Becoming a Consistent Trader

This is my first thread so forgive me if it's all over the place

What i want to do is take a very simple system and trade it consistently to show traders, mostly newbies how you can become consistent. It's not rocket science!
What you will find very difficult to do is to control your emotions and the urge to not overleverage your account.

If you want to get rich quickly please go to the casino and take a punt there.

What I'm going to do is show you my set ups and my trades as and when they happen.
They will not all be live as I have a job and can't post screen shots from work.

To save myself alot of time and re-invent the wheel,I will post a link to the system I use.
It's free and everything is explained there.Please note this is NOT a marketting stunt. There is no payment involved etc.

I want to say that if you do follow my trades i will not be resposible for any finacial loss etc. If you are going to learn and trade this method please demo it for a few months.
You will take losses - that's a guarentee! What's important is that you keep your risk really small, I personally don't risk more then 1% per trade. Yes that's 1%,lol.
It's what I'm comfortable with and keeps me in the game when times don't go my way.
I don't take many trades per month, maybe 1 - 3 a week depending on market conditions.

Here's the key to this system....the risk reward is great! So far, as of today ,I am up 17% for the month of January and that's from three trades. This week I haven't taken one trade, which will drive some traders crazy! Remember trading is NOT about action. This seems to be a huge misconception. It's really dificult for people to go from a 'normal' job to trading consistently because people have this belief that you must be trading all the time in order to make money. What I have found is the more you trade the less you have left in your account at the end of the day,lol.

I trade the forex market, trading Support/Resistance levels. There are NO indicators or fancy little green and red dots that appear on your screen to show you a buy or sell signal. The entry I use might be a bit different to what some are used to. I place limit orders in the market at my defined levels and just wait for price to come to me. You can use candle patterns etc if you want extra confirmation but you sometimes find price just powers off these levels, leaving you scratching your head.

Well that's the start of my thread, i hope to be of some help to someone out there.
Please post any questions you may have and I'll do my best to answer them.

All the best

A

Dude - that totally rocks.

And yes - for those skeptics out there, you don't need to pay hundreds or thousands of dollars or even any money for Forex Education.

Question - if someone is such a good trader, then why would they charge you much money to learn how to trade?

Forex,

I think you're right not to post a link to a system description on another site - such might call your motives into question. Given your aspiration to help newbies though it would seem useful to describe your system in some detail here. Perhaps just an outline to start with and the finer points exposed with your trades?

Good luck.

I would answer ed's question, "why would they charge a lot of money to teach you to trade?"

- teaching people requires time and effort and often becomes intrinsically unrewarding (you may like someone over a beer but may not enjoy their poor work habits, say)
- to teach someone takes away from ones own trading and thus a compensatory income stream is appropriate
- often teachers who are genuine are becoming bored with trading and looking to replace its mechanics with something else that gains income from what they know
- when you pay money to learn you a) are much more committed to succeeding, and b) have greater belief in it.

Good training is worth having - and worth paying for if you can find and verify it.

Its funny you say that - I briefly got into Internet Marketing - and posting on forums IS AN ACTUAL MARKETING STRATEGY.

One scamming way of doing it, lets say someone is trying to lose weight. You jump on weight loss forums AND WHETHER ITS TRUE OR NOT you say - I lost 10kg in 4 weeks and visit my link www.takeyourmoney4noresult.com

Yes - don't get scammed like I have!

Thanks Nine, will post as I go.

it's still very early so i don't want to post any links just yet. I will show some trades first and see how it goes from there.

I must say after spending thousands and I do mean thousand of dollars on trading books, courses, mentoring etc the best stuff has been for free from guys who want to help people. I believe that if you help someone that will be returned at some point. But in this sad world of trading eveyone is sceptical of some looney like myself who wants to help,lol.
Time will tell, as it always does

I do a top down analysis of the market and only trade in the direction of the major trend.
I trade confluence levels using support/resistance levels, fibs and pivot points.
When i get a triple confluence I place my order and wait...like a hunter stalking it's pray,lol.

This sounds like its going to be a fascinating thread over the next few weeks...Good luck Forex99!!

As I'm really quite new to trading I'm currently trying to develop and figure out a system that works for me, so thanks to forex99 for sharing his/her ideas and I'm really looking forward to the rest of this thread!!

Hi Guys, sorry I haven't posted anything in the last few days. I've been a bit busy and there really have'nt been any set ups that I like.

I will post a quick explanantion of how I appraoch the market each day and will slowly build on it in the days/weeks to come.

The first thing I want to do each day is determine what the daily trend is. This is done by a very simple method called Market Flow or swing high/swing low method. Market Flow is a visual way of telling where price might be going next. Have a look at my daily chart of the Euro for an explanation. To make the swing highs/lows more visible I use the Fractal indicator on the MT4 platform.

Once I know the daily trend direction I then go down to my 4hr chart and see what Market Flow is doing. I want the Daily and 4hr Market Flow to be in alignment before I consider a trade. Have a look at my 4hr chart of the Euro for an explanation.

Because these two are not in alignment I don't bother going any further.
In my next post I will look at what to do when the Daily and 4hr market Flow is in Alignment and will then move down to the hourly chart to look for a trade set up.

Cool Information...so how accurate would you say market flow is at telling you what direction the market is heading in for any particular session?

Hey this info sounds like it could be good - woulda been nice when i was starting
Keep it comin ..

good work forex99, you may be a rookie but I commend you on what you are doing...

simple stuff really, but simple works best.

keep up the good work

ragpijin said:

Cool Information...so how accurate would you say market flow is at telling you what direction the market is heading in for any particular session?

Click to expand...

If you want to more detailed information about the system you can have a look the thread called '' the safe trade'' started by you on 22/01/09. While you are on there; you can visit your own web page, through the link provided by you. If you still have a questions un answered then come back , I am sure they will be answered for you.

searchlight said:

If you want to more detailed information about the system you can have a look the thread called '' the safe trade'' started by you on 22/01/09. While you are on there; you can visit your own web page, through the link provided by you. If you still have a questions un answered then come back , I am sure they will be answered for you.

Click to expand...

What's this post all about? Are we missing something?

Ok, so today I'm looking at the USD/JPY.

I've checked the Daily chart and noticed that the market flow is down.See image.
Moving down to the 4hr chart I can also see that the market flow turned down yesterday, this now aligns itself with the daily chart.
Right, this is where it gets exciting!
Looking at the 4hr chart I want to mark any resistance levels I can that might cause price to bounce from. Support/Resistance can be slightly subjective. I say this because you can draw it from the candle bodies or from the highs and lows of the candle wicks. There is no right or wrong way here, just what suites you. I find using the fractals the easiest way and makes my trading less subjective.I now mark all 4hr fractal/swing points on my chart that are closest to price. Chart 3.

Doing a Top Down Analysis I now move down to my 1hr chart. I now draw in my fibs from the high of yesterday to the low of either today or yesterday, which ever one is lower. What I'm looking for is for a confluence area of resistance where I can make a possible trade. Chart 4 you can see two areas of possible resistance marked by the yellow arrows.

Ok, because I now have two possible areas of where price might bounce from I want more confirmation. I want to try and narrow my choices down even further. I do this by adding pivot points to my chart. Some people like them and others think they're rubbish. There are different ways of calculating them and different time zones you can use to get your calulations from. I simply use automatic pivots that my software calculates. They are GMT pivots. I like the daily,weekly and monthly pivots. I don't really care as long as they try and help me make a trade.

Moving down to a 15 min chart now I have added my pivot points to my chart. The chart becomes a bit 'messy' now but don't forget I've already targetted two possible areas to trade from. All I'm looking for is a triple confluence i.e a resistance area, a fib level and a pivot. Chart 5 shows you the one level now has a pivot point as well as a fib level and a resistance level. I like this in deed!

So now I have an area to make a possible trade from. That's if price gets there.
Lets see what happens.
I will discuss entries and targets in my coming posts. Any questions please give me a shout. Please remember to demo this first if you are thinking of trading any of these set ups.

Hi, as a beginner, i'm following this with interest. However, following your notes from the previous post and diagrams, i have a few questions.

1. How many S & R levels should i look for, and over what time period, ie the past hour, day, 2 days etc? And, are we looking to get them around the present price?
2. If the MF is moving down, are we looking to sell? Do we then look to buy once the MF makes a definite change up?
3. Pivot points - below the central pivot point in the buy range and above is the sell range, correct? So does this mean if the price approaches your triple confluence zone, we're looking to sell, with a bounce off? ie, above the central pivot, the sell zone?

Sorry if this sounds basic, i'm literally a beginner

keep up the good work

Ian

Sorry, here's the last one for now...

4. When drawing Fibonacci lines, how do we determine whether it starts from the previous days low or high? Is this why we determine the MF, up or down?

Cheers again

Ian

Ok guys my trade on the Usd/jpy was invalidated as market Flow turned up on us before reaching our entry. Chart 1

Getting to your questions submar1ney.

1) I take the Support/Resistance levels on the 4hr chart from the past week and the present week.
If I take fractal points off the 1hr chart its only from the day before. Also i'm only interested in levels close to price. i really don't want lots of lines on my chart if I can help it.
2) When I have MF on the daily and the 4hr in the same direction then that's the direction I want to be trading in. i will only look for a change in trading direction once daily MF and 4hr MF have changed. I use to trade only in the direction of the 4hr MF which gave me more trades but also gave me alot more losers. Remember you don't need to trade alot to make really good returns!! This is something that people really battle to grasp.
3)Spot on regarding Pivot zones. I really like to see price in the 'buy' or 'sell' zone depending on the direction I'm trading in. So, if like today I see Daily and 4hr MF is down, ideally I want to find a triple confluence in the sell zone (above the daily Pivot point). I know it's alot of things to get all lined up and yes you really need to be patient in waiting for these set ups. But what I've found is when you do get all these things aligned in your direction the trade normally works. Obviously not every trade works out and like any system you will have losers but the losers are really small compared to the winners. Normally I'm risking 30-40 pips for a profit potential of 200 - 400 pips. Which is a really nice risk/reward trade. What you need to remember is don't fall in the trap of being worried about great win/loss ratio. That's all alot of cr*p. You want to ask yourself how much can I make if I'm right and more importantly how much can I lose if I'm wrong?
4)if you have chart software that shows the daily/weekly partitions then that makes it alot easier for you. I've added it on my chart now for you to see. I draw fibs in line with the direction I'm looking to trade in. Hope this helps?

Hopefully we will get action this week.

That explains a lot. Many thanks

So am i correct in saying, at the time of your post this morning, MF was heading down, the price was above the daily pivot, so you were looking to sell from a bounce off the triple confluence (which subsequently didn't occur)?

I followed your instructions to the letter and plotted on my chart. I'm learning a lot. Many thanks.

Do you scan every pair on a daily basis? Is it best to do this in the morning or the evening before, or is it irrelevant?

Cheers

Ian