Day Trading Forex Live - Live Trading Room Commercial Member Joined Nov 2007 953 Posts Lately Ive been getting quite a few questions as to the strategys used in our live forex trading room and about the room in general. And I would like to very briefly give a overview of some strategies used and why the room is different from what you see often in the form of forex education. This will not be an in depth explanation of the techniques used to day trade in the room, because I intend to do that one part at a time. After reading this post in full if you relate to a lot of what I say go ahead and take our completely Free 10 Day Trial . First and foremost lets discuss a well known fact about those that enter the forex market. 95 of all traders will lose money, get discouraged, and walk away with a loss. Why does it have to be like this Quite frankly it doesnt You choose your own destiny, you choose your fate in this market like everyone else You can choose to pay for an education or you can choose to go the route 95 of all traders take and let the market take your money due to a lack of education. Sadly most will take the second option, and in fact I did as well when I first entered this market. After a year of losses and 10K later I decided I WAS going to be a forex trader no matter what it took. I then started buying every educational package, indicator, black box system and everything else I could get my hands on. After years of taking what worked from my education and tossing aside what did I finally had something I could day trade the forex market with and make money. and more importantly consistently. Lets also mention another fact that is common among that 95 of all forex traders. Is it not true that most all systems you see include indicators of some sort And most people use those same indicators with the same results over and over with negative results. WHY. Indicators are quite simply just a pretty representation of what the price has already shown you, so if you can learn to read raw price data youll be ahead of the curve. So why dont more people use raw price movement to trade this market, its very simple. most if not all services in this market dont teach it. You have to wade your way threw so much BS often times youll never find people teaching trading from strictly from price. The sad part is once you see it done live it just starts to pop out at you, its so simple but yet effective. If your tired of the same strategy with a different pretty wrapper on it then I think its time to check out what professionals use. I mean let be realistic, do you think bank traders are sitting there behind their big desk with some perfect combination of indicators and thats how they make all that money So why do retail traders try to make that work Without a doubt its because thats what the masses teach and that is why the masses (95 of all retail traders) will walk away from this market never realizing their own potential as a trader. If you would like you can test drive the Free 10 Day Trial at no risk to you. At the very least you will walk away learning something at no cost to you. In addition to what we push the most, a proper education, youll be able to see how the profitability of the education yourself through our live trade calls. I hope to see you in the room, and happy trading Founder of Day Trading Forex Live Commercial Member Joined Nov 2007 953 Posts Often times candles and candle patterns are used to signal the reversal of a trend. On the other hand we have all heard the say quotthe trend is your friendquot. Those two points contradict each other do they not So then how do you use candles with the trend A very simple way of using candles with the trend is waiting for a retracement against the trend and then a reversal candle at the end of that retracement. As an example, say the market is trending down, you then have a few positive candles forming a nice retracement into an area of resistance. If the candle that hits that resistance forms a reversal candle or candle pattern, you now have a better chance for profit. Why Simply put you now have the overall trend in your favor, you got a retracement which allows for a tighter stop, there was a reversal candle at the end of the retracement, and it retraced into an area of resistance or support depending on the direction of the overall trend. This strategy can be used on any time frame you like but does take time to master and perfect. Ive also made a video that clearly illustrates this strategy so that you can actually see it live. Attached Image (click to enlarge) Commercial Member Joined Nov 2007 953 Posts With negative day trades as well as positive day trades you can gather a lot of information by looking at the results. Trade 1 - Following the 2AM open the GBPUSD continued to sell off. As expected there was a retracement during the normal London reversal time. Immediately following the 3AM London open was 2 beautiful reversal candles. After the break of the low of these candles we went short. With an initial stop of 20 pips, we got hit by 1 pip only to see the market turn. Some with smaller spreads and on different brokers survived this and managed to make some money on it with the original take profit. Following the reversal candle setup there was no immediate move down. If there is no follow through in the direction you are trading within 2 candles of the reversal candle its often better to get out. Given the first run down and the classic shooting star reversal candle I broke this rule and thus missed out on getting in a bit higher. No doubt you will have losses but learning something from the losses is key to not repeating them Trade 2 - At 10AM today new home sales came out much worse than expected. Normally this would move the GBPUSD up and head towards USD weakness. With the Yen crosses selling off on this release the first initial reaction followed them on the GBPUSD and EURUSD. Seeing this we went long after the price on the GBPUSD reached support and started to work up. On the same 5M candle we entered, we closed the first half for 30 pips and unfortunately the second half was closed at break even. We expected more follow through right away but none the less a profitable scalping setup. Attached Image (click to enlarge) Commercial Member Joined Nov 2007 953 Posts Reflect for a minute about your goals in the forex market Do you want to become a full time day trader, swing trader, or position trader Do you want to simply supplicate your current income Are you after the freedom this market could give you Do you want to provide a better life for your family No matter what has drawn you to the forex market, in order to achieve your dreams you need long term overall profitability. You know that you cant make all your visions come true with one good month, quite simply it takes time. This is not a get rich quick scheme, it a long term business opportunity and needs to viewed as such. If you had to guess why most new traders to this market meet their demise so fast what would say No doubt they lack discipline, patience, knowledge, and the list continues. While all the above is true, ultimately poor, very high risk money management is the number one reason new traders wipe out there account. You see you can lose over and over and still not wipe out your account if you use the correct money management. While learning this market, and learning your winloss ratio you need to control losses. After you have statistics such as winloss and riskreward on your trades overall you can then set a higher risk per trade to fit your method. There is no hurry here and patience is key. You will make money slower but this market will be here. its not going anywhere. I have another article here that talks about proper money management, it also goes over risk, and rationalizes on why this is so important to making profitable trades in general. I hope it helps Founder of Day Trading Forex Live Commercial Member Joined Nov 2007 953 Posts Here is a great example of a chart pattern (1) confirming the short term trend in the GBPUSD and then a pullback to the previous resistance now acting as support (The blue arrow indicating the candle talked about on the pullback). As you can see previous to our entry the symmetrical triangle (1) showed the market was short term bullish on the Pound. When the market retraced to this area of support a nice hammer reversal candle formed giving us 3 key factors. (candle marked by the blue arrow) 1.) The market showed us its short term direction with the break higher. 2.) The market then pulled back against the trend into an area of support. 3.) At that support there was a reversal candle formation confirming potential trend continuation. We placed a buy order above this candle and went long from 1.5015 After the market gave us 30 pips we closed half and we are currently still in the trade looking for 1.5145 for the final half with the stop loss at break even. A few days ago I made an article outlining this exact strategy. Its called Forex Entry Signals For Day Trading - When To Enter It is the second article down and the chart to support the article is just above it at the bottom of the first article on the page. You will also notice on the chart 2 great chart patterns often used in our trading room. The first is a great symmetrical triangle (1) and the second is a great ascending triangle (2). Both would have proved to have been great entries on the breakout. In both cases the breakout is confirmed once not only the upper trendline is broken but also the previous highs, which are marked with black lines showing the entries. Attached Image (click to enlarge) Commercial Member Joined Nov 2007 953 Posts Great daily hammer candle formation closing on the GBPUSD. Also to be noted is the large doji on the weekly chart from the previous week. The two together is a recipe for the pound to continue to head up through the end of the week. We will have to wait and see but for now looking good. Also, we are still long from 1.3610 on the EURUSD from earlier this morning during the NY session. Tuesday on the Euro closed similar to the way the Pound is closing today, namely a large daily reversal setup. The Euro followed through to the upside and the GU should as well. Here is a chart of the GBPUSD daily setup attached below and also here is a link to a chart I posted on the site going into the EURUSD trade setup we took in the live day trading room earlier. Attached Image (click to enlarge) Commercial Member Joined Nov 2007 953 Posts Have you ever been in a position, you know its the right direction, you place an intelligent stop, but then what happens The market moves quickly against you, stops you out by a few pips and then shoots back in the direction of your original trade. Why does this happen and what does it mean Well first of all what does this mean. We the retail trader know that even in masses we cannot move the market. So if we see a move like that what should it tell you quotSmart Moneyquot is creating the move. And while we cant create the moves we can sure jump on when we see it starting. So why would they create moves like this. Its quite simple quotsupply and demandquot They know that by running the price past a previous major SR level or previous swing highlow their running price into an area of huge supply (stops getting hitpeople playing a breakout) and thus they buy all the supply, get a great price and the market moves back in the direction of your original trade. usually in a big way. So how can you day trade profitably off this setup I call the stop run reversal Well I made a video that goes over a few trades and how you can take advantage of this powerful move in your own trading. Hope you like the video Founder of Day Trading Forex Live Commercial Member Joined Nov 2007 953 Posts The basic fundamental makeup of any down trend is lower lows and lower highs, and for an uptrend you will see consecutive higher highs and higher lows. This is a pretty standard definition of a trend and is something that is well known to most if not all that are day trading in the forex market. When trading, being able to recognize the first breakdown of this chart pattern gives you the edge and gives the the trader the opportunity to potentially catch a trend reversal setup. Trend reversals are powerful for many reason but lets just focus on one reason. They give you a great riskreward entry signal. which benifits your overall money management. By placing your stop just below the lows or above the highs depending on the trade setup you have a very tight stop location, and if the trend does indeed reverse at that point the profit potential can be among the highest of all trade setups. Below is a link to a video illustrating a trade strategy that can be used as a trend reversal setup or at the topbottom of a retracement as a way to determine that the reversal is over and the overall trend is going to continue. This video applies the reversal strategy to forex day trading but it can be applied to swing trading, as well as position trading because the fundamental makeup of the trade strategy holds true for all time frames in the forex market, or any other free floating market for that matter. I hope you enjoy the strategy video and find it useful in your own trading Founder of Day Trading Forex Live Commercial Member Joined Nov 2007 953 Posts At first we were just going to be running a seminar for members and then doing some question and answers at the end but last minute we decided to open it up to everyone. Im going to be going over a few strategies we use in the room a bit more in depth and looking back at some trades we took live this month that illustrate the strategies clearly. This is more of a casual type of event where Im just going to be putting ideas out there and answering questions about how I trade. Additionally I will be giving away a stand alone forex system that will help anyone, especially those new to the forex market jump start their trading When you click the link below and enter the password you will be asked for a name, this is just the name displayed in the room so feel free to use a fake screen name. In fact we will be taking no personal information here, not your name, email, nothing. As I said casual education for free. The only thing I ask in return for our time and all the energy put into this is that you spread the word and the link to your personal trading buddies and ask them to do the same and that will be payment enough to us. We are many working toward one goal and I know the information will be of use to you. The seminar is tomorrow Sunday the 28th at 6PM Eastern. The easiest way to get in the room is to copy the password below, then click on the link and paste the password in once the room pops up. We look forward to seeing you there PASSWORD TO THE LINK ABOVE: daytradingtrial337 Founder of Day Trading Forex Live Commercial Member Joined Nov 2007 953 Posts Hi all Today in about 2 hours our day trading forex seminar will begin We will be going over how I go about the start of each trading day, specific strategies that I use, as well as a complete stand alone system that you can use to jump start your trading career. Once again this is all free and you dont even have to enter an email address to get in the room simply follow the link below. At the end of there will also be an open question and answer portion where you can ask me any trading related questions that you might have. I have been trading full time for years and this is your opportunity to get any questions answered that you might have The seminar is today, Sunday the 28th at 6PM Eastern. The easiest way to get in the room is to copy the password below, then click on the link and paste the password in once the room pops up. We look forward to seeing you there PASSWORD TO THE LINK ABOVE: daytradingtrial337 Founder of Day Trading Forex Live Commercial Member Joined Nov 2007 953 Posts I would personally like to thank everyone in our live trading room for creating a great community of traders Overall for the month we had a great month and closed the month with a 28 gain. I hope you all are enjoying the articles and continued education. I look forward to continuing to work with all of you in the room and having another great month in April Anyway here is another article I made about trend lines. Trading trend line can be a very lucrative way of trading, due to their reliability when traded properly. Here is an article pointing to 5 tips on trading them. Founder of Day Trading Forex Live Members must have at least 1 vouchers to post in this thread. 0 traders viewing now Forex Factoryreg is a registered trademark. DayTradingForexLive (Sterling Suhr) Review Visit site I did some courses and webinar groups back in 2007-2011 which had a lot of good stuff but I could never manage to stop losing and ended up giving up on trading anything including options and Forex due to basically being left feeling ripped off and used. Trading sux. Ya know But after a few years break I had a sudden urge in mid 2014 to get back into it feeling there was more to explore so I googled a bit and stumbled on DTFL reviews. It looked worth a try so I paid what seemed to be a very reasonable one time payment of a few hundred dollars no more to pay. I would make a fortune this time. How is it Well its been about a year and I feel I owe them a positive review. - Four webinars per week. New York and London so anyone can attend at least one or two. Chad and Ster have different styles too so you can learn both or one or whatever you wish. and they both work in all trading sessions. The webinars are the best time to learn as you can see live trades taken and join in and ask as many questions as you want. - Daily market reviews in video and also text format. Total transparency here as the trading levels and methods are all predetermined so you could go through them and work out whether the month would have been profitable or not. These are all saved on the website too. - Support. If you have a question out of webinar time just send an email and one of them will take the time to answer in great detail to anything you need to know. Its good to send a picture of your trade and theyll look at it to see if youre doing anything wrong etc. - Friendly company. The live rooms are filled with good energy where you are part of a whole working together for success. - The site has a forum full of anything you would want and a chat box where members talk about setups as they happen. - Learn how the market is manipulated and how to take the other side and trade higher probability trades after the manipulation has occured. - Purchase Value. Anyone who wants to make income from Forex should be able to afford this kind of money so the membership price is great. A weeks wage perhaps for the average person. Youd think there would be hidden fees or back-end products but there are none. Downsides If you consider having to study and attend and learn it takes time. Say around a month for the more mechanical method and a few months to be able to take real money trades with the more diverse method. Smaller time frames such as 15 minute charts meaning you need to spend a couple of hours a day might not be your cup of tea. Overall, highly recommended. Im sure its rare to find such thing. Top group of people and mentors with a sense of humor who make a living from Forex and will give you all the support one would need to be profitable. The rest is up to youDayTradingForexLive (Sterling Suhr) Review Visit site I did some courses and webinar groups back in 2007-2011 which had a lot of good stuff but I could never manage to stop losing and ended up giving up on trading anything including options and Forex due to basically being left feeling ripped off and used. Trading sux. Ya know But after a few years break I had a sudden urge in mid 2014 to get back into it feeling there was more to explore so I googled a bit and stumbled on DTFL reviews. It looked worth a try so I paid what seemed to be a very reasonable one time payment of a few hundred dollars no more to pay. I would make a fortune this time. How is it Well its been about a year and I feel I owe them a positive review. - Four webinars per week. New York and London so anyone can attend at least one or two. Chad and Ster have different styles too so you can learn both or one or whatever you wish. and they both work in all trading sessions. The webinars are the best time to learn as you can see live trades taken and join in and ask as many questions as you want. - Daily market reviews in video and also text format. Total transparency here as the trading levels and methods are all predetermined so you could go through them and work out whether the month would have been profitable or not. These are all saved on the website too. - Support. If you have a question out of webinar time just send an email and one of them will take the time to answer in great detail to anything you need to know. Its good to send a picture of your trade and theyll look at it to see if youre doing anything wrong etc. - Friendly company. The live rooms are filled with good energy where you are part of a whole working together for success. - The site has a forum full of anything you would want and a chat box where members talk about setups as they happen. - Learn how the market is manipulated and how to take the other side and trade higher probability trades after the manipulation has occured. - Purchase Value. Anyone who wants to make income from Forex should be able to afford this kind of money so the membership price is great. A weeks wage perhaps for the average person. Youd think there would be hidden fees or back-end products but there are none. Downsides If you consider having to study and attend and learn it takes time. Say around a month for the more mechanical method and a few months to be able to take real money trades with the more diverse method. Smaller time frames such as 15 minute charts meaning you need to spend a couple of hours a day might not be your cup of tea. Overall, highly recommended. Im sure its rare to find such thing. Top group of people and mentors with a sense of humor who make a living from Forex and will give you all the support one would need to be profitable. The rest is up to youHow to Trade Short-Term (Day-Trade) While short-term trading is attractive, it can also be dangerous. Short-term traders will often exercise poor risk management, and this can have very negative consequences. We share a strategy that can be used to trade short-term momentum with a focus on risk. For every 10 traders that come to markets, at least 7 of them want to lsquoday-trade, rsquo or as we call it in the forex market, lsquoscalp. rsquo Even though many of these traders are still learning the market or are very new to trading, they know they want to embark on short-term trading. The rationale behind this desire makes sense. After all, for most things in life the biggest rewards are for the hardest workers those exhibiting the utmost of control and discipline long enough to properly implement their plan or strategy. But trading is much different in the fact that this lsquogreater controlrsquo that might be offered by short-term time frames introduces other, more difficult variables into the equation of a traderrsquos success. By using a very short-term chart, traders expose themselves even more to the t op trading mistake. or t he number one mistake that forex traders make. Many of the reasons that traders lose money become even more difficult to contend with when lsquoscalpingrsquo or lsquoday-trading. rsquo And if these traders are making other mistakes, such as using too much leverage or inappropriate strategy selection that top trading mistake can become even more problematic. So, first and foremost before we get into the process of short-term trading, I want to specify that this is often the most difficult way for new traders to get started. Preferably, new traders will start with longer-term charts and approaches that may be more forgiving, and as they gain experience and comfort they can then elect to move into faster time frames. The Biggest Challenge of Short-Term Trading The biggest challenge of short-term trading is the same as the top trading mistake. Too few traders looking to scalp actually do so correctly, under the incorrect presumption that trading on really short-term charts gives them enough control to trade without stops While keeping your finger on the trigger may give you more control, it means absolutely nothing if prices gap against your position or if a really big piece of news comes out that completely de-rails your trading plan. So, even though you may be watching price action on a five or fifteen-minute chart, protective stops are still needed. Further to this point, traders need to be able to focus on winning more when they are right than they lose when they are wrong. This can be a huge challenge on really short-term charts where near-term price movements are unpredictable. But itrsquos not impossible. In this strategy, Irsquoll attempt to show you a way to do this. An additional concern is variance. Per statistical analysis, the less information that is being analyzed in a data set, the less lsquoreliablersquo that information becomes. If wersquore looking at longer-term charts, such as the daily or the weekly charts, quite a bit of information is going into the formation of each individual candle. On a very short-term chart, the opposite is true. Significantly less information goes into each candle, and thereby each candle is less reliable as a forecast of future candle formations. With all of the above being said, trading on short-term charts is still possible. It just requires that traders utilize even more control and discipline over their trading approaches and risk management. For new traders that often struggle with risk management, or staying disciplined the results can be disastrous. But if those boxes are checked, traders can look to exert the upmost of control over their approach with shorter time frames. But just because wersquore trading on shorter-term charts, does that mean we want the entirety of our analysis to be performed on those time frames Absolutely not. We can still incorporate analysis from longer time frames into our approaches in an effort to get the best probabilities of success. The first step in the strategy is to add two moving averages based on the hourly chart. Most modern charting packages can offer the ability to build an indicator on a longer time frame. The indicators that I add are the 8 and 34 period exponential moving averages, based on the hourly chart but plotted on the 5-minute chart (shown below). Multiple time frame analysis can help traders see the lsquobigger picturersquo Created prepared by James Stanley These indicators act as a compass for the strategy, helping to see whatrsquos taking place with a longer-term time horizon. If the faster 8 period moving average (based on the hourly chart) is above the slower 34 period moving average (also based on the hourly chart), then the strategy is looking to go long, and to only go long. As long as the hourly 8 period EMA is above the hourly 34 period EMA, only buy positions are entertained. The hourly moving averages work like a compass, showing traders which direction to trade the trend Created prepared by James Stanley Once the trend has been identified, and the bias has been obtained, the trader can then look for entries in the direction of that trend looking for momentum to continue on the 5-minute chart as it has been displayed by our hourly-moving averages. And when looking to buy, we ideally want to lsquobuy lowrsquo or lsquosell high. rsquo So, just because the trend is up and wersquore looking to buy, it doesnrsquot mean we want to blindly do so. We still need a lsquotriggerrsquo for the position, and for this, we can incorporate another exponential moving average. The trigger for this strategy is another 8 period exponential moving average, but this one is built on the shorter-term five-minute chart. When price crosses the 8-period five-minute EMA in the direction of the trend, the trader can look to buy in anticipation of the lsquobigger-picturersquo trend coming back in force. The lsquotriggerrsquo in the strategy is when price crosses the 8-period five-minute EMA in the direction of the trend Created prepared by James Stanley The large benefit behind the strategy is that just by the very act of price moving in the trend-side direction over the shorter-term EMA, traders are buying or selling short-term retracements in the direction of the momentum. The most attractive part of the strategy is that it allows for traders to lsquobuy cheaplyrsquo in anticipation of bullish momentum, or to lsquosell expensivelyrsquo in anticipation of bearish momentum. When prices make those short-term retracements, they create swings in price action. And per price action logic, of up-trends making lsquohigher-highsrsquo and lsquohigher-lows, rsquo traders can look to place the stop for their long position below the previous lsquohigher-lowrsquo so that if the up-trend doesnrsquot continue ndash the trader can exit the position for a minimal loss. Stops for long positions go below the prior periodrsquos opposing-side swing Created prepared by James Stanley In the case of short positions, traders would want to look to place stops for short positions above the previous lsquolower-high, rsquo so that if the down-trend does not continue, the short position could be closed in an effort of mitigating the damage as much as possible. If momentum does continue in the trend-side direction, the trader could be in a very attractive position as prices continue to move in their favor. If the trend does continue, should the trader just sit on their limit order and wait for the sound of the cash register to lsquocha-chingrsquo No way. When trading on short-term charts, things can change VERY quickly, and itrsquos the day-traderrsquos job to manage that risk. When the position gets in the money by the amount of the initial stop (a 1-to-1 risk-to-reward ratio), the trader can look to move the stop to break-even so that, worst-case scenario should prices and momentum reverse, the trader puts themselves in a position to avoid taking a loss. At this point, the trader can also begin lsquoscaling outrsquo of the position. Since a 1-to-1 risk-to-reward has been realized and should momentum continue in the trend-side direction, the trader stands to profit considerably more. As prices continue in the direction of the traderrsquos position, additional pieces of the trade can be closed or lsquoscaled outrsquo as prices move in their favor. The goal is to get the lsquoaverage outrsquo from the strategy as large as possible, and if momentum is to continue, this strategy can allow the trader to do just that. After the stop has been moved to break-even, and the initial risk is removed from the position traders can even look to add-to the trade with new positions or new lots in an attempt to build a larger position with a significantly smaller amount of risk. --- Written by James Stanley Before employing any of the mentioned methods, traders should first test on a demo account. The demo account is free and can be a phenomenal testing ground for new strategies and methods. James is available on Twitter JStanleyFX To join James Stanleyrsquos distribution list, please click here. Would you like to enhance your FX Education DailyFX has recently launched DailyFX University which is completely free to any and all traders DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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