7 Forex Trading Tips and Tricks (Become a Better Trader Overnight)

7 Forex Trading Tips and Tricks (Become a Better Trader Overnight)

Hey hey what's up my friend so in this article I want to share with you seven of my best trading tips right that will improve your trading results so keep watching okay so the first forex trading tip that I have for you is number one enter your treats near market structure so let me share with you how not to do it right so firstly right often traders will look at a chat right so let's say for example the rate 1 here is your stop loss the green one is your entry point and blue one is your so-called tick profit level so traders they would see this chat and they say oh man price is you know coming down lower and lower let me know hop on what before I know I miss the move so they go long in the green area right half their stop-loss at the red level no which is a distance away from the highs and then they target at the nearest swing low right that is a very common thing that you know traders would do but when you look at it from a risk to reward perspective right you can see there you're in fact risking this much you're risking this much to make this much right I would say risking up a dollar to make like 40 cents right so really right if you want to improve your risk to reward right you want to trade near market structure which is this example that I want to share with you this one over here is much better because if you look at it now right your stop loss level is at the same level your tick profit level is at the same level over here as well the only difference is now you're entering at a much favorable trade location you're entering a market structure in this case near resistance right you won't necessarily go short right because you might want to wait for a reversal candlestick pattern like a shooting star a bearish engulfing pattern before you kosher so perhaps the price may come up higher and then get smacked down lower and close lower so from here you can see that no from a risk to reward standpoint let's say you know it closes lower you enter somewhere here your stop-loss is still at this level all right let me just remove some line trail let's see what happens now is that you know you're not going to use a sell limit order you let the price go up and then come down and close the lower somewhere you so your entry now be somewhere here and your stop-loss is now here now this is your risk and your reward is now from your entry point to your target profit so now you can see that you are risking a dollar to maybe make a dollar fifty or even two dollars alright your risk to reward has been improved just because you are trading near market structures so that is what I mean by number one right you wanna trade near market structure to improve your risk to reward on your tree alright so that's the first tip I have for you the second tip is this right is that you wanna trade breakups with build up so what is built up right let me explain for those of you who have been following me for a while now you already a pro at this so a build up simply means write a tight consolidation where the range of the candles gets smaller and smaller so you can see that over here this blue box this is what we call a build-up over here this over here is a sign of strength cause if you think about this right price and resistance it usually would have selling pressure right traders looking to short resistance like for example in the previous example right I said that no traders might want to consider shorting a resistance in your market structure now what happens is if after you know ten candles 1520 candles the price is still hovering at resistance what does it tell you well it tells you that the selling pressure it's unable to push price lower that's because there are traders are willing to buy and this higher prices that is why the price can go down right so this is a sign of strength because you know the price is still hovering a resistance right buyers are willing to buy these higher prices willing to buy in front of resistance because they have the expectation that the price will break out all right so this is a sign of strength whenever you see the price make forming a build up okay a build up over here just prior to the breakout this is a sign of strength at a market is likely to break up higher another variation of this right is what we call higher loss into resistance this is a sign of strength as well notice you see higher lows higher lows higher lows higher lows into resistance the concept is somewhat similar to the build up but this time around is telling you that buyers are willing to buy at this higher prices that is why you see higher lows into resistance right so this is also another sign of strength right and this is the tip for you the fourth tip that I want to share with you is what I call the first pullback so often right the price it can break up and if it breaks down right you might have missed the move right if you didn't catch the break up but don't worry because more often than not right the price will give you a chance to re-enter to catch the trend so in this case you can use the first pullback technique that I'm about to share with you so you can see that over here the price it did break out okay so those of you who missed the move don't worry because over here the market offered you are an opportunity to get long right by forming somewhat of a a bull flag pattern so what it can do is to treat the first pullback the price does break above this swing high you can look to get long right and possibly have your stop-loss you know just a distance away from this low maybe somewhere over here right a buffer away from this swing low so this is what I mean by the first pullback so don't worry you know if you miss the breakout rates right there's always opportunity I mean there's a good chance that you can get opportunity to hop on bought and catch the train alright so that's the fourth tip for you the first pullback the fifth thing that I want to share with you is to set your stop loss right away from market structure because often what traders do is that say let's say the market is in a range okay they go long right price hits up higher they go long over here where do they put a stop loss they put a stop loss just below this level of support and what happens well the market could just as well to not come down lower trigger your stop-loss ending continue higher so this is why right you don't want to put your stop-loss just below support or just above resistance it's like asking the market you know come my stop-loss so I take my money it's free just stuff it down your truth you don't want that so what you want to do is to set your stop loss right a distance away from market structure so how do you do that very simple you can see over here at this example the market here is someone in a range all right traders can see that you know it uh it is at an area of support right price tested once twice thrice right then it you know four times okay so we can see that now this candle over here this low has pretty much taken out this lows over here this lows over here this loss and this loss over here so this one candle has pretty much wiped up all the stop-loss right the cluster of stop-loss below this area so this is why I say you know you wanna set your stop loss right a distance away from market structure how do you do this is very simple you firstly you can use just your eyeball just eyeball the chat and see okay let me just give it some distance from you know from here to here I'll set my stop-loss somewhere here right that's what you can do alternatively you can use an indicator like the average true range right what it does instead it measures the volatility of the market pull out this indicator you'll give you a value call it X right so what it pick is the value of x right you can click what is this low right and then minus it by X so if the the value lets is the market price level at support is hundred dollars and let's say X is ten dollars right you put your support at ninety bucks pretty simple right so that is how you actually protect yourself right from getting stopped hunted all right so this is the fifth tip that I want to share with you set your stops away from market structure the sixth tip that I wanna share with you is a entry technique right to profit from traders who long break up and then B go trap here's how it works so this is what I call the Falls break setup so you can see it over here area of resistance resistance market broke out of resistance on this candle you can imagine right it actually at one point in time this candle was looking bullish something like this okay sorry let me just redraw this looking bullish something like this the market has not closed yet any halfway right troll a day right the sellers to control push price lower and finally right it closed like this it closed like this so this is why you got this candle over here this can over here it's pretty much this can no over here so at one point in time I was actually looking very bullish my buyers are in control traders pile on the breakout let's go along rise going to the moon and then suddenly reverse and closed lower over here so you can see that the psychology of the markets now what's happened is that breakout traders who are long and now track right because they buy the breakout in a market does 180 degree reefer so they are now trapped and if you think about this right where did the breakout traders put your stop-loss chances are they put estamos maybe below this low here or even here for those of them who are really really conservative so what you can expect is that if the market right the price were to continue lower it's gonna hit this stop others these sell stop orders which is the stop-loss orders of the breakout traders and you would induce a further selling pressure so this is why you can expect the market to continue lower it's not guaranteed right but it's a good chance that you will continue nor after this a false brick price pattern so we can use this our false break right as an entry trigger to you know get on bought trends you know time your poo bags and stuff like that it's very useful and tree technique to use and that is a psychology behind the false brick setup and the last tip that I want to share with you is this right use limit order for a better reason to reward on your traits so let me share with you an example so you can see over here alright this is a chart of euro yen for our time frame how do I know that because it's it's over here okay so this is a very typical setup that traders would treat prices at a area of support right coming through an area of support right now this step you test at once twice you can pretty much muck up your your support level who's gonna be quite obvious and then this bullish reversal candle is so bullish right it's suddenly just the you know massive reversal and close near this highs over here so now if you follow the techniques I'll just share with you you do want to set your stop-loss just below the level of support right you want to set it some buffer way so let's say you put it somewhere here now if this is going to be your stop-loss let's call it s L and this is gonna be your entry you can see that your risk your potential risk on this tree is very large okay you can see that this is the distance of your stop-loss very very large right and if you don't want to trade it and I can understand it because you know if you have a larger stop-loss you have to reduce your position size to you know still have to have a proper risk management right you might not wanna take one to take the trade because the stop-loss is very large so what you can do is to use a limit order to have a title stop-loss and in turn right you can increase your position size on this trait so an example is let me just change this color let's say you decide to use a limb in order and you put it say a limit order somewhere here like you know a Fibonacci level like maybe justic from this swing low to swing high and you identify the 50% level mark just that is where you will enter the treat your new entry is now over here right let's see just is just one of the technique that you use now you what you'll notice that your stop-loss right this distance of it has been reduced right now is this is the distance of your stop-loss alright and from a risk to reward standpoint you have improved on it right instead of you know by near the high it's what you can do is use a limit order get a better price level thereby you know improving your risk to reward on the tree now the downside to this approach is that sometimes the market may not come to the level that you're looking at my especially if you set it at a very low level there's a low probability of it actually coming to that level and you may not get fill and you might miss the move so this is kind of like a balance between where you think the market could possibly go to right and then having a better risk to reward on the trade right and and pretty much you know trying to get overall better return on it right so if you ask me right where do you usually set a limit order a rough guideline is is this right if you want to put it near the market structure where the previous market structure is so in this case so you can see that over here this was the previous market structure this area of support there's a good chance the market could retest it you can set it at this level all right so this to be honest is obviously cherry-pick right so sometimes what you will see is that the this level of support may not be so low it may be somewhere over here let's say somewhere over here okay so I would pretty much put a buy limit order at this support level okay let's imagine it is now this black line has you know move up higher to somewhere this level right I would put a buy limit order at this support level or just before it right and see if I can get feel and get a better price point compared to buy near the highest all right so this is another tip right to you slim in order to improve your risk to reward on your traits okay so just a quick recap right number one you want to enter your treats near market structure because you know overall you get a better risk to reward right number one is because a stop loss is title and we never title stop-loss you can increase your position size and still risk the same 1% of a capital right compared to having a wider stop-loss right you have to decrease your position size to risk that same 1% of your capital number two you want to treat breakouts with built up number three higher lows into resistance is a sign of string number for the for the first pullback right it offers you a chance to catch the trend so often if the market does break up try sometimes it may not retest back previous resistance than support for example what you look for is a trend continuation trait like maybe you know a bullish flag pattern pattern right to create a breakout of the is to get a boat and catch the trend that's the first boob at number five you want to set your stop loss right away from market structure because as I've said earlier you said your stop-loss just below the low he's gonna get triggered very easily so give it some buffer you know can set it 180 are below the lows right for your stop-loss the false bricktini is a chance for you to actually profit from breakup treat traders right so if the price breaks above like sea resistance any reverse and closed lower you know that traders who longer breakouts and now trip and you can actually take advantage of it by going shot by going against yeah their treat direction right and lastly right you can use limit orders to improve your risk to reward on your trade okay so with that said if you've enjoyed right this this video and you want to learn more I would suggest you put onto my website over here trading with Rainer calm right over here I share pretty much trading strategies and techniques right to help you profit in the financial markets right and scroll down little I recommend downloading these two training guides one is called the ultimate trend-following guide right well share with you how you can actually write massive trends in the financial markets and the other one is more of a price action trading how to better time your entries and your exits okay so going to my website download these two books right click this blue button and I'll send it to your email address for free right and that's it right if you've enjoyed this video right leave a thumbs up button yeah right subscribe to my channel and if any questions for me let me know below and I'll do my best to help well that's it I'll talk to you soon