There are no Secrets in Forex

7/31/2019 There are no Secrets in Forex

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Forex Experts share their trading tips

A special report by FXstreet.com

There Are No Secrets

pricescurrencies


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There are no hidden skills in currency trading just things that

lie much deeper than what most people can see.

In the past I would have disagreed with this statement and

talked about some secret strategies, or market insights. Today,

while I wont disagree with the idea of the existence of inner

monetary gains and trading expertise is - more than ever with

the internet - in plain sight. Things were certainly different in

the times of Wyckoff or Gartley, just to mention two great tech-

nicians whose theories helped to turn the uninformed public

into informed market participants. If so many trading tech-

niques or money management methods are accessible, what

is it that locks our hidden power as traders?

I hope the answer wont disappoint you. The one and only

secret to trading is: practice! We just like the idea of something

else being there. Something secretive and hidden. Nope. Just

practice.

As you will see with the experts tips shared in this collec-tion, there are no hidden skills. Just ideas that arent easily

accepted as good enough to lead you to the skills youd gain

with dedicated practice. Its true the skills themselves are not

common, but the ideas, the concepts which lead to a high-level

skill, are readily available.

Prologue


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Dont think a good idea or concept when shared will lose its

effect, because in reality what happens is that most aspiring

traders might hear them and see them, but will not value them.

So dont worry if you see good tips being published. In fact,

so many people who want to beat the markets are either too

unrealistic about the potential gains or just too afraid of what

might happen if they lose money, that they dont accept what is

being taught.

So sit down and while you read this eBook, remember: dont

force your learning curve and take it a bit more easy. No one

believes that just by taking things easy, amazing things can

happen. If there was a secret, that would be one. And yet an-

other: investing in losses. This doesnt mean to just go where

the market wants you to, and therefore continuously lose. In

reality it means give up your current beliefs, listen to what the

experts are telling you and how you can win the next time.

Dont give up the idea of winning but dont be greedy. That is

not investing in losses, that is actually losing.

When it comes to mastering anything its true that there arent

any secret hidden ways of doing it, you just have to do it well

enough until it becomes natural.

Gonalo Moreira,

Author ofFXstreet.comLearning Center
http://www.fxstreet.com/education/learning-center/http://www.fxstreet.com/education/learning-center/


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INDEX

Technical Catalysts

Fundamental Catalysts

Risk Control

Market Behavior & Psychology

Trend Following


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Technical Catalysts


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6

Focus On The Lowest TradingActivity

When identifying where the next turn in themarket will be, most traders focus on wherethe most trading activity took place on a chart.This is also what everyone is taught to do. I

dont. I focus on the opposite, where the least amount of trades

took place because this is where supply and demand is mostout of balance and thats where prices turn.

Knowing The Strength / Weakness

Statuses Of Single Currencies

Trading currencies is vastly different fromdifferentiator: currencies are traded exclu-sively as relative, rather than absolute, enti-

ties. Although all forex traders should be well aware of this, itwarrants further emphasis that currencies are traded in pairs.What this really means is that currencies are not traded in iso-

lation, but rather in terms of their relative values against othercurrencies.

If the dollar is weak, one should ask what exactly it is weakagainst. Is it weak across the board, or just against Canadiandollar, or Swiss franc, etc.? Is it strong against euro while weak

both? These are crucial questions that all Forex traders should

Sam

Se

iden

James

Chen


7/30

7

ask, and answer.-cies, instead of just currency PAIRS, is key to understandingcurrency pair movements and inter-currency relationships.Pairing strongest currencies against weakest currencies is ahigh-probability approach. It is essential that traders knows atsingle currencies that are being considered for potential trades.

Time Of Day - Less Is More...

around a number of basic themes including

News of this nature is typically released

trading session. As traders react to the news, markets tendto enjoy periods of greater volatility and volume during thesemorning hours which are commonly known as the active mar-ket hours.Active Market Hours:JPY 7: pm 9: pm EST.

trader anticipating a breakout to the upside would have been

A

dam

Rosen


8/30

Trading with Pivot Points

Ive found as a determining tool to apply inthe foreign exchange markets, both daily andweekly pivot points.

- They act as support and resistance.- If prices accelerate and hold above its pivot point, marketparticipants will look to buy or turn bullish.- If prices trade below a pivot point, traders will be looking to

targets.- In Downtrends:

- In Ranges:point.pivot point.

It is important to remember that these techniques applying

Csar

B.

Le

iceaga


9/30

9

Scan Smarter Not Harder

When studying Elliott Wave or any other wavepattern recognition theory, so many tradersput too much emphasis on what the wavecount is with regards to the current market.

Rather than getting so caught up in where the market is in thecount, I scan the markets for only 4 high probability pat-terns Impulse, Zig Zag, Ending Diagonal and ContractingTriangles. Certain aspects of these 4 high probability patternshave shown high levels of probable outcomes and they all canbe fairly easy to see, even without Elliott Wave indicators orsoftware.

within minutes. Once I see any potential high probability pat-terns, I then investigate further with more analysis.

Im not suggesting people should disregard all that Elliott WaveTheory has to offer as a full understanding will help you inyour trading.

But ask yourself Why am I trading?

I, for one, enjoy trading and the challenges and excitementthat come with it. However, the bottom line is, were all here tomake money. So, put the odds in your favor and search for thehigh probability patterns.

Ross

Yamash

ita


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Market volume with no technical indi-cators

Determining market volume could be criticalwhen it comes to forex trading, as we un-derstand that technical signals have higher

probabilities of success when they come along with the right

a support or resistance level, are always considered reliable ifvolume is high, while pullbacks to those areas should show alower volume, to give our signal further support.

However, not everyone realizes that volume indicators tend tobe tricky: several of those are just providing information about

to work; they cant measure the volume of the whole market.So how can we easily determine whether there is high or lowvolume at a certain moment?

could be understood as a break or a sign. If that particular can-dle is at least twice as long as the average that the pair movesin that particular time frame, I understand there is high volumepips per hour on average, the candle that triggers the signalclean, and with no extra indicators to mess our trading strat-egy.

Va

leria

Be

dnarik


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Fundamental Catalysts


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Adapt and Overcome

Always be willing and ready to adapt to theFundamentals, all provide key informationand clues as to which technical analysis andtrading strategies will work best in a particular

environment. NO strategy or analysis method will work in all

environments. If you keep a close eye on the abc and makecopious notes and observations how changes in each effectmarket dynamics you will be able to ascertain which methodsand strategies are most suited to each environment.Data and Evolution are Key.

You have to focus on the main story...everything else is just noise

Markets are constantly moving and media tryto publish as much information as possiblein order to gain credibility and expand audi-ences. However, not all information is equal.

You need to be able to screen out most of the news and focuson the main story. This is the only way to understand the Mar-a main story concerning a war, a political state, an economicalpoint of view etc. This is what the market focuses on and this iswhat creates a trend. Everything else is just noise.

Aamar

Hussain

Charis

Chari

laou


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Know What Moves Your Trade

One of the most valuable lessons I haveidentify what fundamental driver or drivers themarket deems most important for a particularcurrency or the market as a whole. Its easy

to get caught up in reviewing all the economic indicators or

headlines that cross the wires and then trying to assess whatkind of impact it could have on price action. Yet, if for exampleyield expectations are the markets sole concern, we shouldntwaste time monitoring growth numbers and potentially confus-ing an otherwise straightforward forecast. Furthermore, whenlooking for that primary catalyst, it is important to rememberthat the market always boils down to the equilibrium of risk andreward in one way or another.

You need a fundamental view. Youneed a chief market strategist.

If you use technical analysis you base your

whole trading system on this principle: Thelast price contains all information about pricevaluation.

A series of such last prices is a pattern and a pattern is pre-dictive of future moves.The problem very short term minded traders experience is thatthe Big Players as a rule ignore their last prices. They dont

even consider an intra day price as important.It is completely irrelevant to them that that price you think is

John

Kicklighter

DirkDu

Tot


14/30

a high probability indicator exists!Institutions pay armies ofanalysts to determine what is the content of last prices. Whathave been factored in in relation to a house fundamentalview.Institutions do technical analysis under the continuous guid-ance of a fundamental view.If you know what is really in the price, your technical analysisbecomes really predictive because you can judgethe potential

action of traders with a larger time horizon and outlook than-able as part of a proper fundamental view.confuse economic data releases with the real drivers behind


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Risk Control


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Plan the trade, then trade the plan

What usually hurts novice traders is poor risktargets in order to justify cripplingly painfulstops and staying in losing trades far beyondthe original plan. Its human nature to take

must surely reverse soon. One of the best ways to enforcegood discipline is to ensure that when entering any trade, thereas you aim to win.

-you can be sure the trade will succeed or fail within the rea-sonable risk-reward criteria that was decided with a cool head.at every tick on open positions, trading becomes a much lessstressful and emotional experience.

Eliza

be

thGregory


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Risk/Reward Ratio vs InvestmentHorizon

My main discovery about trading in the last-rectly proportional to your investment horizon.That is, when youre trading in very short time

that it makes no sense to hold a position too much time wait-market noise will probably hit our tight stop. On the other hand,-to reach our target.

Never risk more than 2% of your ac-count at once

As with anything new, youre likely to makemistakes, learn from them, and then improve.

Many new traders risk too much of their ac-count, and burn it out before learning any-thing.

Money management is the secret to avoiding this fate. This-riding priority means no stop loss movements, using lower lev-erage, making a bigger initial deposit, having higher spreads,

or anything, else that will keep the losses limited. Some thingsare more comfortable to do than others, but keeping this rule

Alberto

Mu

oz

Yo

hay

Elam


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will likely yield in better results for newbies in the long run -keep them away from burning their account.

Never use more than 2% equity riskwhen I place stops.

was no computer or real-time data, just aphone ! Data came in by telex and I draw thecharts by hand, actually the best training I

ever got. Today we have almost everything for free, real-timedata, online brokerage, real-time charts etc.

Still most traders make no money, at least not constant. I am

happy to survive it so far and maybe this comes from disciplineThe best trading tip I can-place stops.

For example, if I have 4 positions and all stopped out, I willand so the number of contracts .

If there is high volatility and a high daily range, than my num-ber of contracts are smaller. If there is low volatility and smallerdaily ranges, than my number of contracts are bigger. At anyequity.

RonSche

lling


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Market Behavior & Psychology


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Head not Heart!

It is always hard to take a loss. However,a novice trader is that positions can and willgo against you and that stop losses are animportant part of any trading strategy. I have

been in the position where I have gotten emotionally attached

to a position and didnt trade with my head. On occasion,things ended up working out. However, more often than not, Iended up losing more money. In these situations, not only doyou lose money but you also end up missing out on better op-portunities because your ability to trade is compromised by thefunding the losing position. So remember think with your head,not your heart and make the tough call!

When our trades lose money, whatever ourlogic, we can be sure we were not alone. Butwe can equally be sure that we were in theminority. Had we been in the majority the mar-

ket would have performed as anticipated. The market decisionprocess is that simple. It is a matter of putting our behavior inline with the majority as often as we can. The most effectivetool to achieve that is our own empirically tested market psy-chology. We are the market, if only we can let ourselves mimicthe mind of the market and not permit individuality to rule our

decisions.

Keagan

York

Jo

sep

hTrevisan

i


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Count to ten rule

If you are in that much of a hurry, you probablyhavent done your analysis or you might bechasing a move. Do you know your stop andten and then take the trade.

Pay attention to quick, false and inten-tional moves

use such moves to do counter trades once

in a session.intentional move may be seen after the data a drop beforewe may initiate buy and a rise before data we can initiate sellentry.

Shawn

Powell

Dr

Sivaraman


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Dont think you can predict the fu-ture... because nobody can

The biggest thing that got me from a losingtrader to a winning trader was the realiza-tion that I did not have to know the future tobe successful. Many new traders think that

trading is all about know what is coming next, but of course no

one can really predict the future. So for me realizing that thisbusiness is all about playing the odds rather than knowing thefuture was the single biggest epiphany that got me over thehump. I now focus on Harmonics and the statistical edge thatthey provide. If you dont know what your edge is, you donthave one!

Dere

kFrey


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Trend Following


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Threes a Crowd

Most people know the old saying TwosCompany. Threes a Crowd. I use that easilytrending forex market that is likely to transitioninto a trending market.

daily chart. The two in my trade are two moving averages.the price - the third wheel in the group - to move away. Trad-ers should simply look for a price break and go with the break.

the trade.

The bonus is traders who recognize the setup, should also

the setup starts a trend, the price will reach a support level, tireand rest. This provides the trader with a number of options fora graceful exit.

Greg

Micha

lowsk

i


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Never go against the general trend

Identifying the general trend whether on thetrend. You buy on dips or sell on rallies ac-cording whether its a down or up trend, but

you never bet on a correction against the general trend.

Committing to this rule will protect you from sudden and hugelosses, as well as guarantees that you will be able to gain themost from a trend when the right moves happen.

Stick With the Trend: Tops and Bot-toms are Only Evident in Hindsight

The trend is your friend may be one of theoldest maxims in trading but it is also one ofthe most important when it comes to the forexmarket. Trends in currencies can last for days,

weeks and sometimes even months.

a country and the outlook for a country usually gets progres-participation and speculation in the forex market, when senti-ment turns in one direction, it can be very strong and lead tosharp moves in currency values. As a result, I have generallyfound far greater success going with a trend than fading it.

Tops and bottoms are only evident in hindsight and it is much

Mo

hamme

dIsbeer

Ka

thy

Lie

n


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to arbitrarily pick a top or bottom. The biggest fear of manytraders is that they buy the top or sell the low. To avoid this, Iprefer to join a trend at value. There are many ways to identifythe value points through the use of my Double Bollinger BandStrategy or retrace to a Moving Average.

Dont Fight the Daily Market Trend

Over the years I have been using the dailytimeframe for what I call Directional Bias.The reason for this is because I dont want to

swimming upstream otherwise - much more effort it needed.-

member that all those candles or bars on your chart are simplygraphing human emotions: fear, greed, confusion, anticipation.

The daily chart will also assist me in determining whethermy intraday set ups are trend-following or counter-trend. If Iam going to enter a market in a direction that is opposite thedailys Directional Bias I want to be sure its on a short-termdependent on longer-term counter-trend movement. I thinkdaily - not necessarily to trade that time frame - but the under-stand the dominant psychology at work in the market.

Rag

hee

Horn

er


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Trade Trading: How I use multipletime frames to trade forex

I always start my trade planning by looking atDaily chart.

On the Daily chart I look to see where price isin relation to short-term moving averages. I like to trade in the

the moving averages and cautious when price is far from themoving averages due to the possibility of a mean reversion.

Based on this analysis, I create a bias. Im either a bull or abear. As a bull, I look to buy dips on the smaller time frames.As a bear, I sell rallies on the smaller time frames. Withoutbias, I am neutral and often dont trade at all.

For example, if my daily chart bias is bearish, I look for resist-ance and over bought conditions on the lower time frames. Ifwe are at a Daily R Pivot that is near a psychological roundmin stochs to see if there is any steam left in the current upmove. If not, Ill look for moving averages crossing down, lowerlows and such. The rest is trade management... and prayingdoesnt hurt.

Wayne

McDonell


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FXstreet.com would like to thank the contributors who partici-

pated to this special report, sharing their best trading tip with

our readers:

- FXstreet.com

Charis Charilaou - TFIFXJames Chen - CTA, CMT - FXDD

Dirk Du Tot - DayForex

Yohay Elam - Forex Crunch

Derek Frey - ForexTradersDaily.com

Elizabeth Gregory ACM

Raghee Horner RagheeHorner.com

Aamar Hussain - Pivotfarm

Mohammed Isbeer - ecPulse.com

John Kicklighter - DailyFX

- FXstreet.com Independent Analyst Team

- GFT, BKForexAdvisors and kathylien.com

Wayne McDonell - FxBootcamp

Greg Michalowski - FXDDAlberto Muoz - FXstreet.com

Shawn Powell - FXDD

Adam Rosen

Ron Schelling
http://www.fxstreet.com/search/contributors/authors/author.aspx?id=f9ecd5b9-a1e4-4478-a638-13978ce85786http://www.fxstreet.com/search/contributors/authors/author.aspx?id=e84ee263-0e62-457e-ae57-934e52a33c54http://www.fxstreet.com/search/contributors/authors/author.aspx?id=e469893a-b55a-45e5-9d12-9bd33759174chttp://www.fxstreet.com/search/contributors/authors/author.aspx?id=58aefe28-c7c5-4f32-a9fc-673d865ba31ehttp://www.fxstreet.com/search/contributors/authors/author.aspx?id=f2ade4b0-5614-4772-b12c-b53a4cb5107fhttp://www.fxstreet.com/search/contributors/authors/author.aspx?id=23db6267-ea42-42ca-9782-70ca8cbfafc4http://www.fxstreet.com/search/contributors/authors/author.aspx?id=c9c3242e-423e-4388-a97b-c12bf1247f97http://www.fxstreet.com/search/contributors/authors/author.aspx?id=531fdb4a-3622-4802-96a4-61ab9c8095aehttp://www.fxstreet.com/search/contributors/authors/author.aspx?id=%205a86bfc5-a364-45ca-a586-89211073609ehttp://www.fxstreet.com/search/contributors/contributor.aspx?id=6d5e64d4-f7f1-4612-bde8-e975ae38b5fahttp://www.fxstreet.com/search/contributors/authors/author.aspx?id=e2fa4818-76a1-46ad-a52e-d0119535b3c1http://www.fxstreet.com/search/contributors/authors/author.aspx?id=55f8e613-c960-4afc-a4bf-e2dc75d22f78http://www.fxstreet.com/search/contributors/authors/author.aspx?id=3c14e2f6-5eee-4ba7-8d32-953b9c187180http://www.fxstreet.com/search/contributors/authors/author.aspx?id=a1e048c2-33ae-45f5-a269-6ae7aa8ba9a1http://www.fxstreet.com/search/contributors/authors/author.aspx?id=86c91dd9-b122-48b5-b4fa-abf4c86e7086http://www.fxstreet.com/search/contributors/authors/author.aspx?id=b2a58602-485f-403f-9508-6e418da8efe7http://www.fxstreet.com/search/contributors/contributor.aspx?id=0011becf-bdd5-451a-8ba3-677cb9e624d8http://www.fxstreet.com/search/contributors/authors/author.aspx?id=bb88850a-4905-42e2-924e-cdbe73fe9cc6http://www.fxstreet.com/search/contributors/authors/author.aspx?id=108615dd-94c4-4142-b764-9076eb0fa7a7http://www.fxstreet.com/search/contributors/authors/author.aspx?id=108615dd-94c4-4142-b764-9076eb0fa7a7http://www.fxstreet.com/search/contributors/authors/author.aspx?id=bb88850a-4905-42e2-924e-cdbe73fe9cc6http://www.fxstreet.com/search/contributors/contributor.aspx?id=0011becf-bdd5-451a-8ba3-677cb9e624d8http://www.fxstreet.com/search/contributors/authors/author.aspx?id=b2a58602-485f-403f-9508-6e418da8efe7http://www.fxstreet.com/search/contributors/authors/author.aspx?id=86c91dd9-b122-48b5-b4fa-abf4c86e7086http://www.fxstreet.com/search/contributors/authors/author.aspx?id=a1e048c2-33ae-45f5-a269-6ae7aa8ba9a1http://www.fxstreet.com/search/contributors/authors/author.aspx?id=3c14e2f6-5eee-4ba7-8d32-953b9c187180http://www.fxstreet.com/search/contributors/authors/author.aspx?id=55f8e613-c960-4afc-a4bf-e2dc75d22f78http://www.fxstreet.com/search/contributors/authors/author.aspx?id=e2fa4818-76a1-46ad-a52e-d0119535b3c1http://www.fxstreet.com/search/contributors/contributor.aspx?id=6d5e64d4-f7f1-4612-bde8-e975ae38b5fahttp://www.fxstreet.com/search/contributors/authors/author.aspx?id=%205a86bfc5-a364-45ca-a586-89211073609ehttp://www.fxstreet.com/search/contributors/authors/author.aspx?id=531fdb4a-3622-4802-96a4-61ab9c8095aehttp://www.fxstreet.com/search/contributors/authors/author.aspx?id=c9c3242e-423e-4388-a97b-c12bf1247f97http://www.fxstreet.com/search/contributors/authors/author.aspx?id=23db6267-ea42-42ca-9782-70ca8cbfafc4http://www.fxstreet.com/search/contributors/authors/author.aspx?id=f2ade4b0-5614-4772-b12c-b53a4cb5107fhttp://www.fxstreet.com/search/contributors/authors/author.aspx?id=58aefe28-c7c5-4f32-a9fc-673d865ba31ehttp://www.fxstreet.com/search/contributors/authors/author.aspx?id=e469893a-b55a-45e5-9d12-9bd33759174chttp://www.fxstreet.com/search/contributors/authors/author.aspx?id=e84ee263-0e62-457e-ae57-934e52a33c54http://www.fxstreet.com/search/contributors/authors/author.aspx?id=f9ecd5b9-a1e4-4478-a638-13978ce85786


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Sam Seiden - Online Trading Academy

Dr. S Sivaraman - i-knowindices.com

Joseph Trevisani

Ross Yamashita - Pro Pipper Trading

Keagan York - Compass Global Markets
http://www.fxstreet.com/search/contributors/authors/author.aspx?id=5766b88a-1a31-4102-8221-e9bf77216d2fhttp://www.fxstreet.com/search/contributors/authors/author.aspx?id=e975959b-31de-42f3-9461-2b0aad141d97http://www.fxstreet.com/search/contributors/authors/author.aspx?id=a6cec374-57f5-4523-be5e-313fadb16b06http://www.fxstreet.com/search/contributors/authors/author.aspx?id=20a812ed-33d5-4096-8781-e3074875e05ehttp://www.fxstreet.com/search/contributors/authors/author.aspx?id=002122c2-1dee-4f43-aa7f-e4ec901da6d1http://www.fxstreet.com/search/contributors/authors/author.aspx?id=002122c2-1dee-4f43-aa7f-e4ec901da6d1http://www.fxstreet.com/search/contributors/authors/author.aspx?id=20a812ed-33d5-4096-8781-e3074875e05ehttp://www.fxstreet.com/search/contributors/authors/author.aspx?id=a6cec374-57f5-4523-be5e-313fadb16b06http://www.fxstreet.com/search/contributors/authors/author.aspx?id=e975959b-31de-42f3-9461-2b0aad141d97http://www.fxstreet.com/search/contributors/authors/author.aspx?id=5766b88a-1a31-4102-8221-e9bf77216d2f


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