At about 08.00 GMT, Saturday the 9th of January 2016, when I was reading one of the article posted here. I discovered once again how, many traders are so obsessed with creating strategies that they presume will make them profits in the market accurately and consistently.

Towards the end of the reading, these where the authors own words, may I ask permission to quote it “This whole process taught me the importance of considering large time frames during my trading analysis, and also the fact that automated strategies will never to totally reliable because they lack the human intellect to consider real-time fundamental changes in the market”.

This trader is not only correct, but did demonstrate from the statement above that she understands market price dynamics.

INTRODUCTION
Granted, every forex trader wants to make profit. The old trader feels very badly when he sees he still get trade losses and the newbie trader becomes even more nervous and don’t want to get losses. In this article I want to remind the older trader and show the newbie traders what works, don’t quote me wrong, for some it works for them – understand my personal trading secrets am about to reveal for the first time is like magic or a game you know how well to play.
FIRST
, I want to demystify certain misinformation, especially for the sake of our fellow community members who are ladies (particularly those involved in the Miss Dukascopy contest) and I really want to support their genuine efforts intrading.

Misinformation 1: Males are always better and succeed in this Forex Trading Business.

Response: This is wrong information. Remember, that the article author’s statement that inspired me was from a female, a lady in this community. See yourself in the next picture – believe it, it’s true.


Pic. 2.0 Have you seen yourself? Fine.
Misinformation 2:
Forex trading is like gambling, when you put a trade, you can lose or gain.

Response: This information is also wrong. Although, some newbies have traded forex like betting in gambling and got the consequence – whole account equity blown out. Yet, in forex trading, you need to learn and understand market price movements, whether it requires you to put a BUY or a SELL trade. Again, believe it, the market will always have these zigzag direction as shown in the next picture.


Pic. 3.0 Of course, this zigzag produces the BUY and SELL opportunity.
It is because of these misinformation and market lossphobia, breeding nervousness that has led many old and newbie traders into search for the mostly unreliable sphere of automated trading and strategies.

Please if the next picture shows what your mind seeks, think again.


Pic. 4.0 The growing industry of high yield promising AUTOMATED TRADING
Funny though, are that majority of people promising high yield forex trading robot or strategy are either a failure in actual forex trading or they do not trade at all. Is that who you want as a guide for your money?

My SECRET, about to be revealed is in the power of real-time market analysis with the right tools that works for you. The big question therefore is, how well can you analyze the forex market.

See what I commented on that article, read next:
First: Understand how to read Trading Sentiment in candlesticks, bar or line, remember I said Trading Market Sentiment. Second: On your choice currency pair, study the overriding market sentiment in collaboration with 1). Market current Trend. Cont'd. 1). Use 4hour/1monthly bars to identify current trend. 2). Assess the market direction through your platform applied indicators - but don't fully rely on it. 3). Anticipate and Watchout for Fundamentals that affect your choice currency on a daily basis. 4). Check fundamental release result, preferably after 5minutes of release and analyze impact against the 'Forecast' and the 'Actual'. All these assessments are on the head and with pen & paper of an individual trader".

Let me break it down in a single picture below.

Pic. 5.0 Identifying Trend direction
From the above picture, you can spot TREND direction up left both for the Uptrend and the Downtrend movements. How do you know or identify when a trend begin and ends? For some, you may have studied to understand BAR, LINE, AREA, TABLE or CANDLESTICKS formations, but for the sake of this article, we will suggest learning different candlesticks pattern as shown at the up right.

PLEASE READ CAREFULLY - Take a course on candlesticks formation pattern and their meaning - for these secrets will help you analyze the market real-time. Now, in addition to this, you will analyze the market in collaboration of your platform indicators (reliable ones), I suggest that you study the use of RSI-Relative Strength, SMA-Simple Moving Average, MACD-Moving Average Convergence and Divergence, PIVOT-Fibonacci, SAR-Parabolic Sar, Elliot Wave, name them. Take a look at my Dukascopy trading JForex platform on the Pic. 3.0 above, you will see that I only use Three: RSI, SAR and Fibonacci Pivot and of course must use SUPPORT and RESISTENCE lines. Kindly check the next picture for the understanding of what support and resistance lines.



Pic. 6.0 Support & Resistance Lines
Finally, in addition to other information above, ensure you follow Daily fundamental news releases provided free online – (find Daily Forex Calendar online). Because, their releases will seriously affect or accelerate the direction of the current market trend. For example, from the S&R Pic. 6.0 above, you have a LONG (Buy) trade position placed and it rallied to the Resistance level 4 above where the dotted line is drawn and you don’t know anything about the news releases and the time. You will certainly sustain a loss of your gains as it deeps to the Support level 3. Of course, it did return back to the trending up direction, however, depending on the size of your account and the position of your stop loss, you may loss a substantial amount if your stop loss was hit.

SUMMARY
Can you adhere to the following pattern as you open your trade platform?:
  1. Analyze the current trend direction, by using preferably the 4hour/Daily Bars chart
  2. Determine the level of the Trend by checking the current price distance between the last Support or Resistance lines, both minor and strong or for a breakout. BREAKOUT: It is when a market price movement breaks through a Strong Support or Resistance line, which it may have attempted couple of times before but returned, perhaps because of a news release.
  3. Analyze your chosen indicators to see if you get the same feel.
  4. Check your time and identify the day’s fundamental news release that is presently affecting the market direction and the ones that are about to be released.
  5. With these information you could decide to BUY or SELL and place your Take Profit some pips before the next 1 or 2 previous Support and Resistance levels.
  6. For your Stop Loss, it also depends on your equity and trade lot size, determine how much you are ready to lose in the event your forecast goes wrong or how much pullback loss can your emotion accommodate on screen (without closing the trade) knowing the market trend hoping it will reverse to profit – only you will decide this. But, as a guide, note that I usually place my STOP LOSS some pips below or above the next resistance and support level.
Was this article helpful, please I will appreciate if you append your likes and comment or even criticism. All the best.

See beyond failure, for there lies success!

Chidi-James
Translate to English Show original