The Authority’ on Price Action Trading. The truth about forex trading secrets 2016, Nial won the Million Dollar Trader Competition. PICK ONE trading method and keep it clean and simple. Don’t go wasting time trying to make sense of 15 indicators plastered all over your charts like a piece of abstract art.
The truth about trading strategies is that finding one that gives you a high-probability edge in the market is not that difficult. But if you over-complicate it and confuse yourself in the process, you are going to do a great deal of harm to your trading account. REALLY master it before moving on. For example, say you choose to learn the pin bar setup first, the best way to learn this setup is to trade it from key levels within the structure of a trending market, do that first, and make sure you are consistently profitable for 3 months or more trading only that strategy before moving on.
ANTICIPATE your trades and follow some kind of written plan. MAKE A DIARY OF YOUR TRADES to keep a written on-going track record of your progress. I cannot tell you guys with enough emphasis how important your trading journal track-record is, except to say that if you don’t keep a trading journal or at least regularly analyze your trading history and equity curve, you are extremely unlikely to ever make consistent money in the markets. The actual process of updating your forex trading journal will help you stay disciplined and organized. This is part of developing the positive trading habits that are so crucial to becoming a long-term profitable trader.
DON’T GET GREEDY or you will never make a profit. Greed is perhaps the most prevalent reason why most traders fail. Exiting is not an exact science, and there are times when deviating from your initial exit plan makes sense, but you should always decide before you enter a trade what your ideal exit strategy is and then try to stick to that plan as much as possible. What I mean by this is entering a trade and then the market starts to move against you immediately, do you move your stop further away from the market price, or do you hold it in place? Obviously, the only logical course of action is to accept your loss and hold your stop where you pre-defined it, yet many traders email me saying they have moved their stop away and now have a very big open loss they don’t know what to do with. If you have a nice 1:2 risk reward profit and there is no obvious reason to try and trail your stop, then by all means take the profit!
Don’t just leave a trade open because you are mesmerized by the potential for the market to move further in your favor. I only attempt trailing my stop if my trade is up about 1. 5 times my risk and I am in a runaway trend or a strong breakout move that clearly has potential to keep going. Don’t start moving your stop up just because the trade pops in your favor the first 10 minutes you enter. Give the trade some room to grow and breath. Trading is like a garden, you have to give it time to grow to taste its fruit. I like to think of hope as the catalyst for greed.