Successful Forex Traders have 3 things in common. They are easy to describe, but they are so tedious to take a whole life to reach a high-quality trading:
- Collect a set of specific Trading Rules by Mentoring and Direct Experience.
- Have the Discipline to respect the Trading Rules, that comes from practice and experience.
- Be Adaptive, improving the Trading Experience and then refine the Trading Rules.
Trading requires dedication and the process to become Successful Forex Traders is long. Everything comes understanding what we have in the chart and why the price moves.
But, what we need to know is that the Price Action repeats itself. The Price Progression is not casual so as it doesn’t happen without show reference points.
The Change of the Trend shows a specific Price Action for the Rotation. The Trend Rotation repeat itself time by time marking Frameworks.
I don’t trade the Patterns. I trade the Unbalance and the Frameworks.
Useless Information from Trading Websites
Only a few of the things that we find around are useful to earn money. The most of them give useless information that helps people to lose money. Definitely, they don’t turn newbies in Successful Forex Traders. They are able to induce confusion on newbie traders.
Sometimes people ask me: “how to become a professional currency trader?” The first thing that I try to understand is what they know.
Usually, they base their knowledge on useless things shared by well-known trading websites. So, my answer is simple:
Forget what you learned from the common trading websites, but find a mentor and learn from what he says. Period.
Another question that sometimes people ask me is so simple as big is the distrust of the people. They ask: “is currency trading profitable?”
According to my Trading Experience, my answer is “YES”. But I specify always that it is a job and it takes dedication for the long-term. Hard work is necessary and struggle is always around the corner.
One of the most important recommendations that I can give is to don’t copy other forex traders. I don’t copy traders. Copy Trading is not the way.
A Trading Framework is a Price Progression that shows specific Reference Points. In several cases, a Framework can follow a Pattern. In the same way, a set of Rotation Frameworks can build a larger Framework or a Pattern.
The Power of a Framework resides in its Steps because they offer Trading opportunities. Successful Forex Traders work so hard to recognize Steps of a Framework and to trade them in the right way.
The Steps of the Framework are Reference Points and they repeat themselves. Sometimes the Price Progression is clear, other times it is choppy and uncertain. But in any case, the Steps of a Framework offer solid Trading Opportunities.
The First Steps of a Framework help Successful Forex Traders to recognize the Framework. As result, the last Steps of the Framework become relevant Trading Opportunities.
A couple of Typical Habits of Day Traders
On a Trading Tip that I published about the EURJPY Price Action, a Profiting.Me Student asked to me:
The student was looking for which entry point to choose between a set of opportunities. Some indicative Trading Opportunities were in the Chart only for Educational Purpose.
Asking if I wait for some candlestick pattern, the student shows a habit that is typical for the day traders.
Waiting for a Specific Candlestick Pattern is a practice useful to look for confirmation. In reality, in the most of the cases, it is not necessary. But some circumstances give relevance to the confirmation. These are where the risk is high and the chart shows high uncertainty.
In my Trading Practice, I don’t wait for confirmations. It means that I don’t spend time waiting for a specific Candlestick Pattern before to take a trade. I set my trades days in advance, sometimes even a few weeks in advance.
Successful Forex Trades can use different approaches. My Trading approach is easy. My focus is on where are the money. This is very simple for me: I wait.
I trade currencies for a living, so it is normal that I use a relaxed Trading Approach. It is the result of years of experience.
Asking if I wait for the price to drop under the trend line, is another habit typical for day trading. But it is not only to look for a confirmation.
The breaking of a trend shows changing in the price behavior. But it doesn’t mean that the price is changing the trend just in that moment.
Some of my Best Tricks to become Successful Forex Traders
My Trading Results show that Make Money with Forex Trading is possible. It is not a prerogative of who has a Successful Forex Trading System, Investments Funds and so on.
As I always repeat:
If I am able to make money by trading, everybody can do it.
I am not different from everybody. But, I had much more struggle for a longer time than other people. I NEVER gave up. Then, I succeeded.
The gap between Newbies and Successful Forex Traders is in Rules, Discipline, and Experience.
The student that I mentioned before just asked me: “Hi, Girolamo. Can you explain what is the best entry point in the Sell?”
The answer that I gave to him was exhaustive. It showed some Successful Forex Trading Tips that are also some of the Best Tricks that I use for trading.
Let me show you these Forex Trading Tips and Forex Trading Tricks. They can give a valid help to become Successful Forex Traders.
1 – Different Risk Degrees per Different Entry Points
Every Trading Scenario offers several possible entries around a strong level. These entry points come with a progressive decreasing of the risk.
Understanding the Price Action, the Trading Scenario becomes clear, showing trends and strong oppositions. Then, it is possible to recognize price ranges with a high chance to get a reversal point.
The hardest part is to choose the best entry point with the highest precision possible.
Trading is a job of probabilities and the trader doesn’t predict the future. He bases his decisions on what he already knows, by his mentor and long-term experience. He looks for the lowest risk entries, going to enter the market where are the money. This is what define Successful Forex Traders in their daily practice.
Supply and Demand Trading gives a solid help to recognize low-risk entry points. This is possible just from the refining of the levels.
But working with probabilities doesn’t mean that we have the certain. Indeed, I always repeat to the Profiting.Me students:
We don’t know where the market is going. There is no certain and nobody is smarter than the market. We trade with what we already know, monitoring the price behavior and learning from it for the future.
In a price range with a high chance to get a reversal point, there could be at least 2 entries. They carry different risks.
Understand the risk could be difficult or easy according to the Price Action. In a large level, It is clear to understand that entries around the proximal line carry a higher risk. Instead, entries around the distal line of a supply or demand level carry a lower risk. Of course, this just describes an ideal contest where the price action is clear.
2 – Looking for Entry Points where the Unbalance is in Opposition
Looking for an entry point, consider an unbalance that took out a strong opposite level.
It means that an unbalance inside or around an opposite level can offer a trading opportunity. In this contest, the price convergence with specific Supply or Demand levels carries acceptable risks.
Indeed, we look only for those entries that can offer a low risk. These particular entries show the best trading opportunities that the Trading Scenario can offer. All the other opportunities take a lot of commitment and risk for only a low reward. Successful Forex Traders know this very well.
3 – Looking for new and fresh Supply Demand Levels
Choose a level that is still to test. Even if it can carry a bit of risk in the contest, it is better than a used level. Of course, we always look for an entry point that carries a low and acceptable risk.
Every test of a used level fills orders in opposition. So, if the new orders added are not enough, the level becomes weaker, although it may persist for months.
Skip Supply or Demand Levels that carry high risk.
4 – High Pivots and Low Pivots inside a Supply or Demand Level
Consider the Pivots inside the level and the reasons for their presence. They can offer Trading Opportunities with specific Risk Degrees
For example, these particular circumstances can mark Pivots inside a Level:
- The price left the level with a weak unbalance.
- The price action shows a clear uncertainty, being choppy in a range or trend.
- When the price, to leave a Supply or Demand level, retraces back before to go away.
These circumstances show just a few specific cases about how the price leaves the level. They are important not only for the Pivots inside the level.
5 – Considerable pushing in Trend from a Supply or Demand Level
Convergence, Long Tail and a Retracing back. This is what the chart shows.
A strong pushing in trend from a Supply or Demand Level doesn’t suggest to trade counter the trend. This makes sense in a large retracing back and then in a price correction.
This is something important. Even if later the price will change the trend, it is a high-risk practice. The reason is that we never know what will happen, so we have no certain. Instead, we know only the statistic price action behavior that repeats itself:
- The unbalance pushes the price from a level marking a long tail.
- It retraces back to a new and fresh level, covering the “first half” of the spike (usually a long tail).
- Then, later the price continues the trend with a strong momentum.
Of course, if the price has already broken the trend, the Trading Scenario is different. Then, Successful Forex Traders will think and work in a different way.
6 – Uncertainty after the Breaking of the Trend
If the price breaks a trend but a small range traps the price, it is better to skip to trade. Small Supply and Demand Level that are close together can trap the price.
In this Trading Scenario, usually the price moved not enough over or under the trend. Then, the price range shows a choppy chart. This kind of Trading Scenario is risky and more time the price spend in the range, higher becomes the risk.
In this case, the best practice is to wait for a spike.
When the price will go far away from a price range of uncertainty, it will offer new Trading Opportunities.
The Trading Scenario will show a real changing and Successful Forex Traders will have clear Trading Opportunities under eyes.
7 – Considerable pushing after the Breaking of the Trend
If the price breaks a trend, it marks a new Supply or Demand that push the price far away. This opens the Trading Scenario to favorable opportunities in the retracing back.
If the momentum is strong the price could take out at least one opposite Supply or Demand Level.
In this contest, it is usual to see also an engulf candlestick pattern with the breaking of the trend. It can happen also at the end of the momentum when the price converges and the retracing back begins.
The retracing back marks new and fresh Supply or Demand Levels. Considering that the price had a spike, the retracing back will converge to those levels. Then, it will be possible to trade for the change of the trend.
8 – Breaking of the Trend and Rotation Framework
When the price converges to a Supply or Demand Level, later it could break the trend. The convergence could mark a step of a Rotation Framework.
If the Rotation Framework takes a long-term, it is not discussed in this tip.
But, the Trading Framework can break the trend without a consistent movement. In this specific case, the price doesn’t go far away from the trend. This means that the trend breaking is uncertain and then it shows a risky scenario.
So, the best thing to do is to avoid orders to trade counter the trend in the retracing back. Or better, the best thing is to don’t trade.
In any case, the price action has marked a pivot in the convergence. So, if the price will spike again, converging to the next level, it will mark a highest or lowest pivot. This has a particular relevance if the next level is close to the previous one.
With these 2 peaks, Successful Forex Traders can recognize a Rotation Framework. They are the First Steps of a Trading Framework for the Changing of the Trend.
So, from the highest pivot or lowest pivot the price will turn again. Later it will retrace back converging to a new and fresh level. This will be the last step of the Framework and it is where the new trend begins.
The last step of any Trading Rotation Framework gives a solid Trading opportunity. It offers a low-risk entry and the largest reward possible for that Trading Scenario.
Successful Forex Traders can take at least 2 trades within this Framework. The First in the highest pivot or lowest pivot, the Second in the last step of the framework.
9 – Convergence after a Spike in a Parabolic Rotation
A convergence after a spike happens usually when the price goes far away from its normal trend. In practice, there is an acceleration in the price progression, always staying in trend.
The price could run the last spike of a parabolic behavior converging to a strong Supply or Demand Level.
The price convergence with the strong level will push the price back for a quick price correction. It is a pullback, where the big orders push back the price trying to approach to the normal trend. The pushing can mark a long tail in the Chart.
Later the price will retrace back to a new a fresh level. This is a statistic behavior and it happens for the most of the cases. So, Successful Forex Traders can recognize a Framework in the Parabolic Behavior.
The convergence gives 2 good entries to Sell high or Buy low, in the last 2 steps of the Framework.
The risk is that the price could swing around the level where the price converged. When this happens, it is possible to get 3 swings in a triangle. Later, the price could continue the trend so as break the trend offering new trades.
A Parabolic Rotation Framework can pay well, but it carries also a particular risk.
The risk comes because the Rotation Framework doesn’t begin with the breaking of a Trend.
Indeed, when we trade the convergence the price is still in trend. In the same way, going to trade later the retracing back, the price could be still in trend. So, be careful with this beautiful Price Behavior.
The students of Profiting.Me have a lot of details about the Rotation Frameworks that I use with high frequency.
Convergences with strong levels offer the best opportunities. They are the best even if the trade could take time before to realize the profit.
With the breaking of a trend, a price consolidation begins. It doesn’t mean that the price is changing the trend, the price action could also become uncertain.
Sometimes the price can mark a new peak to continue the trend. Other times it can turn and break the trend.
But if the price action becomes choppy there is no sense to invest in that uncertainty.
Trading is a job of patience and Successful Forex Traders know this. When we take the lowest risk entry, it could be the highest or the lowest in the Trading Scenario. This means that the trade can take time (days) before to see it in run according to our Trading Plan.
With the lowest risk entries is possible to see a price consolidation for a lot of time. The waiting for the end of this consolidation can seem tedious and sometimes it takes weeks. So, we can take a lower profit and move forward. This happens because we lose the patience seeing a persistent uncertainty in the chart. This is a problem that affects everybody, Successful Forex Traders so as newbies. It happens more times that what would be acceptable for us.
I love my Forex Trader Career. It is my Forex Trader Lifestyle. But when people ask “how to make money in the Forex market”, I think that they ask the wrong question. Before of this question, they should ask themselves if they are ready for the struggle and for the hard work.
So now, let me ask you:
- Which of these Trading Tricks and Tips do you recognize and use in your Trading Practice?