How to become a noteworthy price action trader
Becoming a professional price action trader
Forex market is all about noteworthy traders. If you are in the market or if you are hoping to hop into the market you should understand that there are certain important factors that you should learn. You may be the professional trader with all the knowledge about forex trading, but educating yourself more and more will not bring you any losses. So here we go how to become a noteworthy price action trader? If you are new to the market, you will not have the fair knowledge on price action so let us give you some brief explanation of the price action it is the best indicator among other lagging indicators since the price helps the trader to decide whether to trade or not by the price analysis.
If you want to become a noteworthy price action trader you must use price actions to direct to the profitable trade, not the other indicators. Actually, price action traders are more of technical traders because they rely on price movement, charts, volume and other raw data. It does not mean that the price action trading is easy, yes it is harder than the others so you must have sound knowledge about it.
Tips to become a noteworthy price action trader
If you want to become a noteworthy price action trader in the forex market you should understand the price action strategies in better ways. If you understand the price action strategies then you will be able to make trading decisions logically and effectively.
Support and resistance level strategy: This strategy depicts the psychology of demand and supply. The support and resistance can be the best strategy if the traders know how to deal with it. Actually, there are types of support and resistance levels such as swing points, Decision points, Breakout zones, Price action swings etc. but the key level of support and resistance strategy will help the traders to understand the best time to trade. There is a turning point in the market in such situation and also, it shows the good risk-reward ratio.
Combo trading strategy (pin bar/inside bar)
The pin bar strategy or inside bar strategy which one of the above strategies will you adopt? What if the pin bar strategy comes along with the inside bar strategy? We will explain you about it in the combo trading strategy i.e. the combination of pin bar and inside bar strategy. When you face a situation to trade with the combo trading strategy keep the following points in your mind the validity of the pattern is in the key level, time frame, and the close to the pin bar. We hope we did a job well done.
The price action strategies are important to any kinds of traders. Every trader should have the pure knowledge on price action in order to trade the forex market perfectly. If you really want to become the noteworthy trader in the forex market you should learn the price action strategies. Even though learning price action strategies can be pretty hard, if you get the notch it’ll be the easiest. Every small step will lead you higher and higher so start learning price action.
The quest for working at home jobs is on the rise and one of the best options that can be considered is Forex trading. Some large companies have found out the lucrative side to Forex trading and have hired people to do it right for 1000% return on investment. If you think that this is only for big corporations, think again.Free Trial AccountsUnless you have been living under a rock, chances are you have seen pop-ups about websites offering free software demos to download which can teach you the principles, strategies, and information about Forex trading. The free software can be yours in exchange for sign-ups with them which you may also use to enroll yourself with them if this type of investment idea works for you.The free trial gives you a chance to open a Demo account, where virtual money is used to put your newly-acquired money management skills with real market conditions. Since this is only a free trial, you won’t receive any earnings should you do well, but it will attract and encourage you of getting the real McCoy.Forex vs Stocks While the stock market is strictly business hours trading, the beauty of Forex trading is its availability 24/7. The main reason why this type of trading is 24/7 is because of the time zones of the different countries all over the world. Another allure to the trading is your total control over your money or account. Licensed brokers are doing the trading for you is done away, which saves you commission fees. You also don’t need to be bothered with your invested money staying in a brokerage firm for a long time which can charge you fees if you withdraw it at an earlier period.The trading that is done with Forex is not affected by swings in the market that stock markets are exposed to all the time. The only time that a market swing can happen in the account is through buying and selling the same currencies. The hundreds, if not thousand types of currencies available to trade online gives you bigger chances of getting the most profit from your investment.While there are many benefits, there are also risks. The key is to do your research well, understand the concepts of investing, and think of this as a business opportunity that lets you work comfortably right in your home.
Have you ever had a feeling that some greater power in the market has singled you out and is doing everything in their power to make your trading life a misery. Because it seems every time you enter a Forex trade, almost immediately you find the market reversing on you? The market is probably just ‘rigged’, or it must be your broker stop hunting you right? Did you ever consider you might be chasing price around the chart, consistently entering the market at bad prices. In this article we are going to take a look at why ‘chasing’ price around the charts is impractical, ineffective and why it will unravel you mentally. The feeling that you might ‘miss the train’ Have you ever been sitting in front of your trading desk, watching the candlesticks tick higher and lower and then noticed a significant price event unfolding in front of your eyes? This event could be price breaking through an important support or resistance level, or maybe a trend line. Whatever the situation, the price action makes your eyes light up like a Christmas tree. You whip out the trade order window as fast as you can. You proceed to enter a Forex trade at the ‘market price’ with a high level of urgency. You’re in the trade, fuelled up on adrenaline, and on the edge of your seat watching the market go crazy as price breaks through the key point on the chart. You’re thinking to yourself, ‘oh this is going to be a massive breakout and land me the big trade I’ve been waiting for’. Then all of a sudden the movement reverses and now you’re on the wrong side of the market. Stop chasing your own tail An event like this could leave the un-educated trader banging their head on the keyboard, repeating ‘what went wrong?’ I know the feeling, but the market doesn’t work the way as everything else does in your everyday life. It operates in a more counterintuitive way, what you think might be the right way to do something is often the wrong way. You believe you enter a forex trade with military precision when really you’re as sloppy as a 2 year old with a crayon. The markets are full of deception, emotions, traps and psychological torture that will absolutely rip you apart mentally if you’re mind isn’t ready for trading. Trying to trade the market uneducated, or unconditioned is like trying to navigate your way through a land mine field, blindfolded. If a commercial airliner crashed without warning, investigators would act quickly taping off this accident scene to do some crime scene investigation. So let’s quarantine this type of aggressive trading and get a bit more of an understanding of why so many people churn and burn. When you enter a Forex trade by chasing price, there is an obvious lack of planning in the trade execution. Throwing orders at the market on the back of impulsive price movements might seem like the right thing to do in the heat of the moment. A decision making process like this is generally derived from ‘emotionally fuelled distorted logic’. Secondly, the trader has allowed the market create a high level urgency within themselves. Inducing that feeling of ‘if you don’t jump in RIGHT NOW, you’re going to miss this move and never get another chance’. The high sense of urgency throws trader’s into ‘panic mode’ and the need to take action, superseding any rational thinking. We’ve all been guilty of ‘chasing price’ at one stage. The market slapped us back in the face for it too. If you impulsively enter a Forex trade like this and it actually works out, you are at a high risk level of being a victim of the random reinforcement principle. You’re rewarded for the bad behaviour, which encourages you to do it more often. You won’t get the same result each time. It will be like a drug user ‘chasing that first high’. It eventually unravels you completely as a trader. If you really are passionate about trading and want to become a good trader, focus train of thought away from brute force attacks on the market. Projected your time toward proper risk management and logical trade execution. Trade the right timeframe Timeframes are going to play a huge part in how successful you are as a trader. Generally when we first embrace Forex trading, we are easily lured into the lower timeframes. Other trades make promises that the lower timeframes offer ‘more trading opportunities’ and the ability to ‘make more money’. What they don’t tell you are the signals have much less value on the lower time frames as they do the with the higher timeframes. Low timeframes – Lots of signals, but low quality. Plenty of breakout traps to be caught up in, and lots of market noise. High timeframes – Less signals, but with low risk high reward profiles. Less breakout traps and more market stability and clarity. Don’t fall into the idea of trading on the lower timeframes will make you more money or enter a Forex trade via lower quality signals. You’re taking trades that contain no real substance or value. They don’t contain enough price action data, and expose you to a high level of risk. Intraday noise on the low timeframes can be so intense, trying to trade it is really just ‘chasing ghosts’. On the 15 min chart below, we observed an aggressive 15 candle that closed below a support level. Something a lot of traders would have shorted into. It looks like a really large move and some uneducated traders would call this a ‘market crash’. Because we are on the 15 min chart the move looks bigger than it is. The total move is only about 30 pips… Then this happens… Just another typical breakout trap that occurs very often on these lower timeframes, like the 15 min chart. It’s hard to make sense of what’s going on here using these charts. Even with the best Forex trading strategy, you will still have to deal with the high level of noise and ‘false signals’ that plague these intraday charts. Now let’s have a look at a typical scenario on the daily timeframe… Market closes below support level and produced clear bearish breakout follow through. See how the daily chart just paints a much better picture of what’s going on in the markets. At first glance it’s easy to see this market has a dominant bearish trend momentum with very little noise. That’s why we recommend to make the switch to the higher timeframes. The signals are lower risk, the market has more stability and clarity, and you have less chance of being caught up in any whipsaw type movements. Create your own traps, Enter a Forex Trade Using limit and stop orders There are generally two ways you can approach your trading. You can be like most traders and sit there in front of the computer screen, watching the market tick around all day patiently wait for a signal to develop. Or, you can identify signals by checking in on the markets from time to time, using pending orders to enter a Forex trade. Pending orders are great for setting up your own ‘price trap’ to catch price exactly where you want and automatically enter the market for you. This saves you the mental punishment of staring at the charts, waiting for price to reach your desired entry point to pulling the trigger manually. There are two types of pending order options, Limit and stop orders. Stop orders are used to buy the market above current price, or sell below current price. Stop orders are used to catch breakout trades and we would typically use stop orders when setting up Inside Day and Indecision Candle breakout trades. Limit orders are used to buy the market below current price, or sell above the current price. These are great for when you want to catch market retracements. We use limits orders all the time with our retracement entry method… Here is a rejection trade I recently entered on the USDJPY daily chart. I wanted to take advantage of market retracements, so I used a ‘buy limit’ order to set up my price trap… As anticipated a retracement did occur and my limit order was hit and automatically converted into a market order. Once you’re order is set, its hands free from there. This type of ‘fire and forget’ trading is something we practice a lot. The price trap played out as anticipated and caught the retracement. This automatically converted my limit order into a market order. We use these type of entry / stop combo with our end of day trading strategies. It’s less work for us, and yields more results from the market. Think of it this way, you’ve got a problem with a rat that you need to get removed from your house. You’re not going to run around shooting off a rifle at anything that moves hoping to randomly hit it. Instead you set up a trap, bait it and let the rat get caught. The ‘set and forget’ approach here can be applied to the markets just as easily. Set up your price traps, let price come to you. Don’t chase the market around and enter a Forex trade at random price movements. Avoid being caught in a trap yourself There are certain spots/conditions on the charts that are considered to be high risk zones to trade into, and should be avoided. One of these areas are weekly support and resistance levels, which are one of the major turning points in the market. If you’re fixated on the 15 min chart, you may not even be aware of these levels. Open up your weekly chart and map out these major termination points. You will be amazed at the price action you can take advantage of here. Sometimes the market will create the illusion that a ‘breakout’ is occurring through these levels, drawing in unsuspecting traders into very bad positions. Weak traders enter a Forex trade from impulsive reactions triggered by events like this. Once all the suckers are positioned in on the bad move, the market will pull back the curtain and reveal its true intentions… The break through the weekly level was a classic bull trap and absolutely destroyed everyone who ‘jumped in’ with the buying frenzy. Avoid trading into these major turning points on the chart unless you have a damn good reason. The market lays down these traps to wash out weak traders. Focus on trading away from these major turning points. Use strong reversal signals, or by waiting for a breakout then a retest from the other end. Stop swinging your sword around like a mad man, set your trades up then walk away Are you guilty of using a ‘machine gun’ mentality, and offloading a bunch of orders into the market hoping one of them hit a target. If you really want to become a good, consistent trader, it’s time to move away from this savage mentality. Start trading with a cool, calm and collected approach. Plan out your trades more carefully, only load your weapon with one bullet. Pull the trigger and enter a Forex trade when the probabilities are in your favour. Make every shot count. After you’ve entered a position, try to be at least involved with it as possible. How many times have you missed out on potential profits from a trade because you’ve emotionally intervened? Don’t stare at the charts, don’t stare at your trades. Fire off your order, walk away and go live your life. If you think you you’ve been smothering the market too much and need to put some distance between you and the charts. But you still want to be an active trader at the same time. You may be interested in becoming a war room member where we do exactly that every day. We teach price action trading techniques that allow to you to have a minimalistic approach to trading. You can achieve good returns on investment, with plenty of time during the day to do things you like to do. Stop by the war room info page, if you’re interested in more information on our War Room membership package. Cheers to your trading success.
Alternative investments are non -correlated assets that are not among the conventional investments such as stocks, bonds, and cash. It is estimated that since 2005 the global assets have grown twice as fast as the traditional investments according to McKinsey & Company, a global consulting company. A survey conducted in 2015 showed that advisers had 73% of their clients in alternative investments. The assets increase is caused by the Investors need to diversify their portfolio so as to include a wider range of assets. This helps to reduce volatility, generates better returns, hedges against inflation and to access steady and reliable sources of income. A study conducted by the Informa Investment Solution and published by Blackrock revealed that alternative investments didn’t fall as much as the traditional investment during the 2001-2008 recessions. Majority of financial advisers recommend investing not more than 25% of your portfolio to alternative investments. This is because a majority of the alternative investments tend to be illiquid. Here is a list of the major alternative investments to include in your portfolio:1. Hedge fundsHedge fund is a type of alternative investment where investors pool funds and use different strategies to earn returns. Hedge funds are managed to utilize derivatives and leverage to generate high returns. Hedge funds are classified according to their investment styles and their risks also differ among the different styles. Hedge funds are only accessible to accredited investors and require a large minimum investment but require less SEC regulation than mutual funds and other investment vehicles. Hedge fund requires an investor to keep their money in the fund for at least one year period otherwise known as lock-up period and thus is quite illiquid.2. Real estateReal estate is a tangible and immovable property that consists of land and buildings on it and other minerals and water. The benefits of investing in real estate include fairly stable and predictable income (rent), some form of tax benefit (depreciation or the tax deduction for mortgage interest), and some stability. The costs associated with real estate include maintenance, renting, taxes, insurance, and security. Another option of investing in real estate’s is to buy one or more publicly traded REITs where the REIT managers invest your money in various properties that they deem appropriate. REITs pay out 90 percent of the profits they earn every year in the form of a dividend which mostly range or can be more or less than 3.5 % to 5.5%. Another form of real estate investment is Commingled funds which are pools of money made up of contributions from a number of different pension plans or other funds. The commingled fund is managed by a professional money manager which can be a bank, insurance company, or an independent investment counselor.3. CryptocurrenciesAlternative Cryptocurrencies otherwise called altcoins are gradually gaining popularity. The first major decentralized cryptocurrency is bitcoin which was introduced in 2009. Bitcoin can be defined as a digital currency, a decentralized network through which bitcoins are transmitted and a chain block or blockchain, which is a decentralized accounting book where all transactions that occur are verified within the network permanently and anonymously. To be able to use bitcoin, the first thing you require is a wallet where you can store your bitcoins and with which you can transfer to other people. Financial advisers recommend not investing anything in bitcoin that you can afford to lose. Investing in bitcoin or any other currency has many risks such as another cryptographic currency could overcome bitcoin, a weakness in the encryption could be discovered, it could be affected if a failure is found in a particular algorithm, the bitcoin client can be updated to use different encryption algorithms, the governments could try to ban or regulate bitcoin and if there is an irreparable flaw could be discovered in the bitcoin protocol. There are other types of altcoins such as litecoin, Etherium, Zcash, Dash, Ripple and Monero. Investors should consider properly allocating Bitcoin, cryptocurrencies and blockchain based technologies as an alternative investment portfolio. In the near future, there will be more and more opportunities to invest in them as these investment opportunities open up.4. CommoditiesCommodities are types of alternative investments and include raw materials that are sold in large quantities and other collectibles examples are oil, wheat, silver, gold, tea, fruits, flowers, fine wine and more. Most commodities are bought and sold with options and futures contracts. Speculators use passive and active investment strategies to invest in commodities.Other types of alternative investments include music royalties, private equity, venture capital, managed futures, derivative contracts, private or direct investments, hard asset lending, distressed debt, liquid alternatives among others.