that occur over and over in the markets. You just need concentration and pattern recognition skills in order to be able to spot them. You don’t need to apply the basics of fundamental analysis, although you could have a higher edge by combining both.

Parabolic structure – a common pattern in the forex market

In order to help you understand better what we are talking about, let’s take an actual example. Below you can see the GBPUSD on the 5 minutes chart. We’ve spotted a parabolic structure yesterday, March 30th 2018.

parabolic structure

Source: dailyfx.com

Let’s describe the actual context. If you zoom out to the daily chart, you will see that Cable had been under pressure for a few days in a row. However, as the end of the month was near, some profit taking might have been in play. That is why we see the leg up on the left of our screenshot.

After a few hours of buying, the price ran into a resistance level, located at 1.4060 and then started to consolidate. What stands out is the shift in the price relationship with the 20 EMA.

We’ve used the 20 EMA to help us spot a change in the market mood and you can see that sellers were showing signs of strength once the price action had begun to treat the 20 EMA as resistance, not as support.

There were a few rejections off the EMA, which is good news for sellers, as they could enter the market at a better price. What resulted is a nice parabolic-shaped price formation which can be used efficiently especially for with-trend trading.

Hope you will manage to spot formations like this one in the future and maybe you will be able to spot other kinds of formations as well. This type of recurring formations happen all the time, you just need the experience to see them unfolding.

 

 

Oct. 31 Forex signals results: +95 pips profit

November 2, 2017 at 8:49 am

Our GBPUSD buy signal made +95 pips profit:

From: Dave Hughe <plainfx@gmail.com>
Date: Tue, Oct 31, 2017 at 8:50 AM
Subject: Oct. 31
To: 
GBPUSD Buy 1.3224 SL 1.3189 P1= 1.3244 P2= 1.3274

This signal reached both profit targets. The stop-loss order for the remaining 3rd unit had been upgraded and later triggered at 1.3249 for the total profit of +95 pips.

From: Dave Hughe <plainfx@gmail.com>
Date: Tue, Oct 31, 2017 at 11:28 PM
Subject: GBPUSD SL 1.3249
To: 

On the chart this trade looked like this:

best forex signals oct31

Tu., Oct. 31 Forex signal: buy GBPUSD

October 31, 2017 at 10:01 am

We sent out the following Forex signal today:

From: Dave Hughe <plainfx@gmail.com>
Date: Tue, Oct 31, 2017 at 8:50 AM
Subject: Oct. 31
To: 
GBPUSD Buy 1.3224 SL 1.3189 P1= 1.3244 P2= 1.3274

So far, this signal has reached its first profit target making +20 pips profit. Now we updated stop-loss orders to the break even price:

From: Dave Hughe <plainfx@gmail.com>
Date: Tue, Oct 31, 2017 at 9:07 AM
Subject: GBPUSD P1 reaches, SL BE
To: 

Mo., Oct. 30 Forex signal: short USDJPY

October 30, 2017 at 9:27 am

We sent out the signal to short USDJPY today:

From: Dave Hughe <plainfx@gmail.com>
Date: Mon, Oct 30, 2017 at 9:12 AM
Subject: New order
To: 
USDJPY Sell 113.49 SL 113.70 P1= 113.26 P2= 113.12

Later we updated the stop-loss to 113.55:

From: Dave Hughe <plainfx@gmail.com>
Date: Mon, Oct 30, 2017 at 9:20 AM
Subject: USDJPY SL 113.55
To: 

 

Oct. 28 End of week Forex signals results: +227 pips profit

October 29, 2017 at 7:50 pm

This week our signals made the total profit of +227 pips.

Wd., Oct. 25 Forex signals results: +167 pips profit

October 25, 2017 at 11:34 am

Our last unit from the USDCAD long trade opened on Friday hit the trailing stop today at 1.2668 for the total profit of 167 pips.

The original signal sent out was:

From: Dave Hughe <plainfx@gmail.com>
Date: Fri, Oct 20, 2017 at 8:26 AM
Subject: New order
To: 
USDCAD Buy 1.2501 SL 1.2479 P1= 1.2521 P2= 1.2541

The trailing stop-loss order for the last unit had been updated this morning. This stop got triggered by the wild down-swing on the news bringing in a net profit of +167 pips. On the chart this trade looked as shown below:

best forex signals oct25

Tu., Oct. 24 Forex signal result: +60 pips profit

October 25, 2017 at 9:25 am

Our GPBUSD signal made +60 pips profit

As we explained in the previous post, the original signal sent out was:

From: Dave Hughe <plainfx@gmail.com>
Date: Tue, Oct 24, 2017 at 8:34 AM
Subject: Oct. 24
To: 
GBPUSD Sell 1.3155 SL 1.3230 P1= 1.3125 P2= 1.3105

This signal reached its first profit target and the stop-loss orders for the remaining 2 units were updated and triggered at 1.3140:

From: Dave Hughe <plainfx@gmail.com>
Date: Tue, Oct 24, 2017 at 4:31 PM
Subject: GBPUSD SL 1.3140
To: 

Therefore the total result for this Forex signal is +60 pips profit. On the chart this trade looked as shown below:

best forex signals oct24

Mo.-Tu., Oct. 23-24 Forex signals results +30 pips profit so far

October 24, 2017 at 1:42 pm

Our signal was not triggered yesterday. This morning we sent out the following Forex signal:

From: Dave Hughe <plainfx@gmail.com>
Date: Tue, Oct 24, 2017 at 8:34 AM
Subject: Oct. 24
To: 
GBPUSD Sell 1.3155 SL 1.3230 P1= 1.3125 P2= 1.3105

So far this signal has reached its first profit target and made +30 pips of profit. Two more units are still open with stop-loss orders at the break even price (see our trade update email below):

From: Dave Hughe <plainfx@gmail.com>
Date: Tue, Oct 24, 2017 at 10:53 AM
Subject: GBPUSD P1 reached SL BE
To: