The Best FX Trading Tip I have for 2019 (Crucial)


So you want to be an astronaut, but you also really love doing heroin well That’s too bad because doesn’t matter how great of an astronaut you could have become because you also loved doing heroin What’s up traders, this is VP and welcome to the very first video in my trading psychology series And it’s also the video where I reveal my best forex trading tip. This is different than my best Forex strategy That’s another video, but this is equally as important so in this video you’re going to learn That tip right here, and I’ve looked Really all over the internet all over YouTube. I have not seen one person Really talk about this, and I’m blown away by that because if you don’t get this right it doesn’t matter what else you do It’s that important, so I’m gonna explain to you Why it’s so important when I first tell you you might not understand but if I kind of lay it out in front of you and Show you what happens when it works You’re gonna get it — you’re gonna understand And you’re gonna be on board with this then because every video has Actionable tips there are three things you can actually do about it right now and as a bonus We’re gonna put together a mini trade management system right here towards the end of this video so stick around for that for sure But I want you to understand that This tip is a method that is used by the top militaries the best fighters in the world champion chess players All of it, and there’s a really good reason why these people are elite There is a reason why they’re at the top of their game And they’re known for that because they didn’t start out that way But they became that over time and they all have one major thing in common and that One thing is my number one Forex tip write this down You need to eliminate the things that are bringing your trading account down Before you go forward before you start learning new things that make it go up You first have to know what to avoid we first need to identify what those things are and this channel does that and then you need to understand how taking them out of your trading toolbox Makes you a much better trader and make sure it count much much better in the long term and honestly the short term – you Can start putting this into action away no now that I’ve revealed this to you. You’re probably a little confused you don’t understand how that’s even really a tip or You know why I can use that right now, but stick around listen to this let’s go back To those professions the soldier the MMA fighter and the chess champion They all had bad habits when they first started Soldiers when they first start when they first joined the military have a ton of bad habits. They’re undisciplined They’re soft They flip out as soon as something doesn’t go their way all of those things cannot happen on the battlefield So it is the job of the instructors to… what they say in the military… “break you down first before building you back up”. And that’s not a bad thing That’s just getting rid of those horrible habits, so they don’t come into play later because often it’s life and death and it can’t so if you go to the MMA fighter a Lot of them are former kickboxers wrestlers jiu-jitsu practitioners And they all had the tendency to revert back to what they do best a wrestler for example Will often as soon as he gets hit in the face Immediately want to take somebody down because their mind just goes right back to what they know and that can actually be Okay for you for a while But you’re only gonna get so far the top MMA fighters these days know everything and you also have to know everything and starts with getting rid of those bad habits because if I’m fighting you and I know that every time I hit you in the face. You’re gonna try to take me down I’m gonna see it coming and it’s not going to be good and then novice chess players all have certain styles certain things they do when things go wrong certain things to do when things go right and Again a good coach is gonna get that predictability out of them So they can adjust to any situation possible because in the champion chess world They are going to see every situation possible and if a good military instructor if a good MMA coach if a good chess coach Cannot get these bad habits out of the way first None of these people have any chance of becoming top in their field It’s the exact same thing with Forex if by now you are still confused Let me go ahead and just lay it right out for you with numbers So let’s say you put every trade on a spreadsheet. Which is a good habit and Now the last six trades you have three wins and three losses And everyone is 50 pips every loss is 50 pips now It doesn’t ever really happen this way, but this is just an example to make the numbers really easy so if this happens then You have broken even your net gain and loss is zero pips and congratulations breaking Even is actually better than what most people do but let’s say you were to come to this channel and I was to give you a really cool indicator that gave you an extra win every seventh trade, so it would look something like this and That would change your bottom line now. You’d be up 50 pips 50 extra pips every 7th trade that’s extraordinary and fear not this channel is built to do things like this but let’s go back to The original we have three wins three losses and Let’s do this instead. Let’s say I was able to give you something today That could eliminate one of those losses, so let’s say goodbye to trade number four now with that bottom line look like the exact same It’s the same thing taking away a loss is Exactly the same as giving you an extra win, but why do we treat them differently? Why are we so keyed in on Finding things that give us extra wins but don’t seek out anything that helped us avoid losses is it ego Is it because finding more wins is the more sexy option? You know it could be a lot of things, but I just want to I want you to understand the value of Eliminating losses from your trading account. They’re huge again 50 pips Every six or seven trades is a complete game-changer What I really want you to do in the end is burn the candle at both ends I want to be able to give you that extra win and also eliminate that extra loss at the same time Because now what it starts to look like every seven trades That’s not just game changing. That’s life changing, and this channel is built to do that But I really before we do anything wanna stress the absolute importance of knowing what to avoid first Because this scenario here can’t happen if you still have those terrible habits It doesn’t matter what you learn from this channel if you still have those horrible habits bringing you down Nothing you see here is going to work alright. So there are three different Ways we’re gonna tackle this. Are you with me so far? Because we’re gonna get into them right now number one Stop using tools that don’t work There are so many Forex tools out there that don’t get the job done and almost everybody uses them Why because that’s the those are the tools we learn to use when we first learn how to trade and? Then when we were done learning every instructor and every video and every tweet out there with somebody Using those tools, so we just didn’t know any better now. What are those tools? Well there’s a lot of them, and you might have seen me post this before but this is what I call the Dirty Dozen and if you haven’t seen this before you’re gonna be awfully surprised because I guarantee you’re using one or some combination of these right now and I can also pretty much guarantee. It’s one of the major things that’s holding you back, and if you don’t believe me, that’s fine I don’t really expect you to believe me right off the bat, but I have I have it all queued up already a video on every single one of these tools Stating my case showing you Why they’re inferior to so many other things that are out there right now. I mean fundamental analysis alone You just get rid of that not only will you make more money You’ll actually get all your time back So that’s a pain in the ass to follow, but I’m telling you if you can just remove one of these from your trading that 50 pips Every six or seven trades can come much sooner than later I guarantee nothing because I don’t know you I don’t know what your bad habits are or how strong They are or what your emotions are But this can happen right away as soon as I took support and resistance lines off my chart my trading got Immediately better instantly better now if you’re asking which one of those tools to get rid of first I would say probably trend lines probably the worst of the bunch is trend lines Maybe right after that would be the RSI indicator So either one of those two I think would be a really good idea to start with if you use them if you use both of them Well, you really really need this channel Let’s just put it that way so if I were to go over all those tools right now It would be a four hour video and nobody wants to watch a four-hour video but just know by avoidance by Removal of one of those tools can really do some great things for you and in time you will see videos on every single one Of those concepts here in the channel so subscribe if you haven’t you’re definitely gonna want to see that but let’s move on move on to number two number two is stop trading by feel and You know you do this you all do this and there is no reason to do this because it’s super undisciplined So what do I mean by that? One example I like to use is the fear of missing out trade Let’s say you wanted to go long on the euro dollar But you’re stalling and you’re chickening out you’re not really sure if you should do it But then the trade all of a sudden starts going long starts going long fast And you freaked out because that was your trade you were right and you don’t want to miss out on the profit But the price is already gone 20 pips past where you wanted to enter But again you don’t want to miss out on any of the profits So you just enter anyway these trades fail so often and the reason why is because when you enter a trade, Just for example 20 pips beyond where you should have entered a trade now the math is against you Now your stop-loss is 20 pips Further away from where it should have been now your take profit wherever it is is 20 pips further away to where it should have been and you have mathematically put yourself at a disadvantage and There are already so many forces working against us in the forex market the last thing we need is the math to be against us But you just put it there and now you’re at a big disadvantage so my advice here is Never enter a fear of missing out trade Just let it go if it goes 300 pips Who cares. Learn a lesson next time. Stop being indecisive If it’s a trade you want to enter, enter the trade. And the reason a lot of us don’t do that is because we don’t have a Defined system in place that we can always refer to and because of that we have no confidence We’re just kind of guessing. We’re trading by feel. This is exactly what you want to avoid so something else we do once we’ve actually already entered a trade, and it’s going our way, and it starts to stall out a bit we Sometimes just assume that it’s just ran its course. We think it’s overbought or it’s oversold just by looking at it now Why do you think that is why do you think that that trade is overbought or oversold? Just by you looking at it? Give me a reason. What is telling you other than your own intuition, (which is bullshit) that it’s overbought or oversold? These aren’t stocks This isn’t gold these are currencies and they can go as high or low as they want and so this also ties into my last one here and That’s exiting a trade just because again just because you felt like it was the right time to exit again What was telling you to exit give me something concrete? Was it some indicator was it because there’s a particular news event coming up? THAT I can almost get on board with. But that’s almost never why people exit they just think it’s run its course or they’re so happy with the money They made they don’t want to lose any of it they don’t have a good reason and When you don’t give a reason what you’re saying is that in your body and your brain you have these telekinetic Powers that can tap into the forces of the forex market and we all know that is complete bullshit the problem happens when You exit a trade just because — and you were actually right. Because now that validated your own bullshit And now you believe these powers actually exist and you know what happens every time somebody like you does that Somebody like me stays in the trade And that’s the time where that trade runs another thousand fifteen hundred pips. You let your emotions get in the way you acted like you were a psychic and That’s why you didn’t get that big run, and I did. This is so important. Let’s go over Why this happens, again, emotions. I can’t just say hey remove emotions from your trading. That’s never going to happen Overnight. We’re humans. We all have emotions, but if you are ever going to be elite in this game You need to find a way over time to completely remove emotions from your trading That is so hard to do especially when there’s actual money on the line It’s really not that hard when you’re on demo trading, but when you first start putting your own money forward and trading real money Completely different, and I had to make that transition from trading my money into trading somebody else’s money, another firms money That was a whole other mindfuck in itself and I had to get over that and I didn’t really do well at first because of this but I Understood what I had to do I had a great trading system that worked amazingly and that actually got me to that pro level But I had to get rid of the emotions Because it didn’t matter how well that system worked if my emotions were getting in my way I have a good handful of trade psychology videos. I’m gonna put up on this channel too that can actually help You slowly get rid of those emotions little by little so stick around for that But understand that the reason these emotions come into play in the first place is Because you just lack confidence You don’t have something that works that you can always Refer to and just use that over and over great traders aren’t just born good traders They find a system that works. They test it out and They optimize it as best they can and they use it without emotion And they just do that over and over — that’s all it is — and that’s all you need to do But that will lead me into the number three thing you need to avoid and that is to stop trading with no consistent trade management in place do you after you enter a trade know Exactly what to do because you actually have something written down right in front of you that says if my trade goes this way I do this if my trade goes the other way I do this and At what point do I do these things and I’m serious. I don’t mean one in your head I mean something actually written down pen and paper That’s sitting right next to you because that’s exactly what I recommend you do I still do it It’s all in my head now just because I’ve trade it so much, but it’s always Within five inches from my hand so if it ever slips my mind for whatever reason I can just flip a page and it’s right there because it is that important to me next to knowing what to avoid and Understanding who you’re trading against (my number one forex tip and my number one Forex strategy) Managing a trade is the single most important thing out there, and I don’t want you to be lost I don’t want you to be guessing I don’t want you to be trading by feel Once you’ve already entered a trade so what I want you to do right now is get a pen and paper Or if you’re out about pause the video until you can find a pen and paper And you and I are gonna put together a very crude version of a trade management system that even though it’s crude And it’s it’s your first rendition of it It’s something you can actually refer to and use right now, so you’ll never be unconfident about a trade again You might be unconfident about your trade management system, and that’s fine It’s just gonna get better and better over time especially with some of the videos I got coming out, but you will always have a plan in place, and then you can just optimize it over time But again no matter what it looks like having one is way better than not having one so in the true spirit of this video Before we start I’m gonna tell you the things that you need to avoid and I know I have the tendency to talk fast I’m gonna slow it down now because we’re actually really getting into what you need to be starting to put together And I don’t want this to be unclear so the first thing I want you to avoid is make sure You’re being adjustable not being adjustable in a trade management system can really really hurt you. So for example I just looked it up on my phone and on the daily chart The Euro Pound is moving an average of 63 pips per candle To where the pound kiwi is moving 199 pips per candle that’s over 3 times as much as the Euro Pound The pound kiwi is 3 times as volatile as the Euro Pound is so Given that fact and given the fact that all timeframes are also different Why would you have the exact same stop-loss on both of these pairs? even crazier why would you trade the euro pound on a 15-minute chart and say I’m gonna use a 20 pip stop loss and Then go over to the pound Kiwi on the daily chart and say “I’m also going to use a 20 pip stop-loss” It makes no sense. That 20 pips stop-loss is gonna get taken out quick But this is what a lot of people do. I talked to a guy and he was so confident about this I didn’t have the heart to tell him that it was just completely ridiculous He says that he has a 30 pip stop loss no matter what he trades, no matter which timeframe, and this is what I’m talking about by not being adjustable I knew for a fact this guy was a terrible Forex trader because if he can’t even adjust to different timeframes much less even more volatile currencies He doesn’t have a shot This is going to take a little more work on your end especially if you trade multiple currency pairs Because you cannot treat the euro dollar the same way you do the pound kiwi or the euro kiwi. They’re just different pairs They have different volatilities. You can’t have the same numbers there, and this is surprisingly a big mistake a lot of people make Next and this is really a big one. Do not, for the love of God, chase losses. In your trading management system that we are getting ready to put together always put a stop loss somewhere and never move it further back Just because a trade isn’t going your way, and you hope that at some point it comes back your way And you want to give that trade more breathing room if you have a stop loss at 30 pips. Let’s say minus 30 and A trade is going against you Just let it hit the stop loss and then move on to something else. Don’t screw with it. Don’t move it back Just because you want to give that trade room to come back your way Because sometimes it’s not going to and now you just took a big loss And if you have a stop loss at minus 30 pips and the trade has already gone minus 20 pips Don’t chicken out and just exit the trade because you would rather lose 20 pips than 30 Let the trade do what it does. Let your system Do what it does, but make sure you always have that stop-loss there, so you cap your downside There’s only so much you can lose alright because capping your downside is really good What’s not good? And my third thing to avoid is capping your upside. So you’ll see a lot of people talk about a two-to-one Trade ratio a profit – loss or a three-to-one and what this means is what they want you to do is for example Enter a trade and then have a stop loss at 20 pips But then let’s say your trade is going well And you get to that 40 pip mark they want you to exit your entire trade So you’re either going to win 40 or lose 20. Again, this is better than nothing because at least it shows discipline of some sort But why are you capping your upside?? You can have both. There are multiple times a year on almost every currency pair out there in the forex market where a trade will go Anywhere from a thousand to fifteen hundred pips and sometimes higher. and there’s a bunch of trades that go anywhere from five to eight hundred pips and Catching on to those runs are what separates the major Pro traders from everybody else Because I’ll get a lot of small wins here and there But all those wins are designed to do or offset my small losses, and then I’m back to zero Those big long sustained wins are what actually goes into my pocket It’s what makes your bottom line awesome It’s what gets you on the radar of people who want to hire you it’s the type of thing that makes your dreams come true as a Forex trader and By capping your upside, you are standing up and saying “I want no part of this” and that is insane. Do not use either one of these In your trade management strategy, okay, so now at you know to avoid let’s let’s put an example together remember This is only an example I want you to see the structure, but I want you to write it down But I want you to leave the numbers blank because you’re gonna plug in the numbers yourself, so just for example Let’s say we’re trading the pound dollar, and we’re doing it on the 15-minute chart, allright So it would be something like this after I enter a trade I’m gonna put a stop loss at Minus 30 pips 30 pips a loss and I am going to do this every time I trade the pound dollar on the 15-minute chart so then If my trade is doing well I’ll do this — once it gets to 50 pips and only when it gets there I’m gonna take half of the trade off. I’m gonna take profit, but only half And I’m gonna leave the other half open, then I’m gonna move my stop loss from minus 30 pips To break-even, which means I’m gonna put that stop-loss up back to where I originally entered the trade Now what that does, is Ensure me that it’s not a matter of if I’m going to win, now It’s just a matter of how much I’m going to win. Because even if that trade cuts the other way and hits my stop-loss I Took a zero, but I already banked some profit and that’s fine But what I’ve also done is put myself in a position to get those really nice long runs Albeit at half my trade, but still at least I’m in the game, and I’ve banked some profit. I’ve already won, so Maybe then at some point Let’s say at the hundred pip mark, the plus 100, then I’ll start putting a trailing stop in Because I don’t want to miss out on all 100 pips of that profit. At this point I really don’t want price going back to zero so put a trailing stop somewhere Maybe at the plus fifty mark and then just follow the trade up and hope for a really nice run that part for right now Is pretty much up to you until that video comes out, but like I said, Leave the number parts blank because I don’t even trade the 15-minute chart all right So these numbers aren’t gonna be all that great I just want you to get the idea of what a trading plan looks like. So avoid those pitfalls we talked about earlier Make it look something like this and you’re well on your way. So to wrap it up I want you do this — write down a step by step if-then procedure like we just did for managing a trade And then every time you enter a trade follow it religiously Go by that exact structure you just wrote down, and do nothing else Because when you deviate from this you start falling back into trading by emotion, trading by feel, Then we’re back to this shit again, but if you can follow that plan To the letter you’re much much closer of getting to one of these because we just avoided that pitfall of Not having a trade management in place that we can actually look at and refer to and be confident in Every time we enter a trade, and if you take my further advice and start eliminating those tools that don’t work You can get rid of more of these and this number can go higher And that’s what we’re here to do We got so much more coming we’re gonna put more trade management strategies in place. That little structure You just wrote down. We’re gonna make it better and better and better We’re also gonna put trade entry strategies in place — the sexy stuff — the stuff everybody’s looking for, the fun little indicators and trading methods that Get you in a trade at the most optimal time possible So you can start winning right from the get-go Because you were able to go long or go short in the best possible spot We’re also going to learn more things to avoid and that’s good because the more we avoid the more those losing trades We can take off at the table, and it goes beyond the Dirty Dozen guys There’s so many things out there that people are using and so many things that people are doing That are toxic and they’re hurting their account. We’re just gonna knock those things out one by one, and every time we do Your trade account is gonna get better and better and better because we just keep Eliminating more and more mistakes. And if you like videos like this I have a Lot more trade psychology videos getting ready to go Because I really enjoy them and I know a lot of traders do too because we can put the best System in the world together, but if your emotions are still getting in the way It’s not going to matter so these are equally as important and you can find all of these things right here on the no-nonsense forex trading channel and on the blog I always every video has a corresponding blog to it and On those blogs I approach things from a little bit of a different angle And I even sometimes add some bonus tips in too, so especially if you learn better reading than you do watching videos definitely check out that blog, but check it out anyway There’s always a ton of cool stuff on the site And if you thought this video brought you even just a little bit of value somewhere Somehow give me a thumbs up it means a lot I put a lot of effort into making these for you, and also if you would down in the comment section Let us know what your biggest Bad habit is when it comes to forex trading. I want to hear them Just when I think I’ve heard them all somebody comes out of nowhere with something that I’ve never heard before But I want to get the consensus about what the trading community here struggles with and so give me your worst habit Maybe I’ll make a video out of it someday, but either way check out some of their videos on the channel give me a like check out the blog and Altogether guys just go GET IT

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