The Best FX Trading Tip I have for 2018 (Crucial)
So you want to be an astronaut but you also really, love doing heroin, well, that's too bad because doesn't matter how great of an astronaut you could have become because, you also loved doing heroin. What's. Up traders this is VP and welcome to the very first video in my trading psychology series. And it's, also the, video where, I reveal, my, best forex trading tip, this, is different than my best Forex strategy, that's another video but. This is equally. As important. So in this video you're going to learn that. Tip right here and I've looked really. All over the internet all over YouTube I have, not seen one, person. Really. Talk, about this and I'm blown away by that because, if you don't get this right it doesn't matter what else you do it's that important, so I'm gonna explain to you why it's so important when I first tell you you might not understand but if I kind, of lay it out in front of you and show. You what happens when it works you're gonna get it you're gonna understand, and you're gonna be on board with this then because every video has actionable, tips there are three things you can actually do about it right now and as a bonus we're gonna put together a mini trade management system right here towards, the end of this video so stick around for that for sure but, I want, you to understand, that, this. Tip is a, method. That is used by the. Top militaries, the best fighters in the world champion. Chess players all. Of it and there's a really good reason why these people are, elite there, is a reason, why, they're, at the top of their game and they're known, for that because they didn't start out that way but they became that over time and they all have one major thing in common, and that one. Thing is my number one Forex, tip write this down you, need to eliminate the, things that, are bringing your trading account down. Before. You go forward before. You start learning new things that make it go up you, first have to know what, to avoid we. First need to identify what those things are and this channel does that and then you need to understand how taking them out of your trading toolbox makes. You a much better trader and make sure it count much much better in the long term and honestly the short term - you can start putting this into action away no now. That I've revealed this to you you're. Probably a little confused you, don't, understand, how that's even really a tip or you. Know why I can, use that right now but stick around listen. To this let's, go back to. Those professions, the soldier the MMA fighter and the chess champion. They. All had bad habits, when, they first started, soldiers. When they first start when they first joined the military have, a ton of bad habits they're undisciplined, they're, soft they, flip, out as soon as something doesn't go their way all of those things cannot, happen on the battlefield so it is the job of the, instructors, to what. What they say in the military break, you down first before building you back up and that's not a bad thing that's. Just getting rid of those horrible habits so they don't come into play later because, often it's life and death and it can't so, if you go to the MMA fighter a lot. Of them are former. Kickboxers, wrestlers. Jiu-jitsu. Practitioners. And they. All had the tendency to revert back to what they do best a wrestler, for example, will. Often as soon as it gets hit in the face immediately. Want to take somebody down because their mind just goes right back to what they know and that can actually be okay.
For You for a while but, you're only gonna get so far the top MMA fighters these days know everything, and you also have to know everything and starts with getting rid of those bad habits because, if I'm. Fighting, you and I know that every time I hit you in the face you're gonna try to take me down I'm gonna see it coming and it's not going to be good and then, novice chess players all, have certain styles, certain, things they do when, things go wrong certain, things to do when things go right and, again. A good. Coach is gonna get that predictability out of them so they can adjust to any situation possible. Because, in the champion chess world they are going to see every, situation, possible. And if, a good military instructor. If a, good, MMA, coach if a good chess coach cannot. Get these bad habits out of the way first. None. Of these people have any chance of becoming top in their field it's, the exact same thing with Forex, if by now you are still confused let, me go ahead and just lay it right out for you with numbers so let's say you put, every, trade on a spreadsheet which, is a good habit and now. The last six trades you, have three wins and three losses. And everyone is 50 pips every. Loss is 50 pips now it doesn't ever really happen this way but this is just an example to make the numbers really easy so, if this happens then. You. Have broken even your net gain and loss is zero pips and congratulations. Breaking, even is actually better than what most people do but, let's. Say you, were to come to this channel, and I. Was, to give you a really cool indicator, that gave you an extra win. Every. Seventh trade so. It would look something like this, and, that. Would change your bottom line now. You'd be up 50 pips, 50. Extra pips every. 7th trade that's. Extraordinary. And fear. Not this channel is built to do things like this but. Let's, go back to. The, original we have three wins three losses and, let's. Do this instead let's say I was able to give you something today, that, could, eliminate, one, of those losses, so. Let's say goodbye to trade number four. Now. With that bottom line look like, the. Exact, same. It's. The same thing. Taking. Away a loss is. Exactly. The same as giving. You an extra win, but. Why do we treat them differently, why. Are we so. Keyed. In on finding. Things that give us extra wins but, don't seek out anything that helped us avoid losses is it, ego is it. Because, finding, more wins is the more sexy option you know it could be a lot of things but I just want to I want you to understand, the value of. Eliminating. Losses, from. Your trading account they're. Huge, again, 50, pips. Every. Six or seven trades is a. Complete, game-changer what. I really want you to do in the end is burn the candle at both ends I want, to be able to give you that extra win and. Also. Eliminate. That extra loss at, the same time, because. Now, what it starts to look like every. Seven trades, that's. Not just game changing that's life changing and this. Channel is built to do that but. I really, before we do anything wanna, dressed the absolute, importance, of knowing what to avoid first. Because. This. Scenario, here can't. Happen if you. Still have those terrible, habits it, doesn't matter what you learn from this channel if you still have those horrible habits bringing you down nothing. You see here is going to work alright, so there are three, different, ways, we're gonna tackle this are you with me so far because we're gonna get into them right now number one stop. Using tools, that, don't work, there. Are so many Forex, tools out there that, don't get the job done and almost everybody uses them why, because, that's, the those, are the tools we learn to use when we first learn how to trade and then, when we were done learning every, instructor, and every video and every tweet. Out there with, somebody using. Those tools so we just didn't know any better now what are those tools well there's a lot of them and you might have seen me post this before, but. This is what I call the Dirty Dozen and. If. You haven't seen this before you're gonna be awfully surprised because I guarantee you're using one or some combination of these right now and I. Can also pretty much guarantee, it's one of the major things that's holding you back and, if you don't believe me that's fine I don't really expect you to believe me right off the bat but I have, um, I have it all queued up already a video on every single, one of these tools, stating. My case showing, you why. They're inferior to so many other things that are out there right now I mean fundamental, analysis alone you just get rid of that not only will you make, more money you'll actually get all your time back so that's a painting that has to follow but, I'm telling you if you can just remove one of these from your trading, that. 50 pips every. Six or seven trades can come much sooner than later I guarantee, nothing, because I don't know you I don't, know what, your bad habits are or how strong they are or what your emotions are but.
This. Can happen right away as soon, as I took support, and resistance lines off my chart my trading got immediately. Better instantly. Better now, if, you're asking which, one of those tools to get rid of first I would say probably, trend lines probably. The worst of the bunch is trend lines maybe. Right, after that would be the RSI indicator, so. Either, one of those two I think would be a really good idea to start with if you use them if you use both of them well, you, really really need this channel let's just put it that way so if I were to go over all, those tools right now it would be a for our video and nobody wants to watch a four-hour video but, just know by avoidance, by removal, of one of those tools can really do some great things for you and in time you will see videos on every single one of those concepts, here in the channel so subscribe if you haven't you're definitely gonna want to see that but let's move on move on to number two number, two is stop trading by feel and you. Know you do this you all do this and there, is no reason to do this because it's super undisciplined, so, what do I mean by that so, one, example I, like to use is the fear of missing out trade let's, say you wanted to go long on the euro dollar but. You're stalling, and you're chickening out you're not really sure if you should do it but then the trade all of a sudden starts going long starts, going long fast and you freaked out because that was your trade you were right and you don't want to miss out on the profit but the price is already gone 20, pips past where you wanted to enter, but. Again you don't want to miss out on any of the profits, so you just enter anyway, these, trades fail so, often and the. Reason why is because when you enter a trade, just. For example 20 pips beyond where you should have entered a trade now. The math, is against, you now. Your stop-loss is, 20, pips, further. Away from where it should have been now, your take profit, wherever. It is is 20. Pips further away to where it should have been and you have mathematically. Put yourself at a disadvantage and, there. Are already so many forces working against, us in the forex market the last thing we need is the math to be against us but, you just put it there and now. You're at a big disadvantage so. My advice here is never. Enter, a fear of missing out trade just let it go if it goes 300, pips who. Cares, learn a lesson next time stop, being indecisive if, it's a trade you want to enter enter the trade and the reason a lot of us don't do that is because we don't have a. Defined. System. In place that, we can always refer to and because, that we have no confidence we're, just kind of guessing we're trading, by feel, this, is exactly, what you want to avoid so something else we do once. We've actually already entered a trade and it's, going our way and it starts to stall out a bit we. Sometimes just assume that, it's just ran its course, we think it's overbought, or it's oversold, just by looking, at it now, why do you think that is why do you think that that trade is overbought, or oversold just. By you looking. At it what give me a reason, what, is telling, you other than your own intuition, which is bullshit, that. It's overbought, or oversold, these, aren't stocks this, isn't gold, these are currencies, and they can go as high or low as they want and so this also ties into my last one here and that's exiting a trade just because again. Just because you felt like it was the right time to exit, again, what, was, telling, you to exit give me something concrete was, it some indicator, was, it because there's a particular news event coming up that I can almost get on board with but that's almost, never why people, exit they, just think it's run its course or they're. So happy with the money they made they don't want to lose any of it they don't have a good reason and when. You don't give a reason, what, you're saying is that, in your body and your brain you have these telekinetic, powers, that can tap into the forces of the forex market, and we. All know that is complete bullshit, the, problem happens when, you. Exit a trade just because and, you were actually right. Because. Now. That, validated. Your own bullshit, and now, you believe these powers actually exist and you. Know what happens every time somebody like you does that somebody. Like me stays in the trade and that's, the time where, that trade runs another thousand, fifteen hundred pips you.
Let Your emotions get in the way you. Acted like you were a psychic and that's. Why you didn't get that big run and I did so this is so important let's go over why this happens, again emotions. I can't. Just say hey remove emotions, from your trading that's that's. Never going to happen overnight. We're, humans we all have emotions but, if you. Are ever going to be elite in this game you. Need to find, a way over time to, completely, remove emotions, from your trading that, is so hard to do especially, when there's actual money on the line it's really not that hard when you're on demo trading but, when. You first start putting your own money, forward. And trading real money completely. Different. And, I had to make that transition from trading my, money into trading somebody, else's, money and other firms money that, was a whole other mindfuck in itself and I had to get over that and. I didn't really do well at first because of this but I understood. What I had to do I had a great trading system that worked amazingly, and that actually got me to that pro level but. I had to get rid of the emotions, because. It didn't matter how, well that system worked if my emotions, were getting in my way I have a good handful, of trade psychology, videos I'm gonna put up on this channel too that can actually help you slowly, get rid of those emotions, little by little so. Sticks stick around for that but, understand, that the, reason these emotions come into play in the first place is because, you just lack confidence you, don't have something that works that you can always refer, to and just, use that over and over great, traders aren't just born good, traders they. Find, a system that works they test it out and. They. Optimize, it as best they can and they. Use it without, emotion. And they, just do that over and over that's. All it is and. That's all you need to do but, that will lead me into the, number three thing you need to avoid and that is to stop trading with no consistent, trade management in place do. You after. You enter a trade know exactly, what to do because you actually have something written, down right in front of you that says if my trade, goes this way I do this, if my trade, goes the other way I do this, and at.
What Point do I do these things and I'm serious I don't mean one in your head I mean something actually written, down pen and paper that's, sitting right next to you because that's exactly what, I recommend, you do I still, do it it's all in my head now just because I've trade it so much but, it's always within. Five, inches from my hand so if it ever slips, my mind for whatever reason, I can just flip a page and it's right there because it is that important, to me next. To knowing what to avoid and. Understanding. Who you're trading against, my number one forex tip and my number one Forex strategy, managing. A trade is the. Single, most important, thing out there and I don't want you to be lost I don't want you to be guessing I don't want you to be trading by feel. Once, you've already entered a trade so what I want you to do right now is get a pen and paper or if you're out about pause the video until you can find, a pen and paper and you and I are gonna put together a very crude version of a trade management system that even though it's crude, and it's it's your first rendition of it it's, something you can actually refer to and use right now so. You'll never be unconfident, about a trade again you might be unconfident about your trade management system, and that's fine it's just gonna get better and better over time especially with some of the videos I got coming out but you will always have a plan in place and, then you can just optimize, it over time but, again no matter what it looks like having one is way better than not having one so, in the true spirit of this video, before. We start I'm gonna tell you the things that you need to avoid, and I know I have the tendency to talk fast I'm gonna slow it down now because we're actually really, getting into what you, need to be starting to put together and, I, don't want this to be unclear, so. The first thing I want you to avoid is make sure you're. Being adjustable. Not, being adjustable, in a trade management system, can really, really. Hurt you so, for, example I, just looked it up on my phone and on, the daily, chart the. Euro Pound is moving, an average of 63, pips per, candle. To. Where the pound kiwi, is moving. 199. Pips, per. Candle that's, over 3 times, as much as the Euro Pound the. Pound kiwi is 3 times as volatile, as the. Euro Pound is. So. Given. That fact and given. The fact that all timeframes, are also different. Why. Would you have the exact same stop-loss, on both, of these pairs even. Crazier, why. Would, you trade the euro pound on a 15-minute, chart and say I'm gonna use a 20 pip stop loss and then. Go, over to the pound Kiwi on the daily chart and say I'm also going to use a 20, pip stop-loss, it, makes no sense that, 20 pips stop-loss is gonna get taken out quick. But. This is what a lot of people do I talked. To a guy and he was so. Confident about this I didn't have the heart to tell him that it was just completely ridiculous. He says that. He has a 30 pips top loss no. Matter what he trades no matter which timeframe, and this. Is what I'm talking about by not being adjustable. I knew, for a fact this, guy was a terrible. Forex, trader because, if he can't even adjust to different timeframes. Much. Less even more volatile currencies, he. Doesn't have a shot this. Is going to take a little more work on your end especially if you trade multiple currency pairs because. You cannot treat the euro dollar the same way you do the, pound kiwi or the euro kiwi they're just different pairs they have different volatilities you, can't have the same numbers, there and this, is surprisingly. A big, mistake a lot of people make. Next. And this, is really a big one do, not for. The love of God chase. Losses. In. Your trading management, system that we are getting ready to put together, always. Put a stop loss somewhere. And never, move it further back, just. Because a trade isn't going your way and, you. Hope that at some point it comes back your way and you want to give that trade more breathing, room if, you have a stop loss at 30. Pips let's say minus 30 and. A. Trade is going, against you just. Let it hit the stop loss and then move on to something else don't. Screw with it don't, move it back just. Because you want to give that trade room to come back your way because. Sometimes it's not going to and now you just took a big loss and if. You have a stop loss at minus 30 pips and the trade has already gone minus, 20 pips don't. Chicken out and just, exit the trade because, you, would rather lose 20, pips than 30 let. The trade do, what it does let. Your system, do, what it does but, make sure you always had that stop-loss there so you cap your downside, there's only so much you can lose alright, because capping your downside is really good what's. Not good and my third thing to avoid is capping.
Your Upside, so, you'll see a lot of people talk about a two-to-one, trade. Ratio a profit - loss or a three-to-one and what. This means is what they want you to do is for, example enter. A trade and then have a stop loss at 20, pips but. Then let's say your trade is going well and you get to that 40, pip mark they. Want you to exit your entire trade so. You're either going to win forward, or, lose 20. Again. This is better than nothing because at least it shows discipline. Of some sort but, why are you capping, your upside, you. Can have both, there. Are multiple, times a, year on, almost every currency pair out there in the forex market where. A trade will. Go, anywhere. From a thousand, to fifteen hundred pips and sometimes, higher and there's, a bunch of trades that go anywhere from five to eight hundred pips, and catching. On to those runs are what, separates. The. Major Pro, traders, from. Everybody, else because. I'll get a little bit of I'll get a lot of small wins here and there but all those wins are designed to do or offset, my small losses and then. I'm back to zero those. Big, long. Sustained. Winds, are what, actually goes into my pocket, it's. What makes your bottom line awesome. It's. What gets you on the radar of people who want to hire you it's, the type of thing that makes your dreams come true as a Forex trader and by. Capping, your upside you are standing, up and saying I want, no, part of this and that is insane, do. Not use either, one, of these in. Your, trade management strategy, okay so, now at you know to avoid let's, let's. Put, an example together remember this is only an example I want you to see the structure, but I want you and. I want you to write it down but. I want you to leave the numbers blank because you're gonna plug in the numbers yourself so just for example let's say we're trading the pound dollar and we're, doing it on the 15-minute. Chart all right so it, would be something like this after I enter a trade, I'm. Gonna put a stop loss at minus. 30 pips 30 pips a loss and I am going to do this every time I trade the pound dollar on the 15-minute, chart. So. Then if. My trade is doing well, I'll. Do this once. It gets to 50, pips and only. When it gets there I'm, gonna take half of the trade off, I'm gonna take profit, but only half. And. I'm gonna leave the other half open, then I'm gonna move my stop loss from, minus 30 pips. To break-even which, means I'm gonna put that stop-loss, up back to where I originally, entered the trade. Now. What that does is insure. Me that it's not a matter of if I'm going to win now it's just a matter of how much I'm going to win because, even if that trade cuts the other way and hits my stop-loss. I took. A zero but I already banked some profit and that's, fine but, what I've also done is put myself in a position to, get those really, nice long, runs. Albeit. At half my trade but, still at least I'm in the game and I've.
Banked Some profit I've already, won so maybe, then at some point let's. Say at the hundred, pip mark. The plus 100, then, I'll start putting a trailing, stop in, because. I, don't want to miss out on all 100. Pips of that, profit, at this point I really, don't want price going back to zero, so put a trailing stop somewhere, maybe at the plus fifty mark and then just follow the trade up and hope for a really nice run that part for right now is pretty much up to you until that video comes out but like I said leave. The, number parts blank. Because. I, don't even trade the 15-minute chart all, right so these numbers aren't gonna be all that great I just want you to get the idea of what a trading. Plan looks, like so avoid, those pitfalls we, talked about earlier, make. It look something like this and you're well on your way so, to wrap it up once. You do this write down a step by step if-then procedure like we just did for managing a trade and then every, time you enter a trade follow. It religiously, go. By that exact, structure you just wrote down and do, nothing else because. When you deviate, from this you, start falling back into trading by emotion, trading. By field then. We're back to this shit again but, if you can follow that plan to. The letter you're. Much much closer. Of. Getting, to one of these. Because. We just avoided, that pitfall, of. Not. Having a trade management in place that we can actually look, at and refer to and be confident, in every. Time we enter a trade and if, you take my further advice and start eliminating those tools that don't work you can get rid of more of these and this, number can go higher. And that's. What we're here to do. We. Got so much more coming we're. Gonna put, more trade management strategies in place that little structure, you just wrote down we're gonna make it better and better and better we're. Also gonna put trade entry, strategies, in place the sexy stuff the stuff everybody's looking for the fun little indicators, and trading methods, that get. You in at rates the most optimal, time possible, so you, can start winning right from the breath from the get-go because, you were able to go long or go short in the best possible, spot, we're, also going to learn more things to avoid and that's, good because the more we avoid the more those losing trades we can take off at the table and it goes beyond the Dirty Dozen guys there's. So many things out there that people are using and so many things that people are doing that, are toxic and they're hurting their account we're just gonna knock those things out one by one and every time we do, your. Trade accounts gonna get better and better and better because, we just keep eliminating. More, and more mistakes, and if you like videos like this I have a lot. More trade. Psychology, videos getting ready to go because, I really, enjoy them and I know a lot of traders do too because we can put the best system, in the world together but if your emotions are still getting in the way it's not going to matter so these are equally, as important and you, can find all of these things right, here on the no-nonsense forex. Trading channel and on, the blog I always. Every video, has a corresponding, blog to, it and on. Those blogs I approach things from a little bit of a different angle and I even sometimes add some bonus tips into, so, especially if you learn better reading than you do watching videos definitely check out that blog but check it out anyway there's always a ton, of cool stuff on the site and if. You thought this video brought, you even just a little bit of value somewhere, somehow, give me a thumbs up it, means a lot I put a lot of effort into making these for you and also if you would down in the comment section, let.
Us Know what your, biggest, bad. Habit, is when it comes to forex trading I want to hear them just when I think I've heard them all somebody comes out of nowhere with something that I've never heard before but, I want to get the consensus, about what the trading community here struggles, with and so give me your worst habit maybe. I'll make a video out of it someday but either way check out some of their videos on the channel give. Me a like check out the blog and altogether. Guys just, go get it.