We'll be talking about the AUDCHF,which has given Us a clear picture of what we are to expect on this pair, looking at the chart above its all in a form of triangles and angular shape move. Studying the chart properly we can see some chart pattern formed from previous price-action, there are 2 important pattern in this chart that I'm going to explain, the first is a "W" shape pattern I placed a number in this format I , II , III , IV , V and an arrow from "I" till "V", look closely at the placement of each number you'll see a "W" shape in the process of doing so...Ok? what does the W mean? Well that's the market pattern anywhere you see a "W" shape on your chart it means price may go on to the opposite direction be it up or down. And the second pattern is "DOUBLE BOTTOM" looking closely at number II and IV we see only the both numbers hit that support level @ 0.68750 So what wou...
As we know forex can be like a journey or a marathon race,and in other to archive that there
are three things we are going to learn about today. And the first secret is:
Money Management (MM):
In forex we must have heard of that word before, because it's very important to apply money management when trading,but how can you do that? I'll be teaching you how to do that
In the forex market there are a lot of things that could come up and deceive you as newbie or even an experienced trader,and what is that? "Greed" yes that is what could kill you if you fail to caution and discipline yourself for example,let's say I have a 1000$ account as a newbie to forex and the recommended lot size I'm to use is 0.03 that's risking 3% of my equity,so I've been applying it for some time then greed came in I want to make more profits
Tho some strategies don't always work well not all the time,so what kind of trader are you? Do you look for strategies every time one fails you? If that's your case here are some things you can do:
- Try your strategy for at least a month
- Understand your strategy
- Check how much wins and losses you've had after a month
- Repeat for up to 3months
Do these and see if that strategy is worth keeping,if your wins are always more than your losses then I think you can keep that and call it your strategy.
Switching from one strategy to another doesn't help rather it's like when someone's lost in the the Forex Market you have to know what you're looking for and where you are going if you apply these steps I can assure you you will become an improved trader with time I know it isn't as easy...but with discipline it's possible.
Now we are moving to our 3rd secret to survive which is:
Emotions:
Now I'm very sure you all wondering what has emotions has to do with this? But it really has something to do with survival on forex,if you don't have a controlled emotions it could ruin your progress you've ever made on forex while trading intact emotions is the most important thing to get rid of
Yes right there,your state of mind or your emotions
Money Management 30%
Strategies 15%
But State of mind or your emotions carries the larger share of 55%
So can you see how important it is to control your Emotions? Obviously it's the most important secret I'm telling you today. Now How can you control your Emotions?
Do not marry your trades:-
When you place a trade be disciplined enough not to marry your trades by watching it constantly when you place a trade leave it alone let it run its work,you can go do something else like catching some fun or reading instead of watching your trades the whole day..trust me it won't help you you'll end up getting mad at yourself.
Do not close your trades too early:-
Be disciplined enough not to close your trades when your target isn't gotten yet,this where emotions comes in if your in profits and suddenly you came into a loss,don't panic just leave it alone and go and do something else to remove your mind from thinking about your trades
Use proper lot size :-
Use proper lot size to avoid making you think about your trades if you could be in loss or in profits,if you use the recommended lot size even if market should go against you you would be less worried because you've used the appropriate lot size in other to save your account when market goes against you.
So apply them and see the improvement you've made,if you're still finding it hard to apply you can read this post again,I hope you all reading this have seen the secrets to survive.
Earlier i said I'll teach you all how to calculate the proper lot size to use so depending on how many percent of your equity you want to risk
If you have 1000$ equity and you want to risk 3% of that account on each trades you'll calculate
Your risk percentage divided by 100 then your answer you times it by your equity which is 1000$ it will give you 30 or put 0.30 so if you're risking 3% of 1000$ equity then your recommended lot size would be 0.30.
Hope it's clear if it isn't let us know in your comments below👇
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