all right welcome to the video this is
trading for beginners or trading for
dummies as the thumbnail says and the
goal of this video is to get you from
struggling or zero profits or complete
beginner right through to consistently
profitable Trader which means it's a
comp like complete and comprehensive
program all in itself which means it's
going to be a long video but my goal is
to get you to consistently profitable
Trader after watching this video and
that's a bold claim but this is
something I've been meaning to put out
for years and years now because there is
so much crap out there and there's so
many Educators and fake gurus and scams
trying to take your money and not
providing any value in return so I had
enough of all of that and I thought I'm
just going to give everything away for
free to the trading Community once and
for all and I'm gonna invite you into my
trading office as I walk you through
every component you're going to need
directionally correct so that you get
there as quickly as possible without all
the fluff without all the Showmanship
and by the end of this program am you
are going to be the most confident and
competent Trader that you could possibly
dream of being so if that sounds good to
you I encourage you to bookmark this
video put it into your favorites
subscribe to the channel if you want to
and over the sections of this video I'm
going to be covering what your
expectation should be what you need in
terms of the gear the basics how to read
price finding your way around a chart
understanding what Forex or trading
actually is and how to navigate the
markets I'm going to teach you how to
read price I'm going to teach you how to
identify patterns that happen frequently
in the market and then I'm going to
teach you how to build systems out of
those patterns and then how to go and
test those patterns and then how to go
and trade them live I'm going to cover
everything from Brokers to gear to
platforms to price to markets to
everything by the end of this video
there's not going to be anything that
you're going to need other than to go
and practice and become better and
better so why am I doing this well some
of you might know me some of you might
not know me some of you might be
subscribed to my channel and over the
years I've built a phenomenal community
in the trading community and the reason
for that is through transparency and
vulnerability of sharing my own trading
insights my money isn't made from
education my money comes from investing
my portfolio and making my money work
for me since the age of 22. I've been
investing my money into various
Investments buying businesses buying
stocks putting it into index funds and
ETFs and REITs and speculating and
becoming a Trader and basically using my
money and putting it to work in a way
that allows me to grow it as quickly as
possible that provides moving income and
in doing so I became completely
financially free by the age of 29. now
at the age of 29 when I became
financially free no one knew who I was
and after seeing all the crap out there
online about trading I decided to just
let everyone watch me trade let everyone
see how a real Trader goes about their
day if I was going to be doing it anyway
I might as well share it with you guys
and that's exactly what I did and in
doing so over the years I've become
recognized as one of the most
transparent and generous traders in the
trading education space I've become very
close friends with some of the best
trading prop firm owners in the world
some of the most reputable trading
psychologists in the world and I've
spoken on some of the most respected
trading stages across the globe as well
I started sharing my trading routine
with the trading Community almost 10
years ago now and in this video I want
to combine it and compress it all down
so that you walk away feeling as if
you've got more value from this one
video than you have searching the
internet for months and months and
months maybe even years so why am I
giving a completely comprehensive course
away for free well here's the truth
over the years there's been many
scammers set up accounts there's
hundreds of fake accounts of me and what
they're doing is they're contacting
people trying to scam their money and I
don't want people to lose their money if
you're going to become a good Trader the
whole point is that you build wealth and
keep money and not blow it and give it
away and lose it right you want to build
wealth and that's my goal as well so I
don't want you to lose your money so how
what could be the best move that I could
make in order to eliminate those scams
well just share my best information so
that everyone comes here and then
there's no question of what's the real
deal and not only that you'll learn so
much in this lesson that you won't need
to go and give your money and invest
with other people because you'll be
empowered and you'll be able to do it
yourself I've got a much bigger cause to
help people and Empower people around
their finances and become financially
free I believe that when we're free and
able to focus on our most meaningful
work we become better human beings so my
goal is to get that message out to as
many people as possible and I hope after
you've watched this video you're going
to get so much value from it you're
going to be feel compelled to share this
with everyone you know and help me
achieve my goals sound fair all right
well if that sounds good we're going to
get stuck straight in what I would say
is make sure you bookmark the video
again second of all get a method of
taking notes okay commit to this program
this is gonna something you're going to
want to take seriously don't treat it as
another YouTube video this is going to
be your textbook for learning how to
trade this is going to be your
curriculum this is going to be your
qualification so make sure you set up
some time aside in your diary to keep
coming back and revisiting this thing
consistently until you get it all
complete okay are you ready let's get
stuck in all right so hopefully you've
got a method of taking notes now we're
going to get stuck in but before we get
stuck into all of the technical stuff
which I'm going to do in a way that
doesn't overwhelm you or confuse you I
want to give you some expectations
because when you've been clicking on
this video before you clicked on this
video one of the questions or two the
questions in your head was how much do I
need to trade how long is it going to
take me to learn to trade you know what
yeah and some other expectations that
are unclear such as what does it involve
you know what do I need what am I the
Right fit for it so I want to cover some
of that stuff off and this is really
important because I want to show you
um a way to understand how long it's
going to take you how to know how much
money you're going to need okay and
that's really going to be motivating for
you because when you see the truth about
this stuff you can actually forget about
you can forget about it and put it to
the side and it will give you the
motivation to focus on the actual
learning if you're trying to do it in a
way where you're really pressurized to
make money right now or you're really
pressurized to make it work it's going
to have an effect on your mental state
in fact there was a survey done in
Southern India where they tested 56
cities in southern India and they tested
the farmers IQs and when there was a
drought and there was no no trade and no
market and it was all low economy you
know the economy wasn't very great their
IQ dropped by 30 points and when it
raised and it was booming and trade was
great their rate their IQ raised by 30
points which means this when you're in a
level of poverty okay meaning that you
can't quite afford your own personal
Comforts your IQ drops now the thing
with trading you're going to need to be
switched on as you're learning you're
going to need to be full Focus as you're
learning to trade if you've got
something eating away at your animal
brain uh telling you oh you can't afford
to pay the bills this month then that's
not going to be the best position for
you to learn to trade but by knowing
these numbers is going to either give
you the the chance to go wow you know
that's I can definitely do this or
you're going to go well maybe I'll come
back to this later so it's really
important you understand this stuff so
the first really important thing you
want to know is how much money do I need
to get to where I need to be in my
trading like what's going to make it
worth it and the first answer to that is
trading is one of the most powerful ways
to accelerate your wealth if you can be
consistently profitable because the
returns that you get on trading as it's
high speculation the returns are greater
the more you use your skill to grow your
money the greater the returns so the
question is well if you're going to put
it in a bank you know the bank are going
to pay you one percent a year if you're
lucky probably point two percent at the
moment so then it comes down to well do
I actually want to trade do I actually
want to learn to trade so my first piece
of advice is you're going to have to
want to trade like you're going to have
to have an interest in it you're going
to have to really enjoy looking at the
markets because if you don't it's
probably not going to be worth it for
you and the reason I say that is because
you can go and get better returns
focusing on something you really enjoy
and love and then or give your money to
someone else to look after the new go
and have to learn something that you
really don't want to learn to then grow
your money right so that's the first
consideration is if I put it in a bank
I'm going to get nothing if I learn to
trade I'm going to get great returns if
I can Master this right so that then
comes down to do I actually want to
learn to trade but the first starting
point I like to tell people is think of
a figure that you need to cover with
your trading returns so it might be your
full income you know if you're earning 2
000 2500 5000 a month or whatever that
figure might be
write that figure down
um whatever that might be so you might
want to cover your whole income your
monthly income which might be two and a
half Grand or you might just want to
like bring in an additional 500 pounds a
month or something like that right so
we'll go with that example for now we'll
just say 500 it could be dollars pounds
whatever and what you're going to do
just kind of get some idea of what sort
of returns you will get or or how you
can start to approximate that figure is
we can play around with some figures so
all we need to do is take that figure
whatever that figure is and next to that
I'm going to write two percent four
percent
six percent okay and all you do is you
divide this figure by point zero two or
point zero four or point zero
six and what that's going to give us is
some returns some monthly returns so if
I divide 500 by 2 I'm going to get 25
000. if I divide 500 by four percent I'm
gonna get twelve thousand five hundred
if I divide it by six percent I'm gonna
get eight thousand three hundred and
thirty three what does that mean what
does this figure mean well this is the
amount that you would need in your
account
if you were trading it and getting two
percent returns per month based on 500
and he was trading you know 25 Grand a
month and he was getting two percent per
month that would generate 500 pounds or
dollars if he was had a 12 and a half
Grand account and you was getting four
percent returns consistently per month
on average over a long period of time
that would you know that would give you
500 a month same goes for six six
percent if he was trading 8 333 pounds
in your account and you was doing six
percent on average over a long period of
time that would approximate 500 pounds
or dollars per month makes sense so have
a play around with some figures and put
them against some percentages so that
you can start to see ah right okay I
don't need millions in my account to
generate what I need actually I need
this much or this much and I need this
percentage return now you're not going
to know your percentage return right now
on average that I see the best Traders
get between two and six percent it
varies and I've worked with prop firm
owners and prop prop firm seven figure
Traders on Prop desks and I've seen them
get anything from two percent to six
percent and yes there's going to be
times where you're getting 10 you might
even get a 20 month but the the point is
this you need to focus on returns over a
long period of time and I'll talk about
that later on in the program now the
other thing to pay attention to here is
there's going to be other influences
like inflation like your lifestyle costs
you know your performance all this kind
of stuff getting better as a Trader so
it's a good place to start but you're
also going to want to factor in you're
going to want to leave some money in the
trading account so that you can grow it
and have that uh compounding interest in
the account as well right so there's a
few other factors that will play into
this but this is a great place to start
if you're a beginner to visualize how
much you'll need to generate a certain
return and really the purpose of this
exercise is linking the relationship
between the two now this brings me on to
the next point which is time how long
will it take me to learn to trade now I
can tell you this
usually it takes between 12 and 18
months to become consistently profitable
as a Trader that's what I've seen
working with thousands of Traders over
you know many many years and I've seen
that be the the common kind of Sweet
Spot does that mean it's going to take
you that long to learn how to trade no
it can take six months to really learn
this and master it in your mind it can
take a little bit less or it might take
a little bit longer but six months to
learn and then why does it why does it
take 18 months to become consistently
profitable well here's why imagine this
line here is 18 months
okay and about here
is 12 months and this is not months
right in this period here naught to six
you might learn
okay in this period here you're going to
want to go out and do some demo trading
and what we call paper trading so once
you've learned you're going to want to
go and put open a demo account which I'm
going to show you how to do and you're
going to want to be doing some testing
okay or some demo trading and then the
reason this period is here is because
this totals 12 months now why do we give
a 12 month period there well the thing
is this when we're looking at the
profits that we want to return we want
to know certain in our mind that we're
we're capable of generating those
returns right so it's best to take an
average 12-month period of your trading
performance before you commit to going
well I'm gonna give up my weekend job or
I'm gonna you know give up my job
entirely you're going to want to give it
a 12 month period of trading how you've
learned how to trade to prove to
yourself that you can actually
demonstrate those returns over at
12-month period And the reason a
12-month period is good is because you
can see all the different seasons all
the different holidays the different
news events the different
inconsistencies within the trading year
and then you can take the average
performance over a 12-month period and
say right I can confidently generate 500
pounds per month based on this return
and this is my performance and you have
Supreme confidence to go into the
following year with a live account so
six months to learn 12 months 6 to 12
months to do some real testing tweaking
going live and then 18 months to really
kind of fine tune and get the confidence
to become a consistently profitable
Trader and remember you're learning a
skill like anything if you want to learn
the guitar or the piano or learn to play
golf it's going to take a bit of a bit
of time and this is another reason why
you actually have to have an interest in
this and you have to want to make this
work because when you think about it the
payoff in such a short period of time I
mean even if it took you three years
that is a blip in your life right as to
what this can do to to transform your
life to get you to your financial goals
so I hope that makes sense the next
thing I want to touch on is this a lot
of Traders they overestimate what's
achievable in a very short period of
time so I've just told you six months 12
months you'll be able to trade you know
18 months you'll really start to nail it
well that's not a long time but a lot of
Traders because of the way it's
advertised out there and because of
these idiots out there telling you it's
easy and and they're like telling you
that anyone can do it well in your mind
you're thinking well you know this
should take a week I could look I could
go on a two-day trading course which
people are selling right and learn to
trade in two days well that's rubbish
but what happens is they have this
unrealistic expectation and they
overestimate what's achievable in a very
short period of time and then when they
come on you know and work with me or
like you know they get the truth they go
oh this is a bit harder than I thought
and then they underestimate what's
achievable in a you know three to five
year period which is you know magical
really for how it can transform your
life so I don't want you to be
overestimating I don't want you to be
underestimating I just want you to
commit to this process and I promise you
that if you apply what you learn in here
between you know in the next 12 to 18
months your life is gonna look a lot
different when it comes to managing your
finances all right the next thing I want
to touch on is consistency so if you
want to be a consistently profitable
Trader the first thing you need to
master is being consistent in your
trading okay sounds obvious but a lot of
people neglect that and they're all over
the place jumping from system to system
or doing it at different times different
time frames and they're not consistent
think of about this when can you
consistently dedicate your time to
learning to trade and dedicate your time
to trading is there an hour slot on a
Monday morning is there an hour slot on
a Saturday is it can you do all Saturday
is there three hour slot on a Sunday
what you don't want to do is start as
you know you want to start as you want
me to go on so what you don't want to do
is start trying to do it when you're
about to go into a meeting or kids got
to do the school run take the bins out
or whatever it might be right and you're
kind of half in half out you want to
allocate blocks of time into your diary
so pull up your diary and say right I
can do Monday between eight and nine I
can do Thursday 10 P.M to 11 p.m and I
could do a couple of hours on a Sunday
and maybe a Saturday afternoon or
something like that and once you've got
these times blocked into your calendar
make that your time even if you're just
learning at this stage not just looking
at trades or taking trades actually
learning how to trade as well because if
you can start with that then you can
just base everything off of that and
when we go forward you can build a
trading system that works around that
that trading time because if you try and
do it outside of those times it's going
to make it hard for you think about if
you're trying to lose weight and you
know you didn't really like running and
you didn't like certain foods and then
you go to a fitness instructor and they
say right you've got to run and you've
got to eat these Foods well that's not
going to work for you is it and it's not
necessary either quite frankly you can
lose weight Building A system that works
to your wants and needs and your likes
so we'll do the same with the trading so
consistency is key and I've got a rule
of thumb people say well how long should
I spend looking at the chart of how long
should I spend dedicated to learning if
you can get an hour a day on average
over the week that's great so if you can
get three hours on a Sunday and that
averages out you know free across the
week well then how can you make up
another four hours or how can you make
up another the more you do the better
obviously but an hour a week an hour a
day what I find it builds momentum and
you get motivated because you make
progress quicker you're treating it more
seriously you're putting some time and
effort into it so you're committed to it
so you're just treating it more as a
professional and if you can get an hour
a day on average across the week which
is seven hours per week
great if you can do less don't worry but
make sure it's consistent if you can do
more great okay so that just leads us on
just before we get stuck into learning
all of the great technical stuff I just
want to say one more thing and that's
really a counter around accountability
when you're learning to trade there's
going to be lots of benefits that you
didn't see were there originally so you
want to trade primarily to make more
money right but there's going to be
other benefits like you're gonna think
more objectively you're going to
understand people better you're gonna
lose fomo and fear of missing out you're
gonna you know focus on long-term
success rather than short-term quick
wins so there's all of these kind of
benefits these hidden benefits to
learning to trade that you're going to
benefit from not just making money which
is amazing so it's a great place to be
it's a great thing to do but it's very
lonely not many people you know learn to
trade not many people you know are
Traders and there's not many people you
can talk about about trading without
them thinking it's some kind of scam or
you're kind of crazy Gambler for the
reasons I just mentioned previously
right the way it's advertised and all
the scams out there and all the rest of
it so
what I would do is I would counter that
I would get people on board by telling
them what you're doing okay and don't be
afraid to tell them I'm learning to be a
professional Trader if you're learning a
guitar you'd say I'm learning to be a
professional guitarist and they wouldn't
laugh at you right
but you've put it out there so people
might laugh smirk and think you're crazy
but just go with it and say look
if I don't get anywhere in 18 months two
years on this then you can you know
ridicule me all you like but it's
probably down to me just figuring out it
wasn't for me anyway but just tell them
open up tell your family about tell your
kids tell your wife tell your husband
tell your partner tell your family tell
your colleagues tell everyone because
it's not a taboo anymore it's something
that you're doing you're working on
you're becoming a professional Trader
and you want to open up about that you
want to be you know you want to be open
about that and you want to be proud of
that so let everyone know get everyone
on board and what it also does is it
allows them to respect your learning
time when you've blocked it into your
calendar that's your time dedicated to
working on your future you have to put
yourself first in this case because if
you don't get to where you want to be
what good are you to helping other
people you know you're not really living
the life that you really want otherwise
you wouldn't be watching this video you
know that you can do this you're really
interested in this and you absolutely
can do this you need to give you know
give yourself permission to put yourself
first to learn this stuff if it's
something you really want to do and then
you can serve your family and your
friends and your colleagues even better
and lastly on that point I want to say
just get around other Traders
professional Traders stay away from
forums and those kind of you know those
kind of Discord groups that are like
really spammy and everyone's got an
opinion uh get around some real
professional traders who are all working
on the same goal like-minded people and
I'd invite you into my group which is
below you can click the link in the
description of this video to join my
group of professional Traders completely
free we're all working on becoming
better Traders including myself being
around other Traders and like-minded
people who are working on the same goal
gives you that belief transference that
confidence and that momentum to continue
on your trading Journey all right with
that said we're going to get stuck into
learning the cool stuff now so I hope
you got value so far grab a pen and
paper or you might want to pause it and
come back when you're ready to start
learning all of the technical stuff
let's get stuck in all right so before
we start digging into finding some of
these opportunities and being able to
actually Place trades we need to know
what we're looking at we need to read
the markets we need to read the charts
we need to understand this language and
really that starts with understanding
price movement now I already mentioned
that those candlesticks or bars those
indications on that chart
um are the the movement in price within
a certain time period so what I want to
show you now is the anatomy of each of
those bars or candlesticks and how we
read them and what each thing means uh
when we're looking at Price relative to
time so each one of these candlesticks
in front of you here
um they look very similar to the ones
that are on the chart uh but you're
probably thinking well some of them are
green some of them are red well let's
just let's just break that down a little
bit the first thing you need to
understand is there's four components of
a Candlestick okay and that is
the open price
the close price the higher of the
session and the low of the session
because remember one Candlestick could
be an hour it can be a day it can be a
month it can be 15 minutes whatever it's
always going to have those four
components in other words what that
means is let's just say that these
candlesticks here in front of you are
the hourly candles which means on bang
on the hour o'clock we're going to have
the open of a new candle and the close
of the previous candle so where is the
open on this candle well remember you
saw red and green candles on the chart
that I explained just that I showed you
guys just now
um a green candle means what a green
candle means is is that we closed at the
end of the hour higher than we opened
and when you see a red candle
conventionally it doesn't matter what
color they are people use different
colors for different candles and
conventionally they were
um white and black or they were Hollow
and white so but over time usually
screen is for bullish or up candles and
red is for bearish or Down Candles
meaning
when it's green we close at a higher
price than we opened and when it's red
we close at a lower price than it opens
so let's just start by coloring in these
candles here so I'm going to color this
one here green okay so this is our up
candle this means that price closed
higher than it opened and we'll have a
red down candle as well and meaning that
price closed or the candle closed lower
than at the price it opened so where are
the how do we identify we're open and
where it closed well let's start there
so in a green candle we've got the four
components okay we've got this we've got
this
we've got this and we've got this now
you've probably guessed this will be the
open price okay so whatever price this
was on the chart uh remember over on the
right hand axis we had the price price
points down here and we had
1.3055 that price point will be the
price at which that candle opened okay
then this will be where the candle
closed and then obviously in between
that this would be the high of the
session meaning the highest price that
the market pushed up to during that
candle
and this would be the low and what we're
looking at in this one body of a candle
is a story of what happened during that
hour we can see how high a price pushed
up how low price pushed down where the
Candlestick opened on the hour and where
it closed on the hour makes sense
now on the bullet on the bearish candle
we've got exactly the same points except
remember I said price closes lower than
it opens so in this case we've got the
open here
because it opens and then it pushes up
to the high
or it pushes down to the low and then it
closes lower than it opens so this is
the close of the candle okay so in
actual reality what you'll see in a real
case scenario you wouldn't see this very
often unless there was some kind of Gap
what you would normally see is a green
candle like this okay so this would be
green
let's just color this green and because
prices closed up higher you then see the
start of the red candle or another green
candle whatever color candle comes next
uh let's just say this is a green candle
for instance
right and then you might see obviously
we've closed here and opened here so
close open and then close open then you
might see
a red candle and this would be red and
that means that we opened and then we
pushed down a little bit and closed down
here make sense
hope that makes sense so far now I just
want to give you an example of how this
works on bars as well just so just so
you're familiar and you can really get
it in your head so let's take a look at
bars instead of candles so with bars or
what they're commonly referenced to is o
h l c bars which is exactly what we've
just been speaking about the four
components which is open high low close
or exactly like a candle in fact you can
almost imagine that there's a
Candlestick right here okay imagine a
Candlestick right here
right so imagine these are a Candlestick
like this we've got exactly the same
thing it just looks different that's all
so this is the open this is the close
this is the
this is the close this is the high
and this is the low and the same high
open close low okay because we open and
then we we close higher on the green and
then we open and then we close lower on
the red so one's red one's green and
that's exactly
um the same as a Candlestick they just
look slightly different it comes down to
personal preference these are obviously
um preferred by some Traders and
candlesticks prefer by others it really
doesn't matter whatever it takes your
fancy I used to use these in my trading
when I started trading all those many
years ago and then I transitioned over
to candlesticks and then I just became
more comfortable and familiar with
candlesticks
um and it and that's it so it really
doesn't matter but hopefully you
understand how the anatomy of a
Candlestick what I want to talk about
now is
certain patterns and and kind of
components of the Candlestick that
you'll need to understand in order to
develop an edge as a profitable Trader
so let's take a look at those all right
so what I want to talk about now are two
main components of the Candlestick that
are going to really give you an edge as
a Trader the first one is the close okay
so where the close happens and the
second thing is this actual Wick what we
call the candle wick
um which is either the wick to the
upside or the wick to the downside and
I'll tell you why those are important so
you see this candle here this is a
relatively
um normal looking candle a strong uh
either buy it by a candle strong bullish
candle or a strong bearish candle
meaning that we've either opened here
and closed here or we've opened here and
closed here and you know we've closed
predominantly lower or we've closed
predominantly higher than we opened
depending on what color the candle is
which You Now understand
now
what happens if the Candlestick looks
like this
which it does you know this is very
common to see a Candlestick looks like
this meaning that let's just say this is
well it doesn't really matter what color
it is but let's just say this is a red
candle okay so when we start to look at
these candles we can start to form
stories about what happened using the
clothes and the wick so the clothes on
the opens here right so this is the open
this is the close
but look what's actually happened during
this session so the close is very very
low the close in fact is the low so this
is the close and the low even if you had
a little Wick here that would be the low
it's still a very low close make sense
which indicates that it is a it's got
strong
selling pressure the market is a strong
selling pressure uh scenario now
what we can also see where the closed
tells us who won the battle so in this
case it was the sellers we can also look
at the wick which also tells us a story
of what happened during the session so
imagine like a game of tug of war
imagine during let's just draw on this
candle here for instance let's just say
you know we open here so this is the
open we closed here but during the
session the candle actually pushed up
then down then up then down then up then
down okay and then we closed here make
sense or closed here sorry so there's
this kind of tug of war going on bios
trying to win sellers trying to win and
then in this case we close out kind of
roughly in the middle but in this
situation here
what's actually happened is we've opened
here the buyers have tried to push this
market right up okay this could be you
know 100 Pips it could be 20 Pips it
could be 50 Pips in price and then been
rejected and slapped right back down
um not only back down to here but right
back down to here and then we've closed
off the session we've closed the hour
which shows us that there's a lot of
strong selling pressure during this
session so now no longer are we just
looking at red and green candles and the
open and close we're now forming a story
of what's been happening during each of
those sessions make sense
let's take another look at another
example let's just say for instance that
we've got a Candlestick that looks like
this and in this case this is going to
be a green candle now these can be green
or red to be considered strong buying or
selling candles because of where the
clothes is and because of how that Wick
looks and how we can see what's actually
happening during price movement well in
this case we've opened here the the
Bears or the sellers have tried to push
all the way down and then been rejected
and then we've closed right here right
so in this case what's likely to happen
next is we're likely to see a
continuation of an upward moving Market
all right now don't worry if you're if
you're getting a little bit lost I'm
gonna cat I'm going to continue this on
with candlesticks when I go through the
components of a successful strategy and
a successful Edge but for now I just
want you to understand the anatomy and
the open the higher the low the close
and then how to look at different
components being where the where the
candle closed and uh and and the the
wick and see that rejection
and form a story be able to form a story
of what's likely to happen next okay
obviously what's likely to happen next
isn't going to be enough for you to go
and place your money into a trade we're
going to want to form uh you know some
real confident bias with some backed up
uh technical analysis to to Really
inform that you know
um put some weight behind that decision
um but I'm going to show you how to do
that but for now I just want you to
understand you know the different shapes
of candles you can also see a candle
that looks like this okay so where the
low is the open and the high is the
close and there's no Wicks which means
if it's a if it's a green candle that is
a strong buying candle and the market is
in strong momentum to the upside same
goes for a bearish candle if we see the
open and the high here and the close and
the low here and this is a red candle
then that is a strong
selling candle which is likely to see
the market continue down following that
the close of that candle make sense so
there's all these nice little nuances
and nice little stories we can form of
price when you get familiar of reading
these candlesticks so
just wanted to touch on that before we
move in to the other technical
components
um if you've got any questions at this
point please fire them below and uh and
I'll be sure to answer those and if
you're getting value from this remember
to share this around and make sure that
you're you know liking the video and
sharing it to people that you think will
find valuable as well all right let's
get stuck into then the six main
components of a successful trading
strategy and a trading Edge okay so
first things first we want to be able to
identify the overall Market condition
now you might have heard terms as
bullish bearish and that's really what
we're looking at we're looking at
whether we're looking at an overall
upward Market or an overall downward
Market or it's just moving sideways and
there's four different conditions that I
want you to be aware of okay so the
first one is bullish and bullish is an
upward Market where the market is moving
up from bottom left to top right
and that's what we call an upward
trending Market or a bullish Market
the other one is obviously the opposite
where we're looking at a bearish market
where we're going from top left to
bottom right and we're descending down
and that is a downward moving Market a
bearish market okay then we've got a
ranging Market which kind of moves
sideways like this okay and that's where
the Market's not either bullish or
bearish and it's just moving sideways
and then we've got like a choppy
indecisive Market that's very erratic
and it kind of it moves and breaks
structure and it doesn't look very nice
and it's very choppy and when it's
indecisive like that I recommend that
you stay away from the market because
when we're in those types of
environments then
we don't really have an edge okay so
we're looking at a bullish Market a
bearish market or a ranging market and
if it's choppy and indecisive and we're
not sure then we stay out those are
really the four main conditions I want
you to be aware of now obviously I've
just drawn these out and it all looks
lovely when you actually go into the
markets let's take a look at the charts
right now when you actually go out to
the charts it looks you know it can look
a little bit more ugly but ultimately
what we're looking for is the market
condition we're identifying whether it's
a bullish Market a bearish market a
ranging Market or a choppy indecisive
market and you can see this is the
dollar Yen okay and this is a chart of
the dollar Yen and you can see that in
this instance if I just bring on my
drawing tools here you can see that we
are actually going from bottom left to
top right and this is what we'd call a
bullish Market an upward trending Market
let's take another look now let's take a
look at another example in the other
direction okay so in this instance we
we've got the pound dollar and in this
case we are trending downwards we've got
top left to bottom right and the
condition is bearish in this market okay
so this is an example of when the market
was ranging so if we bring on our tool
here and go at the top and the bottom
you can see we've got these nice ranges
uh where price action is is bouncing off
of the highs and the lows and then
finally let's just take a look at some
examples with a choppy indecisive market
and you can see here that price is very
very choppy it's breaking up and
breaking down and you know it's it's all
over the place so this is really really
choppy indecisive
scenario so we want to we're going to
avoid those as much as possible okay so
now we understand
identifying the market condition the
next step is to identify the market
phase so let's take a look at what I
mean by that okay so we've in this
instance on the dollar Yen we've got a
bullish Market condition we've got an
upward trending market so the next thing
you want to look at is the phase now you
can see here we've had this upward phase
okay and that's what we call phase one
or the Run Okay the extension and then
we've had this phase here which is the
pullback right and then we've had the
next run up and then we've had a
pullback and then we've had a run up and
then we've had a pullback and each of
these uh phases provides different
opportunities depending on what we're
looking for as a Trader whether we're
looking to jump on the trend or we're
looking to short the reversal or the you
know the the counter move if you like to
the trend and there's many ways you know
there's different different Traders can
trade different ways and we'll talk
about strategy development later but
these are the phases so we've got a run
a pullback a run a pullback a run a
pullback and a run is the extension in
the direction of the trend and the
pullback is the retracement the outside
return the the
um correction if you like the momentary
collect correct before we continue to
the upside and of course in a bearish
example it would be this in an opposite
so let's take a look at that quickly
okay so in our pound dollar example here
you can see we've got phase one phase
two phase three you know downward run
pullback extension pullback extension
pullback okay so the run and the
pullback you need to identify what stage
the Market's in right now so first of
all we've got the market condition
bullish or bearish or in a Range if
we're bullish or bearish where are we
what what phase are we in are we in the
Run phase or the pullback phase and the
reason this is important is because you
wouldn't want if we were on a bullish
chart for example and we wanted and we
had a bias that the market was going to
go up what we don't want to do is buy it
in the middle of these runs that's what
rookies do that's what rookie Traders do
they buy in and they're in too late and
then the market starts to turn back and
then they you know they lose is that
they get fearful and then they close the
position off at no profits what we want
to do is identify the pullback and then
look to get long then look to buy the
market so we get the best possible price
now on that topic you're never ever
going to catch the bottoms every time
and sell at the top anyone telling you
you should do that it's ridiculous you
know I've never met anyone that's
accurately been able to do that over a
long period of time consistently ever so
don't worry about that but our job as a
Trader is to get in the best price as
possible and then sell at the best price
possible okay so now we've identified
our condition and we can identify our
phases you can see in this instance
we're in the pullback phase and in a
bullish Trend that's good because we we
could potentially get involved with some
uh some trading opportunities now but
that's not enough what I want you to do
now is understand the power of support
and resistance okay so this is another
technical indicator technical skill that
you can develop and train your eye to
identify that will then add even more
weight to your case for entry into a
trade so let's just take a look at what
I mean by that if I just bring on my
squiggle tool here you can see that
where we've pulled down to here okay in
this pullback you can see if I draw a
straight line across if I can draw a
straight line you can see that previous
resistance is whenever we hit something
like a ceiling we refer to it as
resistance and whenever we hit something
as a floor we call it support so on the
way up a downward move would be support
and an upward move upward ceiling would
be resistance so whenever we're rejected
from the higher that's resistance
whenever we're bouncing off the lows
that's support okay hence the names but
what we find is when the market is
really harmonically moving in Trend this
way normally the resistance level which
is previous here which is the previous
high of the previous run normally
becomes a decent support level and I can
just draw this on again here if I just
do this most recent one here if I can
draw a straight line there you can see
it again the previous resistance becomes
support so that's pretty cool right
because now we can start getting excited
about piecing this together and forming
a real high high probability move
because what is a trading strategy a
trading strategy is just a series of
patterns that happen frequently in the
market that we build rules around that
gives us a high probability of being
right
and then when you trade that
consistently like a board game set of
instructions that is what you're going
you know you're gonna come out with a
profit okay so that's all trading really
is so what we want to do is not just
have
um maybe it will do this maybe it won't
I think it will it's likely to do that
what we want is a solid Edge we want
something where we have higher
confidence in the fact that it's likely
very very likely to do what we think
it's going to do because we never know
what it's going to do definitely all
right any Traders out there tell you
they know what the Market's going to do
run a mile
all right so so far we've got
the condition the market phase we've got
support and resistance and we're using
that to our advantage as well so we're
saying okay well if we're in a pullback
if we're in let's start again on this
example identify the market condition
we're bullish what are we looking for
bullish opportunities buying
opportunities okay what phase are we in
are we in a run or a pullback when we
get somewhere down here there could be a
an area that all of the Traders are
looking at or the majority of Traders
are looking at that will provide a high
probability area for me to get in and
buy this position well what's the first
kind of filter that we can use support
and resistance where's previous
resistance well price is pushing right
down into that support level right now
what do we know historically well
resistance becomes support there's a
clue okay look left structure leaves
Clues you might have heard the saying
um there's our first clue but we don't
want to stop there what we want to look
at now is how price behaves once it gets
down into that zone so let's take a look
at that right now all right before I go
into that I just forgot to mention
something on the support and resistance
so obviously I mentioned support and
resistance
um you know horizontally but there's
also
angular support and resistance that we
could look at as well so just to give
you remember we're trying to think like
as many other Traders as possible to
pinpoint an area that there's a high
probability of a reaction of something
likely to happen
so that we can then Place orders right
um what we're looking at here is if I
just bring on my tools here you can see
this is a downward Trend this section of
the market and we've we've got
um our phase phase one uh run our
pullback our run okay and then we've got
our pullback
on the pullback we've also got previous
structure support become resistance okay
um and we've also got if we just look if
we draw a line here you know sometimes
what you can see is at the each of the
pullbacks if you draw a line from the
the close of the candle all the way
through the closes of the candles to the
most recent one uh you'll find that
there is something called angular
support or in this case resistance where
we're hitting an angular ceiling and
when the markets are really in Trend
they tend to respect these now again
it's not an exact science and it's not a
pinpointed price but when we can align
all of this together we start getting a
real high probability setup in our hands
so I just thought I'd share that with
you as well now I'm going to go into how
we identify when's the right time to
start really drilling down and looking
at placing orders so let's look at that
okay so the next thing I want to talk
about is price okay and how that behaves
price uh patterns what I'm talking about
specifically is deceleration so running
out of steam so we want to know when the
market is likely to change direction in
other words and there's a couple of
clues that we could use to do that if
we're in a trending Market we can start
to remember what I said about the
candles and how we had big strong
momentum candles and then we started to
read the story of how that might be
starting to run out of steam or how
certain selling pressure was coming into
the market or buying pressure depending
on what
um you know what direction we're going
in but we can use that in a trend as
well not only can we use it in a trend
we can use it at the end of a trend so
if the Market's trending and price
action starts to show us that it's
running out of steam and then we put in
a retest or something like that then we
can start to go all right okay that's
double confirmation that it's likely to
stop here this trend and actually go the
other direction so so what I'm going to
give you is an example here in a trend
so you can see on this this is the
Aussie New Zealand this example and you
can see that we've got our run and our
pullback and we've got our run and our
pullback and we've got previous
structure support become resistance
right and we've got angular
um resistance as well and prices pull
back out and obviously all of these are
in hindsight but that's really the only
way that I can demonstrate this to you
to give you as much value and examples
in this beginner's program what we could
look for now is in this pullback phase
we can see that how we can really drill
down and look at Price here so let's
just start by
bring in uh let's zoom in a little bit
here whoops let me just okay what
actually happened here is we had this
strong bullish candle and then we had
another bullish candle then another
bullish candle another bullish candle
but as you can see they're getting ever
so slightly smaller until
we get this candle right now this candle
here what did I say to you guys before I
said this is completely different to
this this shows us that although it's
green and we open lower than we closed
it's still a bearish candle they're
still selling pressure because remember
the tug of war Story the price pushed up
and then pushed all the way back down
and closed okay which is completely
different to the previous story
following this strong momentum and then
we run out of steam and then we see this
selling pressure kick in so remember
we're looking at the condition of the
market which is bearish we're looking at
the phase of the market which is in a
pullback now we're trying to see where
price is likely to roll back over to go
into the continuation of that downward
move and what we're using is support and
resistance we're using angular support
and resistance we're using
um price action now and we're looking at
deceleration we're reading the story of
price to show us when's a high
probability you know entry point because
we're never going to catch the top and
sell the bottom right it doesn't happen
what we want to do is use our technical
skills to get in at the best point
possible
so when I look at this I've now
identified some deceleration and I've
now identified what we call a
Candlestick pattern as well and this
Candlestick pattern is known as a high
test candle or
um some people refer to it as a shooting
star or there's many other names for
these types of candles but really it
doesn't matter what we're looking at is
the is the formation of the candle and
this is a high test candle now there's
other candles that you might pay
attention to like low test candle if
we're going the other direction just
like this one here or this one here but
as you can see if you just look at any
of these candles anywhere you're not
going to have an edge however if you
look at them in the right place in the
market that's what's going to give you
the edge make sense same with doji
candles doji is a candle like this one
here that just has a very you know opens
and closes at the same price it's called
indecision where there's no decision and
a lot of the times you'll see doji
candles that that complete like this
where it's right in the middle it's tug
of war that hasn't been won by either
party
and um and again they happen everywhere
in the market but if you use them and
you identify them at the right place in
the market that can be added to your
Confluence your confidence and
confirmation that that's a good trading
decision it adds water to and weight to
the decision right so one of the
Candlestick patterns which is um we've
looked at Market condition Market phases
we've looked at support and resistance
we've looked at Price action patterns
right the other thing that we can look
at is Candlestick patterns okay so
there's other things like indicators
like Fibonacci and exponential moving
averages and that but I'm not really
going to go too much into detail in this
beginner's course you don't really need
to know too much about that
um not not at this stage anyway
basically it's just another way of
adding another filter so that you get
added confirmation so just give you an
example of one of the popular indicators
that people use when we're looking for
where the retracement's going to end is
Fibonacci and is called a Fibonacci
retracement tool and you're essentially
drag it on from the most recent pullback
to the most recent low and what you're
looking for is usually one of the
popular ratios that people look for is a
382 retracement for a trend and you can
see that that 382 retracement is lining
up in our Zone here as well okay now
some people look for deeper retracements
at 618 but really the 382 is the you
know the strong the indication of a
strong Trend so you can see it's another
thing that we can add on now because
we've now got our angular and horizontal
support resistance lines we've got our
um we've got the pullback phase we've
got the
um the 382 retracement you can also see
here that we've got this even handle
number you see this
1.1000 now another thing that you could
use to your discretion is even and
handle numbers anything that's on the
flat or 500 or even numbers with 50 in
them they seem to be respected more
often than not so you can see that we've
got 1.1 flat that is a flat even handle
number you know when you go to the
petrol station and you put the Petrol in
your car and you squeeze the pump and
you try and get it on the Zero that same
psychology is is represented in the
markets believe it or not and for
whatever reason these psychological
numbers are respected lots of people
take their orders or profits at these
levels which means we see movement in
the market so great 1.1 flat we've got
all this Confluence all of this uh going
in our favor
so all we need to do now is place an
order right so we just want to place an
order
and what I'm looking for is the
Candlestick formation as my as my signal
to say right now we're ready to place an
order and I've already got my candle
signal right here okay so let's just
take off this Fibonacci because it's a
little bit it's cluttering the um
clutter in the chart so all I'm going to
do now is place an order just below the
low of this High test Wick okay and I'm
going to be placing a cell stop order
I'm going to go for orders in just a
moment but for now all I'm if we go from
the mindset of I'm just testing this out
okay so I just want to see what happens
so all I'm going to do is I'm going to
place a
um I'm going to place an order here just
below this low and I'm going to put my
stop loss up here and don't worry you
don't know what stop loss is at the
moment but I'm going to explain what it
is whoops what's going on here okay so
my stop loss is going to go above this
High the entry is going to go above
below the low and then what I'm
basically saying is to my broker I'm
saying if price action pushes Beyond
below this line I want to get in at this
price and I want to get out at a
predetermined price
um maybe down at the lows okay so I'm
going to say right in this instance I'm
going to test getting out down here at
the lows right at the lows
great let's see what happens so we just
let the market play out we get triggered
into the trade and there's a high
probability move and look not only did
we get our high test candle wick here we
got a lower low lower close than the
previous low this is called a three bar
reversal okay and uh we also got another
rejection here so added confirmation
even if you didn't get in here and
waited for this candle you got even more
confirmation because you could see not
only did we get another rejection we
also closed even lower than the previous
low so then you could have placed your
order here and got in make sense so I
hope you understand how we use that kind
of
multi-factor approach to looking at
different components on price to really
drill down and see where the high
probability setups are and forming a
story of price allows us to predict
what's likely to happen next then all
we've got to do is go and test this
historically so a case of literally just
going back in time and every time you
get this set up practicing the moves
um and you know going through it one bar
at a time in real time as if like right
what we're in the run or the pullback
run on the pullback okay great what am I
looking for now support resistance etc
etc and you want to have a go at doing
that and you might want to pause the
video to go and practice some of that
and what I'm going to go through now is
what you're going to want to do know in
order to actually place an order but
before we do that we have to understand
the importance of testing this and how
to test it so let's do that first all
right so from here before we get stuck
into the business side of things which
is going to be really important in terms
of testing profitability you know making
sure that you've got got a solid system
and then looking at strategies and
things like that we first of all have to
address something that's kind of the
elephant in a room here and that is
orders placing orders and what they mean
you know what are they
um so first of all I'm going to talk
about the different types of orders and
then I'm going to talk about
how you calculate your position size and
then how you know exactly what order to
place and where and when and why and how
much risk you've got at stake and all
the kind of all that kind of good stuff
so okay so what I want to start by
giving you first is the terminology and
the references used to describe
different order types okay and I'm going
to write them out first of all so write
these down we've got a buy
limit we've got a cell
limit
we've got a buy
stop
we've got a cell
stop
okay and we've got
at Market
now whoops at Market
now those are the references those are
the terms that you might have heard when
it comes to
order placement now I want to give you a
a you know a reference or a kind of
description of each of these because
they can all be used in different ways
right so some of you might be familiar
with the term stop loss okay well a stop
loss is a the way we use any of these
orders okay so a stop loss is the way
that you're using these orders not
exactly so a sell stop and a buy stop
isn't a stop loss a buy limit can be a
stop loss A sell limit can be a stop
loss an app market order can be a stop
loss if you if you've got a mental level
that you're actively watching and I'll
explain more in a moment right so forget
stop loss at the moment I explain that
in a moment but these are the types of
orders a buy limit is
um a limit order where you're telling
your broker your each of these orders
are instructions to your broker by the
way so first things first a lot of
people think that when they place an
order on the chart that that is the
exact level that they should be filled
in uh but it's not it's actually an
instruction to your broker to then fill
your position at the nearest possible
price okay I want you to understand that
because I don't want you to be one of
these people that blame Brokers and
things like that for
you know not giving not honoring your
your order and all this right it happens
it happens and when you blame orders or
things when you blame Brokers for things
like that it just shows the lack of lack
of knowledge on Brokers now there is
obviously things that go on underhanded
by some Brokers which is why I use trade
Nation where they change spread values
and things like that I hate all that
um and I would say if you if you ever
experience that get rid
um but just understand that when you
place an order on your chart it's an
instruction to your broker great good
so a buy limit is a buy limit order is
telling your broker that if price pushes
down below what we're trading at at the
moment and we hit a certain limit
whatever price you specify to be that
limit so let's just say for instance
that we're trading here okay and um
you're you're telling your broker so
let's just let's just do this in a um
you know uh chart fashion so we're
trading at this price and you tell your
broker actually if we push down to here
I want to set a buy limit order which
means if we hit that limit I want to buy
the currency okay so basically it's an
instruction to your broker to say if we
hit this level below where we're trading
at the moment whatever you predetermine
that to be I want to buy x amount of
position all right and don't worry about
position sizing just yet so when we so
we set a limit order down here and if
price pushes down your broker will then
trigger will buy you will put you in a
long position make sense
now cell limit works the other way so
we're telling the broker if price pushes
up to this predetermined limit that I'm
going to tell you uh above what we're
trading at at the moment I want to sell
the position okay so again exactly the
same thing we're trading at this value
and uh you're saying I want to set a
cell limit up here okay this is a buy
limit
there's a sell limit and if price pushes
up to this level you want to sell and
they'll put you in a sell position a
short position right
a buy stop order is kind of the other
way around so let's just say we're
trading at this level you're basically a
buy stop order is saying to your broker
if we hit this level above what we're
trading I want to buy okay so let's just
say that we're trading here
and you say if we push up to this level
I want you to put me into a long
position I want to buy at this level so
this is a buy stop order meaning that
you're thinking that the price is going
to go up and a sell stop order is the
other way so again if a sell stop order
is an order to your broker to say
if price pushes down below what we're
trading at the moment to this
predetermined level please sell me put
me in a short position okay I want to I
want to sell so you place your order
down here which is be a sell stop and
then you're thinking that you know your
your bias is that Market's going to
continue going down make sense
so we've covered by limit we've covered
cell limit we've covered by stop and
we've covered sales stop and that market
order is just you watching the charts
live and clicking buy or sell and giving
your broker an an instant instruction as
soon as possible to get you into that
direction whatever that might be whether
it's a buy buy at Market or sell-up
market so you can buy or sell at market
and that is you know get me in now sell
now buy now make sense
now all of these are orders and they can
all be used for Target positioning or
they can also be used for getting into a
trade and they can also be used for stop
loss so now we've covered the references
of each of these let's cover the three
different ways we use these okay so
basically it's a stop loss
a entry
order and a Target or a profit Target or
whatever you want to call it right
profit Target and you can have multiple
profit targets but we're just going to
stick with this for Simplicity right now
okay now first thing I want you to get
clear in your mind
is every order is an order what do I
mean by that every order is an order and
what I mean by that is a lot of Traders
we see out there they put so much
emphasis and attention and you know
effort and energy into trying to
pinpoint the most
accurate place for entry which we was
doing earlier right
but when you think about it your entry
could be someone's stop loss your target
could be someone's entry and your target
could be someone's stop loss right so
it's they're all orders they all behave
the same way so you want to think about
putting as much effort and attention
into every one of these orders not just
your entry but your stop loss and your
target so you want to give the stop-loss
breathing room you want to give your
target enough you know you want a decent
sized Target but not too greedy in some
situations
um and your entry obviously needs to be
precision as well so you get that best
probable
um move
so any of these orders that I've just
been through here buy limit sell limit
buy stop sell stop or at Market can be
used as stop loss entry and Target okay
depending on how you get in
so I'm going to give you an example of
this on the chart in just a moment but a
stop loss can be a buy limit a sell
limit an app market right or it can be a
buy stop
or a sales stop
okay
a stop order is not re is not related to
stop loss it's stop loss is just a term
for how we use the order does that make
sense
um an entry can be a buy limit a cell
limit an app market
a buy stop whoops and a sell stop
if I could write a Target can be a buy
limit sell limit at Market buy stock
sell stock
so let me give you an example of each of
these a stop loss if markets starts
going against where we um you know where
we we we we thought the market would go
and we want to get out of there
we could set a buy stop order let's just
say for instance we thought the market
was going to go down let's give you an
example of this right so here's the
chart
let's just say that the Market's
trending and we get in a short position
here okay so we set our order and we we
set a cell limit order here because we
got we made the prediction here and we
said right if we push up to that level
that's previous support should become
resistance I've got enough you know
enough Confluence there I'm happy to
place a sell limit order and I'm going
to tell my broker to just put an order
there you set it you forget it that's
called a sell limit and your idea is
that the Market's going to push down and
re-test these lows and you're going to
place a buy limit here
sell limit here by limit here because
you're telling remember you're telling
your broker if price pushes down below
the current price that we're trading at
I want to buy back my position and of
course this this order here won't be
active until this order's active
okay but what if Market goes against you
against your prediction
right so you've put a sell limit order
in you're now you've sold the position
and Market's going against you okay well
what you would use here so I remember
what I said about the broker if it goes
above the price we're trading at how you
you've already sold so how do you buy it
back okay well you want to buy stop
order here
okay so it's just a case of
how you're getting in the market how
you're placing orders how that relates
to
um you know the how we're using the
order and then how the actual order
works and it only comes down to these
six things or five things here right so
you've just got to memorize this you've
got to really understand this and then
you've got to know how you're using each
of those five things and then you've got
to understand how you place the orders
on the chart so let's go over to the
chart and I'll just make this really
really clear by giving you some examples
on there okay so in real time let's take
a look at some of the examples that we
could give on some of these orders all
right so we're currently trading at 22
913 okay and
what I'm looking at is different orders
that I might place so if I was looking
to sell this right now okay for whatever
reason
I would place a at Market order right
at Market order and I would get in at
market right here and we're selling a
place in that market order I've told my
broker I want to sell
um and we're in now
in order to cover my position so
basically I need to set a profit Target
and a stop loss and I could use any of
those orders that I just showed you for
that but they are specific to depending
on what order you your entry order is
okay so if I've you know if I've placed
a sell order I don't want to place a
sell order for my stop loss it has to be
a buy order I have to buy back if you're
selling you have to buy back at your
stop loss if you're buying you have to
sell back at your stop loss Okay so
if I've set a app market sell order here
my stop loss order is going to be at a
position where I I want to be out of it
because I know that I'm wrong I've
accepted that I'm wrong and I want to be
out as minimal minimal loss so I
predetermine a percentage of my account
I want to risk on this which is all that
all happens before we place the first
order I'm going to show you how to do
that in just a moment but the stop loss
let's just say we're going to place the
stop loss above this structure level
okay so the stop loss is going to go
here
and the stop loss for this particular
order is I want to place it now so I'm
going to get in the trade at Market I'm
sure now I just want to cover my
position and I want to place a buyer
stop order here okay so a buy stop order
and that's going to be used as my stop
loss now why can't we use a buy limit
order well we can't use a buy limit
order because
remember what I said about buy limit
order a buy limit order is an
instruction to your broker to get in at
a price that's lower than we're
currently trading all right so that
wouldn't be lower than we're currently
trading would it
so it would be a buy stop order so just
by figuring out and remembering what I
said about each of those orders the
unique characteristics of those orders
you can work out all right okay yeah it
couldn't be that one so it really only
isolates it down to the right one now
for my target order let's just say that
I want to get in down here I want to buy
back down here a profit now
that could be an app market because I
could sit here watching it and I could
just do an app market order
it couldn't be a sell stop because we're
already selling it needs to be a buy
okay and it can't be a buy stop because
a buy stop order is getting in and
buying more above where we're currently
trading so it has to be a buy limit make
sense so I know it's a lot to take in
but if you re-watch and get it in your
head you'll understand so I've sold at
Market I've got a buy limit for my
Target order and I've got a cell uh buy
stop for my stop loss right
Let's uh let's give you another example
let's just say this time
um if price pushes down to here let's
just say if price pushes down to here I
want to buy this okay so if price pushes
down I'm going to tell my broker that at
this level here whatever this level is
22 60 70 or something I want to buy at
this level okay well
I could either wait here and buy it if
it pushes down or I can just set a buy
limit order which is telling my broker
that if we push down below where we're
trading now to this level buy me in
okay and then once I get in there I need
to set a stop loss and I always want you
to remember this entry stop loss Target
entry stop loss Target so as soon as you
get in you think about your risk and
then you think about your Target and
always do it in that order
so for this one
it's just an order saying well if we get
if price pushes down lower than what
we're trading at the moment I want to
sell which is
a sell stop
so this is a sell stop okay so stop this
is a buy limit
okay and then for the Target which let's
just say we put our Target back up here
where we were so we want the market to
push down then we want to push back up
and hit our targets right well what's
this going to be
this could be an app market because
we're sitting there watching it or it
can be a sell limit order okay sell
limit order
so you kind of get the gist right now is
there anything that I haven't done here
yes there's a couple of ways you know
you could do at Market orders for
everything you could I highly recommend
you don't use at Market orders for stop
losses because that's not a good idea
but I want you to just really get your
head around the different types of
orders and then how we use the different
types of orders and commit to memory
those different differentiators that I
just went through you know instructions
to your broker if price is above or
below where we're at at the moment you
buy or sell and if you get your head
around that then we can move on to
calculating position size and getting in
on the entries so let's do that now okay
so just to get your head around risk and
Order placement and risk management at a
very very basic level let's just say
that we are in a trending Market okay
and we're looking to get in around this
level here we're gonna buy the market
right and I'm not so interested in the
profit Target for this example I just
want to get you to understand risk and
position sizing a basic fundamental
level so let's just say that the price
we want to get in at is
0. I don't know eight
five fifty okay now
we're gonna get in with a limit order or
an app market order or you know buy
limit whatever it might be and we're
going to predict that the Market's gonna
go up now to cover our position we also
need to put in a stop loss
where we want to get out and accept that
we're wrong with minimal risk okay
minimal loss sorry so let's just say
that to keep it the numbers easy that
this is 8 500. so here between here and
here is a 50
pip
Gap right so there's 50 Pips between our
entry and our stop loss now one thing I
forgot to mention earlier is we're
looking at the fourth decimal point the
only time that that that isn't the case
is on any pair that contains the Yen if
we have the Japanese Yen
in any of the pairs we're just looking
at the second decimal point so you might
see something like one three one twenty
well this will be the one unit and this
will be the 10 unit okay so all the
pairs we're looking at the fourth
decimal point uh except for the pound
gem we're looking at the second decimal
point or the dollar Yen any pair of the
yen in it all right so back to the
example so we've got a 50 pip risk limit
make sense so far
now let's just say that we've got a 10
000
account that's our total account size
okay and I'm just really just keeping
the numbers you might have a thousand
dollar account you might have a 500
account you might have a million account
right but ten thousand dollars let's
just go with X it's nice and round and
let's just say we want to risk no more
than one percent on any trade any given
trade okay so first thing I'm going to
do is divide this by a hundred and that
will give me a hundred
okay so a hundred dollars makes sense so
far so ten thousand divided by a hundred
that gives us one percent of our account
or you can multiply it by point zero
zero one and get the same answer and
we've got a hundred dollars now what we
want to do is take that that's our risk
and we want to work out how many you
know how we put that into the order so
we've got a 50 pip risk in space okay in
price and we've got a hundred dollars
allocated to that 50 bit risk of our
account size right so all we need to do
is take the 100 that we've got to
allocate to risk and divide it by 50 and
that will give us two and what is two
two dollars per pip so let's just say
that this here is a two to one move
meaning we're risking one but we're
going to gain two that means if we're
risking a hundred and we've got two
dollars per pip on our on every every
pip the market moves we're gaining two
dollars or losing two as if it's below
our entry that means that if this is a
hundred this is 200 so we're risking 100
to gain what two hundred dollars which
is a two to one risk reward profile now
I'm not going to go into
um lot size and everything just yet
because the the way that we buy currency
is in units some you know depending on
the broker or the platform that you're
using the charting package it will give
you the option to put in a a dollar
figure per trade or per risk per pip and
some of you will be looking at lot size
so standard lot mini lot micro lot and
that will all be calculated based on
similar principles but I'm not going to
go into that just now I'm going to go
into that later on when we get in depth
with the you know with the numbers and
and real detailed stuff but for now I
just want you to understand kind of all
right okay so I'm allocating one percent
of my account to split across the amount
of risk where my stop loss is going to
go and my entry is and then I can work
out what my profit Target will be
because it will be the same value per
pip and then there's all leverage and
all the rest of it you know how you can
access how you can control a bigger
portion of the market using leverage
from the broker occur and all of that
I'll go through when I talk about
Brokers but for now I just wanted to
cover this so that you understand
risk management position sizing to a
degree and how it's all relative to you
know the potential profit that you can
make on any one trade okay so based on
what we've learned so far in terms of a
little bit about order placement a
little bit about orders a little bit
about
um this kind of six things we look for
um to approach a decent trading setup
the condition the phase the the
um you know price action patterns
indicators support and resistance
Candlestick patterns what I want to do
now is just kind of do some practical
stuff and I'm going to set you guys uh
some homework as well so you might want
to pause the video after this section if
you haven't already paused it multiple
times already it's a bit of a big one
um and what I want to do is just
pull out a kind of makeshift strategy if
you like a trading strategy I wanna I
wanna help you understand that a trading
strategy is a series of events that
happen frequently a pattern that happens
frequently and if we're able to build
rules around it we can
um consistently trade those rules or
test those rules to find it if it has a
positive Edge a profitable you know if
it's profitable over time and then we
can go and trade it right now before I
do that I want you to understand
everything I've taught you so far can be
applied depending on what type of Trader
you are whether you're looking for
Trends whether you're looking for
reversals the ends of Trends whether
you're looking for ranging markets all
of those things that I've taught you so
far can be used to approach strategies
and setups in multiple different market
conditions okay that's the first thing
second thing what's a great exercise to
do is let's just say that I bring on my
horizontal line tool here which you can
find right here and uh just a good thing
to practice is just scrunch up a chart
if you've played around the chart
already you can use the link below to
open a free account with with trade
nation and so your charts look like this
and then just practice going through and
just put in horizontal lines on support
and resistance levels okay and what
you're going to see
is that magic take place right where we
see look at this so we've got previous
resistance
resistance become support and then we've
got resistance becomes support
resistance becomes support resistance
becomes support right and so on and so
on and so on and although it doesn't
always respect it does most of the time
you know when we see these really nice
harmonically trending markets support
becomes resistant so just doing this
little exercise will one get your eye
used to identifying structure you know
your support and resistance from your
eyes and uh two giving you confidence
and and you know helping you see how
powerful some of this stuff really is
so let's uh let's take a let's make up a
strategy and then what we're going to do
is use that strategy to firstly show you
what a strategy is made of and then
second of all
get you out your head around the idea of
oh right I just need to go and test that
now to see how it performs and that will
give me the confidence then to give me
the probability of what it's likely to
do going forward right so let's do that
so first things first this is all going
to be in hindsight I have no other way
of demonstrating it in an efficient way
for this video so that you can you know
otherwise we'll be waiting here I'll be
taking days and days and days to film
this thing and I want to give it to you
right now so I'm going to kind of give
you something in hindsight I've just
pulled up a chart randomly I haven't
really checked through too much here
I've just seen a couple of things I
think we could use and I'm just going to
create a trading strategy now before I
do that some of you might be thinking
well when is the best time to trade when
is the best what's the best time frame
to use what you know do I use the daily
the four hour the hourly and I would say
this
if you can only remember what I said
about consistency you have to be
consistent so when can you consistently
be in front of the charts every day to
do the routine whatever that might be
okay you don't want to be interrupted by
meetings School run you know take it and
bins out all this kind of thing right
that I say uh or having a shower bath or
someone gives you a call right so if you
can only see like if you can
consistently check the charts at the
same time every day once a day you want
to be trading on The Daily time frame
okay so each of these candles is one day
if you can do it two times maybe three
times a day where then you can consider
the four hour but remember those times
have to be consistent there's no point
chopping and changing and missing stuff
and then trying to catch up and that's
not going to work for you because
Traders have a tiny Edge small Edge all
right so if you miss a trade that can
potentially cost you a couple of weeks
of of profit yeah or keeping you at
break even so you want to be consistent
and if you can if you can check the
charts more than four times a day three
times a day then maybe consider the
hourly but look this has been a ginner
course and if you've watched this long
we've got probably two hours in now
you're probably gonna want to be a
beginner which means you want as less
time at the charts as possible because
you won't be able to handle as much
going on so I would say start with the
daily time frame all right and for this
example I'm going to show you on the
daily time frame so what I want you to
do
is first of all I'm going to give you a
strategy and then I'm going to say right
what I want you to do is go and test
this strategy and go and test it using
all the different filters that we gave
you in the before when I said look at
angular support resistance look at
horizontal support resistance look at
even handle numbers look at indicators
look at Price action patterns look at
um price Candlestick formations okay and
I'll give you a couple more countless
informations to look at
so let's make a start right first things
first I'm going to look at this as a
this is a bearish trend okay we're going
to say right we've identified the market
condition is bearish top left the bottom
right we're putting in lower lows lower
lows lower lows lower lows okay and
we're in a bearish trend for this part
and what I'm looking for is a
continuation setup okay so I'm looking
for Market to go to the pullback phase
and then I'm looking to sell so that I
can short the market and come out a
profit down here I can buy back my
position down here at a profit okay so
look let's uh let's bring on my squiggle
tool I'm going to draw all over this
chart so make sure you take notes
now let's just say that this was our
last run and then this was our last
pullback okay
now what I'm looking for is when we get
the pullback I'm looking for the first
lower low lower closed candle so we're
just going to assume for this one that
we've pulled back into previous
structure support
um and it becomes resistance and we're
in that zone just like we did before and
what I'm looking for in is a lower low
lower closed candle and what that is is
a candle that closes lower than the
previous low candle in other words
we close lower today than we did
yesterday
makes sense because this is remember
this is hindsight but this is a live in
real time this is a live example so this
candle here can you see this candle here
right this red candle that candle closed
lower than the previous low let me just
remove that off so you can see it this
was the previous candle
right and this is the candle that's just
closed below the low of the previous
candle makes sense okay and what I'm
going to do once I see one of those
candles is I'm going to place a cell
order just below the low two Pips below
the low and I'm going to work out my
stop loss and I'm going to put that two
Pips above the highest high
and then what I'm going to do is I'm
going to shoot for the lowest close for
my target now of course this is in
hindsight but this is a good example of
showing you the power of structure and
the power of putting as much emphasis
into your target taking and stop loss as
you do your entry
and what you can see here is I was
triggered into the trade on this next
Green candle then we pushed up a little
bit because in real time you know that
is a whole day put your mind in the
whole day of what's happening in this
green candle here we've pushed down
triggered into the trade we've then
pushed all the way up and we've gone
into the red about 50 into our stop loss
okay imagine that imagine your your
mindset right then we've closed up here
higher than we closed like the previous
day high so that's it that's it for the
night we've closed then we open again
at 10 o'clock in the UK or five one
minute past five in the in the US or
whatever right and uh we're on to the
next candle now the next candle starts
to push down and we close down here
great but we're still like what our
entry right and then the next candle we
have a big bearish momentum candle then
another one then another one okay and
then six days later or seven days six
days later we actually hit the target
but look what happens when we hit the
target
we respect that level because it's
previous structure support and we hit it
we pause and then the market Rockets
rallies straight up so this is the
importance of putting an emphasis into
where you take your targets don't be
greedy as it is this is like a three to
one reward to risk profile which is
amazing because if we risked uh a
hundred dollars we've just gained 300 on
this trade right
um but in real time will you have the
mental ability and the psychological
kind of strength to stay in this trade
and capture those targets or would you
take targets early and if you if your
answer is I'd take targets early you're
not ready to trade you know that's
something you really have to master you
have to let your profits run and cut
your losses early you don't want to cut
your losses early uh cut your profits
early because you you know you have to
be if you do that you have to be right a
hell of a lot of the time make sense
the the shorter your Target and the
shorter your reward to risk profile the
more trade you need to be you know right
on
if you're right 50 of the time and
you've got a one to one you're not going
to be profitable make sense
so in this one it worked out but I just
wanted to walk you through you know that
whole process of visualizing being in
this trade in real time this one worked
out so remember the rules
we wait for the pullback phase we wait
for it to you know get to previous
support resistance or we just wait for
the pullback we we identify where it's
likely to end and then we look for the
first lower low lower closed candle all
right now
let's go again so we put in our new low
we start to pull back we start to see
deceleration here at previous support
and we put in a lower low lower candle
right here okay so we enter a couple of
Pips below the low
we put out and when we get triggered in
we put our stop above the highest high
and you can see in this case
start started to push down but if our
Target was down at the lowest close
this was more than a one to one probably
a one and a half to one but we actually
triggered into the trade and then got
stopped out see that we got stopped out
so we had to use our stop loss we had to
trigger our stop loss order to get out
of the trade at a loss
so in this instance we've gained 300 and
we've lost a hundred dollars we're up
two hundred dollars make sense
cool all being one percent per per trade
and of course that one percent is going
to change very slightly as we get get
gain more uh as we grow our account
um but I'm using it for this example
okay but what happens here is we
continue to push up then we see more
deceleration which is still a valid
pullback still a valid
um retracement still valid phase two
okay uh pullback and then we see Market
decelerating here and then we get
another lower low lower closed candle
right
so we place our order two Pips below the
low we put our stop loss two Pips above
the high and then we get triggered into
the trade on the next day and then we
have a bit of a doji candle which means
indecision okay and then nothing happens
and then the next day we get lower low
lower close and guess what we're going
to put our Target back down here again
okay lowest close
and boom we've got what two and a half
to one on this so now we're up 450 or
500 500 great
and then we wait for the new low so we
don't take another trade until we break
and close below this low and then we
break and close below this low so now
we're down into the run again now we can
wait for the pullback and we can look
again so here would be the next one
right so we go into previous structure
support become resistance we get our
lower low lower closed candle which is
right here and then we start to look
again so hopefully you understand the
kind of um whoops help if you could see
that let me just move that so you can
see that
right support becomes resistance we put
in our new run and then we pull back up
we get our lower low lower closed candle
right here okay so you know the rules
pull back look for deceleration look for
a lower low lower closed candle and then
targets uh entries sell stop order below
the low uh stop loss is a buy stop order
of two Pips above the highest high
targets at the lowest close from the
previous run now I know that sounds like
a lot but just rewind it back get what
I'm saying it's not difficult and you
can look in a bearish market
and you look at this in a bullish Market
okay and what we're going to do is we're
going to do some testing on this and I'm
going to show you how to test I'm going
to show you what to do but when you're
testing it
I want you to pay attention to
bullish Market bearish Market okay do
one for bullish one for bearish
you can do the same pair same same
Market but what I want you to make a
note of is
making sure you've got the right Market
condition making making sure you've got
the right you know phase the pullback
phase and then I want you to take note
of whether there's deceleration in price
action maybe use a Fibonacci indicator
just to monitor where it pulled back to
on the Fibonacci maybe
um look at
um support and resistance and then how
many touches of support and resistance
previously and did you have angular
support uh resistance in a shorting
Market or angular support in a bullish
market and then did you see price
decelerate was there a pattern in price
there or was there a Candlestick pattern
was there a high test canned Wick or was
there a doji or was there a lower low
lower close okay of course there's a
lower low low close because that's the
one we're using for this particular
strategy but notice if there was any
other Clues like a an indecision candle
just before like we had on this one
um or where was it where we had it on
this one
um was there one just before it or was
there any other clues that you can glean
so I want you to have a go at that I'm
going to show you now how to you know
have a little spreadsheet set out so you
can go and test them what to record so
that you can efficiently start to get
excited about you know these strategy
developments and how you can really use
these patterns you know we've just found
a few there just without it really
looking and and you can go and test
these and the beautiful thing is this
everyone says trading's risky well it's
actually the least riskiest business I
know because what other business is one
just you so there's no other external
factors that can play a part in whether
you make profit or not two you've got
historical data research like this that
gives you certainty and what's likely to
happen next before you even spent a
penny in the markets you know you could
really sit here for six months
developing and testing systems before
you've even spent a penny in the market
and then go do you know what I've got 67
strike rate you know this is going to
potentially generate a uh 28 return per
year on this one strategy amazing now
I'm going to start funding my account
and you have the confidence to do that
then most Traders they the first
question is oh how much do I need to
trade to start or or let me let me just
get in on this trade and they don't know
what they're doing there's no need to do
that that's why it's got a bad name
that's why it's seen as risky I don't
want you guys to do that so
let's build a little spreadsheet so that
we can test this I'll use this example
and I'll show you what we're going to
record on the spreadsheets let's do that
all right so now what we're going to do
is we're going to take what we just
learned and we're going to try and do
some testing all right now there's no
wrong or right way of doing this if it's
your first attempt I just want to open
your mind to this stuff I just want you
to understand the process that Traders
have to go through to get a profitable
system and have confidence in their
system and then go and trade live right
and I just want to reinforce again and
say this is all we've got to go on as
Traders the only thing we need is mental
strength to trade a system where there's
no real knowing of what's going to
happen in the market any of these
Traders out there tell you that you can
make a set amount of Pips per week or
set amount of money per week it's
rubbish no one knows what's going to
happen next the income comes in
sporadically we're focused on overtime
profits okay so with that being said all
we've got to go on is historical data to
give us that the calmness of the
probabilities of what's likely to happen
and the importance of doing this stuff
you know is
firstly we need to know what's likely to
happen next okay because that's all we
got to go on two when was our you know
longest drawdown period when did we not
make money for the you know how long did
that last or what was the most amount of
money we lost in any one time what was
the biggest gain that we got in any one
time and all of this information feeds
our brain with
information that keeps us calm
because if things aren't going well and
you've just taken three losers in a row
you can look back at this and say well
actually you know every August this
seems to happen so this is perfectly
normal and it keeps you calm and you
just continue to trade the plan because
the moment you break the plan when
you're trading is when you lose
consistency and that's when you're
you're not going to come out on top
the other reason it's important to test
is because this is a business trading is
a business and I know a lot of people
don't see it like that but
with most businesses you sell something
and you get a unit profit right and a
unit overhead cost and the rest is is
profit and the you know you you make the
sale you pay the overheads you get the
profit with trading it's exactly the
same except the overheads are broker
fees platform costs losses uh and the
and the sale price is the wins okay and
that doesn't come on a unit trade by
trade basis you don't win every trade so
it goes over a monthly annually period
where you're going right okay well I
might have 10 winners and then three
losers and then eight losers and five
winners and it's very sporadic so we
have to have a plan that at least gives
us a policy for making profit that we
can look to refer to and go right okay
this is this is what I need to keep
doing because this is normal right so
that's the power of back testing and
anyone that tells you that back testing
you don't need to do it I would ask
awesomeness why wouldn't you do it
and I've in all my years of trading
asking that question I've never had
someone reply to me or give me an answer
not even attempt to give me an answer
because there isn't one okay so look
what I've got here is a very basic
spreadsheet we've got fantastic
spreadsheets that we've created for some
of you know my Traders and our Traders
have created amazing spreadsheets better
than the ones I've used but there's
nothing wrong this is Google Sheets this
is a back testing spreadsheet and all
I've got is an entry date or NT date got
an entry day entry time is Handy to know
when the date was that you got in so
when you reference back you can find
those trades quickly to see all did this
happen did that happen because you're
going to have ideas you're going to have
other ideas to test and you know you you
can really go down a rabbit hole here
the entry time that's important to know
if you're trading on the on the daily
chart obviously the time is going to be
the same all the time because the open
and the close of the candle is it 5 p.m
Eastern Standard Time or 10 pm UK time
and it's going to be the same every day
but if you're trading the hourly charts
or the four hour charts it could be you
know up to four times a day or you know
12 6 24 times a day right so it could to
be either
currency pair what Market it is Titan I
recommend you trade you just test one
pair completely before you move on to
any others time frame trading so time
frame is the daily or the four hours
Sixty Minute trading system so this is
going to be what like Trend
um counter Trend reversal ranging you
know all that kind of stuff we're going
to look at trend for this example type
of entry in this case we're using a
lower low lower closed candle okay so we
use that can be and then these are the
notes set up so you identify the
condition tick phase tick
um support and resistance you could put
a score here so you look back and see
how many times it touched and then you
you count them up and then angular you
just add as another one okay or you
could add two points for an angular and
that's your scoring system for for
monitoring support and resistance
because you might find at the end of
this that you know all of the winners
actually had
five touches of support and resistance
okay and you might just say well do you
know what unless they're five touches of
support and resistance and angular I'm
not going to bother if it doesn't have
five I won't bother
makes sense and then that increases your
strike rate you get better quality
trades I'm not saying that will happen
I'm just saying that's an example of why
we take these notes indicators make note
of Fibonacci or any indicators that you
might use or was it a 382 retracement
was it a 618 retracement you can start
to get patterns and every time you see a
winning batch you go Ah that's
interesting they all hit the 382.
right whereas the ones that hit the 618
they they lost they didn't they didn't
generate a return
price deceleration is there a price
deceleration so like smaller candles
right was there um was there a
Candlestick like a high test candle wick
or a doji right so were they there so
you're making notes of those and then
you want to make notice note of the
entry price which is going to be two
Pips below the low of the lower low
lower close the stop loss price which is
going to be two Pips above the highest
high
um or the lowest low if we're going in
the other direction and then Target
position which is going to be at the
lowest close I've put Target two and
three in case you want to test and take
it that far I'm not going to do that for
this example and then the close date
close time and um where you exited the
trade okay so because you could exit at
the stop loss or you can exit at the uh
at the Target and then you could use
this to calculate total profit all right
great we've got our system so what I can
do now is I can bring this out and just
pop this over here and
um I'll pop this over here whoops
pop this over here
and now we've got our system okay so we
can just start populating this and I'm
not going to do loads I'm just going to
show you guys how to do it and I'm going
to leave you guys to that right so
let's go so let's just say on this one
we
um let's let's start on this one here
okay because that's I think you can see
that on the screen there you go so we've
got the pullback phase all right now you
can make these as
um you can put that in here or you can
put check boxes to tick tick tick
whatever you want to do I'm going to say
pull back condition is bare bearish
or downtrend whatever you want to write
support and resistance now we could
count that out I'm not going to in this
case because I'm going to have to scroll
through the charts but look just put a
horizontal line in where the um so you
get the horizontal line tool put it in
where we're looking and then scroll back
and see whoops scroll back and see how
many times that's been tested and
whether or not we have angular as well
and you can count those up put the
figure in here let's just say that
that's five tests
indicators you can bring on a Fibonacci
retracement as I did before and you
could go from the low at the higher to
the low and see
uh
uh if we hit the um
618 so we hit the 618 there so that's
that you'd put six one eight in there
okay so six or sixty one point eight
percent I should say I got in a habit of
saying six six one eight it's actually
Thirty um
38.2 of that move is the 382. 618 is
61.8 percent of that move uh is is the
618. so we just make a note of that and
again we're just making notes just
making notes Let me just clear some of
this stuff off
um what else
um
type of Entry so we're going to put
lower low lower close candle trading
system is going to be trend
and the time frame is going to be the
one day and you can just copy all this
stuff down as well by the way I haven't
got like sit here type in every
everything out currency pair is going to
be Aussie dollar
entry time okay so now we're looking at
the entries right so if we just get our
um
tool here just get across here right uh
if you get the cross here on trade
Nation it shows you all of the cool date
and time on there anyway so you just
have to hover over here and we'll see
that the entry would have been actually
not on this candle because we would have
waited for this to close it would
actually have been on this candle which
the open and the close will be the same
time okay so it's going to be 10 p.m in
the UK because it's a daily chart and
but we technically
um it would be this day candle okay so
the 16th of August 2022 okay would be
when we enter uh into the trade because
remember we're setting our sell stop
order two Pips below this low so two
Pips below the low you look at where the
low is if you hover the hover the
Crosshair over the candle and look at
the low lows at 0.7011
so that means that the sell stop order
will be two Pips below that at
0.7009 okay so we can we can write that
in right now so uh let's just go entry
uh date is the I think there's a 16th of
the 8th 2022
okay entry time is going to be
um
we'll put 2200
okay
and then let's see what we've got here
let's see on the order info so the entry
price is going to be what did I say
0.7009 I think I said didn't I
just uh double check seven zero zero
nine yep that is the entry price the
stop loss is going to go two Pips above
the highest highest so look this candle
here the high of this candle 71.37 so
we're going to be at 71.39 so 0.7
uh
what was it seven
higher is seven one thirty seven so
seven one
where are we where's the highest high
highest high seven one thirty seven so
seven one thirty five sorry
seven one thirty five would be the stop
loss
Target is going to be at the lowest
close okay so let me just remove uh all
of these drawing tools let's just get
rid of all of this get rid of this get
rid of this get rid of this and uh I'll
show you where the lowest closes so
bring on the cross here here's the
lowest uh close right here the close of
this candle was 67.35
now we're going to go two Pips above
that all right and that's allowing for
something called front running which is
just a common practice to make sure that
you get filled because there's a little
spread there and the broker might you
know not fill your order so we want to
make sure that we get filled so the
close price is 67.35 we're going to go
at
67.39 so
0.6739 and that's it okay now
where do we close out so the next
information is all about the exit info
um so the closed date well let's let's
have a look what we're looking for is
when we hit
uh 6739 okay so I'll just put a
horizontal line in here
and six seven uh three nine
or six seven three five whatever it
might be uh you can see that we hit here
on this candle here so if I bring back
my Crosshair you can see this candle
right here took us out hit the Hit the
Target and we hit that on the 6th of
September so six
9th 2022 so we got in on the 18th or
16th of August and we got out on the 6th
of September so that's three weeks in a
trade
okay again
think about what that is actually like
in real time
three weeks in one trade on this one
pair now you can trade multiple Pairs
and you can test multiple Pairs and
you'll have much more activity but this
is just this one that's three weeks for
the trade close time is going to be 10
p.m okay so
2200 and then the position one exit
is going to be at that price so we just
want the price uh of of that so it's
going to be the target 67.39 okay so at
0.6739 and then you can put a little sum
down here to calculate whether it was
positive or negative and you can
calculate total Pips total profit Etc
I'm not going to do that here
um I can do that later on but that is
basically it so now if I just bring this
across
you can see that we've got our entry
date entry time pair the time frame the
trend this type of system which is a
trend in in direction of the trend type
of Entry was a lower low lower closed
candle we've got a bearish condition yep
tick we've got the phase pullback tick
we've got the five tests of support and
resistance just as notes we've got the
618 was tested interestingly price
deceleration you can make a note of that
Candlestick you know you can make a note
of that if you've got a A doji or a high
test candle wick or whatever you want to
call you know shooting star some of you
might be familiar with different Channel
names just observations
tweezer tops and then did you see price
deceleration yes or no and then the
entry price stop loss Target close date
close time position exit job done so you
can go and do this now I'm not going to
go through tons of these things because
it's quite quite time consuming I don't
want to this video is already about
three days long so you go and have a go
at this let me know you get on in the
comments let me know if you've got any
questions and what we're going to get on
to next is really just understanding how
we put all this together so let's get on
to that now all right so now you should
have had a play in the charts and you
should have done some testing and you
should have some figures populated in
your spreadsheet okay so if you haven't
done that I recommend doing that unless
you're going to go through this again
but now we've done that what we want to
do is establish
one main thing right is the system
profitable and although you know we gave
you a demonstration of what to go and
test that's a bit of fun that's not an
actual strategy that I have any idea
that will produce a profit it was just
getting you into the way of thinking
about strategy development how they're
developed okay because if this is the
only way you're going to make money is
to develop a system all right you can't
buy strategies off the shelf and then go
and trade them into the sunset you need
to know this stuff so that you can tweak
them optimize them and make them fit
your personality okay otherwise you're
not going to make money trading them I
know you could give the most profitable
trading system to two people one will
make money in one way all right so you
need to know this stuff so now what we
want to do is is it profitable we just
want to know if it's profitable now
you've probably got a rough idea you've
counted up all of the kind of Pips uh
negative you know and taking the
negative from the positive and you've
got a figure of positive Pips for the
period of time that you've tested which
is fantastic and there's some other data
that you can get from this like how
often you're right and how often you're
wrong and your strike rate and things
like that right
but I want to kind of give you a little
formula here that I think is going to
serve you well going forward
particularly if you're going to start
really developing this stuff and I've
got some really cool stuff that I want
to share with you at the end of this as
well that I think is going to help you
so first of all let's do a positive
expectancy formula now not many people
know about this not many people share
this sort of stuff unless you're inside
a prop firm or something like that all
right so grab a pen and paper and write
this down first of all we're going to do
a bracket and then we're going to do one
plus Open Bracket
W divided by L close bracket close off
that as well times P minus one now this
here is a formula and you're probably
thinking well bloody hell what does that
mean well you've got all of this
information on your sheet potentially
now so uh I'll explain what each of
these mean
p is going to be
um your strike rate how how often you're
right okay W is your average win and L
is your average loss okay so it's really
as simple as that so let's just say for
example that
um our average winner was two hundred
dollars and our average loser was 170
because we was just over a one to one if
we plug that into here now so let's just
go one plus uh 200 divided by 170. close
that off times P minus one we've now got
those figures inside of our formula
right well now let's start to work
through this so let's write this out
again one plus
um 200 divided by 170 is
1.18 okay close that off times P minus
one we've now got the next stage in the
formula so we've now done we now know
average win over our average loss makes
sense
great now we need to do is add one right
okay so we want to add one this one here
to the 1.8 which gives us 2.18
pretty simple and then we can times this
by P
minus one now p is your strike rate so
when you go through all of the wins and
the losses you might see well actually
I'm right fifty percent of the time you
might write think well I'm right seventy
percent of the time or you might be 55
of the time okay so let's just say 55 of
the time so now we've got
2.18 times
55 or 0.55 because it will be a
percentage and then minus one
okay which then gives us
2.18 times 0.55 is
1.2 minus 1 equals
0.2 okay now 0.2 is your positive
expectancy
that is your positive expectancy now
here's the thing on this
as long as that is above zero it's POS
it's profitable okay now the further
above zero the better
okay
so now you know this this is how you're
going to analyze all of your testing
that we're going to do from here on out
right and I don't want you to get bogged
down with a math or you know or anything
like that I just want you to understand
this is how you work out if your system
has a positive expectancy or not and
we're aiming for one above zero higher
the better okay now
what I want to do now is go through some
demo trades because now we've tested we
still don't want to place any money at
risk because why would we we want to
then go and iron out any kind of user
errors in the demo market so that we can
understand how to place orders I'm going
to show you how to place orders in real
time I'm going to show you how to open a
proper practice account a demo account
so that we can actually have something
there as a solid tool for our business
that we can go and use so that we give
get certainty over our future returns
and our future results as a Trader based
on our performance so let's do that now
all right so before we place a trade
you're going to need a platform and I'm
going to talk to you a little bit about
the platform that I'm using here and
whilst this video isn't to kind of be
biased towards a broker or a platform or
anything like that because you're brand
new
um I've had quite a few broker accounts
and platforms over the years and over
the years I've come to you know like
certain features and really respect
certain qualities of Brokers so the best
thing I can do at this stage is just
share with you what those are and I'll
start with the broker so I use trade
Nation you can find a link below this
video to open up a demo account and if
you contact the guys there they'll
actually allow you to set the amount
that you want in the demo account it's
only fake money but the good thing about
that is is because you can set a
realistic kind of
um you know a realistic figure that you
can really you know feel like it's it's
real and it's realistic and that will
give you some really cool motivation
because it will be kind of as close to
your personal situation as possible
right you can see here I've got a 10 uh
ten thousand dollar account this is
based on and this is a practice account
it's a demo account and when you open
the account it will look just like this
and you can choose all the different
markets before I go into the the charts
and show you how to place orders and all
the rest of it
um I want to just say a couple of things
about brokers if you're picking a broker
I've done many videos on this in fact I
did a whole video on my YouTube channel
um showing you how to analyze Brokers
and do your investigations and do your
research there's certain things that
Brokers are
um a known for and got a bad rep for
some you know that isn't Justified to be
honest and some that is Justified so
why it's not justified is Brokers make
money off of you trading okay they want
you to trade they want you to open an
account they want you to trade because
they make money on that spread remember
I said that when you go to the airport
they'll buy from one price and they'll
sell to you another price and you never
get what when you come back and exchange
it back you never quite get you never
make money on it or you rarely do from
those kiosks because they're making
money the the difference on the price
the bid and the ask the buy and the sell
and Brokers make their money from that
okay and there's nothing wrong with that
and that is their model now the reason
that is kind of got a bit of a bad rip
is because
you know people try and flog Brokers and
they link to Brokers and they say open
an account with this broker and you
don't know where the the intention is
you know you don't know where the motive
is and you don't know whether they've
got your best uh best intention at heart
um so let me let me share with you a
little insight
one there's two really main important
things that I really think are really
important with Brokers one is that
you've got a good communication path and
good lines of communication to the
broker so the last thing you want is to
have to ring up go for a ton of security
questions and get put on hold and then
go through to support and you're trying
to close a trade and you have to go
through all security and everything like
that you want to be able to just pick up
the phone and talk to someone an account
manager and trade nation and provide me
with an account manager that I know I
can ring up I also know some of the
Senior Management at trade Nation now
throughout developing relationships
because they're you know in my opinion a
great broker so that's really important
having a direct contact there that you
can you can call if anything goes wrong
second of all I like to see
um the the kind of
agenda on you know what they're
promoting and if the if the broker is
really promoting quality education and
things like that uh then they're they're
probably going to be half decent right
if they're just you know putting out
Facebook ads to sign up for accounts and
they're taking your money they're not
really they don't even care if you know
about the markets or not that's that's
kind of you know that's that's not
really a great approach
um but that was the kind of a bonus
point the second real main one is
spreads okay so it has been known that
Brokers
um change their spreads and uh during
the Asia session you'll place a trade or
you'll you'll get it you'll post a limit
order and during the Asia session which
is the session after the New York
session so you have London session New
York session and Asia session uh during
that session the spreads become a little
bit volatile and they change the spread
and for some reason you might not get
filled and then you'll have arguments
with them and then you'll notice that
that actually they changed the spread
and they didn't honor the spread they
didn't honor what they said uh they
didn't fill your order at what it was
when you placed it which is you know to
me and big No-No right now the reason I
like trade nation is because they uh
they guarantee fixed spreads and I've
done a test on this on my YouTube
channel and I monitored six different
Brokers and we looked through the times
after the Asia session and it just
stayed on point right whilst all the
others were fluctuating I did that live
in front of everyone so that just proves
a point right that I just like to have
fixed spreads so that I know
um what I'm getting in at what I'm
getting out at what I can project my
profit at and not only that my back
testing is more accurate I can actually
back test stuff with certainty because I
don't have to allow for that fluctuation
in spread that sort of stuff you can't
test but with with a fixed spread you
can you can factor that in and you can
kind of go right okay you can get more
accurate figures
so anyway enough about brokers
um one other thing that you should know
is there are Brokers that have a a book
B book right all Brokers have an A but B
book and they're kind of
um if they think that your most Traders
aren't good okay so what the broker will
do is take the opposite position to your
trade they won't actually put your money
through to
um the you know the interbank market
they'll actually just
keep the money and place the opposite
side of the trade betting that you'll
lose over time and they'll come out on
top if they do think that you're pretty
good then they'll put you on the uh the
a book right and that's where they'll
you know take you a bit more seriously
but all this kind of stuff goes on
inside brokerages which is another
reason why I like to have personal
communication with uh with the broker
but anyway we don't have to worry about
all that just yet because we just want
to know how to place a trade so
I don't know what broker account or
platform you guys are going to use I
would say go and you know do your
research if you're not going to use
trade Nation but make sure you pick one
that's reputable or go and watch my
video that I did on how to pick a good
broker
if you do open a demo account just for
the sake of this training this is what
you'll see you'll see a nice little
dashboard here you can see I've got a
practice account here of ten thousand
dollars and I've got all the different
markets down the left hand side okay and
uh we're gonna do FX because I'm
primarily an fx Trader I invest in
stocks but I don't trade stocks and I
trade some other indices and stuff but
I'm going to focus on Forex because
that's what we've been focusing on for
this this program
so I'm gonna go you know we've got the
Euro pairs pound pairs dollar pairs all
the kind of major different
um or the three biggest major cross uh
Pairs and then we've got the list of
those there so let's just go for pound
dollar and you can see some information
like the buy and sell price you've got
the um the date the the change the daily
change in price okay so we're up to at
the moment
um whether it's down a percent or half a
percent at the low and the high of the
day so far okay so you know all this
stuff now you've got a trade button
which is going to be relevant for app
market orders and then you've got an
order button which is for limits and
stop orders not stop loss stop uh buy
stop sell stock remember those are
orders above and below price and limit
orders are orders above and below price
and then that market order is just trade
now so that's how you need to remember
it orders are for later trade is for now
okay very easy
um and then you've got some you know you
can put notifications on you've got
button here some more information about
the pair and then you can also add these
to watch lists and things like that so
great
so what we're going to do now is click
on the chart button and I'm going to
show you guys how to place a demo trade
and we're going to give you an example
using the strategy that we did yesterday
and we'll I'll walk you through step by
step on how to place a trade and what
all of the little uh what it all means
so let's let's do that all right so now
we're going to walk you through placing
a trade okay and we're gonna just take
an example of what we looked at
previously as in strategy wise and we're
going to take a look at the Euro Aussie
so the first things first when you're on
this this page or whatever your platform
you're using you want to click on the
actual Market that you're looking to
trade or to analyze and in this case
it's the Euro Aussie okay so what you do
is you go over to this little chart
symbol here hit that button and it will
pull up a new chart and then you can
expand that out and you can do that
multiple times another reason I love
this is because you have multiple charts
which you've seen me you know my other
videos and stuff it's very very
convenient to have multiple charts laid
out so that you can just glance between
them anyway we're going to say we've had
our phase in our run our pullback our
run okay and our pull back
and what we're looking to do is get that
higher higher higher close I'm just
going to pretend that we've done all the
analysis we've had all the major tests
of structure and we've got all the
deceleration in price because this isn't
about that this is about showing you how
to place the trades okay so I'm going to
leave all of the analysis to you guys
otherwise I'll be a long time analyzing
all the markets to try and find the
perfect setup and then demonstrate that
for you if I was going to do a live
trade maybe we'll do that but this is a
demo trade okay so this is how you place
a demo trade so look right away uh we
can see that we've got our higher higher
higher close here right so if I just um
if I bring on the cross here
just you can see that we closed this
candle closed Above This High okay so
this candle closed at
1.55.71 and
um what we want to do is place an order
a couple of Pips above the high of that
candle and of course because it's above
where we're trading at at the moment
we want to
um use a buy stop order okay which is an
order not a trade if if I wanted to
place a trade right now
um I'd be using the trade function where
I just place an app market order and get
and execute my trade as soon as the
broke like as soon as possible okay but
because I want to place it above that's
going to be a sales a buyer stop order
which means we're going to place an
order so let me show you how we do that
right so just before we go over to the
orders you can see we're going to place
a trade at 56 uh 33 Okay so we're going
to go over here and and you can also
bring this up on the chart as well so if
you hit this button here you can see
that the trade uh the trade thing comes
up here but I'm going to show you that
in a minute
um so where were we won uh 5633 so we're
going to go over to here uh Aussie Euro
Aussie and we're going to hit order and
you'll see this order
right
um and basically this this accounts in
dollars so we're trading one dollar uh
per pip okay but I'll show you how to
set that right now
um
so we're gonna be buying all right so
you set whether it's a buy or a sell
order and the order level is going to be
uh what did we say it was 150 156 33 so
156 33 okay
and uh what I'm going to do is I'm just
going to extend this bit down so if you
hit this stop limit because obviously we
could we could just hit uh buy right now
or submit sorry and that would put that
order in but what we don't have is a
stop loss and a Target the broker
doesn't know where you want to buy your
position back if you're wrong or where
you want to sell your position out when
you if you win okay so we need to tell
them that so I'm going to do all of that
in one you don't have to do it all in
one you can submit it and then edit the
order
um to put in the stop loss and the and
the um Target after but I'm just going
to do it all in one because I want to
show you uh how this works so
basically
we know that we've got a ten thousand
dollar account here right now to work
out one percent of that we know we
divide that by a hundred and or times it
by point zero zero one and you'll get a
hundred dollars so we want hundred
dollar risk on this one trade right now
if we go out to the Chart
um and work out where our stop needs to
go so our stop needs to go right down
here okay so our stop needs to go two
Pips below the low of this candle so if
we've got a hundred dollars at risk we
want to know where our entry is which is
56.33 and now stop loss is going to go a
couple of Pips below this low which is
going to be if the low is 53.86 it means
we're going to be at
53.84. so when you take away 55
5633 from uh
53.84. that is 249 Okay so we've got 249
Pips so if we just divide that 100
divided by 2 4 9 we get 0.40 so
basically all we can risk on this if
we're risking one percent is 40 cents
per pip now that is a problem that you
might run into when you've got these
bigger broader zones
um because you know because it's such a
big Zone and this is um this has got the
Aussie dollar and the Euro you get
bigger bigger bigger pairs than this
something called the average true range
the ATR and that basically is the
average movement in price on these pairs
and the bigger the ATR the bigger these
you know the bigger the profit and the
losses on some of these moves
so we've got 249 Pips okay we can afford
40 cents per pip right so if we just go
back to here we just change this from
one to point four okay and we're gonna
put a stop loss of uh you can either set
it in points away from your entry right
which we know is 249 or you can put the
actual price right so it doesn't really
matter I could put 249 here and you can
see we're risking a hundred dollars see
so just under a hundred dollars there or
thereabouts
um 100 you can put and you can see
that's put 53.84 right in there so
that's bang on the limit
um is the so the stop is the stop loss
okay we've placed a buy stop order to
get in a stop loss and the limit order
will be the sell limit which needs to go
at the highest so let me just draw those
out for you so you'll be 100 sure here
is our entry with a prediction that
we're going to push to the upside and
this is going to be a buyer stop order
okay
if that gets triggered and we move down
and get stopped out okay this will be a
sell stop order
all right
um if we push up to this high
we will want to place remember if price
is going to be above and we need to sell
back we want to sell limit order so that
will be a sell limit order up here and
we're going to go for the highest close
so in this case if I bring on the uh
Crosshair here
let's bring on the cross here
go over to this highest close
and the close of this was 59 10 we're
going to go two Pips below that so
159.08
15908 and this time I'll put it as price
so
1.59.08 all right and you can see we're
risking 100 to gain 110 so just over a
one to one and if you if you look at
that profile there you'll see that
that's that's about right right so just
to check through this we are buying 40
cents per pip okay we want whoops 56.33
needs to be the uh order level we need
to put a stop loss 249 Pips away or at
153.84 our Target is a sell limit order
at
159.08 and that is 275 Pips away we're
risking just under 100 to gain 110. we
want to make sure it says good till
canceled and then we're going to hit
submit okay with the demo account that
I'm using here the minimum that we can
enter on is 50 cents per pip okay so
it's just changed it slightly
um which you'll need to double check
check but this is just an example
demonstrate on how to place the orders
okay and obviously when we've got those
big zones that might be a problem so you
might need to only take trades when uh
you can take above 50 cents per pip and
stick to your one percent risk so just
to give you the demonstration of of
placing the order that's all done now uh
we can hit you know we can close that
off uh we can go and edit this so if we
just go to open orders you can see our
order here which we can amend we can
change if we need to and if we go to the
Chart now and hit our trade button you
can see that our trades now here and it
prints the orders on the chart which is
really handy because at a glance you can
see where we're at if we're in if we're
out Etc right so really really cool
that's how you place orders and although
my demonstration hasn't been like
it as accurate as as uh you know it's
really going to be in real time I just
wanted to show you how to place the
orders that's how it works and uh just
to give you another demonstration here
if we just go to
um I don't know euro dollar okay we'll
take a look at the euro dollar expand
that out uh let's just say on the on
this one for instance for whatever
reason we wanted to sell at Market so we
wanted to sell this time euro dollar uh
what you do is you go down to here and
instead of hitting order you'd hit trade
and uh it would automatically you know
you put your pip value in let's just say
it's 0.5 again
um or you could say a dollar whatever
your one percent is depending on where
you've worked out your stop loss needs
to go Etc and uh we just hit sell okay
and submit and then that will put us
straight into a position there on the
euro dollar
where we are short so we are now short
the euro dollar on this practice account
on this uh on this account here and then
you can go and set your stop loss and
your targets because you can just go and
edit it so you just go and edit the uh
edit the order I'll just go to open
positions amend and you can go and set
all the stops and the and the targets
that way so that's how you place orders
and I just want to reinforce the
importance of of demo you know ironing
out any issues with demo because when I
went to college I trained to be an
electrical electrician and when I went
in to do the Practical you went into
these booths and they're all set up and
installed by like the the professionals
and everything was perfect you know
everything was like plug and play and it
was all designed to be very safe and it
all just worked
um however when I went on to the
building sites that's when you see the
nuances right that's when you step on
the water pipe in the Riser and you put
a screw for a cable and you get a belt
off of a neutral and you you know all
this kind of crazy stuff happens and
that's what you're finding out in the
field right and and electrical
apprenticeship unfortunately you're
doing it at your cost uh whereas in
trading you don't have to you've got a
demo account to find out all those
nuances so making sure that you can
you're oh Faye with the order placement
you're okay with
um understanding what type of order and
witnessing that spread and you know just
playing around with it for free so that
you don't risk anything so I'd encourage
you to go and practice placing some demo
trades once you've got your results and
you've got a strategy go and practice
using some demo trades and see how you
get on iron out any of those user
mistakes that you can't test and then
when you're confident in your system and
you're confident that you can actually
do this consistently then you can
consider funding a real account you know
over a small bit of money at first I'd
recommend and then it's exactly the same
process so just before we get into the
really really really good stuff if this
wasn't good enough I just want to cover
leverage and margin because that's
important so let's talk about that quick
all right so in a minute I'm going to
give you my own challenge but just on
this last piece here I want you to be
aware of
Lots margin leverage you might have
heard these terms banded around and
they're really really important and the
reason I wanted to cover them last is
because I wanted you to not approach
learning to trade with this in mind okay
I kind of wanted you to learn
what trading is really about and the
fundamentals of trading and then how you
can use this to really accelerate your
returns and I didn't want you to be
swayed either way emotionally because of
of what I'm about to share with you so
the way I think about
um leverage let's talk about leverage
first of all so think about when you buy
a house okay most of the time when you
buy a house you'll go to a bank and you
will borrow some money for the mortgage
right and what you put down into the
property Market might be 10 of that
house value maybe even less maybe a
little bit more right but let's just say
that we've got this kind of
um seesaw here
okay and I always like to draw it like
this and let's just say that you've put
in
10 000 and you bought a hundred thousand
house I know that's not realistic in
today's uh day and age but let's just
say you know you're controlling 100 100
K's worth of the property Market by just
putting 10k of your own liquidity into
the market right and then when you sell
that house you get to keep the growth
the equity uh and the profit on the
capital gains of the house and then you
give that you know you give whatever's
left that you owe back to the bank and
then you keep the rest right and that's
basically leverage we're leveraging a
mortgage product in the housing market
now where this is uh similar in trading
is the broker will lend you money to
place a trade to control a much larger
portion of the Forex Market or you know
stock market and you might have seen
some horror stories on Leverage in the
in the you know of Game Stop and all
these kind of horror stories where
um you know people got washed out of the
market because they were getting Margin
Call and I'm going to talk about that in
a moment but this is this is essentially
how it works
Forex Trading for instance is traded in
specific
um amounts called Lots okay so a hundred
thousand a standard lot is a hundred
thousand units of Base currency a mini
lot is 10 000 units of Base currency and
then a micro lot is one thousand units
of Base currency so let's just say that
we were trading two mini Lots on the
Aussie dollar okay and that the
notational value of that trade is twenty
thousand dollars okay if the Leverage is
one to one
that means you just have to put up
twenty thousand dollars to let's just
say that it moves a hundred Pips let's
just say that you get a two hundred
dollar profit on that 100 pip move okay
well not everyone's got twenty thousand
dollars in their account and not only
that would you want to put twenty
thousand dollars at risk just at work
just to gain a two hundred dollar
profit well Brokers recognize this and
they know that everyone's got a twenty
thousand dollar account or even ten
thousand dollar account so what they'll
do is offer some leverage and what the
Leverage is is the same thing as a
mortgage they're they're borrowing you
the rest okay
so that you can place the trade control
a bigger portion of the market and then
get a profit and then pay them back what
they're owed and then you keep the rest
okay so if the Leverage is a hundred to
one which is is known to be that same
trade example that I just gave you
instead of having to put up 20 000 for
the trade to gain a 200 profit you now
only have to put up two hundred dollars
and you'll end up with the same profit
if we get 100 Pips profit now the reason
this is a double-edged sword and you
need to approach this with with caution
is yes we can earn much more money and
we can uh you know the profits are great
and uh we can use it to our advantage
but it's also a double-edged sword
because if it goes in in a you know
against us you know we can also lose a
lot of money and the way that Brokers
manage this much of the time is
something through called a margin okay
so basically
when you get into a trade the bit that
you put up and the bit that they put up
the bit that they put up is called the
margin okay and they say okay we'll put
up this much and we'll match we'll match
you say and uh and if you go below that
amount you need to either put more in
your account to match out match you know
to make up for our part of the the the
the deal or we'll close your trade and a
lot of Brokers they just close off
trades without you even knowing they
just that's called a margin call okay
when you get notified and sometimes they
just close off your trade the reason
it's dangerous is because this could be
infinite you know if you keep funding
the account and it keeps going against
you and you keep finding your account
that's where you end up in a situation
like what happened with GameStop you
know and uh it's called a short squeeze
in the stock market where all the
Traders are you know the Market's going
against them and they've borrowed money
to short the market and now they've got
to keep funding it uh covering their
position with the broker uh or they'll
go you know until they go bust and that
is a that's a major major problem it's
it's infinite downside so you just need
to be aware of that and one make sure
you've always got a calculated stop loss
that's uh you know a fraction percentage
of your entire account use risk
management rules well make sure that
your broker does uh have your back and
closes off your order and your stop
losses and fixes those spreads make sure
that you understand what you're getting
yourself into when you're using leverage
okay and uh and just you know approach
it like a professional if you if you
approach it like a professional you are
going to have better long-term results
sustainable results that won't get you
in a bit of a pickle all right so over
the course of this beginner program
we've been through what to expect your
expectations what you need in terms of
the gear we've looked at charts we've
looked at platforms we've looked at
Brokers we've also looked at strategy
development you understand what a
strategy is how to develop one how to
test one how to really make it your own
and then we went into risk management
and we went into navigating around
charts and placing orders and hopefully
by now you have a much greater
professional understanding of how to
approach trading so that you can end up
on the minority side of being a
consistently profitable Trader but now I
want to set you a challenge because you
might have seen all these crazy trading
challenges around where they've got some
kind of underhanded agenda to take your
money and give you no real value with
the promise that they're going to fund
your account and you pay to get in and
they know that most people don't make it
as a Trader because they don't teach you
anything and you know they know that
ninety percent of Traders fail so and
then they put pressure on you to
actually make money in a set amount of
time which is completely against
everything that you need to do as a
professional Trader and every
professional Trader understands that so
I was looking at all these challenges
and I thought I want to set my own
challenge I am so confident looking
around at all the crap that I can take
especially after you doing this that I
can take someone off of the street and I
can get them trading consistently
profitable on a live account within 30
days now what's more valuable punting
your money into some broke into some
broker and some prop desk challenge with
the hope of being able to get through
and then replicate that going forward or
ensuring that you know how to be a
professional Trader and you're ready to
trade live after just 30 days so I'm
gonna host the 30 day challenge and not
only are you going to get around a
mentor which is one of the most
beneficial things any person can do to
be handheld through their new endeavor
you're also going to learn about how to
develop strategies that really suit you
what other indicators that I use that
you can use to implement into your
strategy to give you an enhanced Edge
I'm going to talk about the buying and
selling and who you're actually buying
and selling from and the Dynamics of
that so you understand that better I'm
going to delve deep into the platform
and all the features and functions so
that you understand how to use the tools
that you've got at your disposal like a
professional and then I'm going to talk
to you about all of my strategies I'm
going to give you all of my strategies
all my templates all my watch lists and
I'm going to show you how I trade in
Trend ranging markets and reversal
markets as well as using multi-time
frame analysis to give me an even more
enhanced Edge and I'm going to show you
how I build my watch list how you choose
balance sets of pairs of markets and my
goal is to get you trading live in 30
days are you up for it if you got value
from this the 30-day Trader challenge is
just going to blow your mind and it's an
absolute no-brainer and if you've
watched this far this is definitely for
you right we can both agree on that so
get signed up it's not going to be one
of those crazy things where they charge
you thousands of dollars it's a tiny
entrance fee you're going to come and
work with me and the other guys going
through the challenge and I promise you
this you'll learn more and be more
professional in that 30 days than you
will anywhere else how do I know because
I've seen it all so I hope you found
this program valuable if you've got any
questions at all fire them in and if
you're ready for the challenge click on
the link below get signed up and I'll
see you on day one can't wait
[Applause]
thank you
foreign