Main menu


Forex trading tips for beginners


Forex trading tips for beginners


Number seven is not to use overbought and

oversold indicators.


Welcome. This is definitely more unique than most humans do. Most humans direct some sort of approach to where you can simply set it up and use the RSI or something like the randomness indicator in big trouble with these


Warning signs of overbought and oversold is that you are constantly trying to grab the tops and trying to grab the bottoms of the market, a skill that you are likely to buy and sell against the trend, which is one of the biggest risks among retail traders. And on top of that,


There are smart money or banks and market makers. They realize that everyone is looking at these pointers. That’s why you regularly see that these overbought indicators really don’t do anything to tell us the future price. Symptoms of overbought really tell us what happened.


It’s a lagging indicator that sort of tells us what happened in the past. So if you can simply stop, I know you could also be thinking, well, how can I stop using this completely? Well, if you give up using overbought and oversold indicators, you will have much more success and I will tell you what to do instead.


OK. Number six is ​​that actually changes with direction,


, Good. Trading with the trend. You’ve probably heard this a million times. Vogue is your friend. Why don’t people do it? Why don’t people do it? I can give you proof that the vast majority of forex traders do not.


Well I do not know. Perhaps this is due to the fact that it is difficult to tell. Is there a style or not? So we made it really simple. I use this little device referred to as the Financial Institution Secret Indicator. I’ll put a link in the descriptions. You can try it free for seven days and only pay for it if you really like it. But this basically makes it very easy to see the timeframes and know what it is


is happening. If it is blue on these bars, it is likely an uptrend. If it is red, it could be in a downtrend. So for example, if I were buying and selling one time frame H, I would probably make sure that the time frame above is at least in the same direction. So I buy and sell with the trend,


Both H one and H four. And ideally, if it’s an addition in the journal, it’s really a bonus, right? I can see that H one H 4 per day, they are all in an uptrend, which is the skill I would be looking for on my own for long positions. If you’re looking for a parking upgrade, you’re taking pictures of yourself in the foot.


So don’t do that. Do you prefer to trade with direction? definitely. Style Your Friend This indicator makes it really easy, for sure, seeing this wide diversification 5 tip is to change H one time frame or higher. Why did I tell you to do this? Because that’s what smart criticism does.


Forex trading tips for beginners


5 tip is to change H one time frame or higher.


Why did I tell you to do this? Because that’s what smart criticism does.


Retailers are what are referred to as the herd or the ignorant. They like to switch lower time frames. Like they will try to use M1 or M5, M15 but look, the fact is that if you are buying and selling these time frames, as if they are stressful,


It’s hectic, your feelings are getting anxious a lot in these lower time frames. You make emotional decisions. At the height of it, the weather is cloudy. It’s muddy. The regions are now simply not solid. They are on these lower timeframes as they are on the bigger timeframes, like H one H4 and daily.


I have a friend who used to be an expert financial institution trader in forex for many years. He says that the banks only appear in the H 4 and the daily time frame. This is where smart money looks like. So if you’d rather be like smart money and unlike the 95% of the herd who lose cash all the time, just change the time frame H or higher.


Number 4 is to use the least risk-reward ratio.


This is a major drawback among many forex traders which is the skewed use of risk to reward rates. Now, let me spoil this for you with real real data. Now here’s the problem.


You can see that these stats were once obtained from over forty-three million traded trades from different, uh, retail, forex traders. And you can see that on the EURUSD here, you can actually see that


Uh, the herd was once able to predict a victorious exchange 61% of the time which is great. I mean, so how, if humans are in a position to predict the victory of trades most of the time, how come they are definitely no longer profitable? We understand that 95% of the herd is neither profitable nor lost online. If they expected it more than half the time, how could they be real losers.


The answer is that losses were 70% greater than their gains. The common falling exchange was eighty-three points. The common victorious change was forty-eight points in this forty-three million exchange simulation. Uh, that was decent deals coming in here from the retailers.


And you can see here, this is a common loser versus a common winner. And you can see that the whole threat to reward ratio is lagging, as in fact, simply bad backwards. Now in fact simply use a one-to-one risk reward. high percentage ,


The main advantages. If it looks like this here, you can see humans who used at least a one-to-one threat-to-reward ratio versus people who didn’t. According to this data, it indicates that 53% of all bills that operate at least a one-to-one risk


The bonus percentage has grown into online earnings in the 12 month pattern period. And for those who worked under a one-to-one bonus ratio, only 17% of this debt was profitable. So really be that way by using a one-to-one chance of a bonus ratio,


It will greatly inflate your possibilities. You are likely to be useful as a forex trader in three additional cases. If you’re really using the risk-reward ratio, the third quantity is a contra crowd alternative. Now what does that mean? Well, the market is made up of exceptional players, isn’t it? There is smart money,


They are institutional traded banks. These are hedge funds. These are, uh, money, smart people, who dominate most of the time. Then the different face there, what are known as the herd or retailers. And as we know, 95% of the herd are real online losers. So here is a great concept.


If we realize that the herd is often losers online, why now not simply do the real opposite, what the herd does, and if you do the exact opposite and you know, they lose 95% of the time, odds are you are actually in a position to really win using trading


against what the herd does. So I like to use the secret indicator for this bank. As I assured you, you can use it from MyFXbook. I suppose they have a hardware as well, which is where it pulls in market sentiment. OK. This is what I like to see here. So this is basically pulling records from piles of retail piles


Traders, from MyFXbook, are unique brokers. It is calculated. So you can see what the herd is doing. So in this scenario, you can see that the flock is 88% short and 12% long. Now, if we realize that the herd is hugely wrong, the vast majority of the times,


So do we feel that we will choose only to appear for long positions. Well, yes for sure. This certainly makes sense. And you can pull this on any time frame and you can see what the herd is doing in this scenario. You can see that the flock is short, right? You can see that the flock is 80% short versus 20% long.


OK. And it wouldn’t really make sense to think if you look on all the blue bars here, I mean, it’s a lot especially in an uptrend on every lot except monthly. So why be short? It wouldn’t make any sense. And I will talk about this and the various advice. So make sure you keep following,


But this third variety is really Crowd’s contract exchange or goes against what the herd does, due to the fact that you’ll automatically align yourself with smart money. Second, alternating with small losses, however huge gains. OK. And this kind goes to the equal side that we talked about earlier


Using a favorable chance to reward ratio. But the huge hassle is that people will actually wait for the fat tail risks, but reduce their quick rewards. So let me show you a diagram to really show you what I’m talking about. OK?


So this little shot here indicates what’s going on without a doubt. Most humans assume that their buying and selling fall in a regular bell curve. Statistics go back to the category of statistics, where something falls into a bell-shaped curve. If you seem to be in kiddies heights, the vast majority of the heights will be inland, you know,


One to two general deviations from the mean here, right? Uh, if you look at income, it’s the same thing. Pretty much everything that exists follows a regular bell curve, but in the market buying and selling does not. There is what is referred to as fat tails as this is the risk that you would like to get


The big fat tail is a bonus in your favour. And this is the risk of experiencing massive fat loss against your own good. Uh, and you can see that purple line is what the market definitely looks like. Big fat tails are there, and humans tend to omit that.


So the problem is that people, when they trade, will allow these fats to be risky, but they will reduce their rewards on the fats. You’ve heard before, you know, people talk about them, you can never go bankrupt and make a profit. The answer is, yes, you should honestly go bankrupt and reap the profits.


If you have a negative risk to reward ratio and don’t let your fat winners write, however you let your fat losers fall back and proper way to do it. If using this type of martingale or averaging machine is where you are


Keep stacking on the falling positions, as the swing heads toward you, you’re unlocking this ability to lose fat, like losing, you know, these massive, regular losses more than the daily ones. Also, you know, if you’re using a martingale or a mid-range tool, you’re simply trying to get a little profit, right?


Or you are simply speculating on a little profit. And again, if you have that meager income on those giant stop losses, that’s just a recipe for an explosion, and it will happen. And again, why is this? So, due to the fact that you limit your tail rewards from fat and you allow yourself to


You have the right to go into the fat tail, uh, the huge losses that can occur. So again, the key here is to keep your losses small and make your profits big. And how can you do that? One of the first-class ways you can do this is by buying and selling with the trend,


Having a favorable chance of a bonus ratio and in effect the use of subsequent stop losses. If you are using excess give-away loss, this allows you to keep track. And if the market undoubtedly goes for your liking in these big trends, which happen where you can tell what the tails of these fats are,


Then agree to grab the big fat tail stop bonus spectrum. And the first range is definitely not to seek to grab the tops and bottoms. This is very concerning due to the fact that this is what the vast majority of


People, teachers, are simply instructing you to buy low and promote high, right? We have learned that our complete lifestyles are ingrained in all of our lives. But the problem is that we don’t understand how low the lows are and how excessive the highs are. So trying over time can be disastrous for your forex trading.


And I’ll simply pull this off to show you a quick example. If it appears on the AUD USD chart here, you can definitely see that this is not an uptrend. It is a very clear uptrend on M one M 5, 15 and 30 H one and 4 eight for us daily and weekly. Everything is in an uptrend.


But what is the herd trying to do? As you can tell, the herd is 80% short. what does that mean? The herd doubts that the market has expanded too much and, uh, the market is saturated with buying. So they’re trying to sell, you see their short positions, 80% here, the vast majority of them trying to sell.


That is why the herd takes a beating in such situations. When these developments occurred, they tried to corner the top, keep trying to grab the top, keep trying to grab the top until they finally blow up their account, or suffer a big loss. Honestly no longer trying to grab the tops.


And bottoms are a great idea because they keep buying and selling with the trend. Allows you to have a favorable chance of bonus percentage. And uh, it’s simply something that will make you a smart money compatible mechanic. OK? So here are seven suggestions to instantly improve your forex trading results.