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Month: September 2020

The Day Tranding Stopped Running forex

The Day Tranding Stopped Running forex


The Day Tranding Stopped Running forex – Have you ever felt like your entering the market at exactly the wrong time? You see a great trade setting up and enter, only to see the price almost instantly reverse, stop you out, and then run in the direction of your original trade.

If that sounds familiar than you have been the victim of what I call a day trading stop run reversal.

Market makers, banks, and institutions do not intentionally move the price in this fashion to hurt retail forex traders, they do so to profit from them.

Retail forex traders do not create the moves we simply ride them. Knowing this, if we can recognize frequently recurring chart patterns such as stop run reversals, then we can effectively learn to day trade these reversal patterns.

Let examine this pattern more in depth and explain the process, order flows, and supply/demand surrounding these trade setups.

Stop hunting is something well known in the forex market, but the reasons behind “stop hunting” are not as well know. What is the real reason behind these moves just beyond a major area of support/resistance and then a complete rejection?

Quite simply put, large banks and financial institutions have to move huge sums of money and want the best price possible.

If they want to go short the GBP/USD for example, they will run the price up past the previous high by a few pips or more, and trigger the stop losses they know are lurking just beyond previous highs.

This gives them a “supply” of orders to meet their “demand”. Additionally selling into all the buy orders (stop losses) allows them to move large sums of money without spiking the price in their expected direction providing a far better overall entry price.

Another factor supporting the stop run reversal setup is that of the breakout trader. Most of you reading this have tried or are currently testing some type of breakout trading strategy. It’s a commonly used strategy/idea, and thus it becomes another consistent form of liquidity smart money uses to their advantage.

Knowing this, not only does “smart money” get the orders from those stopped out as in the example above, but they also have all the people buying the breakout (supply) which only gives them more orders to sell into to meet their demand.

As the larger bank or institution moves the price down following the stop run, they know that all those that bought the false breakout higher will have to begin closing the position for a loss.

They move the price up into an area of huge supply (stop location, as well as people buying a breakout) and thus fill their demand.

After the breakout begins to reverse, the breakout traders are forced to cover their position (sell) and thus they fuel the institutions short trade even more aggressively to the downside.

What a beautiful trap…if you’re on the right side of the market

So how can we profit from this setup, instead of being taken advantage of by it?

First, we must identify a valid manipulation point in the market.

We then wait for that level to break by at least 3 pips to initiate the stop run followed by a confirmation candle.

This forex trading strategy is similar in many respect to trading an area of support or resistance but much more powerful.

The fact is, only large institutional order flow can create this type of whipsaw movement in the market.

Knowing this, if you can learn to track smart money, you’ll have a much higher probability of success. Let the market show you what it’s doing first, stop trying to be the first in and just ride smart money’s wave!


1.) Notice how the market retraces to a previous intraday swing high, briefly breaks it and is quickly rejected. Additionally, the candle that broke the previous resistance closes as a nice reversal candle before pushing towards lower prices.

2.) Example #2 there is a nice double bottom that already formed. As the price looks to make a third test of this level it accelerates threw it and is quickly rejected.

As with example #1, the candle that broke the support closes as a nice reversal candle formation and the price reverses up.

3.) As the market approaches the previous high it actually test and breaks the level a few times. Finally, there is a strong bearish reversal candle that closes. As with the previous examples, the market then continues down after the stop run of the previous high.

While there is no such thing as the holy grail of forex trading strategies, this setup does massively improve your reward to risk potential which is the biggest key to profitability in my opinion.

Tricks And Tips To Always Profit Forex Trading

Tricks And Tips To Always Profit Forex Trading


Tricks And Tips To Always Profit Forex Trading – Forex trading is often said to be high risk, so the possibility of losing is greater than profit. However, in fact, not a few Indonesian and foreign forex traders can successfully harvest forex trading profits. Even though learning forex up to 100%, always making a profit in every trade that is made is not possible, but in a certain period it is possible to get a higher profit than loss. There are times when losses are inevitable, but as long as the profit exceeds the loss every week or every month, can’t that always be considered profit !?

Well, the question is, how do you always make forex trading profit? Here are some ways you can do it right now:

1. Find a reliable forex broker
Broker’s position in forex trading is irreplaceable. Without a broker, we cannot trade online. Likewise, the success or failure of forex trading often depends on the broker. If the broker’s trading rules don’t match your trading style, it will be difficult to get profit.

Even more unlucky if the broker turns out to be a scam or a trick. This is the importance of knowing very well the trading facilities offered by the broker and whether your broker has been regulated by the regulatory authorities or not.

2. Review market conditions before starting trading
Forex trading is not a gamble based solely on guessing numbers. To achieve success, traders need to closely observe market conditions before starting trading. Understand the factors that affect changes in currency exchange rates, including a country’s economic and geopolitical conditions. Also know the technical indicators that you use. This device is a provision for you to profit from forex trading.

3. No need to use too many technical indicators
To make trading smooth, every trading software is equipped with dozens of technical indicators, ranging from the easiest to the most complicated to use. Various technical indicators are also traders’ favorite forex analysis tools. However, the use of technical indicators in trading should be sufficient. Whether you will get profit trading forex or not, has nothing to do with how many technical indicators are used. Some indicators can even be contradictory if used together.

On the contrary, according to a number of professional traders, one of the keys to successful trading is minimizing the use of technical indicators. As long as the indicators on the chart allow you to read market conditions and predict the direction of the next price movement, that’s enough.

4. Minimizing risk in forex trading
Including the key to success so that forex trading profits are also minimizing the risk in forex trading. In this case, it is known as Money Management. Money Management are efforts that traders can make to ensure that losses can be limited, while profits can be accumulated. Concretely, this means drawing up a trading plan as well as implementing Stop Loss and Take Profit. It is even better if you use a Trailing Stop on an opened trading position.

5. Keep a trading journal in a disciplined manner
Traders need to treat forex trading like normal business. In business, a one-two loss doesn’t matter, because what matters is how the business will turn out over time. Therefore, traders don’t need to be overly ambitious to get carried away with emotions every time they experience a profit or loss. Manage your psychology, set sensible targets, apply good Money Management, and keep a trading journal in a disciplined manner.

As in ordinary business bookkeeping is required, forex trading also needs a journal as a record. With a note, you can make sure you don’t open a position just because of your emotions. In that note, you will also be able to follow the development of your understanding of the world of forex trading from time to time and avoid making mistakes that cause the same loss. In the end, forex trading profits can be guaranteed in the long term.

Trading Is Profitable And You Can Do It

Trading Is Profitable And You Can Do It


Trading Is Profitable And You Can Do It –  Many times this question comes from retail traders that are not finding any success with their trading approach. When I say “trading approach”, I don’t just mean their trading strategy.

Your trading approach is much more than a trading strategy and we will cover that later.

The short answer is yes, Forex trading is profitable.

The slightly longer answer is yes, trading in the Forex market is profitable but chances are you won’t make any money.

How do I know trading Forex can be profitable? Because I’ve been swing trading Forex since 2008 and make money. In fact, you can take a look at my free Forex chart setups that I post every week using technical analysis and then update any trades at the end of the week.

Everything in those chart is for one reason: To teach you how to use a simple approach to trading Forex to make profits.

It’s one thing to make money trading and an different thing to keep the profits.

Your Biggest Job As A Forex Trader

I’ve mentioned it many times in my trading posts but the number one job you have as a trader, is a risk manager. If you do not understand risk…if you do not manage your trades in the proper way, you will lose.

If you are risking too much per trade to withstand a string of losing trades, you will be out of trading faster than you imagined.

If you continue to move your stops around to avoid taking a loss, you will eventually lose your account. Your broker will be happy because you are probably a retail trader and your broker banks your loss, but you won’t be.

Your second job as a trader is simple: Enter trading orders.

If you are trading, you’ve done your homework and are trading a strategy that has a verifiable edge in the market. You have made a trading plan complete with which setups to take, how you will exit, where you will take your loss.

You’ve outlined which currencies you will trade and the style of trading you will be doing. Day trading is popular but swing trading currencies is how I trade the retail market. If I day trade, it is not often, is not Forex, and is done in the Futures markets with the occasional options trading play.

Your job as a trader is to execute the trading plan when your setups take place. You enter your trading orders, manage your trades, and take your profit and loss the way it is set out in your trading plan.

How Long Can You Trade With Profits?

Consistency matters when currency trading and if you are applying the trading plan in a consistent manner, you should be able to reap the rewards of the edge your trading plan gives you.

Will you always win?


You will take a loss and sometimes many in a row. You will see your trading account fluctuate and it can be painful to see at times. The expectancy of your trading system is what should keep you glued to the trading plan during the times of an equity curve down swing.

The truth is you will have a losing day.

You will have a losing week.

At times, your month may be at break-even or worse, at a loss.

These are the realities of trading and if you are asking about being profitable over the long run, the answer is yes if you are trading a positive expectancy trading strategy.

One week of loss or even a month of not being profitable does not make for trading failure. It must be expected. You must expect to lose and also to imagine that you have yet to take the biggest loss of your trading career.

You read that right. Think that you have yet to experience the most painful loss of all. Expect that a multiple of risk loss is around the corner.

What will that do?

It will remind you that the biggest trading job you have is trading your emotions for a proper mindset and to protect your trading capital.

What Is Forex Money Management?

Forex money management is simply about risk. In short, if you take big risks, you can make a lot of money in short period of time but the bad side of that is that a few bad high risk trades and you lose a lot. Wins and losses come in a random distribution.

You never know if that next trading will be a winner.

When you trade a lot, over trader, that’s bad forex money management. When take a lot of risk in a trade, that’s bad forex money management.

Learning Forex money management is the easiest thing. But doing it, applying it, sticking to it when everything else doesn’t seem to be working is really hard…and all it comes down to is mindset.

What Is A Good Mindset?

There are many books written about the trading mindset but before I list a few – a great mindset is useless if you are trading a flawed trading strategy.

  • You understand that you are not worried about the day to day trading account fluctuations because you are focuses on the long term.
  • When a trading loss or trading profit does not bother you, but you see it as part of the whole process to keep growing your account.
  • You know that risk management can help you last a very long time in trading Forex and failure to follow it is the fastest way to part with your money.

You understand the negative impacts of greed and fear and learn to control it.

Trading the Forex market is a business and like any business, you have to approach it with a professional approach and like most companies, have a “Trading Resolution”, something you abide by at all times. The four mindset points above can be a great place to explore. Break out a pen and paper and jot down those four ideas about mindset. Expand on them and ask what they mean to you.

One Word To Be A Successful Currency Trader

If I had to use one word to describe the best trader, I would use the word consistency.

By using that one word, I am assuming that everything from your trading plan to the Forex broker you will use has been detailed.

The job you have trading currencies is to implement that trading plan. How? With consistency. Traders that do everything in a consistent manner are sticking to a proven edge.

More importantly, by being consistent, when a trader is not seeing their profitability increase or they are seeing their profit drop, they can zero on each step they take to find the issue.

It is difficult to find where a problem is if you are constantly switching gears.

This is why I never think it is a good idea to take trading signals from people you don’t know. Too much trust goes into the word of someone else – someone who is not responsible for your trading account. How can you fix a strategy if you don’t know how the trading signals are generated?

You can’t.

In the end, I believe everyone has the chance to become successful and profitable when trading. The issue is if they will take the steps required to do so.

I also believe that most won’t do what is required and will continue to look for the easy way or the “secret sauce”.

There is no magic. It’s called hard work on the right things. I hope my trading blog and the setups I post every week are helping you gain some ground in your quest to be a profitable trader.