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Profitable Day – How to make sure the trades you take during day forex trading are more likely to make you money? Well, here are a few steps that will help you quickly find the best business opportunities as well as make more money in your business.
Number 1. If you’ve watched our other videos on our Trading Rush channel, you know that we always love to trade against the trend. And as trend traders, what we usually look for is a trend reversal. That is, we are looking for markets to discount. In an uptrend, most would buy at this point. Because no one likes to trade at the peak unless they are trading breakouts. For example, if an apple is on sale every afternoon up to 90% off, many people will buy it during the sale period, right?
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Most trend trading strategies try to give entry signals near this area. If you don’t have a profitable trading strategy, check out our other videos on our Trading Rush channel. Tested 100 times to determine win rate.
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One strategy that worked well after a hundred trials was the crocodile trading strategy. This strategy uses a 200 period moving average to find trends. Because even dogs can easily identify trends with moving averages. Moving averages also act as support and resistance on trading charts, especially the 200 moving average. So, not only is your trade more likely to be profitable, but by adding the 200 Moving Average to your chart, you can ensure that you don’t trade against it.
Another thing you should do to improve your odds is to avoid tables like this. The prices here seem to be messed up. Price action should be easy to read. Otherwise, your indicators will give you a lot of false signals. In this picture, the price is below the moving average and is not flat. The opportunity to make money if you trade on the trend is already quite large, but if the price movement is volatile, your chance to make money on the trade will decrease. Here, the price suddenly creates a large candle and this large candle can easily reach a stop loss. Yes, you can set your stop-loss far away, but you must also set your profit target far away to get a good risk-reward ratio. If the price actually moves in your favor, setting a large stop-loss is not a problem, but when the momentum slows and the price starts to decline, you will get stuck in the trade for a while.
This is very common with low liquidity shares and currency pairs. Also, be very careful as currency pairs and stocks can make sudden movements as they can have large divergence and the buying pressure and selling pressure can be very different. For higher returns on success, we recommend sticking with major currency pairs and bulk stocks.
If you are a beginner, trading the major currency pairs can be very profitable as the price action on these currency pairs is usually smoother and easier to read. Indicators work better too.
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The third thing that can greatly improve your chances of making more money is time. The Forex market is open 24 hours on trading days, but you cannot trade all day. There are various market cycles that play an important role in liquidity. During the Asian session, prices generally move sideways and are less active. Prices tend to make relatively large moves in the London and US sessions. So you will have a better chance of finding better quality trade setups. You may even achieve a higher risk reward ratio in this session. We have already made a detailed video on this topic. Check it out to learn more.
One of the most important things you can do to improve your strategy is to place deals where people are interested in buying and selling. In other words, trade near supply and demand areas. If the price reverses significantly from the price level, it is likely that the price will react back from the price level. Because traders are most likely to buy and sell near that level.
You can draw support and resistance using multiple time frames, and we’ve created a video on how to properly draw strong support and resistance areas. Check it out if you like.
The most important thing you need to make money in day trading is a profitable strategy. Obviously, even if you have a strategy that produces high odds, you should not ignore other signs of a reversal or trend, especially candlestick patterns. Candlestick patterns near support and resistance levels can provide additional information about those levels. For example, if price forms a bullish pattern near a support or resistance level, there is a high probability that the price will reverse or move in the opposite direction in the short term.
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But how do you use all of this in a live market? So let’s take a look at the live market.
Here we can say that this is a great chart for trading. The price is smooth enough and the 200 moving average also suggests a pullback. MACD also provides entry signals. And further analysis of the chart can tell you that this is the best trade setup and the trade will be more likely to make money. You’re not even half wrong. This trade setup screams for you to take short positions, but switch to a higher time frame like 4 hours and you’ll see that the price is close to a strong support area. It can be seen by almost anyone in a higher time zone. In other words, if you take a short position based only on the entry point, there is a high probability that trading will proceed in the opposite direction to entry. The 5 Step Strategy video talks about how to trade multiple time frames. Also check out the video.
Now looking at this chart, we can say that this chart also has a smooth price movement. Also, since the price is above the moving average, it is bullish and the MACD is trying to give an entry signal. And switching to a higher time frame shows that the next strong resistance is far away. Now is the time to act on this weak resistance. When the MACD gives a signal, the price has plenty of room to move up before reaching support. This setup is more likely to make money.
No.2. Avoid trading stocks and currency pairs with low liquidity. If you are a beginner, we recommend that you only trade major currency pairs.
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Number 3. Time is very important in Forex trading. Currency spreads are subject to change and markets can be more or less volatile depending on the market.
4 times. Buying and selling where people are already buying and selling. In other words, trade near support and resistance areas.
5 times. We filter out bad trades using other indicators such as candlestick patterns and multiple time frame analysis.
1000 hours invested in creating the best online free business courses! 1. Price Action series (43 minutes) 2. Trading Foundation series (1 hour) 3. How I made 100% profit in 1 year (2 hours) Watched episode 105 of the Desire To Trade podcast, interview with Kevin Hunt, London session Forex Day Trader. Thanks to location independence, he has been trading with his own funds since 2013.
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What’s impressive about Kevin Hunt’s story is how quickly he was able to get back on track after surrounding himself with traders.
Currently, Kevin runs a trading studio at London’s Price Action Traders Institute with Kim Krompass. He also puts a lot of emphasis on business psychology. Reading the book Trading In The Zone by Mark Douglas (affiliate link) made a big difference in Kevin’s trading career.
We’d appreciate it if you could take a few seconds to leave a review on iTunes or Stitcher. The only way I can improve is through your reviews, so be honest and let me know what you think about the podcast.
Share this! As soon as you enter a trade, there is a 50% chance of being wrong. – @uk2asia Click to Tweet the mentioned resource.
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Kevin Hunt teaches everything he knows as a forex day trader in London at the Price Action Traders Institute (PATI) alongside Kim Krompass.
What is one thing you will implement after listening to this podcast episode? Leave a comment below or join our Facebook group! But one of the most important skills of a profitable day trader that few people talk about is how to adjust your analysis and strategy across multiple time frames.
Many new traders do not understand the big picture of stocks and trade uninformed when trading the day.
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